How Would You Like It If Everyday Was Payday?
It is just the way jobs work. Payday is once a week or twice a month or even once a month.
Since the Covid outbreak, work is fundamentally different. More and more people are working from home. Many businesses can't keep employees because there is a huge labor shortage. Millions of Americans have ditched their jobs, because life is too short for all the stress of some jobs.
Some restaurants have actually had to close because they can't get their employees to come to work. Re-thinking how pay works might help change that.
According to a national research study, 60% of working Americans think that all employers should offer their employees immediate access to their daily earned wages. If employees knew they would actually get cash in their account at the end of their shift, many managers think more workers would show up.
Meet Earned Wage Access. This way of paying employees allows the worker to receive their earned wages on the same day as they perform the services. It is a growing national trend, and it has even come to San Angelo. As of Monday morning 7/25, Indeed.com listed 79 job openings in San Angelo where employees can opt to receive their pay daily.
This month, Instant Financial, an EWA business, along with the Center for Generational Kinetics analyzed the results of same day pay. Their findings show that "implementing an EWA program can minimize the adverse effects of the challenging labor market, improve both recruitment and retention, while improving both recruitment and retention.
The study also found that it minimized worker concerns about making their paycheck last until their next payday. 54% of American workers today, up from 24% in 2018, fear this.
The study also found that 79% of all working Americans would be more interested in applying for a job that pays the same day they work. The percentages are even higher with Millennial (84%) and Generation Z (87%)
I must be getting older. I don't think I would prefer getting paid every day. For me, I feel like it would lead me to spend more frivolously and I wouldn't have the lump sum to pay my biggest bills. I guess I am just a creature of habit. So, what about you? How would you make it work?
I can think of one big benefit. It might lead to the demise of those mostly unscrupulous and under regulated pay day loan sharks. These businesses have preyed on low income wage earners for far too long in my opinion. What do you think? Leave your comments.