Why Gen Z Needs More Than Just a Paycheck: The Case for Real-Time Pay Solutions

As employers compete on how to attract and retain the next generation of talent, a growing body of evidence suggests that supporting employees’ financial wellness is critical—particularly for Gen Z. This generation, now comprising a significant share of the workforce, is entering adulthood during a time of economic volatility, rising living costs, and shifting employment expectations.

For Gen Z workers financial stress is a daily reality and objectively more acute than previous generations in the workforce. Research from BrightPlan’s 2024 Wellness Barometer shows that over 86% of Gen Z workers worry about their financial situation. Student debt, inflation, and limited savings have created real barriers to creating financial stability. The Education Data Initiative notes that approximately 43.5% of Gen Z adults carry student loan debt, and a significant portion of that group reports struggling to manage repayment alongside basic living expenses.

As a stop-gap, nearly half of Gen Z workers (48%) have taken on side hustles, according to Bankrate, representing a shift in the essence of what traditional employment looks like. While this can signal ambition and adaptability, it also reflects a need to make ends meet—often leading to burnout, fragmented schedules, and job dissatisfaction. In fact, burnout among Gen Z is disproportionately high, with a UKG report noting that 83% report experiencing burnout and a third say they’ve left jobs due to its impact on their mental health which runs congruent to increases in benefits costs associated with mental health resources.

But part of the problem isn’t just financial—it’s systemic.

For decades, American workers have been paid on a bi-weekly basis, a cadence originally driven by the limitations of early payroll processing systems. The two-week cycle was designed for efficiency, not for optimal employee outcomes. It was a solution to a technological constraint, not a strategic choice. That constraint no longer exists.

Advances in financial technology have made real-time payroll capabilities possible—and practical. Today, companies can safely and securely offer employees access to their earned wages as soon as they’re available. This model, often called On-Demand Pay or earned wage access, leverages modern payroll integrations and API-based systems that make tracking, calculating, and disbursing pay instantaneous and compliant.

For employees—especially younger workers managing tight budgets and unpredictable expenses—this shift can be transformative. On-Demand Pay doesn’t replace budgeting or financial literacy; rather, it complements them by giving workers the flexibility to handle emergencies, avoid high-interest credit, and reduce financial stress.

In an on-demand era, planning, expenses, and life operates on a real-time basis; which is incongruent with a 14 days paycheck cycle. With real-time visibility to earnings and access to earnings on an on-demand basis employees are more likely to stay engaged and show up consistently. In fact, research from Arizent commissioned by DailyPay shows that 55% of employees with access to On-Demand Pay pick up at least one extra shift per month; and churn at a rate of 44% less than firms that have not adopted On-Demand Pay provisions.

For employers, On-Demand Pay and the technology supporting it has now become universally accessible as a low- or no-cost benefit that supports a broader financial wellness strategy. When paired with tools for budgeting, saving, and learning, it helps younger employees feel more in control of their financial lives—without administrative complexity or additional payroll burden.

In an era where talent is mobile and competition is high, investing in practical, high-impact benefits matters. And for Gen Z—who have grown up in an on-demand world where food, rides, and entertainment are available with a tap—access to pay shouldn’t feel like a delay. It should feel immediate, fair, and aligned with how the world works today.

Retention doesn’t always start with a raise. Sometimes, it starts with relief—powered by technology, driven by empathy, and aligned with the needs of a changing workforce.