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The Next Big Thing in Payroll - Early Access to Earned Wages

Jan 2, 2020 10:00:00 AM

It’s hard enough trying to figure out payroll when you have to pay your employees every couple of weeks. But what if your employees demand to be paid earlier? How about daily? Is that even a thing? Yes...it is.  

Some of these stats may surprise you or even alarm you.

69% of American adults have little to no savings and are living paycheck to paycheck.
Source: US Federal Reserve

47% of Americans would not be able to afford an unexpected $400 expense. 
Source: Federal Reserve Bank  

75% wouldn’t be able to afford an unexpected $1,000 expense.
Source: Associated Press-NORC Center for Public Affairs Research 

Americans pay $34.3 billion a year in overdraft and late fees because they live paycheck to paycheck.  
Source: American Banking Association

59% of the U.S. workforce are hourly and work on-demand and demand on-demand pay.
Source: Bureau of Labor Statistics

These are just some of the reasons why daily pay type solutions are gaining populating. We call it the “uber effect”. Uber and Lyft drivers can get paid up to 5 times a day. And those employees are talking to their Gig-economy friends who are asking their own employers for a perk like that.

And the research and early impact studies don’t lie. 

  • Applicants are willing to take on average a 13% reduction in pay if they got paid daily. 
  • Early Access to earned wages decreases turnover by 40% and increases recruitment by 30%. (source: Dailypay.org) 
  • 8 out of 10 hourly employees say that receiving their pay before payday would help them with financial security.

And we all know, financially empowered employees are happier, more productive, and stay longer - saving you 100s of hours of recruitment and HR processing time and thousands of $. 

It’s why we are working closely with companies of all sizes and educating them on ReadyPay Today. ReadyPay Today is the most flexible daily pay solution in the industry. ReadyPay Today keeps your entire workforce delighted and productive while reducing the risk of losing your most valuable asset - your people and lets you compete in this hyper-competitive labor market. Schedule a demo here if you think ReadyPay Today may help you do a better of recruiting, retaining and better engaging your employees.

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