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A tight labor market has been beneficial to employees’ pockets, but it hasn’t made them any less stressed about money.
This is according to the “Pay Experience Report” by global human capital management (HCM) company Ceridian HCM Holding Inc. and conducted by Hanover Research, which revealed that North American workers (1,891 surveyed) are challenged by financial matters that impact life at work and outside of work, including:
- Prevalence of Stress: 80% of North American workers are stressed to some capacity about pay and money issues on a regular basis.
- Pay Transparency: Only 30% of workers are completely satisfied when it comes to transparency of information about their pay.
- Pay Equity: Not making a good salary is the leading factor for female workers not being satisfied with their employer (51% of women listed pay versus 35% of men).
- Communication: While a big part of creating a positive compensation experience comes down to communication, more than one-in-three (37%) surveyed do not feel comfortable discussing their pay with their manager.
“The demands and expectations of employees in today’s workforce are significantly different than two or three decades ago when most company leaders began their careers,” said Lisa Sterling, chief people and culture officer at Ceridian. “It’s unacceptable that the gender-pay gap remains a persistent issue, with only 53% of women believing they are paid equal to their male counterparts. Solving this requires employers to prioritize transparency and lean into new technologies that will help them embrace an equal value approach to pay.”
Financial Wellness Is Not a Priority for Employers
Much has been said about the burden that comes with the rising cost of living and the surge in consumer debt. With the majority of workers carrying personal financial stress into the workplace, payday can be a source of anxiety when compensation doesn’t meet their lifestyle and financial needs.
Respondents said for any large, unexpected expenses, they would have to resort to their credit card (31%) or borrow money from family and friends (11%), compounding their worries.
The survey shows some employers could probably do more to support their people, with nearly one-third of employees (27%) believing their employers do not care about their financial well-being, and only 24% believing they care “very much.”
“Companies need to walk the talk and implement employee-centric programs prioritizing financial wellness,” Sterling said. “Not only will these initiatives help attract and retain top talent in today’s competitive job market, it’s simply the right thing to do.”
Rethinking the Traditional Pay Cycle with On-Demand Wages
Today’s workforce is heavily comprised of individuals accustomed to meeting their needs with the click of a button. And according to the report, these expectations are also impacting how they want to be paid.
59% of full-time and part-time employees are currently paid every two weeks. However, when asked how they would like to be paid, 37% would prefer to be paid weekly, signaling a need for more frequent, regular access to their earned wages.