The importance of fast payment for gig workers, day laborers and service industry staffers cannot be overstated. As the lowest paid and most vulnerable members of our workforce, they depend on consistent and timely paychecks in order to earn a living. A fair number of these workers rely on numerous sources for their income that makes it difficult for them to calculate whether all those paychecks will arrive in time to pay bills. This phenomenon takes on a sense of urgency in the face of rising inflation and the threat of recession.
With research suggesting that as many as 40% of working Americans living paycheck to paycheck, more companies are recognizing the value of offering on-demand or instant paydays. My staffing company has always had a fast payment turnaround time, and now we’re increasing it even further in the 2.0 version of our gig-work app to be within 48 hours, which eventually will be cut to 24 hours and then hopefully immediate payments. We think it’s absolutely critical for our clients and their contingent workforces.
An ability to receive paychecks on the same day that work is completed represents a massive step forward for this incredibly important segment of the U.S. labor force. But there’s still a lot of work to be done in this area. Labor unions and hospitality businesses certainly can advocate for this type of benefit. This trend not only meets basic needs, but also can be used as a tool for recruiting and retaining talent in a highly competitive labor market. Fast and fair pay enables so many of our frontline workers access to a better and less stressful lifestyle.
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