In order to avoid bank charges and limit the use of consumer credit, this financial technology democratizes on-demand payments.
EIn France, unlike other countries, the employee must be able to meet his needs until the salary is paid at the end of the month. If deposits can be requested in order to access the money already earned during the month, the procedure (inconvenient for employees but restrictive for the company) greatly limits this practice.The application was launched by Yann Le Floc’h Stair salaryMeterISE involves the automation of requests and cash advances to client companies to popularize on-demand wages. Description.
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TV6 News: Very common in the Anglo-Saxon world, young shoots that provide payday advances have just arrived in France. How to explain this delay?
Yann Le Floc’h: Among Anglo-Saxons, payday advance payments are commonplace and are managed by agencies that provide consumer loans (“payday loans”) related to interest rates exceeding all caps, and can only be used by employees to deal with financial contingencies The frequency is higher. These crazy interest rates have plunged many employees into a vicious circle of debt.
In France and Europe, our philosophy is different. It is estimated that the employee must be able to meet his needs until the salary is paid at the end of the month. In our culture, there is not so much consumer credit. The French are more accustomed to public occasions. Last year, due to economic difficulties, 60% of French people overdraft at least once, and a quarter of them overdraft every month.
Another differentiating factor that explains the progress of the Anglo-Saxon world is that wages and rents in Anglo-Saxon countries are usually paid weekly or biweekly; the concept of instantaneity exists more. However, in Europe and France, everything is changing very quickly, such as the tax deducted from wages every month; French employees want flexibility, immediacy and better visibility in their budgets. The campaign is underway to increase financial flexibility.
What specific impact will the introduction of “pay on demand” bring?
This allows the employee to freely and completely freely use the salary already earned in that month. In business, this looks like a small revolution because we are used to paying in full at the end of the month. However, in fact, it has been a very powerful social evolution, and in the past ten years, it has been imposed on others with the proliferation of professions and the proliferation of freelancers.
Large companies, such as Wal-Mart, Ubisoft, Novotel, McDonald’s, and even NHS (equivalent to AP-HP), have all successfully implemented it. In addition, the health and economic crisis of Covid-19 has also raised strategic issues for human resource services. They will have to innovate to strengthen and motivate employees in different ways. Moreover, paying wages on demand is a solid way to reconcile these two opposing urgent needs: rewarding employees in an economic environment where it is impossible to increase wage costs.
Therefore, this is indeed a new use, but more flexible compensation is the real social expectation.According to a survey Stair salary OpinionWay, nearly 60% of French workers and employees want higher pay. Maybe it’s time to break this old habit (dating back to the 1970s). Was this habit paid at the end of the month?
The practice of prepayment has been around for a long time-even regulated by law-so what is the added value of stair wages?
The salary deposit is a little-known device on which the employer cannot communicate or communicates very little. For the employee, the request must be made by him according to his hierarchical structure, which constitutes a psychological barrier by revealing a certain vulnerability of his financial situation. Through fully automated prepayment management, Stagewage has brought huge benefits to the company and its employees.
For the company, this is a way to strengthen its social policy for employees, and it can also provide a framework and strict process for deposit management, and all of this is done in an automated way because Stagewage interacts with the salary editor . Another big advantage is the financing of deposits that Stairwage pays directly to employees on behalf of the company. The repayment of the deposit is made by the company at the end of the month when the payment is made. Therefore, accepting the advance payment request will no longer have any impact on the employer’s human resources or cash flow.
For employees, the Stairwage mobile app allows them to request a deposit with 2 clicks, which is then immediately charged in their bank account. The employee can follow his immediate availability to better manage his budget; then, he can avoid overdrafts of bank fees and other bank charges, and thus better respond to unforeseen financial events.