Why Sears and Uber Just Killed the Two Week Pay Cycle and You Should Too
The idea of “payday” is actually quite new. Getting paid daily was the norm for much of human history. It wasn’t until the industrial revolution that the two week pay cycle became the expectation. This pay cycle was created to benefit employers. Today it’s failing not only employees, but also the companies that created it.
With the current pay cycle, companies are holding on to $1 trillion of pay every two weeks. Meanwhile, people are being hit with overdrafts and late fees while they wait. The problem is so large that, as a country, we spend more on overdraft fees than we spend on fresh vegetables.
As a country, we spend more on overdraft fees than we spend on fresh vegetables.
Not only is the payroll delay affecting workers, it’s also impacting every employer’s bottom line. When given immediate access to their pay, 89% of people reported being more motivated and productive at work. In addition, 74% said their attendance at work improved. Imagine the value this improvement provides to a company at scale.
And with today’s technology, we can actually pay people faster than daily. Think about it. When you shop, you pay at once. When you go out to eat, you pay at once. But when you work, you wait two weeks to get paid.
There’s a better way to get paid, and people are starting to take notice.
When given immediate access to their pay, 89% of people reported being more motivated and productive at work.
Three weeks ago, Uber announced that they are providing their driver partners with more control and immediate access to their earnings through a partnership with Activehours. Today, Sears Holdings announced that they’re going to be helping both their employees and shoppers get instant access to their paychecks when they need them.
This shift is creating an opportunity which Uber and Sears have already embraced. By providing their employees and drivers instant access and better control over their pay through their integrations with Activehours, they’re ensuring that their drivers and employees will be happier, healthier, and more productive in their positions.
If you aren’t happy with your pay cycle, you can change it. With the Activehours app, anyone can get their pay when they want it. It’s time for employees to take control of their paychecks.
If you aren’t happy with your pay cycle, you can change it.