I’ve Figured Out How to Reduce Employee Absenteeism and Turnover

Blog post by Jason Lee, CEO of DailyPay, Inc.

Absenteeism and turnover.


It is obvious how serious of a pain point these are in the cleaning industry. Cleaning companies live and die by the availability, consistency, and performance of their people.

What if I told you there were a way to reduce absenteeism by 26%?

What if I told you there were a way to reduce turnover by 41%?


Now, what if I told you nothing changes to achieve those benefits?

In the past year, new technology has emerged that enables employees to access their earned income, for pennies on the dollar. There is no change to their payroll process and these technology companies like DailyPay fund the payments so the employer doesn’t have to.

There is science and rationality behind why early access to earnings reduces absenteeism and turnover.

Employee absenteeism is the result of two factors:

1) The first is an employee can’t get to work. “I have a flat tire.” “My mother is sick” and “I can’t take care of the kids and I can’t afford a babysitter.”

2) The second factor is an employee won’t come to work. This one can be
summed in one statement which is “I just don’t feel like it.”

In both of these cases, giving employees a way to access their unpaid earnings reduces the rate of absenteeism. In the first case of the employee who can’t come to work, early access to their pay enables them to overcome the obstacles preventing them from coming to work. “I can now afford the babysitter so I can come fulfill my shift.”

In the second case of the employee who won’t come to work because they don’t feel like it, absenteeism is reduced first because the employee knows that by coming to work, they unlock those earnings. More importantly, absenteeism is reduced by the fact that now, not coming to work costs them something, i.e, “I could have had access to those earnings, but because I wanted to stay home, I’ve now lost that opportunity.”

As it relates to turnover, there are three reasons why employees quit:

  1. An employee moves intra-industry (from one cleaning company to another cleaning) as a result of a better compensation package, i.e pay + benefits.
  2. An employee quits because they don’t feel recognized
  3. Lastly, an employee moves inter-industry. In other words, they’re moving because they likely just want to do something else.


In all three of these cases, enabling employees to access their unpaid earnings reduces the rate of turnover.


Daily payments is such a cutting edge solution that it is certain to differentiate one employer from the next. When provided the unique opportunity to have early access to earnings, employees feel recognized by their employer and even if they want to quit the industry completely, it becomes a harder decision to forgo the steady access to earnings.

With all of the ideas out there on how to improve employee turnover and engagement, offering daily payments stands out as a solution that is both proven to work and costs nothing to implement.