- The 2022 State of the Worker Report uncovers pressing financial health issues for Americans today
Nearly seven in 10 (68%) US workers live paycheck-to-paycheck, according to a new report launched from Everee and Checkr. The 2022 State of the Worker Report, which set out to uncover US workers’ financial health and the perceptions of background checks and hiring processes, found a few factors that contribute to the financial instability of today’s workers.
“Candidates have a lot of choice, so businesses need to move fast. And there are modern solutions out there that help companies build a candidate-centered experience into their workflow.”
The report found that 64% of workers are stressed about their finances and 68% live paycheck-to-paycheck, including a third of workers who make over $100,000 per year, indicating that pay cycles aren’t matching workers’ needs. Furthermore, 54% of workers have to wait at least two weeks to get paid when 79% want to be paid within a week.
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“Due to several factors, including the pandemic and rising inflation, many workers are struggling financially,” says Everee CEO Brett Barlow. “When they’re forced to wait two weeks to receive money they’ve earned, it adds to the stress. At the same time, it’s harder than ever to hire. Businesses that implement faster pay strategies will support the financial health of their workers and stand out during the hiring process.”
The U.S. labor shortage presents an opportunity for businesses to understand what’s driving employees to leave the workforce. While the 2022 State of the Worker Report reveals pay was the most important factor when choosing where to work, a lack of opportunity, limited benefits and a slow hiring process were major deterrents for workers as well.
“Employers often don’t think about the background checkr as a point of friction in their hiring process. In fact, many companies are constricting their talent pool without the right technology. In the current hiring environment, employers need to onboard seamless and integrated background check technology that reduces bias and moves qualified candidates through the funnel quickly,” says Checkr CPO Denise Hemke. “Candidates have a lot of choice, so businesses need to move fast. And there are modern solutions out there that help companies build a candidate-centered experience into their workflow.”
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The report found organizations still have a long way to go when it comes to building a truly equitable operation. Just slightly more than half of workers (52%) are confident their employers are unbiased.
Other report findings include:
- 71% of people under 35 live paycheck to paycheck and 65% of people over 35
- 1 in 3 workers has experienced a financial crisis that’s led to missing work
- 72% workers don’t know why the 2-week pay cycle exists
- 20% of workers plan to stay at their job less than a year
- 20% of workers have removed themselves from a job opportunity because the background check process took too long
- 81% of workers want a chance to explain their background check if it’s not clear
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