Nearly 28 percent of individuals in America want access to their wages on-demand as soon as they are earned, rather than waiting for a traditional payday schedule. This finding was revealed in the 2020 “Getting Paid In America” survey, conducted by the American Payroll Association (APA) during National Payroll Week(APA ).
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“Today’s global events magnify the need for greater pay flexibility,” said Warren Perlman, chief information officer for Ceridian. “We believe in the next five years, HR and business leaders will look to pay their people on-demand to help them better manage unexpected expenses, minimize financial stress, and improve engagement.”
The annual “Getting Paid In America” survey asked, “Would you like access to some or all of your wages on-demand as you earn them instead of waiting for payday?” More than 9,000 people, nearly 28 percent of respondents, indicated this is a benefit they want or are already using.
“As the way we work rapidly changes, the way employees think about their paycheck is rapidly changing, too,” says Bob DelPonte, vice president and general manager of Workforce Ready Group, Kronos Incorporated, which merged with Ultimate Software and will become UKG (Ultimate Kronos Group) on October 1. “Organizations that empower their payroll teams with modern technology will create more time to focus on strategic employee initiatives, like financial wellness.”
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On-demand wage payment is a new, emerging tool for employees that can help them better manage their day-to-day finances. The payment method enables employees to access a portion of their wages as they earn them through a third-party early wage access provider, rather than waiting for a lump sum payment on a designated payday. Those advance funds are paid back to the third-party early wage access provider automatically on the traditional payday. Some employers are beginning to use a flexible pay schedule as an added benefit in the workplace.
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