An on-demand earnings fintech, FlexEarn has partnered with Sage to provide a new earned pay access service to UK businesses using Sage Payroll software – supporting the responsible financial well-being of employees.
Available now through Sage Business Cloud Marketplace, the app allows employees to withdraw a portion of their salary before their regular salary payment date, helping them budget more easily and with less stress. FlexEarn works with Sage 50cloud payroll software without any changes to the employer payroll process and at no cost to employers. Employees pay a low fixed fee per withdrawal (usually £1.50), although some employers may choose to fund this themselves.
Employees can benefit from better financial well-being, while employers can benefit from improved productivity and a healthier and happier workforce financially: three-quarters (77%) of employees say money worries affect them at work and employers say they lose 2.5 days per employee per year through absences related to financial stress. Staff turnover may also be affected; EY’s Employee Financial Wellness Survey calculated that 20% of employee turnover is attributable to financial stress.
Jonathan David, Founder and CEO of FlexEarn, said, “In Sage, we have found a great partner, an organization that provides a foothold in payroll across the country. Over 40% of UK private sector companies trust Sage payroll software. , paying more than 25% of UK employees. FlexEarn’s solution is built with state-of-the-art technology and offers compliance and peace of mind recognized by its ISO certification. Since FlexEarn is so easy for employers to set up and manage, this agreement should help scale our business while offering Sage another string to their payroll bow.
Sage launched its sustainability and society strategy, Knocking Down Barriers in June, and its partnership with FlexEarn reflects a key part of the company’s ambition to tackle social and economic inequality with the support of technology.
Mai-Po Wan, Product Director for Sage HR and Payroll, Sage Group, said, “Our software helps companies easily pay and engage their employees, all in a simple, secure and accurate way. This partnership goes even further and allows employers to support the financial well-being of their employees, giving them access to their salary when they need it, helping them to better manage their finances with much less stress. It’s a great example of how businesses across the country can use technology to improve employee health and well-being. »
In April, a study by debt charity StepChange found that more than 14 million people had suffered a drop in income which had affected their ability to pay essential costs since March 2020, following the pandemic. 11 million affected people said they are still struggling to meet these costs. The research highlights how the pandemic has exhausted coping strategies and eroded financial resilience, increasing the likelihood of people going into debt.
Jonathan David said: “A financial health crisis is plaguing the UK workforce. Access to earned wages programs can provide people with faster access to their income and help them overcome the cycle of debt, avoiding the need for costly alternatives such as payday loan options at high cost. FlexEarn can help them avoid getting into debt by allowing workers to make it easier to access their earnings at more frequent intervals. We are now able to implement our leading financial wellness solutions across the UK, giving employees access to the most comprehensive set of tools and resources to help them avoid financial stress. . Since it’s free for employers and takes very little time and effort to set up FlexEarn – we offer a bespoke service and work with businesses throughout the setup, helping them to improving the efficiency of the payroll process as it goes – this should be in the employers’ interests, too.