Gen Z: The New Workforce
Born from the mid 1990s to the late 2010s, Gen Z is known for being independent, entrepreneurial, and driven by their career and financial goals. With 30% of the workforce in the U.S. expected to be a part of Gen Z by the end of the decade, employers need to consider the wants and needs of this new generation, in order to increase recruitment, and ultimately, retention.
What does Gen Z Want?
The newest members of the workforce bring with them new expectations that employers must manage. When it comes to applying for a job, our recent Wages and Wellbeing Study found that 87% of working Gen Z are more likely to apply for a job that offers immediate access to their earned pay after every day’s work- the highest of any generation.
Not only does Gen Z want their money when they work, but they don’t want to pay a fee to access it. In fact, the majority of Gen Z (51%) feel employers are taking advantage of them if they are charged $5 to access their pay after each day of work. As businesses consider EWA solutions and financial wellness programs at large, it’s imperative they understand how each one supports their employees. Instant has defined the following three models of delivering on-demand pay to help employers better evaluate their options.
- THE DEDUCTION MODEL: Requires earned wage access deductions to be taken on the employee pay stub; this model is prohibited in more than 14 states.
- THE WAGE ASSIGNMENT MODEL: Requires participating employees to reroute the direct deposit of their pay to the vendor, using the vendor’s pooled account, where wages are held. This model gives the employee zero access and zero visibility into their wages until funds are recovered in full – often resulting in zero net pay during the traditional pay cycle.
- THE RESPONSIBLE MODEL: Pioneered by Instant Financial, this model is the only solution that completely protects the employer from risk, and the employee from predatory fees, while being compliant in 50 states.
Instant Pay is the only on-demand solution that gives the employee a full banking experience, free of predatory fees. The responsible aspect also extends to the partial payment amount offered to workers, structured in such a way that Gen-Z employees can breathe easy and remain flexible, knowing that they will still have money available on payday.
Access to wages on-demand is becoming increasingly more in-demand, especially among younger generations. Download our Wages & Wellbeing study to learn more about the changing requirements of the evolving workforce.