U.S. markets closed

Survey Reveals Traditional Payday Cycles May Go the Way of the Dinosaurs

SAN ANTONIO, Sept. 12, 2019 /PRNewswire/ -- More than 32 percent of employees in America want access to their wages on-demand as they earn them rather than waiting for a traditional payday schedule, according to results from the 2019 "Getting Paid In America" survey conducted by the American Payroll Association (APA). 

"Employees today are looking for more flexibility with the traditional pay cycle," said Doug Politi, president of compliance solutions at ADP. "How employers respond to those expectations, in a more complex regulatory framework, is going to be an increasingly important part of human capital management."

The annual APA survey asked, "Would you like access to some or all of your wages on-demand as you earn them instead of waiting for payday?" Approximately 12,027 respondents, 32 percent, indicated this is a benefit they are interested in.

On-demand wage payment, which enables employees to access their wages as they earn them rather than waiting for a lump sum payment on a designated payday, has recently risen in popularity. Some employers are beginning to use a flexible pay schedule as an added benefit in the workplace.

"New payment disbursement technology enables employers to be flexible in when and how they pay their employees," shared Chris Ruppel, co-founder of rapid! PayCard and general manager of wage and corporate disbursement for Green Dot Corporation. "Gig economy firms, like Uber, and other savvy employers are finding that innovative pay practices help them recruit the best talent and keep current workers happy."

While employees want on-demand pay, not all may be yet willing to pay an additional fee.  When asked "Would you be willing to pay a fee to have your wages available on-demand as you earn them?" nearly 65 percent of the respondents who indicated they wanted on-demand pay were unwilling to pay for it. 

"Modern employers should accept that the traditional pay period may soon be a thing of the past, with employees wanting more innovative and immediate ways to receive their earned wages," said Lisa Sterling, chief people and culture officer at Ceridian.

The "Getting Paid In America" survey was held in conjunction with the APA's annual public awareness campaign National Payroll Week, September 2-6. Over 39,700 individuals responded to the survey, providing insight into how employees are paid in America. For complete survey results, visit nationalpayrollweek.com.

The APA is the nation's leader in payroll education, publications, and training. Visit the APA online at americanpayroll.org.


View original content:http://www.prnewswire.com/news-releases/survey-reveals-traditional-payday-cycles-may-go-the-way-of-the-dinosaurs-300915518.html