Uber drivers get paid instantly. Office workers want in.
A younger workforce used to instant gratification is questioning the rationale behind when they get paid.
For many years, employers have dictated when employees receive their paychecks, and workers have generally accepted biweekly or monthly payments as the norm. However, a younger generation of workers is challenging this convention, questioning the underlying logic. Andrew Brandman, COO of DailyPay, a technology firm that enables employees to access their earned pay prior to the end of the pay period, suggests that employers might be fretting over the wrong issue.
The growth of the gig economy has altered expectations regarding compensation, with gig economy workers like Uber drivers being able to access their earnings immediately after completing a task, rather than waiting until the conclusion of their shift, according to Brandman. "Employers I speak with are constantly saying they're vying for a workforce that now seeks instant gratification," he commented.
Presently, a mere 3% of employers provide instant paycheck access, also referred to as earned wage access. Nonetheless, the desire for this type of flexibility is significant. In 2022, approximately 10 million workers utilized some form of early wage access, accumulating nearly $32 billion, as reported by a 2024 Consumer Financial Protection Bureau study.
Out of these, 3 million bypassed their employers altogether and employed consumer applications, although most workers incurred a fee for immediate access to their earnings. Employer-sponsored earned wage providers offer both complimentary and fee-based options for employees to receive their wages.
Brandman asserts that the phenomenon extends beyond hourly workers. He has observed a surge in higher-wage employees utilizing his platform, dismissing the notion that salaried employees are less likely to face paycheck-to-paycheck struggles. To address these concerns, Brandman advises HR leaders to engage in dialogue with their employees to comprehend their needs and motivations.
Furthermore, they should also communicate with their counterparts in HR and People Operations to elucidate the reasons behind the stagnation of pay-related practices for so long. According to Brandman, when employees perceive their employer as supportive and attentive, it fosters a stronger bond between the workforce and the organization, leading to heightened engagement.
Written by urgent.news from Fortune's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
