Ceridian launches pay-on-demand service in the UK

A study, of 1,145 employed UK adults in September, conducted by The Harris Poll on behalf of Ceridian, showed that the situation is worse with the younger age group, with 61% of 18–34-year-olds surveyed saying that an unexpected expense of less than £500 would prevent them from being able to pay bills.

The study found three-in-four (75%) UK employees, between the ages of 18-44, would be more likely to consider working for an employer that provides free early access to their earned wages on-demand over an employer that does not.

It coincides with the launch of Ceridian’s launch of Dayforce Wallet, a pay-on-demand pay solution, in the UK.

The American software company say the concept will challenge traditionally rigid pay cycles and give employees easy access to their earned pay when they need it.

The Dayforce Wallet has already been launched in North America and Canada. The company said that as of the end of the third quarter of 2022, more than 1,340 employers across the region have signed on to offer it to their employees.

The appetite for pay-on-demand has been growing in the past two years as employers struggle to attract staff.

A 2019 survey of 1,180 American adults by the Workforce Institute at Kronos showed 60% of employees across healthcare, retail and manufacturing industries said they should not have to wait until their scheduled paydays.

More than half of those surveyed said that it was a more attractive benefit than additional paid leave.

“Most fixed pay cycles don’t line up with the real-time nature of personal expenditures putting employees and their households at a greater risk for increased financial hardship,” said Wendy Muirhead, Managing Director for EMEA at Ceridian.

“The pandemic, a subsequent labour shortage, and record levels of inflation have placed employers in a difficult position when it comes to the recruitment and retention of their talent.

“By bringing Dayforce Wallet to the UK, we are helping employers support employee financial wellness, while empowering people to have early access to their earned wages at no cost to them. All this translates into better financial security for workers.”

"Our commitment to every employee includes providing them with access to their earned wages at the pace that best meets their needs, and we are thrilled to partner with Ceridian to meet these expectations," said Zoe Stephens, Group HR Director, Blatchford.