Majority of American Workers Fed Up With Traditional Work Setup, Survey Finds
Recent studies indicate that more than 70% of workers believe little has changed in the US work culture since the 20th century. A survey among 2,000 employed Americans uncovered numerous outdated practices, from the duration of their work hours (54%) to the payment modalities employed (41%). Evidently, there is a pressing need to modernize the current workflow.
Despite its longstanding presence for nearly a century, the traditional Monday through Friday schedule is viewed as irrelevant and unnecessary by 57% of respondents, signaling a call for reform.
Employees Desire for Flexibility
A sizable majority—roughly 67%—also believe that the conventional pay schedule, in which they receive their paychecks once or twice a month, is outdated. More than half of the respondents (51%) believe that employers should provide greater flexibility.
According to a OnePoll survey conducted on behalf of the Financial Technology Association, it was revealed that employed Americans are more likely to prefer getting paid more frequently than having a flexible work schedule. Of those surveyed, 50% preferred more frequent pay, while 44% preferred flexibility.
At the moment, the majority (51%) receive their paycheck every other week, followed by weekly (23%) and monthly (14%). Only 7% of workers receive payment at the end of their shift. Interestingly, three in five respondents (62%) mentioned that their current pay cycle doesn't align well with their financial situation.
Among them, 61% attribute this mismatch to either living paycheck to paycheck or running out of money too quickly (52%).
Growing Financial Struggles
A majority of respondents (56%) said they "always" or "often" find themselves having to stretch their income between pay weeks. Remarkably, the typical worker uses up all their money within 12 days after getting paid.
In a perfect world, given their existing financial situation, employees would prefer to be paid weekly (64%) or even daily (19%). This implies a significant desire for more regular pay cycles to improve their financial management.
The results also show that most respondents—more than one-third, or 35%—admit that they are not financially ready to handle an unforeseen $400 bill. Furthermore, 59% of respondents think they wouldn't be able to pay for necessities if their salary were delayed by just one week.
Over the previous five years, respondents experienced difficulties such as missing credit card payments (28%), gas and electricity bill payments (22%), and medical bill payments (20%) because of insufficient money. One-quarter have been forced to postpone grocery shopping due to financial hardship.
Due to this, many people have turned to alternate sources of income, such as using credit cards (34%), working multiple jobs (31%), and borrowing money from friends and family (28%). Surprisingly, 30% said they would rather keep their financial issues a secret and turn to high-interest loans instead of asking friends and relatives for assistance.
Importance of Earned Wage Access
Penny Lee, President and Chief Executive Officer of the Financial Technology Association, remarked, "It’s evident that many Americans are grappling with financial challenges. With a significant portion living paycheck to paycheck, it's crucial to explore modern solutions."
"Earned wage access offers a solution that allows workers to access wages they've already earned, providing relief during tough times," she added.
Early Payment May Help
Remarkably, only 35% of respondents are aware of "earned wage access," a feature that enables workers to get all or part of their compensation before the scheduled pay date. While more than a quarter (27%) have access to these services via their workplace, only sixteen percent have made use of them.
Lee notes, "Our current payroll system isn't meeting the needs of most Americans. Earned wage access is gaining traction as people seek solutions to budget effectively and alleviate financial pressure."