For nearly a year now, The Bureau of Labor has been reporting that the number of open jobs each month is greater than the number of people looking for work.
This will be the story of the summer. We know this because our phones are ringing off the hook. Every hotel chain, every casual dining company, every retailer is asking us to help them bring the workforce back to work.
We are in this seminal moment in our country’s history. After one of the most challenging years in a generation, the country is ready to reopen. This is a special moment in time. Every employer is thinking, “What should I do differently as I reopen my business?”
We have a workforce today that is digitally enabled, with expectations of instant access to any goods or services. You can’t possibly believe that today’s workforce is going to want to wait two weeks for every paycheck.
More broadly, we have this once-in-a-lifetime opportunity to change the way people get paid, forever. And the best employers have already started. This is our opportunity to do something profound that will shape the economy and ultimately deliver a better financial system for everyone.
DailyPay is tracking hiring trends across eight industries as the U.S. begins to reopen. Here are the most recent trends we have seen:
- Hiring in the healthcare industry is up 37% nationally since January 1.
- Consumer Services have increased hiring by +16% nationally since January 1 — Southern states Texas (+39%), Georgia (+33%) and Virginia (+34%) have seen the strongest hiring growth.
- Quick Service Restaurants (QSR) have increased hiring +10% nationally, with the majority of states seeing double-digit growth in QSR hiring since January 1st.
- QSR hiring is strongest in Midwest and Southern states, averaging +17% and +15% increases since January 1st, respectively.
To take a deeper dive into America’s reopening trends, check out the DailyPay Reopen America Index, which is updated weekly.
Companies across the country, in all industries, are finding creative ways to attract and retain talent. Many restaurants are offering higher pay or signing bonuses to attract employees while others are offering tuition assistance programs.
According to a recent DailyPay survey:
- 51% employed survey respondents received a sign-on bonus.
- 59% of these bonuses were more than $500 and 32% were over $1,000.
- 11% of those surveyed said they would change jobs to one with a similar wage for a sign-on bonus of $50 or less.
- 32% would change jobs for a sign-on bonus of between $500 and $1,000
Even though many employees received sign-on bonuses, there was no correlation between sign-on bonuses and job satisfaction.
Attracting and retaining top talent
DailyPay recently asked a group of unemployed Americans what they were looking for in their next job. The top three most important things people were looking for in their next jobs were paid time off (PTO), a 401(k) and a sign-on bonus.
On-demand pay and health insurance were weighted of equal importance as employer-provided benefits, according to those who took part in the survey. In terms of pay preferences, 52% of respondents wanted on-demand pay.
Based on our research, 52% of job seekers are looking for an on-demand pay benefit in their next job. Offering DailyPay gives employers an immediate advantage in the labor market by giving potential employees a first-day benefit of access to their earned pay.
Our customers share with us that they now fill open roles 53% faster when they advertise DailyPay in their job postings.1 That means the job that would have taken 4 weeks to fill, now only takes 2 weeks. That’s a meaningful cost savings for employers, and one that helps businesses staff up more quickly.
But perhaps the most important impact: once those employees are working, they stay 45% longer, on average, than those who don’t use DailyPay. That means someone who might have quit after 3 months, now stays for 5. Someone who may have quit after 6 months, now stays for 9.
All of this results in a better employee experience, which results in meaningful cost savings for the employer, that can then be reinvested in their business.
HIRE — A turnkey benefit
HIRE, by DailyPay, is an easy solution to attract and retain employees. Our Digital Wallet Solution is available to employers who are looking to offer a competitive on-demand pay benefit to their current and potential employees. Offering on-demand pay almost doubles the number of job applications you receive and reduces turnover by up to 73%, according to a new report by the Mercator Advisory Group that analyzed DailyPay data from 10 industries.
A far reaching impact on employees and the economy
Our job is to make every stakeholder in the financial system the best version of itself.
From the individual’s standpoint, the average DailyPay user saves over $1,200 a year simply by no longer having to pay late and overdraft fees or credit card interest. That money can be spent in the local economy, making small businesses stronger.
Employers who offer DailyPay become known in the marketplace as employers of choice — who deepen the bond between themselves and their employees. That helps them become the best version of themselves.
This is a once-in-a-lifetime opportunity for us to rewrite the invisible rules of money. And in doing so, reopen America in a way that is better for everyone.
Want to know how DailyPay can help your company?
- DailyPay ROI Models