With the cost-of-living crisis deepening, workers are counting the days until payday more than ever. But is now the perfect time for organizations to rethink rigid pay cycles to help out employees, or is there not enough long-term value?
Global payroll technology company Ceridian recently reported that 53% of U.K. employees had found managing their finances trickier over the last 12 months. Alarmingly, 61% of respondents aged between 18 and 34 years old said an unexpected expense of £500 ($606) would leave them unable to fulfill other financial obligations, including rent, mortgage payments, and insurance.
Thankfully, advances in digital technology are generating innovative ways to pay employees faster. One of the various options available to employers seeking to pay their staff quicker is advance payments. Apps such as Earnin or Dave can help with this. Meanwhile, other progressive organizations have established pay-on-demand systems, allowing workers to access their wages when required.
David Brown, founder and CEO of Hi, a social enterprise that enables businesses to boost their liquidity through its payroll solution, said that “employees should be able to get paid either daily, monthly, weekly or monthly based on their needs.” He cited a 2019 Mastercard and Ipsos Mori survey that found 61% of workers would like instant access to their earned wages – and that was before the pandemic.
The full version of this article was first published on DigiDay’s future-of-work platform, WorkLife, in December 2022 – to read the complete piece, please click HERE.