By Ryan Ashton
In our ongoing series (you can check out Part I here) exploring our 2024 Wages & Wellbeing Study, we delve into the findings of Part II, which focuses on how wage frequency influences employee recruiting, engagement, and performance. In today’s labor market, where attracting and retaining top talent is a challenge, wage flexibility is emerging as a game-changer.
Key Findings:
Increased interest in same-day pay: 86% of American workers are more likely to apply for a job offering same-day pay, a significant rise from 79% in 2022, highlighting the growing demand for financial flexibility among Millennials and Gen Z.
Boost in employee retention: 74% of employees report they would stay longer in a job that offers immediate access to earned wages, up from 62% in 2022, underscoring the role of wage frequency in reducing turnover and promoting long-term loyalty.
Enhanced performance and engagement: More than half of respondents indicated that access to wages as they earn them improves their financial security and confidence, leading to higher productivity, job satisfaction, and stronger emotional ties to their employer.
One of the most striking insights from the study is that 86% of American workers would be more interested in applying for a job that offers same-day pay, up from 79% in 2022. This increase reflects a growing demand for financial flexibility among employees, particularly Millennials and Gen Z. These generations, in particular, are seeking employers who provide more control over their finances, making pay frequency a pivotal factor in job consideration.
But it’s not just about attracting talent—offering more frequent access to wages also drives employee retention and engagement. The study reveals that 74% of employees would stay longer at a job that offers immediate access to earned wages, compared to just 62% in 2022. This is a significant increase and highlights the role wage frequency plays in fostering long-term loyalty and reducing turnover.
Furthermore, same-day pay options positively impact employee performance. Over half of the respondents indicated that being able to access a portion of their wages as they earn it would boost their financial security, confidence, and sense of independence. This directly correlates with increased productivity, better job satisfaction, and a stronger emotional connection to their employer.
For businesses, these findings are clear: offering Earned Wage Access (EWA) isn’t just a nice perk—it’s becoming an essential tool for building a more engaged, loyal, and motivated workforce. At Instant Financial, we’ve seen firsthand how organizations that adopt EWA not only improve their recruitment efforts but also cultivate an environment where employees feel valued and empowered.
Stay tuned as we continue this series with a deep dive into Part III of the study, where we explore the impact of wage frequency on employee retention and loyalty. To access the full 2024 Wages & Wellbeing report, you can download it here.
