Millennials Seek Faster Pay Cycles

For most companies, not much has changed in terms of employees filling out timesheets or clocking in and out. Most workplaces still have two-week pay periods, but for many Millennials that just isn’t good enough.

According to a recent article at, the fast pace of a world that is technology driven has left Millennials wanting faster compensation for the work that they do. For them this comes in the form of billable time and the kind of value they bring to the job rather than the number of hours that are worked. This approach has already begun being used in consulting firms, design agencies and law offices.

Brian Saunders, who serves as CEO of BigTime, a Chicago-based billing and time-tracking software company, takes the approach of examining what an employee does on the job as “billable”. BigTime is currently working with 2,000 organizations that range from architectural and engineering firms as well as law firms.

Flat rates are quoted to clients for a project.  Doing the work then becomes a matter that is less about watching the clock and more about performing a specific set of tasks toward the completion of the project. “If I am charging you $2,500 for corporate identity work, you don’t need to know how long it took, I just need to do the work,” Saunders said.

That kind of focus on the work and less on the time spent on the job has, according to Saunders, been instrumental in increasing the productivity and lowering the costs of many of the clients that BigTime serves.

In 2016, through the use of its software, BigTime studied the daily record of clients’ employees and compared it to using the model of keeping track of project milestones instead. The firm wanted to show how much revenue could potentially be saved by going from an hourly time keeping method to the new method.  The data showed that when workers closely tracked their time, there was a significant amount of money still on the table.  That amount over the time that the study was being conducted showed that an estimated $35 billion more in revenue was lost.

Instead, when workers logged on just twice a week and examined what they actually got done on a project during that time was more effective. “At the end of the day, Sanders said, “you need time to sit back and reflect [and say], What did I do today?”

Workers who were recently surveyed by payroll company, Instant Financial, indicated that 90% of Millennials taking part preferred to be paid daily rather than having to wait two weeks. Such an arrangement can help them manage their finances more easily and can help them avoid high interest payments to creditors, for example.

Of course, this kind of payment arrangement is not for every company nor is the idea of daily pay for every employee ideal. Thought is required in order for the entire equation to work.

Today’s workforce is changing at an ever more rapid pace. Companies that are on top of what the latest trends are can be well ahead of the competition.  Knowing what way is the most effective to keep track of workers’ time and bill clients effectively for projects is important. Payroll, like every other aspect of human resources is constantly changing to keep the pace.

At NetPEO, our network of companies can help your organization make the most of your current human resource talent and we can help you fill current positions by getting you the right people for today and well into the future. We offer Employee Leasing services, payroll and benefits management as well as HR outsourcing. To see how we can help you and your company, contact us today and get guaranteed results.