Average weekly earnings are still £18 lower than their peak before the 2008 financial crisis, according to the earnings and working hours, Oct 2019 data from the Office for National Statistics. That situation is unlikely to change for the better any time soon thanks to the economic crisis in which we currently find ourselves due to the COVID-19 pandemic.
A great user experience and a secure and GDPR compliant process were key priorities. And so CheckSafe came into being. We recognise that the time to hire is really important and by integrating a lot of the checks through APIs [application programme interfaces] we ensure the process is a quick and user-friendly experience.
In some cases, young workers will have to borrow or use high-interest credit cards – meaning they’re starting their working life off on the back foot. That’s not to mention that when that first pay cheque finally comes it may be much less than anticipated with tax, pension and any student loan payments taken out.
Vernon adds that managing and budgeting with a lump sum monthly payment can be difficult, particularly if you’re not used to dealing with larger amounts of money.
While pay may come in one go, costs are spread throughout the month. Despite this, research from Portafina found that the average person spends 81% of their disposable income in the first week of being paid. That doesn’t leave a lot of money spare to cover any emergencies or surprise costs.
Employers who offer benefits that help new workers with the financial transition into the workplace, will not only benefit from attracting the best talent, but ensure employees’ minds are on the job rather than worrying about being able to pay bills, or mounting debt.
Benefits such as on-demand pay allow young workers to design a budget around their lives and live within their means, rather than struggling to get to the end of the month, says Vernon. When combined with financial education and savings vehicles this instils good money habits from the start,and reduces the need to borrow to meet day-to-day expenses and cover anything unexpected.
Never before has there been a better opportunity to use technology to truly engage with individuals entering the job market for the first time. And using data which reflects all aspects of their lives allows you to create a truly tailored reward package, communicated through solutions that will engage.
*This article was written for, and features in REBA, October 2020.