Employers today face an ongoing challenge in attracting and retaining top talent. It's not just about compensation and core benefits anymore. Culture, supportive leadership, mentorship, career progression and other factors are important. In addition, many prospective employees are asking "what else?"; what creative initiatives can an employer offer that will help that employee come on board and produce their best work?
Now more than ever, companies are taking a look inward and determining if they have the goods to bring in and keep the best candidates. Through this self examination comes adopting innovative programs that other organizations may not offer.
Earned Wage Access has become one of those creative initiatives that employees are looking for. According to Visa, 95% of hourly employees want to work for a company that offers on-demand pay, and 79% would leave their role for another if on-demand pay was the only difference.
Offering Earned Wage Access as an employee benefit gives employees much needed financial breathing room. It allows them to address financial needs on their own terms, reducing their stress level, and improving retention. Putting it plainly: someone less stressed about their finances is far less likely to go looking for another job.
Consequently, leadership can focus on developing and growing its teams rather than risk losing them to their competitors. This does not mean having a strong manager or supervisor who engages and grows staff is not a priority, it’s just that it’s part of the equation.
While paying everyone more money may seem like the practical answer, it is not feasible to do so on a large scale, particularly when it comes to the 81.9 million hourly workers who represent close to 60% of the total workforce in the United States.
Providing benefits tailored to the current needs and situations of workers is a more robust plan. Shortening the pay cycle, thus giving access to funds quicker, is not only enticing for hourly employees to stay but also to pick up more shifts. The average Wages On-Demand customer takes home $702 more per year by saving on bank fees, loans and bill payments. So while an employer is not paying folks more, they are taking home more.
Managers know too well how difficult it is to find and secure an ideal candidate. The challenge goes beyond finding the right person with the skills, acumen, and drive to gel with the company’s mission. Fitting in and working well with others are valued and recognized to build on a strong work culture.
Wages On-Demand is a compelling program to retain and attract prospective employees, one that is actively adopted and promoted by employers. Long story short: it makes more sense to retain and reward employees with the right benefit plan than risk losing them.
Want to learn more about Wages On-Demand and how ZayZoon wants to help you and your employees? Click here.
This is part of our 10 Facts on Wages On-Demand series, to see all the existing pieces, click here.