Global survey finds employees want greater speed, security and flexibility in receiving pay, and prefer employers who care about their financial wellness
As the world of work continues to evolve, a new survey by the ADP Research Institute, with headquarters in Roseland, New Jersey, has identified a growing demand for new payment options. In a tight global labor market, employers recognize the need to differentiate themselves to attract and retain talent by offering various payment solutions. In fact, 78% of employers surveyed agreed that companies will need to customize payment options to remain competitive in the war for talent. In addition, 62% of employees said off-cycle pay options, such as the ability to choose pay frequency, would make a difference when considering a job offer. ADP surveyed 4,000 employees and 2,900 employers across 13 countries.
“From raises to robust benefits and workplace perks, employers today are using every opportunity to attract and engage talent,” said Ahu Yildirmaz, co-head of the ADP Research Institute. “However, our research shows raises and benefits are not the only perks employers should consider if they want to remain competitive. Employees are seeking companies that offer access to alternative pay methods and financial wellness offerings when they assess a job offer.”
New and nontraditional payment options are necessitated: Globally, employees are urging employers to offer unconventional payment methods.
- 79% of employees are willing to accept payment from their employer via mobile, digital or prepaid paycard.
- 97% of employees prefer not to receive paper checks from their employer.
- Looking ahead, 93% of workers believe employers will pay them via paycards, digital platforms or mobile wallets 10 years from now.
Factor in financial wellness: Employee expectations for financial wellness offerings at work are growing.
- 79% of employees say they want to work for an employer that cares about their financial wellness.
- 90% of millennial employees are willing to share at least some personal information (i.e., spending habits, bank balances and family/healthcare needs) with their payroll provider to track finances and receive advice.
- Nearly all employers surveyed (98%) agree that employee financial wellness has a direct impact on their organization in some way — especially concerning productivity (67%) and engagement (62%).