We’re getting very close to obliterating the biweekly paycheck as we all know it.
My current employer pays me every 2 weeks. So did my last employer. I’ve actually given up trying to figure out what day I get paid though. Is it the 1st and 15th? Or the first and third Monday? Or the 15th and the 30th, except for February, when it’s the 28th?
I honestly have no clue. And I’m here to tell you that this craziness will probably be ending soon.
Sometime back in the day, it became universally accepted that (1) employees needed to be paid, but (2) paying employees was expensive. On one hand, you had employers who incurred increased administrative costs for each paycheck they cut (bank fees, bookeeping, etc.). But you also had employees who needed money to support their lifestyles. Getting paid every 2 weeks became the happy medium between employer and employee.
But we’re now in the year 2014, and we finally have a piece of financial technology that lets us transfer money for a fraction of the cost. It’s not perfect, and there’s some innovation that needs to be done around the edges, but Bitcoin and other cryptocurrencies like it can get us all paid much more efficiently.
With Bitcoin’s nearly frictionless transaction protocol that allows value to be transferred for less than a penny, companies will soon pay their employees by the day, hour, minute, or even second. You may very well be able to watch your hard-earned money pour into your wallet in real time.
A new paycheck doesn’t quite end with simply nuances in timing though. What if we changed the way how we were paid by truly factoring in performance? What if getting paid was actually rooted in meritocracy?
Using Bitcoin 2.0 tech such as Ethereum, employers might soon be able to pay developers hyper-efficiently with smart contracts rooted in metrics like usage, shares, or impressions. A radical concept from our current system where employers pay employees for the actual effectiveness of their work. This would also present a massive shift from most bonus programs, where today employees are sometimes given arbitrary figures based on factors other than merit.
We may be a few years away, but the efficient paycheck is coming. And Paycheck 2.0 will be much more transparent than that biweekly black box we’re all accustomed to right now.