With this unprecedented crisis for most of us, the world is going to change, and companies are going to have to give their employees flexibility.

With the "uberization" of professions, the success of micro-entrepreneur status and the boom in freelance work, is the payment of wages at the end of the month becoming obsolete?

With the multiplication of mission- or task-based remuneration methods, society as a whole is beginning to integrate a new norm. "New? Or maybe not, since it bears a striking resemblance to the pay-per-day schemes of our forebears! In any case, for more and more French people, budget management has changed. We re moving from a system where wages are paid in a lump sum, to a new model where pay arrives as soon as the job is done. Instead of having a reserve of money to smooth out over the month, we now have the option of dealing with unforeseen financial circumstances, should the need arise.

Faced with this shift in mentality, the flexibility of which echoes professional and societal evolutions, Anglo-Saxon companies have already successfully experimented with on-demand salary payments. In "traditional" companies, this is a way of reconciling job security and financial flexibility! And in the context of the Covid-19 crisis we are currently experiencing, this could be just the answer to the financial worries that are shaking the French.

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What is pay-as-you-go?

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Payment of salary on demand means that the employee is no longer paid all at once, at the end of the month, but according to the days already worked. That is, if he has already worked 10 days, then he can, if he wishes, receive a portion (usually 50%) of the sum corresponding to those 10 days worked.

Thanks to an application (like Stairwage!), they can track the amount available to them in real time at the end of the day. Companies such as Walmart, Novotel, Ubisoft, MacDonald s, KFC, etc., have already adopted this new practice worldwide. So why has this service, which is now arriving in France, taken hold across the Atlantic?

Here are 3 benefits, for both employers and employees, that explain the success of this new system.

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An innovative and differentiating compensation policy

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Pay-as-you-go is first and foremost an asset for attracting, retaining and hiring the best employees. For the companies that have implemented it, it s a formidable engagement tool that has given their HR policies a boost. Firstly, because it attracts 30% more applicants! When it comes to standing out in the recruitment market, where the best potential employees are snapped up, financial well-being is a powerful argument. It also has a significant impact on employee retention, with 50% less turnover, and on motivation, which increases by 69% with the introduction of pay-as-you-go.

With such a positive effect on key HR indicators, pay-as-you-go becomes a competitive and performance-enhancing asset for companies. In the context of the recession already forecast for this year 2020, which will force companies to be at their most productive, it can make a strong contribution to involving and motivating teams.

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Financial peace of mind for employees

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The reason why on-demand payroll is so appealing to employees is that it spares them the financial stress potentially generated by a one-off payroll payment.

How can they cope with an unexpected bill during the month? Medical expenses, a broken-down household appliance, a school trip for the children... Unexpected expenses are a regular feature of employees lives. Many households manage their expenses on a day-to-day basis. They don t have the cash at their disposal to deal with a financial glitch. In other words, they have to borrow, usually at high interest rates, or take on the burden of paying agios and bank charges. All of which adds up to a hefty bill...

By drawing on your salary on demand, depending on the work you ve already done that month, you can better anticipate any slippage in your budget. And the benefits of such a payment model make all the more sense when you consider current events!

With last week s sudden lockdown, many French people rushed to supermarkets to stock up on foodstuffs. But many also made the occasional exceptional purchase, as required:

• A freezer,
• a printer,
• a computer, a microphone, a webcam, etc.

For a family, absorbing such a cost in the middle of the month can lead to financial difficulties. How can they cope if they have no cash or savings? It s hardly surprising, then, that employees who benefit from the pay-as-you-go policy see it as a factor of financial well-being! 57% of them directly identify it as a stress-reducing vector.

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A formidable vector of efficiency at work

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Because the other virtuous effect of pay-as-you-go is that it boosts employee performance! Indeed, for example, beneficiaries of this system multiply their productivity by 3. Employees financial stress is significantly reduced by this new system, giving them a real sense of financial well-being and enabling them to stay focused on their work.

Pay-as-you-go gives employees the opportunity to become more involved in their actions within the company. As a result, their productivity naturally increases! It s also more empowering for employees, who gain control over something over which they previously had none: their salary.

It s true that pay-as-you-go is a new way of managing our monthly budget, and one to which we re not yet accustomed. But for a growing number of self-employed workers, it s already a reality. It s a new mentality that s gradually spreading throughout society. It s a new mentality that is gradually spreading throughout society, and one that is seriously challenging the inflexible one-off salary payment system.

For companies, it s a real asset in terms of competitiveness and talent engagement. For employees, it s a factor of involvement, motivation and empowerment. All the more reason to make on-demand pay a key element of your compensation policy.