42 | INNOVATION
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Paul Jackson, Founder, Salaree, delves into the new ways of working, and assesses how pay professionals can adapt to the changes
T he world of work is undergoing a seismic shift. Traditional full-time, single-employer roles are increasingly being supplemented (and in some cases, replaced) by a more fluid, fragmented and flexible approach to employment. For pay professionals, who’ve long operated on predictable monthly or bi-weekly cycles, this transformation presents a profound challenge. The rise of the gig economy was just the beginning; we’re now entering the era of ‘microshifts’ and ‘polywork’ – concepts set to fundamentally redefine the relationship between work, time and pay. The flexible workforce is here to stay The demand for more flexible pay cycles first gained momentum with the expansion of the gig economy. Globally, 28% of workers are already employed on a part-time or temporary basis, and this trend shows no signs of slowing 1 . This segment of the workforce, often juggling multiple income streams and facing irregular cash flow, has a clear and pressing need for faster access to their earnings. Research consistently shows that a significant majority of gig workers would work more frequently if they were paid faster. This isn’t just a preference; it’s a necessity driven by the nature of their work. As a 2023 report from the Harvard Kennedy School 2 noted, many flexible workers incur upfront costs for fuel, supplies or equipment to do their jobs. Waiting weeks for reimbursement or payment puts them at a financial disadvantage. This has created a powerful groundswell of demand for accelerated pay, a demand that legacy payroll systems, built for a different era of work, are struggling to meet. This expectation is amplified by a
significant generational shift. Younger workers have grown up in a world of instant transactions and expect the same immediacy when it comes to their wages. For them, the traditional payday feels like an anachronism. Data shows that over 80% of workers aged 18-44 are interested in having their earnings streamed as they’re earned 3 . The message from the modern workforce is clear: the gap between completing work and receiving payment needs to close. Enter microshifts and polywork Just as the industry begins to grapple with the demands of the gig economy, the landscape is evolving again. The next frontier is the rise of ‘microshifts’ and ‘polywork’. Microshifts are short, flexible work periods, often lasting just a few hours, which allow employees to fit work around their lives, rather than the other way around. This model is gaining traction in frontline industries like hospitality and retail, enabling a parent, for example, to work a 9 am-12 pm shift and another 3 pm-6 pm shift on the same day. This leads directly to polywork, where individuals combine multiple part-time or microshift roles across different companies to build a full, resilient income. A recent report found that over 5% of hourly workers now hold multiple jobs simultaneously 4 . These workers aren’t just gig workers in the traditional sense; they’re curating a career portfolio, stitching together various roles to achieve a personalised work-life balance. For employers, this means talent is no longer owned but accessed. For pay professionals, it represents a monumental increase in complexity. How do you manage compliant payroll for an employee who works two separate three-hour shifts
in a single day? How do you process payments accurately and efficiently for a polyworker who’s on the books of three different companies, each with their own schedules and pay rates? The traditional monthly payroll run becomes wholly inadequate in this scenario.
The pressure for change: regulation and technology The pressure on payroll to adapt isn’t just coming from worker expectations; it’s also being driven by regulatory and technological forces. In the UK, gig employers have been subject to scrutiny from the Government 5 for similar reasons.
The forthcoming Fair Work Agency, chaired by Matthew
Taylor, will bring increasing pressure to bear on employers to comply with their
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