A growing number of UK employees are advocating for a shift from monthly to weekly pay cycles, aiming to enhance financial management and alleviate the stress associated with traditional payment structures. New research among 2,000 UK workers reveals that a significant portion of the workforce supports this change.
The survey, by Indeed Flex, an online staffing platform for temporary work, found that 71% of employees run out of money before the end of the month. Notably, 44% deplete their funds by the 21st day, while 21% exhaust their wages as early as the 14th. The figures show the financial strain many workers experience under the current monthly pay system.
Preference for Weekly Pay
In light of these challenges, 33% of surveyed workers expressed a preference for weekly pay. Among them, 50% believe that receiving wages weekly would improve their budgeting capabilities, and 45% feel it would grant them greater control over their finances. Additionally, 40% think a weekly income would simplify weekly food purchases, and 32% believe it would prevent them from spending their entire salary at once.
Novo Constare, CEO and Co-founder of Indeed Flex, acknowledged the complexities of dealing with salaries under the current system. “Managing finances often feels like a delicate balancing act, particularly when rising bills and escalating living costs put pressure on everyday life,” he said.
Constare suggested that more frequent pay could empower households to budget more effectively, providing greater control over their financial lives and reducing the stress of waiting for payday.
“While receiving a lump sum each month can be helpful, it doesn’t always match the reality of daily expenses, leaving many struggling to manage,” he said. “Offering more frequent pay would empower households to budget more effectively, providing greater control over their financial lives and reducing the stress of waiting for payday.”
Despite the demand for weekly pay, only 18% of UK employees currently receive wages on a weekly basis, while 71% are paid monthly. This disparity suggests that existing pay structures may not align with workers’ financial management preferences.
Temporary Work and Financial Flexibility
The survey also indicates that nearly 15% of UK workers engage in temporary work, either as their primary employment (8%) or alongside other jobs (7%). To support those seeking greater financial flexibility, Indeed Flex offers an Instant Pay service, allowing workers to access up to 70% of their earnings immediately after completing a shift.
Employers are recognising the benefits of offering flexible pay options. Implementing weekly pay or Earned Wage Access programmes can enhance employee satisfaction, reduce financial stress, and improve retention rates. A study by Payactiv found that increasing pay frequency with on-demand pay benefits can boost employee morale, productivity, and retention. By aligning pay structures with employees’ financial needs, companies can foster a more engaged and productive workforce.
The growing preference for weekly pay among UK workers demonstrates, say observers, the need for more flexible pay structures. As financial challenges persist, adopting pay systems that offer greater frequency and flexibility can play a crucial role in enhancing employees’ financial wellbeing and overall job satisfaction.