To compete in the workplace, employers must adapt to how and when employees are paid.  Pay on Demand services are common with current gig workers.  Uber, Lyft, Doordash, InstaCart, and other on-demand service workers typically receive pay for their work within 48 hours.  In contrast, most employers pay every two weeks, twice a month, or even monthly.  Having more immediate access to the pay they have earned allows employers to compete for employees on something other than salary.

There are economic reasons why companies should offer Pay on Demand Wage Advance services.

Overcome Debt

In a December 2020 survey, 63% of workers stated they are living paycheck to paycheck since the pandemic. In addition, 27% stated they have taken on over $10,000 in debt since the start of the pandemic.  The inability to pay rent because of furloughs or layoffs is the largest reason for this debt.

While this is troubling, even a small issue can lead to a major challenge for employees.  Let’s face it.  We have all been in a situation at some point in our lives when we had a bill due on Wednesday, but we do not get paid until Friday.  The ability to pay the bill is more an issue of cash flow.  This is especially hard on those who do not have any savings built up.  In this survey, almost half of workers have run out of savings since the pandemic.  In addition, two-thirds of employees believe it will take over 6 months to economically recover once they go back to work at the same level prior to the pandemic.  Imperative to reducing this recovery time is the ability to improve their household cash flow.

Reduce Need for Pay Day Loans

When they confront an unexpected expense and have no savings, many have little choice but to turn to expensive payday lenders. In the survey, 82% of workers state if faced with a surprise $500 expense, they would not be able to afford it.

Up to 12 million Americans take out payday loans each year and three-quarters of those loans are taken out by borrowers who use the payday lending system monthly. Predatory lending fees and charges can be equivalent to a 400% annual interest rate.  At this rate, even small payday loans do not allow employees to get out of this vicious cycle.  Employees stressed about finances often suffer from depression, miss deadlines, and are twice as likely to seek employment elsewhere.

Reduce Turnover

Giving workers instant access to their earnings can reduce turnover from 20%-40%. Since hourly workers have tremendous mobility, reducing churn is a priority for employers.  This reduction in turnover saves employer’s costs in training and HR expenses.  Those companies who facilitate Pay on Demand services for their employees are better positioned to succeed.


Extending Pay on Demand services requires a time and attendance system which goes beyond just clocking in and out.  Instead, offering Pay on Demand with your time and attendance system is a financial relationship with the employee which is rich and empowering. The right Pay on Demand service comes at no cost to the employer or employee.

It is time to start expanding what time and attendance solutions offer. Instead of simply tracking the hours an employee works, the infrastructure delivers an expanded range of financial services for employees.

Companies who approach this opportunity with boldness and creativity deliver value for employees while boosting their brand.  This makes the company an Employer of Choice.

How Can We Help?

To learn ways in which we can help your organization offer Pay on Demand Wage Advance at no cost to you or your employees, contact Time Equipment Company at or 800-997-8463.