Evolution of Pay
An explosion of new payment methods becoming available in the last 10 years has reshaped how consumers pay for things and has coincided with economic and demographic changes in the global workforce. With this constellation of changes impacting every element of the way we work, it is time to reexamine how and when employees are paid and the potential impact of pay on the workplace of the future.
A recent survey conducted by the ADP Research Institute® looked at employers and employees across the globe to evaluate perceptions of the payment landscape —and some of the results may surprise you.
North American employers cling to paper checks, even though most employees do not use them or express an interest in doing so.
In North America, direct deposit is common. Over 80 percent of employers offer this payment method, and 80 percent of employees say they prefer it. Despite this strong preference, more than 50 percent of employers still offer paper checks. The persistence of this pay method is unique to North America and is not fully explained by employee usage or preference.
Employers believe that pay can have an impact on talent acquisition and retention, and employees say they are right.
Pay, in the form of compensation, has an obvious impact on talent recruitment and retention. Nearly all employers recognize that this is more far-reaching than pay itself and extends to pay as a perk.
Employers believe that employee financial wellness impacts their business. Employees believe their employer can be a reliable source of advice regarding financial wellness.
Financial wellness is a top priority for employees, and they increasingly welcome the role of their employer in providing tools to help them better manage their finances.
The findings summarized in this paper suggest that employees are not only concerned about how much they are paid for work, but also how they receive their pay and how often. Further, employee perceptions of how and when they are paid have a deeper impact than employers typically appreciate.