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How employers and employees can cash in on instant pay benefits

The days of waiting two weeks or more for your paycheck to hit your bank account may be over soon.

“In this competitive landscape where companies are trying to differentiate themselves, this (instant pay) is a value-add for any company.”

Mark Brim Global SVP, Services Industry Group, Aquent

Benefits programs that allow employees to withdraw money directly from their paycheck ahead of their designated payday in exchange for a small fee are growing in popularity. A recent article by SHRM (Society for Human Resource Management) explored this topic and found that, while instant pay benefits have been around for years in the restaurant and retail industries, they are now becoming more popular among other employers. With financial stress and the high cost of living squeezing employees' personal finances, the benefit is increasingly sought after, especially by younger workers. The article cites a 2022 survey of nearly 3,500 workers by Aquent, in which nearly 57 percent of respondents said instant pay benefits were slightly or very important to them. Among workers ages 18-24, that number was 83 percent. Aquent's Mark Brim adds that “instant pay allows people to better manage their finances without the use of credit cards,” and he believes this is one factor driving the popularity of the benefit. The article notes that while firms with older payroll systems may have challenges implementing instant-pay benefits, Brim still recommends companies consider adding them. He says that one of the advantages of instant pay for employers, particularly those with hourly workers, is that it helps attract talent in this competitive market, and investing in the benefit is often worth the effort.

This article originally appeared on Instant Pay Benefits Booming in Popularity Among Generation Z Workers.

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