[US] Just 56% of employers will modernise payroll this year despite employee demands for flexibility

In the US, new research has revealed that 92.2 per cent of employers agree that faster pay cycles improve employee engagement, but only half actually intend to modernise their payroll systems in 2026, Business Wire reports.

The survey of 1,000 U.S.-based hourly workers and 1,000 employed leaders in HR, payroll, and finance was conducted by the fintech platform Rain. It reportedly found that while employers agree in principle that pay timing affects engagement, productivity, and retention, many have yet to take any action. 

Its findings showed that just over half (56.4 per cent) of employers say leadership views pay flexibility as a strategic priority, suggesting that hesitation at the executive and systems level is slowing progress.

More than half of employees stated that they would stay with an employer longer if they had faster access to earned pay, while 71.6 per cent of employers said flexible pay could reduce turnover, highlighting a growing gap between employee demand and employer action.

“Pay timing is no longer a benefits discussion; it’s a workforce infrastructure issue,” Alex Bradford - co-founder and CEO of Rain - said. “When employees take second jobs or miss shifts just to manage cash flow, that’s not a personal finance problem. It’s a systems problem. The companies that make improvements to their pay processes now won’t just offer faster access to pay, they’ll close the gap between what leaders believe and what their payroll systems can actually deliver.”

According to Rain’s survey, nearly half of employees (49.6 per cent) said waiting for pay negatively impacts their focus and attendance, and 39.2 per cent said they had paid overdraft, payday, or late fees in recent months. More than one in three employees (37.3 per cent) stated that they have taken a second job just to access pay faster, highlighting how outdated payroll systems shift the financial and cognitive burdens onto workers.

The data did reportedly show alignment on how and when employees expect to be paid. More than half of employees (51.6 per cent) said on-demand pay will be an expected part of work in 2026, echoing the 52.8 per cent of employers who think it will become standard. 

The findings signal a broader shift in how payroll is perceived within organisations; 83 per cent of employers said faster pay demonstrates trust, 82.4 per cent said modern payroll systems signal innovation and employee well-being, and 77.9 per cent said flexible pay strengthens employer brand. 

“Payroll is a key component of the future of work,” Mr Bradford said. “The organisations that modernise pay timing and give employees real-time access to their earned wages will be the ones employees choose to stay with instead of moving to a company with these benefits.”

Source: Business Wire

(Quotes via original reporting)

In the US, new research has revealed that 92.2 per cent of employers agree that faster pay cycles improve employee engagement, but only half actually intend to modernise their payroll systems in 2026, Business Wire reports.

The survey of 1,000 U.S.-based hourly workers and 1,000 employed leaders in HR, payroll, and finance was conducted by the fintech platform Rain. It reportedly found that while employers agree in principle that pay timing affects engagement, productivity, and retention, many have yet to take any action. 

Its findings showed that just over half (56.4 per cent) of employers say leadership views pay flexibility as a strategic priority, suggesting that hesitation at the executive and systems level is slowing progress.

More than half of employees stated that they would stay with an employer longer if they had faster access to earned pay, while 71.6 per cent of employers said flexible pay could reduce turnover, highlighting a growing gap between employee demand and employer action.

“Pay timing is no longer a benefits discussion; it’s a workforce infrastructure issue,” Alex Bradford - co-founder and CEO of Rain - said. “When employees take second jobs or miss shifts just to manage cash flow, that’s not a personal finance problem. It’s a systems problem. The companies that make improvements to their pay processes now won’t just offer faster access to pay, they’ll close the gap between what leaders believe and what their payroll systems can actually deliver.”

According to Rain’s survey, nearly half of employees (49.6 per cent) said waiting for pay negatively impacts their focus and attendance, and 39.2 per cent said they had paid overdraft, payday, or late fees in recent months. More than one in three employees (37.3 per cent) stated that they have taken a second job just to access pay faster, highlighting how outdated payroll systems shift the financial and cognitive burdens onto workers.

The data did reportedly show alignment on how and when employees expect to be paid. More than half of employees (51.6 per cent) said on-demand pay will be an expected part of work in 2026, echoing the 52.8 per cent of employers who think it will become standard. 

The findings signal a broader shift in how payroll is perceived within organisations; 83 per cent of employers said faster pay demonstrates trust, 82.4 per cent said modern payroll systems signal innovation and employee well-being, and 77.9 per cent said flexible pay strengthens employer brand. 

“Payroll is a key component of the future of work,” Mr Bradford said. “The organisations that modernise pay timing and give employees real-time access to their earned wages will be the ones employees choose to stay with instead of moving to a company with these benefits.”

Source: Business Wire

(Quotes via original reporting)