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The way we work is changing. Traditional nine-to-five jobs are giving way to more flexible arrangements like remote work, hybrid schedules, and gig work. The concept of waiting two weeks or a month for pay day is becoming outdated. According to Finder, 61% of Australian households with a combined income between $50,000 to $99,000 live pay day to pay day, while 2.1 million employees admit to having no more than a week’s worth of savings in the bank.

Rising inflation and climbing interest rates have driven Australians to resort to high-cost, high-interest ‘pay day loans’. These are often seen as a quick fix for those in urgent need of money. The urgency of the situation often makes the cost of the loan a secondary concern to the speed of obtaining the funds.

The need for financial solutions has prompted many businesses to explore pay-on-demand services. These innovative services let employees access a portion of their earned wages ahead of their usual pay day. This shift is part of a broader trend towards the democratisation of pay, where employees gain the flexibility to handle sudden expenses without having to wait.

How does pay on demand work?

Pay on demand works by calculating the wages employees have accumulated up to a certain point, then allows access to a portion of those earnings almost immediately. Typically, a pay-on-demand provider handles the distribution of funds to the employees. Employers, in turn, reconcile this advance with the provider and subsequently pay out the balance of the wages on the regular pay day. It’s important to note that pay on demand does not constitute a loan and employees do not take on debt.

Immediate access to earned wages empowers individuals to manage unforeseen expenses, or to meet routine financial obligations including grocery shopping, fuelling vehicles, and paying electricity — all of which have increased considerably in the past year, according to the latest information from the Australian Bureau of Statistics (ABS).

There’s a clear advantage for employees. A major global study by EY in 2020 found that companies offering pay on demand reported an increase in employee wellbeing and a decrease in turnover:

  • 72% of employees experience financial stress at least once a year.
  • 20% of employee turnover is attributable to financial stress.
  • 75% of employees report major impacts on their wellbeing due to finances.

The advantages are just as important for employers. By offering pay on demand, employers can realise the following benefits:

  • Enhanced employee satisfaction: Offering pay on demand lets employees access their wages when they need them, alleviating financial stress. A heightened sense of appreciation towards their employer can improve morale and engagement.
  • Lower payroll expenses: Payroll can be costly for businesses with extensive workforces, particularly where many employees work on an hourly basis. Leveraging a third-party payroll provider can streamline these costs and help to ensure timely and efficient wage distribution.
  • Valuable HR analytics: Employers can gain insights from analytics provided by pay-on-demand solutions. This information can be critical for human resources (HR) teams to refine compensation strategies to align with employee needs more effectively.
  • Reduced employee turnover: Frequent hiring and training due to employee turnover is costly and time-consuming. Implementing pay on demand provides a competitive advantage for businesses, appealing to job seekers and helping to retain current staff, which can ultimately reduce these turnover-related expenses.

Why you’ll love Affinity Pay on Demand

Businesses across all sectors need a dependable and skilled workforce. Staying competitive is essential to not only attract the right talent but also to retain existing employees.

Affinity Pay on Demand is designed with both employees and businesses in mind. It offers:

  • Quick and easy setup.
  • A user-friendly app available within our self-service portal.
  • Safeguards that ensure funds go direct to employee bank accounts.
  • No cost to the employer and no impact on cashflow. The advance is funded by Affinity and recouped through an automatic payroll deduction.

Position yourself as an employer of choice and stay ahead of the competition by offering modern payroll solutions that help your employees access the money they’ve earned when they need it.

To transform how you do payroll, contact the Affinity team today.



For over thirty years, Affinity has been a trusted partner for mid-market and enterprise businesses in Australia and New Zealand, empowering them to transform their payroll operations. With a focus on turning payroll from a cost into an asset, we have established ourselves as industry leaders in delivering innovative cloud-based payroll software and exceptional payroll services.