Different expectations for receiving paychecks
Millennials (who were typically born between 1977 – 1995) and Gen Z (typically born after 1995) have different attitudes about common paycheck practices than older people.
Digital payment provider Global Cash Card surveyed over 1,000 working Americans of all ages to find out their perceptions of several elements of their pay.
The results of the survey were discussed at a recent presentation at the 2018 American Payroll Association (APA) Congress.
Options and access
Younger people value choice when it comes to how they’re paid. In fact, 31% of Millennials would turn down a job offer if they weren’t able to choose their method of pay, and 47% of Gen Z workers said the same.
Their access to choices has been limited so far: 44% of Millennials and 54% of Gen Z said they were unable to choose how they were paid.
Many of the youngest members of the workers are paid via paper check. Almost 80% of Gen Z workers received their wages through a paper check in the last year.
But they aren’t big fans of the practice, in part due to the fees associated with cashing checks if they don’t have a bank account.
Per the survey, 43% of Gen Z workers and 20% of Millennials have spent more than $5 to cash a paper check.
Instead of receiving paper checks, many young people are on board with the idea of paycards – especially since a checking account isn’t necessary.
Half of Millennials and 63% of Gen Z employees surveyed would absolutely use a paycard, or they believe paycards are a good option in certain circumstances.
Gen Z workers particularly appreciate the free mobile access paycards often offer. Nearly one-third of them (32%) want pay-related features like mobile web access, two-way text messaging and balance or load alerts.
Takeaway: To improve younger workers’ perception of the payroll process, it may be a good idea to offer more options for receiving wages (such as paycards) along with ways to review pay info on tablets or smartphones.
Cite: Paycards: Generational Trends Shaping the Future of Pay, presented by George Mavrantzas at the 2018 APA Congress, National Harbor, MD.