Posted on 10/26/2017 9:23:54 PM PDT by nickcarraway
McDonald's, Outback Steakhouse, and several dozen other food and hospitality retailers are using daily paychecks as a means to give low-wage workers more flexibility with their finances.
Steve Barha, CEO of Instant Financial, the technology company enabling retailers' move to same-day pay, said the option is partly meant to cater to a preference shared by millennial employees that quick cash is better than waiting two weeks for a lump sum.
"Basically, their life is real-time," Barha told Business Insider. "Their communication is real-time. Their transportation is real-time, with Uber and Lyft. So this program really aligns with their real-time life and being in control of their whole life experience."
(Excerpt) Read more at sfgate.com ...
More flexibility? Hogwash. They know the lower wage people are constantly broke, so they figured if they kick them a few bucks each day they might come back...Sad.
Sounds more like they are trying to appeal to drug addicts.
I can see some big disadvantages from the employer’s point of view. Depending on what type of business they are in, they may need to collect their accounts receivable in order to have money in the bank to pay their employees.
Another issue is payroll taxes that need to be paid to the government. For businesses above a certain size those payroll taxes need to be paid every payday. If payday becomes everyday, the business would also have to pay the payroll taxes every single business day. This could add a lot of back office cost to the business to process payroll.
It is not as if it is 1967 and Marge in the Accounting Department is hand wring your paycheck and entering the payment and associated payments into the green accounting binder.
It’s all rather seamless and even systems like SquareUp can take payment and deposit that money into the seller’s account on the same day.
The question we should be asking is ‘Why do employees extend two weeks of zero percent credit to their employers?’
Not drug addicts, just people that do not wish to extend a credit line to their employers.
I think within a few years, many if not most, major employers will offer the same option to their employees.
Interesting points.
Regarding extending an interest-free loan to your employer for two weeks, if any employees requested to be paid every day I’m sure most employers would refuse because they aren’t set up to process payroll in that manner.
Realistically how many of us would quit a job because we can’t get a paycheck every single day? I know I wouldn’t. I know that being a high-income professional that it just doesn’t make a difference to me to get paid every day. Maybe to some people it does.
Good old Marge. How is Marge? :-)
dumb them down anyway you can...fits the plan!
If the technology exists and it is cost effective, it could work as an employment incentive.
I think it will catch on and more employers will move to such a system.
“Good old Marge. How is Marge?”
Dead
The cost of eating out is more than ridiculous as is the price of food in the grocery store. . . and I might add “dog food” is higher in price than “people food”.
Sounds more like they are trying to appeal to drug addicts.
Give it to them for a short while then take it away... and watch the spoiled ingrates implode.
I'm guessing standards of behavior are different where you live.
Fry's (Kroger) and Walmart have great prices.
Poor Marge.
I forgot to mention that in case anyone hasn’t noticed the price of dog and cat food has really skyrocketed.
Not to mention the price of dogs and cats.
‘In Germany people get paid monthly. ...”
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Believe me, most Germans are better at managing/budgeting their money than American millennials. Paying workers daily will make them even less capable of managing their income to pay the larger recurring bills. McDonalds will be doing their less disciplined workers no favors with this change.
I know...I’ve had to go back to buying human food to feed grandma. :-)
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