Study Finds 7 in 10 US Consumers Stressed About Personal Finances
A recent PYMNTS Intelligence report, “No-Wait Wages: Leveraging Instant Payments to Boost Employee Satisfaction,” found that 70 percent of U.S. consumers feel stressed about their personal finances, with 75 percent of adults ages 18-34 reporting significant financial anxiety. As workers struggle with rising financial pressures and living costs, they have demanded immediate access to their earnings.
83 percent of workers expressed a desire for more frequent pay schedules, a notable shift from the typical biweekly or semimonthly paychecks. This push has been driven by increased inflation, as well as a 24 percent increase in average spending per person, which has pushed employees toward high-interest payday loans. Instant access to wages gives employees more timely access to their earnings to help them avoid expensive loans and better manage their expenses.
Workers reported a willingness to pay for real-time payroll, but employers could create a better work environment if they offered it for free. DailyPay, a company that partners with major employers like Target and Hilton, shows that utilizing earned wage access (EWA) platforms improve hiring, retention, and employee satisfaction.
Fee-free instant payments have been shown to increase employee satisfaction by 11 percent and almost double the likelihood of employee loyalty. 78 percent of consumers said they were satisfied with instant wage access, although only 36 percent currently receive their payouts this way.
Additionally, offering no-fee instant payroll could be substantially beneficial for businesses facing staffing challenges. 46 percent of small to medium sized businesses (SMBs) experience staffing shortages, and 42 percent report struggles with employee retention.
