With weekly pay, payroll teams are responsible for 52 payroll runs, rather than 12 with a monthly pay frequency. The time and cost savings from making this change are stark. 

Access EarlyPay data shows that moving from weekly to monthly pay can save employers between £40 and £100 per employee annually.  

This represents a 50% saving in payroll costs. For businesses with 2,000 employees, this could be an average annual saving of £140,000 on payroll costs alone.  

At a time of rising costs and significant pressure on margins in a number of industries, these savings are a significant sum which could improve cash flow and be reinvested to facilitate future growth.  

Weekly pay has been more commonplace in sectors like hospitality, care, manufacturing and logistics with varied shift work, casual contracts, and seasonal peaks and troughs.  

As more businesses shift over to monthly pay cycles, it’s vital to get employees on-board and support them through the process.

Managing the transition 

Making the switch to monthly pay can feel daunting to both businesses and employees. 

Employees currently paid weekly may need to manage their personal finances differently, with bills and other expenses organised around this schedule.  

Moving to monthly pay can be stressful for employees, particularly the first pay cycle after moving to monthly pay, when a longer gap between payments can have a significant impact on their ability to cover their essential costs.  

Many employers use an advance to help manage this process, paying three weeks’ wages in advance, which is then recouped over the following three months.  

This process can help to ease the financial worries for employees, but this is a costly exercise for employers and those working in sectors with significant levels of staff turnover could be left out of pocket if employees move on before the advance has been reclaimed.  

This is where earned wage access (EWA) can help ease the transition.  

About earned wage access (EWA) 

EWA, also known as on-demand pay, is not new but it is gaining popularity as staff seek to get more flexibility and control of the wages they’re earning.  

On-demand pay or EWA solutions, like the Access EarlyPay app, enable employees to drawdown from the salary they have earned so far that month.  

As well as helping organisations with recruitment and retention, EWA solutions already help millions of people to meet unexpected bills and manage financial stress, without falling into the spiral of credit card debt and payday loans.  

Data from Access EarlyPay shows 93% of users said that on-demand pay has helped them through the cost of living crisis, and 75% of respondents who would have previously relied on high-cost credit facilities have used these options less since having access to EWA.  

How to help staff move from weekly to monthly pay  

• Communicate early – it’s important to notify employees well in advance of any changes to their pay cycle. This not only gives them enough time to adjust their budgets and financial commitments if required, but also enables them to ask any questions to understand the change.  
• Consider their wellbeing – changes to pay frequencies can be a stressful experience for some employees. As an employer it’s crucial to be supportive and provide extra support or assistance with financial advice or budgeting support where required.  
• Provide flexibility and control – access to on-demand pay means employees can request a portion of their accrued wages at any point in their pay period. This allows employees to control the transition according to their own circumstances.  

Is your payroll system ready? – an effective transition to monthly pay is reliant on a flexible payroll management system. Moving from outdated systems to industry-leading payroll software can help to speed up the process, improve reporting and reduce the risk of human error.  

The wider benefits of on-demand pay 

On-demand pay doesn’t just help ease the transition between weekly and monthly pay, but also plays a vital role in boosting financial wellbeing for employees. 

Thousands of businesses across the UK are reaping the benefits of a more engaged workforce, more competitive recruitment and stronger employee loyalty.  

An Access EarlyPay survey shows that companies offering on-demand pay see:  

• 46% increase in staff taking on more shifts 
• 80% increased loyalty 
• 73% higher change of recruiting against a company that doesn’t offer on-demand pay 

What do employees think? 

"After getting an unexpected payment come out of my account [sic], I was able to use Access EarlyPay to take part of my monthly salary early so I didn't incur charges for going into my overdraft. Ultimately saving me money in the month. This was completed within minutes. It's a relief to know that I have the option there should I need it in emergencies." 

EarlyPay user review, Google Play Store 

What about employers? 

“With Access EarlyPay the feedback from our staff is amazing. Before, they’d pick up shifts, they’d do extra work to help pay for things, but waiting four weeks for their pay was a struggle. So EarlyPay has impacted our staff’s lives because they can now withdraw some wages early if they need and they don’t have to owe people money.” 

Nicola Cope, Business Operations Manager, Premier Community