Ceridian Report: Half of Working Americans Struggled to Cover Expenses Between Pay Periods Over Past Six Months
June 23 2020 - 8:00AM
Over half of US workers have struggled to cover their expenses
between pay periods over the past six months, according to a new
study released today by Ceridian (NYSE: CDAY; TSX: CDAY), a global
human capital management (HCM) company.
The study, conducted online by The Harris Poll in
May 2020, revealed:
- More than half (55 percent) have had trouble covering their
expenses between pay periods over the past 6 months
- Of that group, half (50 percent) said the COVID-19 crisis had
an adverse impact on their finances that they were unprepared for,
while another 31 percent cited an unexpected expense they were not
prepared to cover as the catalyst
- Nearly one third (30 percent) said an unexpected expense of
less than $500 would make them unable to meet other financial
obligations
“Many US households are living paycheck to
paycheck, relying on expensive credit cards or payday loans to make
ends meet between pay periods. More than ever before, workers
require immediate access to their earned wages to help alleviate
financial burdens,” said David Ossip, CEO and Chairman, Ceridian.
“The game-changing technology behind Dayforce Wallet enables
employees to access their wages on demand – as they earn it and
need it – making the traditional pay day obsolete.”
Disrupting payroll antiquated payroll norms
essential to improving financial wellness
Historically, employers pay their workers on a
bi-weekly or bi-monthly basis, meaning many of those faced with a
financial emergency between pay periods will likely turn to
high-interest loan products to get by. The study showed that for
those challenged to cover expenses between pay periods over the
past six months, 43 percent used a credit card, while another 14
percent used a payday loan to make ends meet. Moreover, 61 percent
of that same group said their financial circumstances would be
improved if their employer allowed them free access to their earned
wages as they needed them.
The data makes a clear case for disrupting
conventional payroll practices as they exist today, and in recent
years, the payroll landscape has been evolving to meet this need.
New work structures, the fluidity of today’s workforce, and
increased financial stress have heightened the need for new
innovative ways for companies to pay their people.
Dayforce Wallet, an industry-first pay solution,
leverages the Dayforce platform’s unique continuous calculation
capabilities to enable on-demand payroll that accounts for the
appropriate taxes, deductions, and garnishments. This allows for an
accurate, real-time payment, as opposed to an estimation, without
any direct fees to the employee or employer.
“We believe a much-needed, employee-centric change
to payroll is far overdue, and in the next few years, all leading
organizations will pay their people on a daily basis,” noted
Ossip.
To learn more about Dayforce Wallet, visit:
www.dayforcewallet.com.
Methodology
This survey was conducted online within the United
States by The Harris Poll on behalf of Ceridian from May 6-8, 2020
among 1,330 employed U.S. adults ages 18 and older. This online
survey is not based on a probability sample and therefore no
estimate of theoretical sampling error can be calculated.
About Ceridian
Ceridian. Makes Work Life
Better™.
Ceridian HCM Holding Inc. (“Ceridian” or the
“Company”) (NYSE:CDAY) (TSX:CDAY) is a global human capital
management software company. Dayforce, our flagship cloud HCM
platform, provides human resources, payroll, benefits, workforce
management, and talent management functionality. Our platform is
used to optimize management of the entire employee lifecycle,
including attracting, engaging, paying, deploying, and developing
people. Ceridian has solutions for organizations of all sizes.
Visit Ceridian.com or follow us @Ceridian.
Media Contact: Matthew Duffin
Matthew.Duffin@Ceridian.com 647.248.0752
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