Agile pay methods: is HR missing a trick?

Recruiting and retaining the right people is mission-critical for every business. So, reward teams devote much of their time, effort and money creating the right reward packages to attract talent. But sometimes less thought is given to how those packages are delivered to staff by payroll teams, especially if payroll is not part of the organisation’s HR function. 

Yet, with cost-of-living pressures, more flexible working contracts and increasingly diverse employee expectations, an agile approach to pay could benefit both employees and employers. 

Here’s a brief overview of the agile pay options and their potential impacts, to help organisations broaden their pay offering. 

The importance of agile payment methods

The CIPD’s Pay, Performance and Transparency 2024 report, supported by ADP, highlighted how the cost-of-living crisis is still having a significant impact on pay decisions. 

By offering employees the option to be paid weekly or fortnightly, rather than at the end of the month, organisations can help those hardest hit to manage their money more effectively and reduce the risk of financial stress.

Are UK employers behind the pay agility curve? 

Recent ADP research found that, in the next two to three years, almost a third of global businesses plan to offer new ways to pay their people. 

But, according to the CIPD report, only 15% of UK HR, reward and senior decision-makers felt their company would give employees the option to select their own pay date over the next five years. And only 13% believed their company would pay people more frequently, such as weekly or semi-monthly. 

Is this reluctance due to a lack of awareness of agile pay among HR professionals, or concerns about the implications of implementing it?

What HR and payroll teams must consider

The implications of agile pay include how:

• Payroll teams report PAYE in real time
• Compliance with the national living wage is maintained 
• Employees on universal credit are impacted
• Cash flow is managed

ADP, your payroll partner

For 75 years, ADP has helped businesses ensure people are paid on time, every time – even as regulations and challenges change. 

Serving over one million clients in 140 countries, ADP has the experience to customise and scale HR and payroll solutions for businesses of every size.

To find out how to get your payroll future-fit, download the CIPD’s Pay, performance and transparency 2024 report or go to adp.com.