Eyeing employee perks: How big of a deal is flexible pay?

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Set yourself apart: Flexible pay hasn’t been a realistic option for most companies in the past. Now that Deel has changed that, take advantage. Learn more about Anytime Pay and how you can offer this unique perk to your team.

Employee perks can have a wide and fascinating ripple effect.

Just take a moment to ponder: Would turnover go down if the company adopted Summer Fridays? Would eNPS scores improve if the organization started offering student loan repayment assistance? Would offer acceptance rates jump if a company rolled out a six-month parental leave policy?

See? Fascinating. But while certain work perks like unlimited paid time off and stock options steal a lot of the spotlight, there are some intriguing, under-the-radar perks showing up in employee contracts lately. And among those lower-profile perks, flexible pay is gaining momentum as a valuable financial benefit.

We decided to dig deeper into this budding perk. In partnership with Deel, we gathered intel on how flexible pay can work and how valuable it is to the employees who have access to it. Let’s dive in.

The big idea

Flexible pay allows employees to claim a portion of what they’ve already earned before their scheduled payday. It’s particularly handy when employees are facing unexpected expenses. But beyond that, it also opens up doors for employees to utilize different financial plans that don’t operate around rigid paydays.

In practice, flexible pay has been tricky for HR teams to adopt without disrupting payroll operations. Just think about the logistics involved in letting an employee access part of their paycheck early. You’d have to deduct that from the amount they collect on payday, calculate how much employees can access and when, and keep track of it all for each individual.

Clearly, that can quickly become messy and confusing, two words that no company wants associated with financial or payroll. But because this could be a valuable perk for employees, Deel spent months building a solution that would make it easier for companies to offer flexible pay.

Flexible pay in practice

Deel created the first global, fee-free pay solution that enables flexible pay. Anytime Pay is built directly into Deel’s payroll solution, so there’s no extra work on the back end for HR teams. They handle employee setup, compliance, and payouts so that it’s seamless for HR and employees.

Employees can access earnings through a dashboard that shows them their available pay, their withdrawal history, and their remaining access days. They can make multiple withdrawals before the monthly payroll cutoff date, and each withdrawal is automatically deducted from their next paycheck. Most withdrawals arrive within three business days, depending on bank processing times, and they are shown clearly on payslips.

All the while, payroll, cash flow, and admin work stay the same. HR has full visibility into who has access to Anytime Pay, and it can be disabled for individuals at any time. Deel also created built-in eligibility rules that help prevent misuse.

Sound like a win-win? Probably because it is. Employees get access to more financial flexibility, and the payroll flow for HR stays the same.

Those aren’t the only wins flexible pay can achieve, either. According to Deel, companies that offer flexible pay options see a 50% reduction in turnover, plus stronger morale and improved overall job satisfaction. Quite the ripple effect, eh?