If you have hourly workers you know the workforce is tight and getting them in the door is only the beginning, keeping them is the challenge.
Top that with pressures:
– unemployment at an all-time low making recruitment nearly impossible for HR Managers
– instant gratification minded millennial workforce
– and a need to provide a wellness benefit to retain employees.
You may also know many hourly workers live paycheck to paycheck and experience a variety of financial pressures that impact their productivity and focus on the job.
If you recall Maslow’s Hierarchy of needs you may recall the lower on the pyramid you go the more basic the needs. It might be food and shelter or maybe diapers and baby formula that is on their mind Wednesday and payday is not until Friday.
One current trend employers are leveraging is generically referred to as “daily pay”. This allows employees to take payday advances between paydays and have them paid back on payday. Money can be immediately available to the employee. This is managed by a 3rd party who accepts the liability and recovers the funds from the employee bank account on payday plus a fee, generally less than $5. These providers of this service take steps to reduce this risk such as having employees use an app. that Geo tracks them to ensure they have been to their work address consistently and the employee gain trust with the vendors and amounts available may increase with time. Employers can also transmit Time and Attendance data to the service and allow for an even better experience for the employee, access to more cash and payroll deduction for the loan etc.
Case studies show increased applicant flow, (some 2.5X) along with about 15% or more reduction in turnover. When employees know they can get paid that same day if they show up to work, they show up. Here is a quick video that explains it better. https://player.vimeo.com/video/340910190
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