Biweekly payments have been the norm for decades now, serving as a guideline for workers to create a budget. But is this concept founded? Or should flexibility extend beyond scheduling?
Flexibility in location and time is already well-established in today’s modern workforce, but when it comes to compensation and benefits, companies have barely scratched the surface.
Consider this: the Federal Reserve has shown that 40% of working adults cannot afford an emergency expense costing $400, leaving many working paycheck to paycheck or tapping into savings.
Allowing employees to access wages, or simply offering more arrangements beyond weekly and biweekly pay schedules, can be a way to combat financial insecurity as it allows workers to budget according to their needs.
Research from the American Payroll Association (APA) shows that over 60% of American workers would prefer having immediate access to their daily earned wages, or what some refer to as a Pay-on-Demand program.
“Pay-on-Demand was introduced to Paychex clients in December 2019 as a way to address the financial insecurity of workers by allowing them instant access to their earned wages, when they need it, and at no cost to them,” said Eric Wade, product strategy manager at Paychex.
According to Wade, among those who used the program were frontline workers, such as professionals within the food, healthcare and hospitality industries.
By offering an alternative way for workers to access their earned money, companies are telling their staff two things: your work is being immediately rewarded and we want to support our staffs’ unique needs.
