How flexible pay can help employees in 2023

Abstract

Purpose

The UK is experiencing an extraordinary cost-of-living crisis as inflation and prices continue to rise. Energy bills are soaring, and food prices are rising to record rates, with no expectation that prices will drop in 2023. The current economic side effect is the rise of buy now pay later and the increasing reliance on credit cards. The purpose of this study is to evaluate whether employers introducing more flexible payment policies can improve the financial well-being of their employees.

Design/methodology/approach

The article analyses statistics and reports from various sources which provide detail on the impact of the cost-of-living crisis and the financial stress it causes on employees. The article evaluates sources and studies which explore the limitations of monthly pay and viable alternatives including flexible pay.

Findings

The article provides findings on the rise of short-term credit and buy now pay later schemes due to the cost-of-living crisis and how this is impacting on the workplace. The article discovers the significant benefits in introducing free flexible pay to employers and workers, from breaking the feast and famine cycle of monthly pay to improving well-being, productivity and absenteeism.

Originality/value

This research will be valuable for HR professionals and employers who are currently dealing with the cost-of-living crisis and are looking for cost-effective ways of helping employees financially in 2023.

Citation

Brown, D. (2023), "How flexible pay can help employees in 2023", Strategic HR Review, Vol. 22 No. 2, pp. 47-51. https://doi.org/10.1108/SHR-01-2023-0007