ADP Future of Pay White-paper-2903-FINAL

The future of pay
Exploring the evolution of worker pay

and talent management
Contents
12
13
Conclusion 23
The future of pay
Exploring the evolution of worker pay and talent management
While there is a wealth of research regarding In a tight labour market, payment options can help
employee compensation and its impact on recruiting, employers differentiate themselves in hiring and
retention and satisfaction, how employees are paid retaining top talent. Newly emerging trends like
has been an overlooked and undervalued dimension of the gig economy and an increase in unconventional
pay. Yet, the method and frequency of payment has employment arrangements are further driving the
important ramifications; impacting how employees desire for more flexible payment options, including
are able to manage their finances, how they feel both methods and frequency of pay. Demographic and
about their pay levels, about their jobs and even about generational trends are also expected to drive a shift
themselves. For employers, providing payment options in worker pay preferences. Millennials, for example, are
that reflect the needs of their employees not only has accustomed to the immediacy technology provides and
clear, quantifiable cost benefits, it also offers less the flexibility of digital payment options. By 2025,
tangible benefits in terms of employee perceptions this age cohort will make up 75% of the global
and financial wellness. workforce. As Generation Z (those born after 1996)
enters the workforce, employers will witness the
final cross-over to a fully digital world - one whose
employees were brought up alongside smart phones
and social media.1
Contents Introduction
The evolving payment The state of pay today: The future of pay: security, Balancing new technologies
Conclusion 3
landscape around the world a global view speed & tracking & security concerns
The future of pay
Exploring the evolution of worker pay and talent management
Payment options have the potential to impact both the financial health of the
employee as well as their employer. Financial stress can be a distraction at work for
Payment options
employees,2 and employers recognise the direct impact it can have on productivity • Paper cheque: traditional cheque that • Digital platform: money deposited into
and engagement. Global economic trends continue to contribute to the rise in can be cashed however the employee an online account that employees can use
financial stress among workers. Income stagnation and increased personal debt, chooses. to receive money or make payments
• Direct deposit: money deposited directly (similar to Venmo™ or PayPal®).
driven by rising housing, education and health care costs, combined with eroding
social safety nets worldwide, point to an increased burden on the individual. As 3 into a bank account of the employee’s • Cryptocurrency: a medium of exchange,
choice. such as the U.S. dollar, but is digital and
a result, fiscal responsibility is more critical than ever to the financial wellness of
• Paycard: pay loaded onto a card provided uses encryption techniques to control the
employees. Given that employees not only earn their income, but also make many
by the employer or a third party on behalf creation of monetary units and to verify
important financial decisions while at work,4 employers are well-positioned to offer the transfer of funds. Bitcoin is the name
of the employer. The card is like a debit
support in this area. Thus, financial wellness programs and flexible payment options card but is not connected to a bank of the best-known cryptocurrency.
can be mutually beneficial for both employers and employees. account.
• Mobile payment: money deposited
directly to a mobile wallet that employees
can use for multiple types of transactions
(similar to Apple Pay®).
Conclusion 4
The future of pay
Research methodology
A 20-minute online survey was conducted among employers and employees in

companies with 50+ employees across 13 countries. Employers were required to be
involved in decisions related to talent or talent management while employees were
required to work in some capacity.
Total sample sizes for employee (EEs) and employer (ER) audiences: Data is weighted by country based on the size of the workforce. Employee data is
also weighted by age and gender based on their representation in the individual
North America EEs ERs Latin America EEs ERs country’s workforce.
US 1,000 500 Brazil 250 200 This report includes the Global and Regional results.
Canada 250 200 Argentina 250 200
Mexico 250 200
Europe EEs ERs Asia Pacific EEs ERs
UK 250 200 China 250 200

France 250 200 India 250 200
Germany 250 200 Australia 250 200
Netherlands 250 200 Singapore 250 200
Conclusion 5
The evolving payment landscape
around the world
The world of pay has continued to evolve since the With this wave of digital payment options for A brief history of employee pay
dawn of civilisation and the rise of commerce. In fact, consumers, one would expect employers to adopt
The modern pay cheque gained prevalence in the
some of the earliest artefacts from ancient and extend the same kinds of payment options to
1800s and following this, little changed for 150 years
civilisations and evidence of written records include employees. Yet, although employers have a wide range
until technological advances made direct deposit
wage and payment records recorded on clay tablets or of options available, payment practices have remained possible in the 1970s. At first, both employers and
sheets of papyrus. mostly unchanged since the 1980s. employees resisted. The idea of transferring money
Today, the pace of change has accelerated, as Interestingly, while today direct deposit is widely via computer was unfamiliar, and there were concerns
technology enables an instantaneous world, driving accepted as a common and convenient method for about privacy and the tracking of payments. Today,
consumer expectations for immediate gratification. An employee payment, its adoption was neither smooth direct deposit is the dominant form of payment
across the globe. Approximately 80% of employers in
explosion of payment options over the last 10 years nor obvious, and it was ultimately adopted in spite
North America, Europe and Latin America offer direct
is changing the way consumers pay for goods and of initial resistance.
deposit, and more than 80% of employees in those
services. Digital and mobile platforms such as PayPal®,
The same can be said about the adoption of modern regions utilise it.
Venmo,™ and Apple Pay® allow consumers to manage
methods of employee pay that are in line with our
day-to-day payments on demand. With a simple tap Like the transition from paper cheque to direct
expectations as consumers.
deposit, so employers are experiencing a change in
or click, consumers can not only exchange payments
To the right is an exploration of the path that led from the payment landscape. Worldwide, employers are
with businesses but also with family and friends. The
paper cheques to direct deposit. One must examine beginning to offer alternative forms of payment and
latest advances require only the flick of a wrist to pay
how the same confluence of technology and consumer employees report they are interested. These non-
by smart watch or even a smile, as is the case of ‘Smile
demand ultimately led to change. traditional payment options include prepaid paycards,
to Pay’ facial recognition software in China. This new
mobile wallets, and digital platforms. Their speed and
technology has also facilitated the non-cash transfer flexibility reflect the variety of digital and mobile
of payments disconnected from a conventional bank. options available to consumers. In the Asia-Pacific
All of these innovations and the impact to consumer region, these non-traditional payment methods are
behaviour extend to the expectations of employees leading the way and even surpassing direct deposit;
and employers. perhaps signalling the start of a global shift.
Conclusion 6
The state of pay today: a global view
Methods of payment employers

offer to workers
North America Europe Asia Pacific Latin America
More than half of North American employers still offer paper cheques as
a payment option, while employers in the Asia-Pacific region are strong
Direct deposit
proponents of non-traditional payment methods
84% 76% 46% 78%
As science fiction writer William Gibson (who coined the term “cyberspace”) famously
Paper cheque
said, “the future is here, it just isn’t evenly distributed.” That appears true when it
comes to payment methods and technologies.
53% 18% 16% 17%
Employee perceptions of non-traditional payment methods vary by region, with
employees in Asia Pacific and Latin America expressing early-adopter attitudes about
pay, compared to Europe and North America. In general, workers in Europe and North
Other
America are somewhat wary and perceive these methods as offering less control and
43% 42% 86% 53% convenience than direct deposit, while employees in Asia Pacific and Latin America
have a more positive view.
Conclusion 7
Methods of payment currently

used by employees
Although most employees around the world are paid via direct deposit,
nearly two-thirds of employees in the Asia-Pacific region prefer
Direct deposit
non-traditional payment methods
86% 93% 34% 83%
Non-traditional methods are fairly consistently perceived as offering the same or

Paper cheque
better control and convenience compared to paper cheques, suggesting that a shift
is beginning to take hold.
9% 2% 4% 2%
Other
5% 5% 62% 15%
Conclusion 8
Payment methods employees

are willing to accept
Most employees around the globe are open to non-traditional methods

of pay, while 86% are unwilling to accept paper cheques
Direct deposit
88% 83% 43% 73%
Direct deposit stands alone as the dominant pay method used by employees and
Paper cheque
employers in Europe. 90% of all European employees use direct deposit, and this is the
preferred choice of nearly 80% of workers. In a sign of the potential change to come,
32% 11% 13% 6% however, 42% of employers offer non-traditional payments and 44% of employees are
open to these today.
Other
49% 44% 88% 66%
Conclusion 9
Employee perceptions of
ease & control by payment method
Though direct deposit is similarly well established in Latin America as in North

Direct deposit America and Europe, employers and employees are more likely to be interested in
and using non-traditional options in Latin America. More than 40% of employees
say they prefer non-traditional options, particularly digital and prepaid paycards,
and 66% are willing to accept them.
Paper cheque
Other
Easy to use Degree of control
Conclusion 10
In keeping with positive perceptions of ease and

control, traditional direct deposit is the preferred
74% Employer payments in Asia Pacific are markedly different
from the rest of the globe. Led by China, half of employers offer
of employees
method of payment in Europe. A maximum of 2% in Asia Pacific prefer
non-traditional
paycards, 41% offer mobile payment, and 38% offer digital
say they prefer paper cheques. methods over options. 74% of employees prefer prepaid paycards, mobile,
direct deposit. or digital options over direct deposit in this region.
Excluding Asia Pacific, it seems few employees are taking

Direct deposit 77% 74% 81% 77% 67%
advantage of non-traditional options where available, perhaps
Paper cheque 2% 2% 2% 2% *
because the survey included mostly full-time, white-collar
Non-traditional (NET) 17% 18% 16%15% 27% Direct deposit is also the preferred method of payment in workers. In the U.S., for example, alternative payment methods
North America, while non-traditional methods are more
Mobile payment 8%10%5% 7%11% likely to be preferred in Asia Pacific and Latin America. hold particular appeal for workers employed in less conventional
Paycard 3% 2% 4% 3% 5% arrangements.
6% 6% 7% 4% 11%
Digital platform In addition to the method of payment, the frequency of payment
None of the above 4% 6% 1% 6% 5% is also a consideration for both employers and employees.
Biweekly is the most common pay cycle in the U.S. and Canada.
Europe UK France Germany Netherlands
Outside of North America, monthly pay cycles are popular.
* Less than 0.5%
Base: Total Respondents / Employees % #1 The frequency of payments appears to be based on historical
practices. New technology and non-traditional payment
methods are making more frequent pay cycles and off-cycle
62% pay feasible and cost-effective. Alternate pay cycles appeal to

employees as a whole, and appear to be especially attractive to
of employees
indicate that alternative certain segments such as contractors, those paid by the hour,
pay frequencies or options
would make a difference with lower household income, as well as those without current
in their decision to accept accounts (the ‘unbanked’).
a job offer.
Conclusion 11
The future of pay: security, speed & tracking
As a recent Nobel Laureate once said, “The times, they are a-changin.” When it Global perceptions of employees who say options would make
comes to the dramatic changes witnessed in terms of technology, economics and a difference in decision to accept a job offer
demographics, it should not be surprising to see that demands for how employees
want to be paid reflect global technological, economic and social dynamics. Employees who Employees who Employees who say
say the ability say the ability to the ability to receive Roughly one in
Today, while most employers rely on direct deposit to pay employees, they recognise to select pay have early access same day pay would three employees
that this reliance may not be sustainable or even desirable in the future. To remain frequency would to earned wages make a difference in
make a difference would make a a decision to accept a say pay-related
competitive in the talent market and reduce costs, employers believe they need to in a decision to difference in a job offer options have as
accept a job offer decision to accept
offer new payment options, and they want to understand which options employees prefer. much weight in
a job offer
making a decision
to accept a job
Global employer perceptions about the need offer as the
to offer new options 26 option to
telecommute.
(Evolution of Work 2.0:
The Me vs. We Mindset,
Employers who Employers who say Employers who
ADP Research Institute)
believe companies their company has believe it is important The majority of
will need to seen a need for to have the ability
customise payment different employee to customise pay employers agree
options to remain payment options methods for different
competitive in the types of workers that their Employees agree, indicating that pay options – particularly those related to
war for talent
companies need frequency - can be as attractive as other popular perks such as telecommuting.
to offer different With both parties in agreement, the future of pay is likely to evolve quickly and look
payment options very different than the world of pay that exists today, dominated by direct deposit,
in order to stay paper cheques and fixed payment intervals.
competitive.
Conclusion 12
Balancing new technologies & security concerns
Usage of payment options over last year (Europe) In their personal lives, employees are taking advantage of the many options they
have to pay for their own purchases. It may not be surprising that millennials are
more likely than older workers to have used mobile and digital payment methods in
the last year and less likely to have used credit cards or a current or savings account.
These behaviours may be why millennials are much more likely to expect employers
to offer payment via non-traditional methods like mobile wallets, digital platforms,
Current / Savings 76% 82% 88% Usage of and and paycards within the next 10 years.
(NET)
interest in Consumer groups report that the convenience of newer methods of payment also
Current account 66% 77% 83% various payment comes with risks, including scams, theft, and user errors. For that reason, employees
options is and employers alike place a premium on security. This concern could be a barrier to
Savings account 44% 51% 50%
changing, and the adoption of new employer payment methods, even among millennials.
Credit card 50% 55% 64% Millennials are less we can expect For all age groups, when it comes to their pay, employees are unwilling to
likely to have used
Debit card connected 36% 46% 50% traditional financial change to compromise on security. In fact, security ranks as the most important element
to bank account institutions and
continue of pay across the globe.
payment methods
in the past year, and
Mobile/Digital (NET) 37% 29% 18% Exactly what security means to employees appears to be subject to generational
more likely to have
used non-traditional differences. Additional research by ADP among 1,300 U.S. working adults reveals
Digital platform options.
account 21% 18% 13% that connection to a bank is strongly tied to perceptions of security. However, this
feeling is much stronger among workers ages 50+ than among the youngest age
Mobile wallet 22% 15% 6%
group, 18 to 35. This younger age group is more likely than older workers to feel
Millennials their employer payments are secure if they can track spending or make payments
Cryptocurrency 12% 5% 1%
Gen X without transferring money between accounts.
Paycard provided
by employer or the 10% 2% 1% Baby Boomers
government
Conclusion 13
Across Europe, employees value the security of

employer payments above all else.
64% The research data suggests that alternate payment methods,
assuming they offer the same level of security as direct deposit,
of European employers
After security, the ability to track transactions/spending ranks second
say pay is too important are likely to be accepted and desired by workers in the near future.
to risk a major change in
most important (similar to Latin America). In France, speed is just as the way their company However, a bank account may not be a part of this future, as roughly
important as the ability to track. manages this half the workers surveyed say they would not be likely to maintain
traditional current or savings accounts if such accounts were not
Security 69% 65% 72% 73% 55% required to receive payments from their employers.
On average,
Ability to view
details like pay rate 28% 31% 17% 31% 40% employees
and taxes
around
Ability to track
transactions/ 53% 47% 51% 59% 49% the world are
spending Employee likelihood to maintain a bank account
mostly neutral
if not needed for employer payment
Speed (daily, weekly,
41% 43% 53% 30% 41% about using
biweekly)
bank accounts
Cost to use/ 33% 28% 38% 34% 31%
access cash
North America
Number of steps Europe

needed to use/ 27% 34% 28% 21% 32%
access cash Europe
Asia Pacific
UK
Ease of replacement
24% 21% 22% 28% 24% France Latin America
if lost or stolen
Germany
Ability to bypass 12%11%10%14% 9% Netherlands
traditional bank
Base: Total Respondents
None of these 4% 6% 3% 3% 6% Employees % ranked in top 3
Conclusion 14
Nearly half of employees would pay for early Need for speed: off-cycle pay
access to earned money at least once per year, and Just as employers’ payment methods have lagged behind consumer technology and
one in five would do so at least once per month. behaviours, so too have pay cycles. Technology has fuelled the growth of a new
class of ‘on-demand’ workers who can respond to a business’ immediate needs in
hours or even minutes. Consumers can transfer money and manage finances in real-
time. Yet, employer pay cycles by comparison move at a snail’s pace. In the U.S., 79%
Once a year or more 47% 45% 46% 49% 45%
of employees are paid biweekly or semi-monthly. In other countries, monthly pay is
(NET)
common.
Once a month or more 22% 19% 26% 23% 20%
(NET) Pay cycles are problematic for many segments of the working population, including
those who are unbanked and lower-income workers. If paid via paper cheque,
Three to four times 10%12% 9% 9% 12%
per year workers may need to pay cheque-cashing fees or risk expensive overdraft fees due
to the time it takes for a cheque to clear.
Once or twice a year 15% 15% 11% 17% 14%
Never 53% 55% 54% 51% 55%
In Asia Pacific (90%) and Latin America (72%) of employees are most likely to say they would
pay for early access to money at least once per year.
Base: Total Respondents (Employees)
Conclusion 15
Nearly one-third of employers report their company is likely Employers underestimate the percent of employees who will
to offer early access to pay for a fee; they substantially pay for early access – in Europe, employers thought only 31%
underestimate the portion of their workforce that says they would do this at least once per year
would take advantage of this option.
UK employers are more likely to expect wider adoption of early access among employees
Societal trends are intersecting with new technology and driving growth in the
(this reflects employee reality, though employers still undercount the percentage who
would access). number of contract workers, who are part of the new ‘gig economy’ workforce.
Contract workers face unique challenges related to pay cycles, and the growth in
this segment of the workforce is driving demand for increased pay cycle flexibility.
Interest in off-cycle pay is not limited to these employee segments, however.

Extremely/very
Globally, 80% of employees say they would pay a small fee for early access to pay
likely to offer early 31% 28% 30% 34% 33%
access to pay at least once per year, most commonly for emergency or unexpected expenses.
In all geographic regions surveyed, the relative importance of speed versus other
Average percentage
of employees that elements of pay varies by generation. Millennials tend to prioritise the speed of
employers believe 31% 36% 28% 29% 25%
would pay for early
their pay more than older employees. In most regions, this younger cohort considers
access at least once speed nearly as important as security.
per year
European MNCs are much more likely to say they will offer early access to pay compared Employers are likely to face increasing pressure to speed up payments. In 2015, the
to non-MNCs (42% vs. 22%) US Federal Reserve established the Faster Payments Taskforce to find ways to give
Base: Total Respondents (Employers) consumers and businesses better and faster access to their money. Their ambitious

goal is to create by 2020 a real-time system through which funds can be received
instantly by any financial institution.5
These trends suggest that the future of pay will need to be much faster to keep up
with the pace of social and technological change.
Conclusion 16
Speed vs security, by generation (Europe)

Though security is a critical feature of pay across age segments, this Millennials are relatively less interested in security and
dimension is of relatively less importance to millennials.
much more in speed
Millennials are also more likely to prioritise speed and the ability to
bypass traditional bank accounts compared to older workers.
Security Speed (daily, weekly, biweekly) Tracking & sharing for financial wellness
Millennials If the future of pay is focused on speed, flexibility and security, there is one
Gen X
additional dimension to be explored that is less obvious, but potentially far more
impactful. Rather than simply allowing employees to collect pay more often, more
Baby Boomers
59% 70% 77% 46% 43% 35% quickly and more conveniently, a new approach to pay can help employees to
manage their pay and spend it more wisely. Financial wellness is a top priority for
employees, and they increasingly welcome the role of their employer in providing
tools to help them better manage their finances.
Where is financial wellness defined, and what does it mean in practical terms?
In the U.S., the Consumer Financial Protection Bureau (CFPB) published a report4
focusing on financial well-being defined as “a state of being wherein you have
control over day-to-day, month-to-month finances; capacity to absorb financial
shock; and financial freedom to make choices that allow individuals to enjoy life.”
Conclusion 17
This is an issue of prime interest to employees and employers alike. According to

PwC’s 2018 Employee Financial Wellness Survey, more than half of U.S. adults
How employers perceive the impact of employee working full-time are stressed about their finances. “Those who are stressed
financial wellness on the company are more likely to be distracted by their finances at work, miss work due to
their personal financial issues and cite health issues caused by financial stress,”
according to the report. Recent trends such as rising costs for healthcare, housing
Productivity 67% and education, along with income stagnation, mean stress levels can be expected to
Engagement
Turnover
62%
53%
98% rise.
Nearly all employers surveyed agree that employee financial wellness has a direct
Bottom line 38% say they see an impact impact on their organisation, most commonly on productivity, engagement, and
on their business turnover. Therefore, it is not surprising that over 80% of employers believe that
Absenteeism 31%
2%
companies should take an active interest in the financial health of their employees.
Other
None of these 2%
Employers say financial
wellness matters to their
Global Total
business
* Less than 0.5%
Base (Employers)
Conclusion 18
Employees want financial

wellness at work
Agreement with statements on financial wellness
(employers vs employees)
Financial wellness is 89% 87% 76% 91% 93% ER

important to overall The good news is that employees are looking for financial wellness support at work,
85% 86% 82% 84% 94% EE
wellbeing and employers who provide this support could improve talent acquisition and retention.
Nearly 80% of employees say they want to work for an employer who cares about their
Employers should
financial wellness. Financial wellness entails budgeting and tracking finances, and 30%
take an interest in the 86% 84% 72% 88% 92% ER
financial wellness of 78% 71% 59% 79% 87% EE
of employees say the availability of budgeting and money-tracking tools would make a
their workers difference in their decision to accept a job offer. They consider this perk as attractive
as off-cycle pay options, telecommuting and other popular perks. Moreover, a similar
Offering financial
wellness tools and percentage say their employer is a trustworthy and credible source of information
84% 81% 64% 87% 88% ER
solutions would help about how to manage their money (second to a bank in many countries). More than half
my company attract
are comfortable with their employer using their personal data to provide advice and
top talent
recommendations on this topic.
I want to work for an
employer who cares 79% 74% 62% 79% 88% EE
about my financial
wellness
Global total North America Europe Asia Pacific Latin America
Base: Employers, Employees; % selecting strongly / somewhat agree
Conclusion 19
% selecting trustworthy and credible sources % comfortable with sources using

of money management advice personal financial data
In North America, Europe,

A bank 50% 51% 52% 47% 61% 59% 72% 56%
Singapore and Australia,
the employer stands apart from In Germany, Netherlands,
mobile, digital, and credit card Australia and Brazil, employees
A payroll provider 23% 18% 34% 19%
providers in terms of employee
39% 34% 61% 43%
are equally comfortable with
trust for credible money employers and banks using
management advice their data.
A digital payment 14% 15% 34% 32% 24% 25% 56% 47%
platform provider Base: Employees % selecting Base: Employees % selecting
T2B on 5 point scale
Your employer 30% 35% 27% 19% 49% 52% 62% 52%
North America North America
Financial advisor 44% 28% 22% 38% Europe 58% 42% 52% 52% Europe
Asia Pacific Asia Pacific

A retirement Latin America Latin America
31% 12% 23% 19% 54% 30% 56% 44%
plan provider
Millennials are particularly interested in money management. Although trust varies

The employer can play a role in offering financial
by region, they’re generally willing to share information to obtain advice and often
wellness advice, perhaps facilitated by
place significant trust in their employer and related providers (payroll, retirement).
payroll/retirement providers A full 90% of younger workers say they would share personal information with a
payroll provider in order to receive money management advice.
Conclusion 20
Generational differences in impact of financial Millennials want Millennials are not worried
wellness offering on advice and willingness to financial wellness support about sharing personal
share information with payroll provider information to get support
(European employees)
% who say that budgeting Share personal information

and savings tools would with payroll provider in order In recent years, employers have had success providing employees with technology
make a difference when to receive financial wellness
tools for health tracking in order to improve employee wellbeing and lower
considering a job offer advice
healthcare costs. Similar tools for budgeting and financial tracking may be a natural
extension of this effort, and a further extension of new payment methods that can
Millennials include better tools to track, manage and plan how employees manage and spend
their pay.
Gen X
22% 16% 16% 68% 52% 32%
Baby Boomers In that context, financial wellness support could be the next generation
of workplace perks that forward-thinking employers make available.
Conclusion 21
As explored in this paper, technological, social and demographic dynamics re-

shaping the world of work are driving employers and employees to challenge
Risk vs reward (employers) assumptions about every dimension of work - including when and how employees
are paid.
As the pace of change continues to accelerate all around us, employers are gauging
the rewards and possible risks associated with new payment methods and
My company has practices. While employers perceive changes to pay may carry some risk, a majority
seen a need for 65% 50% 74% 71%
different employee envision benefits to doing so.
payment options
When looking at direct deposit as an example, history shows us that new methods
Companies will
need to customise of pay can reach a tipping point that quickly translates into adoption. Through the
payment options to 72% 58% 82% 78%
1980s, paper cheques were the most popular form of payment and early concerns
remain competitive
in the war for talent about security and access to cash prompted ongoing resistance to direct deposit.
Today, of course, the paper cheque is the least preferred method of payment.
Outdated payment
methods cost my 64% 52% 70% 74% The majority of workers now say they are not even willing to accept this form
company money North America
of payment from their employer.
Europe
Outdated payment
methods hurt my Asia Pacific
company’s ability to 59% 45% 61% 66% Latin America
attract and retain
workers Perceived risk is not greater than
Base: Employers perceived benefits; in some
Pay is too important % selecting
to risk a major
58% 64% 67% 58%
strongly/ regions, perceived benefits
change in the somewhat agree
way my company are higher than risk
manages this
Conclusion 22
Conclusion – the future of pay
The world of work is changing. As workers, as employers or as consumers,

the desire for greater speed, security, flexibility and financial security has driven
people worldwide, regardless of age or nationality, to question long-held
assumptions about how they work, why they work and how they are paid.
In short, when examining the evolution of work and of the workforce, while there
are universal values and priorities shared among employers and employees
worldwide, in the quest to fulfil those needs no stone is being left unturned.
No assumption is left unchallenged. Everything is up for re-examination.
Employers have many compelling reasons to explore alternative payment options,

with cost savings being one of many drivers. Payment options, off-cycle payments
and financial wellness support can help differentiate a company competing to
attract and retain talent. In the end, when an employer can help employees improve
their financial health, everyone benefits.
The same holds true for the evolution of pay. For employers seeking to embrace
change, who want to elevate their workforce and adapt to the new world of work,
considering how employees are paid is just an important a consideration as how
much they are paid.
1. https://www.forbes.com/sites/causeintegration/2016/11/28/get-ready-for-generation-z
2. https://www.pwc.com/us/en/industries/private-company-services/library/financial-well-being-retirement-survey.html
3. https://blog.shrm.org/workforce/personal-financial-worries-plague-workers-worldwide
4. https://www.consumerfinance.gov/data-research/research-reports/financial-wellness-at-work
5. https://www.pewtrusts.org/en/research-and-analysis/articles/2018/03/09/faster-payments-system-could-give-
consumers-and-businesses-better-access-to-their-money
Conclusion 23
About ADP (NASDAQ – ADP)
Designing better ways to work through cutting-edge products, premium services and exceptional experiences
that enable people to reach their full potential. HR, Talent, Benefits, Payroll and Compliance informed by data
and designed for people. Learn more at www.adp.co.uk.
About the ADP Research Institute®

The ADP Research Institute provides insights to leaders in both the private and public sectors regarding issues in human
capital management, employment trends, and workforce strategy. adp.com/research
ADP, the ADP logo, and Always Designing for People are trademarks of ADP, LLC. All other marks are the property of their respective owners.
Copyright © 2019 ADP, LLC. All rights reserved.

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ADP Future of Pay White-paper-2903-FINAL

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The future of pay

Exploring the evolution of worker pay

A 20-minute online survey was conducted among employers and employees in

Europe EEs ERs Asia Pacific EEs ERs

UK 250 200 China 250 200

Methods of payment employers

North America Europe Asia Pacific Latin America

84% 76% 46% 78%

Methods of payment currently

North America Europe Asia Pacific Latin America

86% 93% 34% 83%

Non-traditional methods are fairly consistently perceived as offering the same or

Payment methods employees

North America Europe Asia Pacific Latin America

Most employees around the globe are open to non-traditional methods

88% 83% 43% 73%

49% 44% 88% 66%

Though direct deposit is similarly well established in Latin America as in North

Easy to use Degree of control

In keeping with positive perceptions of ease and

Excluding Asia Pacific, it seems few employees are taking

62% pay feasible and cost-effective. Alternate pay cycles appeal to

Across Europe, employees value the security of

Number of steps Europe

Never 53% 55% 54% 51% 55%

Base: Total Respondents (Employees)

Europe UK France Germany Netherlands

Interest in off-cycle pay is not limited to these employee segments, however.

Europe UK France Germany Netherlands

Speed vs security, by generation (Europe)

This is an issue of prime interest to employees and employers alike. According to

Employees want financial

Financial wellness is 89% 87% 76% 91% 93% ER

Global total North America Europe Asia Pacific Latin America

Base: Employers, Employees; % selecting strongly / somewhat agree

% selecting trustworthy and credible sources % comfortable with sources using

In North America, Europe,

Asia Pacific Asia Pacific

Millennials are particularly interested in money management. Although trust varies

% who say that budgeting Share personal information

As explored in this paper, technological, social and demographic dynamics re-

The world of work is changing. As workers, as employers or as consumers,

Employers have many compelling reasons to explore alternative payment options,

About the ADP Research Institute®

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