Every year the APA (American Payroll Association) puts out a survey during National Payroll Week. There’s nothing in the results that really stand out as odd or unexpected, but here’s what some of the results mean for the payroll card industry. 2016 "Getting Paid In America" survey results.
1. Only 2.17% get paid via paper checks
According to this year’s survey results only 2.17% of those surveyed get their pay through paper checks. This number is down from 4.60% in 2015. This number is down largely due to more people switching over to Direct Deposit, but switching to direct deposit is difficult if you don’t have a traditional bank account. For your employees who don’t have traditional bank accounts SOLE’s paycard solution makes it easy on everyone.
2. 70.85% use apps for mobile banking needs
70.85% is a good chunk of people, but expect this number to grow in our ever-expanding digital world. Mobile apps provide a much needed portable window into personal finances. Gone are the days of waiting to reviewing monthly bank statements that come in the mail. People (including SOLE Paycard holders) want and expect to be able to check their available balance on the go. Remind your employees that the SOLE Paycard app is available for both APPLE and ANDROID smart phones.
3. 51.36% would prefer a larger tax refund than more money each paycheck
Sure, getting a little extra money every paycheck is nice, but most people surveyed prefer to get a larger tax return. The reasons they chose a larger tax return is so they can make larger purchases (more than $200), pay off credit card bills or other debt, use the tax return for a vacation, or add the funds to their emergency savings.
4. 55.62% would rather have higher wages versus better health benefits
55.62% of the surveyed would rather have higher wages than better health benefits. Most employees would rather have a little extra money than better healthcare. Especially in a climate where a lot of people are getting healthcare for the first time, for most people basic healthcare is better than nothing and they’re not really looking for more robust healthcare options. Better health benefits also mean more costs, often those costs are put on the employees’ shoulders. So, it’s no wonder why 55.62% would want a little extra money every paycheck.
5. 28.59% would find it Very Difficult to meet their financial obligations if their paycheck was delayed just a week
This year’s survey had a lower percentage of people finding it “very difficult” to meet financial obligations from last year. Still almost a third of people would find it very difficult to meet financial obligations. That’s what makes getting paid on time so important. For everyone in this category, a late check could mean eviction from their homes. There’s so many ways a paper check could get delayed from lost in the mail, to printer malfunctions, to inclement weather. Remove those factors and get everyone in your organization on direct deposit, even if they don’t have a traditional bank account and get them signed up with SOLE.
This year’s getting paid survey results point to a few things, paper checks are quickly becoming a thing of the past, getting paid on time is often a matter of keeping a roof over your head, and technology within the payroll and banking industry is going to become common place. Getting paid and getting paid on time is the most important thing to American workers. Proactive employers can facilitate easier access to pay and reduce the cost of getting paid by switching from paper checks to the SOLE Paycard.