Local PEO rolls out Accelerated Payroll Program in effort to expedite pay to American workers who are facing economic impacts of the COVID-19 crisis
Lever1 is applying thoughtful solutions to ensure struggling employees and client employees are able to pay their bills
KANSAS CITY, April 21, 2020 – Lever1 has rolled out a new program for its employees and employees of their clients to receive payroll as frequently as a daily deposit. Most businesses process pay monthly, bimonthly, semiweekly and at best weekly. In addition, many businesses pay their employees in arrears meaning not only has the work been completed but the employee must then wait a week or more to receive the wages after an additional process to complete the payroll batch process.
The PEO’s solution will allow employees to cash out their worked and earned wages daily, if requested, with the goal of providing much needed resources to those in need. Paying workers as work is performed is not a new concept but most frequently seen with tipped employees and rarely an option for hourly and salary employees.
Lever1 CEO Gregory Gragg said of the decision, “We see this as an adaptation to an outdated and unevolved industry that is long overdue.” He went on to say, “Not all employees will need or want this solution, but we are able to move faster and more efficient utilizing these proprietary systems, such as our proprietary timekeeping software to overcome the challenges other payroll systems face with the quick turnaround.”
A recent study commissioned by Fortune by the Center for Generational Kinetics found out of more than 1,000 workers surveyed, nearly half worry weekly that they’ll run out of money before payday, and 34% of respondents said they regularly lose sleep due to financial stress. To make up for payday shortfalls, people often resort to drastic actions such as not buying groceries, taking on extra work, or delaying continuing education. More than a quarter of all employees would use an on-demand pay option weekly, and more than 40% say real-time pay would translate to more control over finances and better peace of mind.? In addition, there was a 10 percent reduction in turnover and 44 percent of employees say immediate access to pay would inspire more effort in their work and make them more loyal to an employer thus improving a company’s employee retention efforts.