Business Insider South Africa, 2022
— Employee financial wellness in small and medium-sized businesses, as well as large corporations, has become a hot topic, particularly since the post-COVID-19 era.
— Conversations about employees' well-being now examine the link between employees' financial stability and the output of their work.
— The situation has compelled businesses to reconsider workplace benefits and define the future of work, including motivations and compensation.
Engaging and retaining a pool of qualified and highly motivated employees to discharge the day-to-day requirements of their roles are fundamental requirements for the success of any business venture in Nigeria.
It is also important that while they are carrying out the tasks assigned to them, there are no (or at least minimal) distractions that could affect the quality of their output.
According to PwC's 10th annual Employee Financial Wellness Survey, over 63 percent of employees' stress increased during the pandemic, and many of them were four times more likely to find it difficult to meet monthly household expenses. The report goes on to say that employees were twice as likely to have used a payday loan or payday advance.
In recent times, financial distress in Nigeria has reached an all-time high, with some employers taking cost-cutting measures such as layoffs, salary reductions, and freezes on raises and bonuses.
Employers are in a difficult situation, especially because workforce productivity is directly proportional to the overall health of the business and its operations. As a result, employers must take deliberate steps to ensure that a framework that ensures the financial wellness of employees is embedded in the organisational culture of the business.
Given that many businesses in Nigeria place a high value on key metrics such as productivity, retention, and physical health, it has now become critical that employers implement innovative solutions that provide a certain level of security to protect the aforementioned metrics and the organisation's bottom line.
This is necessary to prevent loss of productivity due to distractions that can often result from unmet financial obligations.
A quick survey of some Nigerian employees whose financial stress has increased in the last few months as a result of inflation revealed that their finances have been a distraction at work.
These are the circumstances that have necessitated a greater emphasis on the financial well-being of employees around the world.
On-demand pay is one of the growing financial well-being solutions that have been proposed. Also known as Earned Wage Access (EWA), this is a system that allows employees to access wages earned prior to the traditional four-week payment cycle.
"Essentially, the salary on-demand model gives employees access to their earned wages. It's not a loan or an advance; it's money they earned over a set period."
Albert Owusu-Asare and Ameer Shujja, co-founders of Cadana, a salary on-demand tech start-up based in Ghana with recent expansion into Nigeria, are at the heart of this innovative solution for African businesses.
Cadana assists businesses in delighting their employees by providing a modern payroll platform that enable employees to access their earned salary on-demand, anytime, and from any location.
With its formidable mission to accelerate wealth creation for African workers, the payment and salary on-demand company is building a compensation solution that is flexible, real-time and borderless.
Given how unpredictable our daily lives can be, unexpected bills and expenses can cause great distress to employees leaving them with no choice but to resort to payday loans with often unfavourable loan repayment terms.
Cadana is shaping the future of workplace compensation by working on the vision to give over 400 million African workers access to financial solutions that will impact Africa's work culture through increased productivity.
The compelling platform assists African Human Resource Managers in digitising payroll, statutory compliance, onboarding, offboarding, reports, time tracking, and other processes.
Cadana's time tracking solution automatically synchronizes with payroll to make disbursement seamless, making life easier for people managers and small business owners through the pay cycle.
With the current state of inflation experienced globally, and particularly in Nigeria, it has become critical for business owners to explore solutions such as Cadana to address issues surrounding the poor financial health of employees, as these issues hinder workforce productivity.
According to the Financial Wellbeing Index 2019, 19 percent of employers reported an increase in absenteeism due to financial hardship.
According to the same study, 22 percent of employers see a decrease in productivity as a result of poor financial health.
At this point, it is safe to say that, with the help of technology, on-demand pay can significantly reduce financial stress, resulting in a more motivated and productive workforce in Africa.
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