Wages & Wellbeing study from Instant Financial shows on-demand pay is a major recruitment and retention factor with younger generations
ATLANTA, Aug. 8, 2022 /PRNewswire-PRWeb/ -- Instant Financial, the pioneer of fee-free on-demand pay solutions, partnered with the Center for Generational Kinetics, to study the effects and perceptions of wage frequency on the financial security and job requirements of the next wave of young professionals entering the labor market: Generation Z (Gen Z). With a desire to have more control over their personal finances, the study found that 87% of Gen Z would be more interested in applying for a job that pays them the same day they work. And with Gen-Zers set to hold up to 36% of the workforce by the end of this year, employers will need to take note of their demands in order to recruit and retain this generation.
As the generation most likely to switch jobs and land the biggest pay increases, Gen Z is taking advantage of the labor shortage to redefine workplace expectations – much like other areas where these teens and twenty-somethings have pushed the boundaries of cultural norms. In fact, four in ten Gen Z workers would like to leave their job in two years, and behind compensation, mental health and burnout are the top two reasons.
Gen Z Wants More than Money
While compensation is one of the major reasons Gen Z workers leave their current jobs, when it comes to choosing a new job, younger generations are more inclined to take work/life balance into account. And trendy perks or workplace gimmicks aren't going to cut it – they want to feel like their employers respect them and are willing to invest in their advancement. This means taking their financial security into consideration and helping reduce the stress and anxiety that comes along with living paycheck to paycheck. With only a quarter of Gen Zers saying they can comfortably manage their expenses, it's not surprising that 62% of Gen Z workers are willing to stay a month to over a year longer at a job if they can get immediate access to their earned pay after each day's work at no cost, the highest of any generation. Furthermore, 61% of Gen Z respondents said they would be less likely to be late on bills if they had access to their earned wages after each day's work.
"Gen Z isn't going to sit at home while they wait two weeks for a paycheck so they can pay their bills," said Tal Clark, CEO of Instant Financial. "Our research shows if they need money before payday, they are the generation most likely to take on a short term job that pays immediately, and also the most likely to work more shifts or hours at their current job if they have access to their wages after every day's work. After all, they are the on-demand generation. Why should their salaries be any different?"
Responsible Earned Wage Access
But immediate access to their earned wages isn't enough. In fact, with 94% of Gen Z workers saying it is unfair to be charged a fee to access their earned pay after a day of work, it's clear that in order to recruit and retain younger workers, employers will need to implement a responsible earned wage access (EWA) program that allows employees to get paid their earned wages at the end of every work day, free of fees.
To meet the demands of millions of Gen Z employees and their employers across the country, Instant Pay is the only on-demand pay solution that gives employees access to their earned wages, free of predatory fees. For more information on how your company can utilize a responsible, earned wage access program to attract the youngest workers entering the workforce, visit http://www.instant.co.
About the Study
The survey of 1,000 employed full-time or part-time US labor force participants, aged 16-55, was conducted by the Center for Generational Kinetics from April 9, 2022, to April 20, 2022. The margin of error is +/-3.1 percentage points.
To download a copy of the Wages and Wellbeing study from Instant Financial, visit https://www.instant.co/resource/earned-wage-study/.
About Instant Financial
Instant Financial is leading the charge to provide financial freedom and wellness to millions of workers in the United States through its earned wage access solutions. By enabling employers to allow employees to access their daily wages immediately after their shift, Instant Financial helps organizations improve retention and reduce absenteeism while helping employees take control of their financial freedom by bridging the gap between work day and payday. Learn more about Instant Financial at http://www.instant.co.
About Center of Generational Kinetics
The Center for Generational Kinetics, LLC (CGK) is the leading research, advisory, and speaking firm focused on uncovering key emerging trends, generational change, and behavioral insights. CGK's team leads original research around the world to solve important consumer and workforce challenges. The firm uncovers new and unexpected, statistically accurate insights for innovative, market-leading clients. CGK's team has worked with over 700 companies around the world, from the biggest global consumer brands to governments, technology pioneers, financial services, retailers, and global banks.
Media Contact
Amelia Wright, ARPR on behalf of Instant Financial, 855-300-8209, [email protected]
SOURCE Instant Financial
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