Our Two Cents on Digital Wallets for Employees: The Workforce Institute Weigh-In

The Workforce Institute Weigh-In for August 2023: Digital wallets are starting to replace traditional bank accounts for younger employees. What are some of the most important evolving HR and payroll preferences of younger workers that organizations should know about?

“I love on-demand payroll. It will help so many workers when an emergency happens. That said, every employer must be on top of regulations around paystubs, even for the on-demand payments. This is a responsibility of the employer — not the payroll provider. So, understanding the obligations and holding payroll providers’ feet to the fire to make sure paystubs are correct and available, regardless of how the employee gets paid, is critical to being responsive to employee needs and compliance demands.” — Kate Bischoff, employment attorney, k8bisch, LLC

“There are two things young people want and organizations should be providing: flexible scheduling and skills development. All workers value these things, but younger workers expect them. Let’s take each one at a time. Flexible scheduling should be a no-brainer. Flexible scheduling means giving your employees some, if not total, control over their own schedules. Organizations may not want their employees to write their own schedules, but, at minimum, organizations should give employees the ability to pick up, release, and swap shifts without having to talk to a manager. The tools and technology for this have been around for years. Still, it amazes me how many organizations don’t offer flexible scheduling or have poor flexible-scheduling practices. Beyond flexible scheduling, younger workers expect to develop skills at work that help them today and are transferable for the future. It does not matter what type of job the younger person is doing. Deskless or knowledge worker, they expect opportunities to learn and grow on the job. Organizations that embrace this opportunity will strengthen their relationship with their employees, be able to attract better talent, and drive better engagement.” — Bob Clements, president, Axsium Group

“I doubt a young employee would mention it, but what they’d most prefer is never having money stolen from their digital wallet. So, I’d include a hefty dose of training on how to protect yourself before putting your paycheck into a digital wallet.” — David Creelman, CEO, Creelman Research

“With headlines in the news about economic uncertainty and bank failures, an increasing number of people — not just young people — are exploring their financial options. That includes digital wallets. They’re great, from a convenience perspective, so no more chunky wallets and cards. But digital wallets can be not-so great if the payment method isn’t accepted or the device holding the digital wallet, like a phone or watch, isn’t properly charged or a person can’t access the wallet. To start, HR and payroll departments need to recognize the growing popularity of digital wallets. They also need to make sure that the pay options they offer employees include a digital component (vs. a physical card or a paper check), earned wage access, as well as no fees for employees accessing their money.” — Sharlyn Lauby, author, HR Bartender blog

“In today’s society, we balk at waiting for anything. Need to know how to work an appliance? You can watch a how-to video on YouTube in seconds. Owe your friend dinner money? You can send over funds immediately. Today’s younger workers don’t want to wait for their pay either, and organizations understand that their people are experiencing stress overload and that financial insecurity results in increased absenteeism and decreased engagement and morale. Workers struggling to make their rent are also not as focused at work and make more mistakes. In addition to depositing funds into an employee’s account as soon as the hours are worked, many on-demand compensation platforms also help employees with general financial management, such as checking balances, tracking transaction histories, and categorizing expenses.” — Alexandra Levit, author, “Deep Talent”