ATLANTA, Aug. 27, 2024 (GLOBE NEWSWIRE) -- Instant Financial, a leader in fee-free on-demand pay solutions, has released a new Wages & Wellbeing Study that finds that a significant number of Americans are under severe financial strain. The findings reveal that they view same-day pay as a way to decrease financial stress and anxiety, better plan and pay for monthly expenses, increase their ability to handle unexpected expenses and improve both their motivation and satisfaction at work.
The study, a comprehensive examination of how pay frequency impacts the American workforce conducted by the Center for Generational Kinetics, builds on insights from the same study conducted in 2022, revealing evolving trends in employee financial wellbeing, job preferences and engagement.
“The data is clear – there’s a substantial market demand for more flexible pay options across all generations in the workforce today,” said Tal Clark, CEO of Instant Financial. “Employers and policymakers must recognize that adapting to these needs is not just a benefit, but a necessity. Our findings show that modernizing pay practices is essential to employee wellbeing, while fostering greater job satisfaction and retention.”
Key findings from the report include:
- Financial Stress: 49% of working Americans frequently experience financial shortfalls before payday, and 54% worry about their money lasting until their next paycheck.
- Anxiety: 62% of working Americans say they have felt financially overwhelmed or trapped because they had to borrow money from a payday lender or other high-interest lender, significantly higher than in 2022 (53%).
- Same-Day Pay Appeal: 86% of working Americans want same-day pay, up from 79% in 2022.
- Retention and Loyalty: 74% of employees are more likely to remain at jobs that provide immediate access to earned pay, while 84% of employers report high turnover rates due to outdated bi-weekly pay cycles.
- Demand for Pay Flexibility: 82% of workers believe immediate access to same-day pay would significantly enhance their ability to save money.
- Regulatory Preferences: 63% of Americans would feel more comfortable with same-day pay if it were regulated by state or federal oversight.
The study also highlights significant generational differences, with younger generations, including Gen Z and Millennials, showing a stronger preference for more frequent pay and experiencing greater financial strain compared to older generations.
The findings – which were taken from a survey of 1,000 employed full-time or part-time US labor force participants, ages 16-55, from across the country – underscore the need to modernize traditional payroll practices to address changing preferences of the American workforce.
To download a copy of the full survey report and learn more about how Instant Financial can transform your payroll practices, visit the website here.
About the Study
The survey, conducted by the Center for Generational Kinetics from May 2, 2024, to May 24, 2024, involved 1,000 employed individuals across various sectors and demographics, including generational cohorts and geographic regions. It covered aspects such as financial wellbeing, employee engagement, and perceptions of earned wage access. The margin of error is +/-3.1 percentage points.
About Instant Financial
Instant Financial is a comprehensive employee pay platform providing earned wage access, tip disbursement, and electronic payroll – allowing workers to access their earned wages immediately, whenever, however, and wherever they want. By unlocking on-demand pay, Instant empowers financial freedom and wellness for employees while improving retention and attendance for employers. Compliant across all 50 states, Instant is trusted by leading companies nationwide to bridge the gap between work day and payday. Learn more about Instant and how it can impact your company at www.instant.co.
About Center of Generational Kinetics
The Center for Generational Kinetics, LLC (CGK) is the leading research, advisory, and speaking firm focused on uncovering key emerging trends, generational change, and behavioral insights. CGK’s team leads original research around the world to solve important consumer and workforce challenges. The firm uncovers new and unexpected, statistically accurate insights for innovative, market-leading clients. CGK’s team has worked with over 700 companies around the world, from the biggest global consumer brands to governments, technology pioneers, financial services, retailers, and global banks.
Media Contact
Sparkpr for Instant Financial
instant@sparkpr.com
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