With inflation at 7.5%, its highest rate in 40 years, it seems that Americans are beginning to feel the effects of rising costs. Many employees said they would prefer having an increased pay frequency, believing it could help alleviate some financial stress, according to a new study by J.D. Power.
Currently, 59% of all surveyed workers get paid every two weeks. But 35% of them said they would prefer to get paid once a week. Only 19% of workers currently get a weekly paycheck.
Compared to salaried employees, hourly workers were more likely to want to be paid every week, with 50% having said they prefer this frequency. However, only 26% of hourly workers are currently on this pay schedule. Overall, 51% of workers said they would consider switching jobs to get more frequent pay, including 76% of hotel and food service workers.
The Department of Labor requires employers to pay in regular intervals, and each state has its own pay frequency requirements. However, some of these requirements can vary by occupation, such as in Michigan and California, or in New York with its law concerning when to pay manual workers.
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Americans worry about rising inflation
About 62% of customers said the price of goods is increasing faster than their wages, requiring them to stretch their paychecks further, according to the study.
"Unsurprisingly, these feelings are most prevalent among banking customers that are classified as vulnerable or stressed," J.D. Power said in the study. "Three-fourths (75%) of stressed customers and 71% of vulnerable customers said the prices of products are outpacing their income."
Because of these rising prices, about 30% of consumers said they worry about money at work. And this trend was more prevalent among hourly workers, with 33% of them having said they worry about money at work, compared to 28% of salaried workers.
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Stressed Americans call on banks for support
About 83% of all survey respondents said that a bank’s support in helping to "improve their financial health" is at least somewhat important. This opinion was even higher among those considered to be financially overextended. Just 5% of Americans said a bank’s support is not important at all and 12% said it is not very important.
However, about 26% of respondents said their banks performed poorly or "just okay" when it came to supporting their financial health. However, J.D. Power said this could be due to a lack of awareness about their banks’ products and services.
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