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.
Years ago it became universally accepted that even though employees needed to be paid regularly, it was okay to only pay them in lump sums every two weeks. This largely stemmed from the fact that it was expensive to administer funds manually (bank fees, bookeeping, etc.).
We’re now in the year 2014 and this is no longer the case. With Bitcoin, 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.
Bitcoin’s nearly frictionless transaction protocol allows value to be transferred for less than a penny, and I believe companies will pay their employees by the day, hour, minute, or even second someday. You may very well be able to watch your hard-earned money pour into your wallet in real-time.
A new type of paycheck doesn’t end with simple nuances in timing though. What if we changed the way we were paid by truly factoring in performance or other factors? What if getting paid was more 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 present a massive shift from most bonus programs today, which seem to suffer from a misalignment of incentives that aren’t always rooted in actual data.
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.