Waiting for payday has been a universal and shared experience around the globe for over a hundred years with almost everyone in paid work typically waiting between 1 to 4 weeks until they receive the rewards of their endeavours.
This concept was so ingrained within our working life that until recently it has rarely been questioned. The problem though, is that whilst workers wait up to a month to be paid for their work, the reverse is true for purchasing where consumers are mostly required to pay in advance or on delivery.
Personal budgeting is one way of bridging this divide, but for minimum wage employees, an unexpected car repair or appliance failure can easily torpedo your careful planning.
The economic meltdown in 2008 put further strain on the financial well-being of workers across the world and pushed many into the arms of the payday loan market which grew rapidly as a result.
Whilst its advocates promoted the loan as a means of bridging the gap between payday, the reality was the eye-watering interest rates simply compounded the problem and forced many workers further into debt.
However, today organisations are starting to re-evaluate how and when their employees are remunerated in the emerging New World of Work. Some companies such as Wagestream provide tools and services to enable employees to get access to a proportion of their salary before payday avoiding the need for them to rely on expensive short-term loans.
The New World of Work will continue to challenge and change the way we work and the often-heard response “Because this is how we’ve always done it”.
Read The New World of Work Part 1 here