By: Jason Lee, CEO, DailyPay
In the early 2000s, Blockbuster had the opportunity to acquire a small upstart called Netflix. Secure in its belief that the home movie business would never change, Blockbuster declined every time. In 2011, Blockbuster went bankrupt and today we can now watch a movie on our phone while waiting in line thanks to Netflix.
To be fair, Netflix didn’t come up with the concept of e-commerce or streaming or smartphones. Those things just happened. The genius of Netflix is that they identified a once-in-a-generation perfect storm of market forces that, on the surface, appeared unrelated to their industry, and they anticipated (correctly) the effect that this perfect storm would have on the way we watch movies.
Unrelenting market forces—unrelated to payroll—are conspiring to create major change in our industry. The result of this perfect storm is that employees want to control the timing of their pay. And employers will have to meet this demand.
The first of these market forces has nothing to do with payroll per se, but rather how we consume goods and services. Everything from ordering an Uber to tonight’s dinner can be done from the palm of your hand. Millennials and the incoming Generation Z use payment apps like Venmo to instantly zap their friends money for pizza. “Instant” is not novel anymore. It’s the expectation.
The second of these market forces is the tightness of the current labor market. The unemployment rate is at its lowest since 2000, and it continues to decline. Companies simply cannot find and hire workers today. Even worse, once someone is hired, that person will leave for modest increases in wages, causing turnover expense for companies. According to the Center for American Progress, the average cost of replacement ranges from 16% to 216% of the departing employee’s annual salary.
The third market force is that, according to a CareerBuilder survey, 78% of full-time workers live paycheck to paycheck. These workers incur, on average, $1,000 per year in late and overdraft fees as they wait to get their next paycheck before paying bills.
The net result of these three seemingly unrelated forces is that companies must offer their employees an ability to meet financial obligations on time, or else face losing them in a difficult labor market.
We are witnessing first hand a movement by companies to address these challenges by offering their employees control over the timing of their pay. Companies like Uber and Walmart have already joined the daily pay movement, enabling their employees access to earned wages on their own timing. Importantly (and great for the payroll industry), technology now exists so employees can receive this benefit without the employer having to change anything about its payroll process, including the timing of payroll funds.
Ask anyone under 35 about the last time they drove somewhere to rent a movie. At best, you’ll get childhood memories. In a few years, you’ll get the same reaction if you ask when payday is. We look forward to partnering with you to embrace this inevitable change.
For more information, please visit dailypay.com.
By Makin Itup Asigoalong
Ellen DeGeneres, well-known talk show host, comedian, actress, writer and producer today announced that she is leaving her daily talk show to work in payroll.
This has come as a shock to her producers and her fans, who are finding it hard to believe that the 61-year-old is leaving her chosen profession and the 15-season-long Ellen Show for a major career change.
“I’m not sure what’s so hard to understand about this decision,” Ellen said. “I’ve made a lot of money and I’ve entertained a lot of people, and myself, and now I want to help other people by paying them after they’ve worked so hard! I love to make people smile. And what makes people smile more than getting paid on payday?”
Her wife, Portia de Rossi, stated that she was “blindsided” by Ellen’s decision. “I’m not sure what she’s even thinking,” de Rossi said. “She’s a little old for a mid-life crisis, so I’m not really sure what this is all about. It was a spur-of-the-moment decision. I’ll just roll with it. Ellen is Ellen. She does what she wants and I support her.”
Her producers were less than supportive of her decision to leave the show. A spokesperson for Telepictures, who chose to remain anonymous, said, “ We don't understand how she could just up and leave the show like that! What is she even thinking! I mean it’s great that she wants to help people on payday, but what about all her loyal show fans? They’re not going to take the news of her hasty departure well at all.”
Ellen has not yet named the company where she will be employed, but wherever she goes, some lucky people will be chosen each payday to receive some extra money in their pay. “I have been blessed with a long and lucrative career, and I want to be able to share some of my wealth with people who could really use a boost in their paychecks,” Ellen said. “I can’t wait to see the looks on their faces when they receive an extra $5,000, $15,000 or even $50,000, if I’m feeling especially generous, in their paychecks! I just love to make people happy. If you have the means to do it, why not?”
Ellen advised loyal fans and followers to keep an eye on her LinkedIn profile to see where she lands. She hasn’t officially signed any paperwork yet, and her producers are taking that as a good sign that she might just change her mind so that they can hopefully wake up from this terrible nightmare!
By: Idont Needsleep
Corporate America has answered the call for increased production and on-demand, any-time-of-the-day-or-night services by instituting a 24-hour, eight-day work week.
The U.S. Chamber of Commerce, which is the world's largest business organization, representing the interests of more than 3 million businesses, announced this bold initiative after an emergency 3:00 a.m. meeting.
“It was a unanimous decision,” Chamber President Olive Towork announced to national news affiliates immediately following the meeting. “Sleep, vacations, holidays, weekends - they’re all overrated. As the world’s most industrialized nation, we’re expected to set the bar higher. We need to show the rest of the world what we’re made of and demonstrate our willingness to do whatever it takes as a country to meet our service and production needs.”
Of course the big question on everyone’s minds is, “How will this affect the way people get paid?” It won’t. “We can’t expect to make a difference if we actually have to pay people more,” Towork said. “The whole point here is to have businesses make more, so they can pay more taxes with all the extra money they’ll be making — not pay higher wages! It’s also all about convenience. People will be able to have pizza delivered at 5:00 a.m. or have an appliance serviced at 11:00 p.m. if that’s what is convenient. Doesn’t that just make everyone’s lives easier?
As expected, America's workforce is not happy. Sam Lazybones said he is speaking for everyone he knows when he said, “This is crazy! Who wants to work eight days a week? When are we supposed to get things done? Errands, food shopping, cleaning, laundry? And when are we supposed to see our children? Our spouses? All this means extra costs for workers, without any wage increase to offset additional costs like transportation and childcare. People will be more likely to call out. Really not sure why this is a ‘thing.’”
As of this morning, no effective date has been set, but it’s obvious that businesses want to fasttrack this, so you can expect to see an update soon.