Amazon recently announced that it will raise wages for over 500,000 employees. You may recall that in 2018, Amazon raised its minimum wage to $15 an hour for all U.S. employees. Now the second-largest private employer in the U.S. is raising its hourly wage an additional $.50-$3.00, spending more than $1 billion in the process between mid-May and early June.
As America reopens, this is one way to incentivize Amazon’s big hiring goals, which include bringing on tens of thousands of employees in operations roles across the U.S.
Must be nice to be able to bankroll that kind wage increase for your employees. But most of us are not Jeff Bezos, nor are we mega e-retailers like Amazon.
So how can you possibly compete as America reopens post-pandemic? By rewriting the invisible rules of money and embracing a financial system that works for everyone.
Attracting and retaining talent: What employees want
Many companies are looking for creative ways to attract and retain talent. Some are going as far as to offer sign-on bonuses of up to $1,000 or more according to a recent DailyPay user survey. But that survey also found that there was no correlation between receiving a sign-on bonus and job satisfaction.
This same survey also found that respondents equally weigh health care and access to on-demand pay as employer-provided benefits they are looking for. When asked about pay preference, 52% of respondents wanted to receive their pay on-demand.
A win-win for all
Offering on-demand pay provides employees money in the right place and at the right time. From day 1 on the job, they have the financial freedom to access their earned pay, their money, whenever they need it. They no longer need to wait the typical two-three weeks for that all-important first paycheck. And, employees who use DailyPay stay with a company up to 73% longer than those who don’t use it, according to a recent Mercator Advisory Group report.
In terms of recruiting, our customers share with us that they now fill open roles 53% faster when they advertise DailyPay in their job postings. That equals substantial cost savings when you’re trying to ramp up your hiring efforts quickly.
But best of all, you’re providing a life-changing benefit for your employees that shows you understand the friction of the current financial system that keeps them in debt when paydays don’t sync with bill due dates. You’re increasing productivity because you have happier, more engaged employees.
A pay raise is nice, but it doesn’t help all that much when you are still living paycheck to paycheck, like 80% of Americans, and you can’t pay your bills on time or meet an emergency expense.
After all, if you don’t have on-demand pay, payday is still payday, and employees still have to wait for money that is already rightfully theirs. So join us in rewriting these invisible rules of money and create a financial system that’s fair for all.
It’s just good business.