72% of Workers Prefer Instant Payroll If Given Choice

As criticism of traditional biweekly and monthly payroll systems increases, workers in gig, freelance and contract roles are more vocal about the financial strain caused by delayed payments.

This has sparked a demand for instant payroll, changing how employees manage their finances and engage with employers.

The PYMNTS Intelligence report “Pay Without Delay: How Faster Payroll Improves Employee-Employer Relationships” explored the frustrations with legacy systems and the advantages of instant payments and how they can benefit workers and employers.

The delay in receiving earnings is an ongoing issue for many workers, as it creates financial hardship. According to the report, 58% said the current payroll infrastructure is inadequate, citing high fees, slow payment processing and currency conversion issues. Late payments are common, with 29% of freelancers’ invoices paid late, and 25% of those delayed by more than two weeks. Freelancers in specialized fields like software development experienced even higher rates of delays (29%), and financial stress was more pronounced among female freelancers, with 31% facing late payments compared to 24% of men.

For many, payday loans seem like a quick fix but often worsen financial woes. Consider 93% of payday loan borrowers regretted their decision and 80% reported finding themselves in more difficult financial positions. On average, borrowers ended up paying $520 in fees and interest for a $375 loan. This highlights the financial strain caused by delayed payments, making faster payroll solutions critical for workers across industries.

As financial strain from delayed payments continues, workers from various industries are seeking immediate access to their earnings. According to the report, 72% of consumers said they prefer instant payments and 78% expressed high satisfaction. Employers have an opportunity to implement on-demand payroll systems, as 22% of consumers said they are willing to pay a fee for faster access to wages.

The demand for instant payroll is particularly high in healthcare, where 57% of workers reported financial stress and 34% ran out of money between paychecks. Nearly half struggled to pay bills on time due to traditional payroll cycles. For these workers, access to earnings could alleviate financial pressure, as 82% indicated more frequent pay would help and 48% said they see earned wage access as a potential solution.

Adopting instant payroll offers benefits for employers, not just employees. By addressing the need for timely compensation, instant payroll strengthens relationships, builds trust and elevates worker loyalty. This can help reduce turnover rates and lower costs related to onboarding and training.

For example, the trucking industry shows how instant payroll helps retain workers in a competitive labor market. With a trucker shortage of around 80,000 drivers, companies offering instant payments are gaining an edge. According to the report, 91% of truckers who received instant payments said they value the speed and peace of mind it provides, with 37% willing to pay a fee for the service. In hospitality, companies like Shift4 and Kickfin are improving tip payout efficiency, benefiting workers and employers by reducing administrative time and improving retention.

The post 72% of Workers Prefer Instant Payroll If Given Choice appeared first on PYMNTS.com.