Re-imagining Payday – Why it’s time to re-think how you pay your people
Life happens in real-time, so why is payroll stuck in the past?
Today’s fixed pay cycles are based on historical practices and outdated technologies. In the current state, pay cycles don’t always line up with expenses. According to a recent Ceridian survey of 1,330 employed U.S. adults, more than half of respondents (55%) had trouble covering their expenses between pay periods over the past six months, and 30% said they wouldn’t be able to cover an unexpected $500 expense. Most U.S. workers don’t currently have a solution to this cash flow crunch and resulting financial stress, which has the potential to impact the business.
For employers, old technologies based on batch processing have forced companies into using fixed pay cycles and paying their employees in arrears.
But rapid changes in the workforce and the broader world of work have heightened the need for new ways for companies to pay their people. Future business success requires that companies embrace smarter workplace practices that put employees at the center of the work experience. And today’s modern technology makes it possible to provide more flexibility in how people get paid, in line with the pace of real life.
- Trends driving the need to break away from existing pay cycles
- The business impact of employee financial insecurity, including lost productivity and increased absenteeism
- The benefits of introducing a flexible and on-demand pay solution, such as Dayforce Wallet