In many European and Asian countries, it’s customary to pay employees just once a month. And in other parts of the world, pay frequency differs for white-collar and blue-collar workers. Not so here in the US, where individual states hold most of the power in deciding when, where and how employees get paid. Our nation affords its workforce some of the most versatile and generous pay systems anywhere. Here are five top things every payroll service bureau should know about the all-American payday.
- Every other week is the norm: A survey of 1,000 employees age 18 and older working at businesses of all sizes throughout the country revealed that the most common pay frequency by far is every other week. At 43.7 percent, it’s more than twice the similar twice-a-month pay frequency – 18.3 percent. Weekly pay follows at 27.9 percent and 9.7 percent of US workers take home paychecks once a month.
- Friday = payday for most: More than half – 53.2 percent – of US workers get paid on Fridays. That’s more than triple the next most popular payday on Thursday, when 14.9 percent of employees get their checks. Just under 20 percent (19.3) say their paydays vary.
- And that means Friday is fun-day: One in four survey respondents say payday calls for some fun. A night out, a day trip or a shopping spree top the choices. One in five go all out, admitting that they’ve often blown an entire paycheck before their next payday. Presumably a wholly different one in five respondents say their payday funds go directly to paying off debts and a quarter always stash away a portion for a rainy day. No matter their plans, many respondents said that they’re happier on payday than on their birthdays or major holidays.
- “That can’t be right!”: One in four employees surveyed reported that they had received at least one paycheck with errors. Employees of smaller businesses (those with 20 or fewer workers) are more likely to receive late paychecks, likely due to cash flow issues or inefficient payroll operations. Keep in mind that this can prove problematic, as one in six respondents said a single inaccurate paycheck would prompt them to quit their job.
- Payroll is more transparent than ever: Today’s tech-savvy employees expect an unprecedented level of access to their payroll and HR information. It’s no wonder, as Millennials and Gen Z currently account for slightly over a third (38 percent) of the workforce and are projected to hit up to 58 percent in the next decade. Both generations are, by and large, digital natives, accustomed to online experiences from childhood. So, any payroll firm that’s not offering web and mobile access to pay and HCM data is flirting with disaster. You can bet their strongest competitors offer it already.
So how can your payroll firm secure a competitive edge? By calling Apex HCM, an industry leader offering a full suite of customizable, integrated, cloud-based payroll and HCM solutions. Call 878-645-3150 or contact us online to learn how.