Daily Pay Trends for Temporary Workers
By Trevor Sheffield
March 9, 2023
In a world of inconsistency, there’s one thing everyone counts on—payday. Whether you’re receiving a paycheck every two weeks, twice a month, or even once a month, chances are you’re familiar with counting down the days until your bank account is full once more. However, as Americans experience increasing rates of inflation and higher living expenses, an unusual pay trend finds itself in demand: daily pay.
Current Pay Trends
Daily pay is uncommon in most industries, where monthly, biweekly, and every other week pay schedules dominate. Current trends are in force because of the way businesses tend to function. In most cases, it’s difficult for a company to have enough cash flow that they are able to pay employees daily. Considering different business models, daily cash flow is not always a feasible option. Hence, the tendency towards paydays every other week or once a month.
This Forbes article also explains that the cost of daily income transactions through banks may be inconvenient for both employees and employers. These additional fees may prove to be more expensive in the long run, disadvantaging those who needed it in the first place.
The status quo has remained in place for years and, as noted here, for good reason. However, recent surveys show that despite these setbacks, it may be worth considering a daily pay schedule.
Is Daily Pay Worth Considering?
You may be wondering—is the call for daily pay really that big of a deal? The answer is an unequivocal yes. Forbes explains, “A majority of U.S. workers—83%—believe they should have access to their earned wages at the end of each workday or shift.” This is according to a study conducted online by the Harris Poll for the company Ceridian in 2021. From the results, it is clear to see that demand for daily payment schedules has risen in all age groups within the workforce.
The survey also concluded that 80% of employees would choose a job that pays daily over the same job paying at a less frequent rate. Additionally, over 75% of workers would feel increased loyalty to their employer if they were being paid daily instead of once or twice a month. It’s entirely feasible to think as innovation increases, the demand for daily payouts will as well.
Consider your own company and how this demand may affect you. Is it possible staffing agencies will move to daily payday schedule in order to keep up with this demand? And will refusing to jump on the bandwagon leave other businesses in the dust? It’s important to think through your own cash flow assets and the potential to provide payments on a daily basis.
Consider the upsides of a daily pay schedule as well. Increased employee loyalty is important, especially because increased loyalty brings motivation with it. It would enable your workers to have cash on hand for any kind of emergency they might encounter. In addition, they can jump on investment opportunities they may have missed otherwise. The individual and family benefits of daily pay are endless—at its core, a daily pay schedule is choosing to do what’s best for the people.
While no final determinations have been made yet, this is a potential trend you’ll want to keep your eye on if you want to ensure your workers are treated fairly and prevent a high turnover rate. Do you believe daily pay will continue to grow in demand?