Source: Fortune
Summary
Employers have long controlled pay schedules, but younger workers are pushing for faster access to earned wages. Andrew Brandman, COO of DailyPay, said many employers fear workers might not manage money responsibly if paid sooner. However, the gig economy has shifted expectations, with workers like Uber drivers getting paid immediately. Only 3% of employers offer instant pay access, but 10 million workers used early wage access in 2022, moving $32 billion. Some workers used consumer apps, often paying fees, while employer-partnered services offer free and fee-based options.
Our Reading
The numbers tell one story.
Employers resist change, citing responsibility concerns.
Workers demand immediacy, driven by gig economy norms.
Only 3% of employers offer instant pay access.
Workers move $32 billion through early wage access.
Employers may be missing the point of worker expectations.
Author: Evan Null
Workers Demand Immediate Pay
For decades, employers have controlled when workers get paid, with employees largely accepting biweekly or monthly paychecks. However, a younger workforce is challenging this norm, seeking faster access to their earnings.
Employers Cite Responsibility Concerns
Many employers justify their resistance to instant pay by expressing concern that workers might not manage their money responsibly if given quicker access. This rationale has been a quiet justification for traditional pay structures.
Gig Economy Reshapes Expectations
The rise of the gig economy has changed expectations around pay. Workers like Uber drivers can access their earnings as soon as a job is completed, rather than waiting until the end of a shift. This has set a new standard for immediacy.
Only 3% of Employers Offer Instant Pay
According to the International Foundation of Employee Benefit Plans, only 3% of employers currently offer instant paycheck access, also known as earned wage access. Despite this, demand is growing.
Workers Tap Early Wage Access
Roughly 10 million workers used some form of early wage access in 2022, moving nearly $32 billion. Some bypassed employers entirely, using consumer apps, though most paid fees for expedited access to their funds.
