Workers are growing increasingly frustrated with the slow pace of traditional payroll and outdated biweekly pay periods, especially in today’s economic climate, where many live paycheck to paycheck. For gig workers, freelancers and contractors, the wait for payment is even worse, as they often wait longer than standard pay cycles, putting their livelihoods and businesses at risk. Payday delays could have devastating consequences if unexpected expenses arise between pay periods.
To improve employees’ financial well-being, employers can offer instant, on-demand payroll, allowing workers to access pay as it accrues rather than waiting for the standard payday. This boost in financial security can strengthen employee loyalty, reduce turnover, and ultimately save employers on training and onboarding costs.
The “Money Mobility Tracker®” explores how companies offering instant payroll and earned wage access can improve financial well-being, boost retention and foster stronger employee relationships.
The wait for pay is a perennial struggle for employees and contractors alike. Late payments can have damaging financial consequences. A study of global gig, contract and freelance workers found that 58% said they believe the current payment infrastructure is insufficient due to high fees, slow payments and currency conversion issues. As a result, 65% of freelancers reported losing or sacrificing wages by having to decline cross-border work in incompatible currency. One-third reported waiting three to five days to get paid, while 15% experienced delays of more than five days.
To learn more, visit the Tracker’s Legacy Payroll Challenges section.
Gig workers, freelancers and employees are all clamoring for instant payroll to avoid the financial hardships that come with traditional pay periods. A PYMNTS Intelligence study found that while just 36% of freelancers and consultants are paid via instant methods most often, 72% of all consumers chose instant payments when given the option. Moreover, 78% of consumers reported high satisfaction with instant payment options, and 22% said they would be willing to pay a fee for immediate access to their earnings. This willingness to pay could help offset the costs of implementing a real-time payroll system, allowing employers to share some of the financial burden with employees who opt in.
To learn more, visit the Tracker’s Employees’ Desire for Instant Payroll section.
Providing instant payroll to help workers overcome financial hardships can strengthen their relationships with employers. This in turn can reduce turnover and lower onboarding and training costs, saving money in the long run.
In the trucking industry, to address a projected driver shortage of 160,000 by 2030, some trucking companies have introduced instant payments. This initiative is proving effective in retaining drivers. A PYMNTS Intelligence study found that 91% of truckers receiving instant payments appreciate their speed and the peace of mind they provide. Moreover, nearly 37% of truckers would be willing to pay for this convenience, compared to 29% of general consumers. Beyond speed and peace of mind, 75% of truckers prefer instant payments for their overall convenience.
To learn more, visit the Improving Employee-Employer Relations section.
The “Money Mobility Tracker®,” a collaboration with Ingo Payments, explores how companies offering instant payroll and earned wage access can improve financial well-being, boost retention and foster stronger employee relationships.