Flexiwage is based in Dungarvan, Waterford
Following four years of “hard graft and hoop jumping”, Waterford software company Flexiwage has secured a 20-year US patent on its unique self-scheduled salary software.
Based in Dungarvan, the Flexiwage team first came up with the idea having witnessed first-hand the problems encountered by both employers and employees by only operating a monthly payroll option. The software, which can be applied to an employers’ payroll system, can reduce administration costs for the employer by up to 75%.
Flexiwage is a financial checker for employees. Built on the premise that financial wellness is hugely important for workers, but that younger workers and/or those in lower paid jobs in particular often struggle with budgeting their monthly outgoings and end up taking costly, short-term credit just to see them through to pay day.
It allows individuals to schedule their income in a pay frequency that suits their needs, without impacting a company’s ability to process monthly. It allows employees to manage savings and bills at source, and track performance against their financial goals. Flexiwage enables companies to transition from a weekly pay cycle to a monthly one by allowing the employees to continue to be paid weekly after the transition has occurred.
Speaking of their US breakthrough, CEO Anthony Cronin said: “Achieving this patent wasn’t easy. It took four years and there many challenges, but we knew we needed it because it would allow us to trade with global partners.
"With the patent now secure, we can press ahead with our expansion plans for 2021. We are already working with investors in Boston and other Irish American investors. The pandemic has slightly delayed our roll-out plans, but we plan to launch our pilot in the US in Q1 2021.
"We have every reason to believe our roll-out in the US will mirror our experience here in Ireland since 2019, where we have secured a number of large international clients including Voxpro, Eurofins and a number of other international PLCs," he said.
Flexiwage is unlike any other payroll software available in the world and the developers say it has the potential to revolutionise the industry, coming as the first major innovation in the payroll world in 30 years. It gives employees financial freedom and reduces costs for employers. It’s unlike anything else being offering in fintech.
“Since the world moved to a monthly payroll system over 30 years ago, certain cohorts of worker have experienced difficulties with money management. The rise in debt and short-term credit for some workers has vastly increased in line with the introduction of a monthly pay system," Mr. Cronin explained.
Flexiwage will allow employees all over the world to choose their own payment schedule – they can move to a weekly regularity if that works for them. It allows employees take control on one of the most important aspects of their lives. This feeds into employee satisfaction, which in turns feeds into productivity for the employer. And there is no cost to the employer for this transition.
Mr Cronin said his previous roles have highlighted the issues employers face around payroll and how they can impact employees. “In my own experience of 20 years in the industry, businesses generally suffer a 5% attrition rate when you move employees to monthly pay. Obviously, this causes a lot of problems. I realised this need not be the case as there’s a simple way to help both employers and employees, which is the basis for setting up Flexiwage and developing our own software in-house," he said.
"Flexiwage gives employees greater control over how and when they receive their income into their bank accounts, which allows each individual to manage their money more effectively and efficiently. Its use ultimately promotes greater financial wellness amongst Ireland’s workforce.
“Flexiwage excels in motivating users on the specific steps needed to improve their financial wellbeing," Mr Cronin added.