While most Americans still wait two weeks for their paychecks, an increasing number are getting their earnings much faster — instantly, as soon as they clock out of work. On-demand pay has started to become the new normal in employee pay.
“The No. 1 cause of stress in the United States is financial pressure,” says Nico Simko, founder and CEO of Clair, a social-impact financial technology company. “A lot of that is caused by the two-week pay cycle that dates back to a time when people were receiving paper checks.”
Clair users are among the first in the nation to get instant access to their earnings, right from their punch clock or scheduling apps. They are also never charged any fees for these advances. That means workers can rely less on problematic solutions like payday loans.
“It’s not fair for any American who works a full-time job to have to take out a payday loan just to make ends meet,” notes Simko. Most of these lenders charge upwards of 400 percent in annual percentage rates (APRs).
Simko also notes that Clair is the first product of its kind not to require employers to either pay for the benefit or make changes to their payroll processes. “We partner with an employer’s time-and-attendance and payroll systems,” explains Simko. “It’s a benefit that basically administers itself.”
Clair doesn’t just offer wage advances; they offer a full slate of financial benefits designed for blue-collar workers. Simko thinks offering this sort of comprehensive financial benefit will soon be the new normal for employers. “Employers and payroll and time-and-attendance systems are going to need a complete financial wellness system,” he predicts. “This is going to be a ‛need to have’ as opposed to a ‛nice to have’ in terms of attracting and retaining talent.”
For Simko, the bottom line is simple: better financial services like wage advances means happier employees, and happier employees stay longer and are more productive.
To learn more about Clair, visit https://getclair.com/.