Nearly half of employees would pay for early access to earned money at least once a year, according to new research.
The Future of Pay research by ADP found 62 percent of employees said off-cycle pay options, such as the ability to choose pay frequency, would make a difference when considering a job offer.
The research surveyed 4,000 employees and 2,900 companies to explore workers’ perceptions and attitudes towards traditional and emerging pay methods.
It found one in five employees would pay for early access to earned money at least once per month. Despite employees’ desire for flexible pay, ADP said 70 percent of organisations think the pay itself matters more than the options offered to their employees.
Jeff Phipps, managing director at ADP UK, said: “Technology has fuelled the growth of a new class of ‘on-demand’ workers who can respond to a business’ immediate needs in hours or even minutes. Despite these tech developments, payment methods and pay cycles are lagging behind consumer technology.
“Consumers can transfer money and manage finances in real-time, but employer pay cycles, by comparison, moves at a snail’s pace. While there is a wealth of research regarding employee compensation and its impact on recruiting, retention and satisfaction, how employees are paid has been overlooked and undervalued.
“Payment options, off-cycle payments and financial wellness support can help differentiate a company competing to attract and retain talent. Ultimately when an employer can help employees improve their financial health, everyone benefits.”