Apurba Kumar, co-founder and CTO of pay-on-demand startup Refyne, says people come to the app about 10 times a month just to see how much they’ve earned.
This is one of the ways companies benefit from the EWA concept of startups, he added. The Bangalore-based startup provides its clients employees with access to a portion of their earned but unpaid salary before payday, but it is not a loan and does not involve any employer costs.
“When we launched the platform, we noticed that people were coming to the platform not only to transact, but also to monitor their pay – how it was accumulating every day. There is no other real way for humans to observe it. It creates a psychological effect where absences are reduced. ”
There is a real advantage for companies when hiring where companies with pay-on-demand become much more advantageous than others, he added. “Teams with access to earned wages have 30-35 percent improved retention and candidates have 2-2.5 times more attractiveness,” he said, citing research conducted with consulting firm EY.
EWA providers typically integrate their services with the company’s Human Resource Management System (HRMS) and charge both employees and employers for their services. The practice of allowing employees instant cash access is being touted as a low-cost way to attract new talent, improve retention and build goodwill among employees.
Companies like UKG India and Refyne are testing the model adopted in India by Western countries, although there are a number of companies that pay workers per fortnight.
“Paying in advance is a prominent thing in many companies. On a daily basis, HR needs to think if the employee’s reason is valid, the amount is right, then get the finance team to release the money. Is it a good use of HR time when they can formulate new policies and talk to employees to make sure they are motivated which is a key component of their work? ” Kumar said.
Founded in December 2020, Tiger Global-backed startup said it employs 1.2 million people and works with more than 200 companies, including Practo, TeamLease, CARS24, Tenon, Shadowfax, Rebel Foods, Acko, BlackBuck, Arti Group and Cafe. Coffee Day.
Bringing the financial well-being of employees to the fore, he said, the epidemic had created interest among companies to offer them. With EWA proving to be a good gateway for bringing employees into the ecosystem and gaining their trust, the startup now plans to launch other products to help employees manage their finances better.
It has raised a total of $ 106 million so far. Its most recent round was in January 2022 when it closed the বি 82 million Series B funding round led by Tiger Global and existing international investors – QED Investors, DST Global, Jigsaw VC, XYZ Capital, and RTP Global – and new investor Digital Horizon.
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