You've probably heard it before: on-demand pay, or being able to withdraw part of your earned salary immediately. It may sound too good to be true, but it is a trend that is gaining ground. However, there are still quite a few misunderstandings about this method of payment. Time to get rid of them.

‍

1. On-demand pay is expensive and complicated

‍

Misunderstanding: on-demand pay requires expensive systems and complicated administration, making it unfeasible for small and medium-sized companies.

‍

What it's really like: modern solutions such as CashOut are precisely designed to make the process as simple and affordable as possible. The technology works via a user-friendly app and links to your existing payroll administration. In fact, you save time because you no longer have to wait for the monthly salary run and receive fewer questions from employees about their salary.

‍

2. On-demand pay makes employees less loyal

‍

Misunderstanding: if employees are able to withdraw their salary in the interim, they will be less likely to stay with an employer for a longer period of time.

‍

What it's really like: In fact, research shows that on-demand pay increases engagement and loyalty. Employees feel seen and valued when they have more control over their own money. They experience less financial stress and are better able to deal with unexpected expenses. This often leads to lower staff turnover and a more productive attitude to work.

‍

3. On-demand pay is only interesting for flex workers and freelancers

‍

Misunderstanding: this form of payment is only relevant for employees with irregular working hours or temporary contracts.

‍

What it's really like: on-demand pay is valuable for everyone. Permanent employees also benefit from more flexibility in salary payment. In sectors such as hospitality, retail, logistics and healthcare — where people often work with a flexible workforce — on-demand pay also helps to recruit faster and keep employees on board longer.

‍

4. On-demand pay leads to financial problems for employees

‍

Misunderstanding: By paying an interim salary, employees run into financial problems more quickly or borrow more.

‍

What it's really like: on-demand pay is not a substitute for responsible budgeting, but rather an additional tool. In fact, it offers employees a buffer and helps them to absorb peaks and unexpected costs without debts. With tools such as the Cashout app, employees see exactly how much they've earned and what they can take in, so they're aware of their pay. In addition, the app takes payroll taxes into account and sets a limit on how much someone can withdraw, so that it remains safe and responsible. For example, if an employee is down or on credit, he or she is temporarily unable to use the app. In this way, CashOut prevents financially irresponsible behavior.

‍

5. What does on-demand pay give you as an employer?

‍

• Faster filling of services: flexibility in salary payment makes your organization more attractive to talent who today has higher requirements for employment conditions.

• Lower turnover: happy employees stay longer and are more motivated to do their best work.

• Less administrative pressure: thanks to automatic links and smart processes, you have more time for your core activities.

• Modern employment: with on-demand pay, you respond to the expectations of the modern employee and strengthen your position as a progressive employer.

• Happy employees: they get a grip on their own income and experience more financial peace of mind.

‍

With CashOut, you, as an employer, decide how to use on-demand pay and give your employees the freedom to request part of their salary whenever they want. The money is in their bank account within 3 seconds, fast, easy and transparent. Do you have questions about on-demand pay or want to know how CashOut can help your organization? Let's talk. Work. Cash. Ready.

‍