As so many retailers are struggling to hire and retain employees in a competitive labor market, many are turning to new benefit solutions to stand out from the competition. With 1.5 jobs open for every unemployed worker, companies need to closely evaluate their offerings and make sure they’re compelling to potential applicants. Although there are many benefits options available, on-demand pay is especially useful for employers in the retail industry, as it addresses so many of their unique needs, from engaging hourly workers to reducing cash shrinkage.
This week, we’re joining retail leaders at the National Retail Federation to discuss the latest challenges and opportunities in the retail industry. Through conversations with our partners, we’ve found DailyPay to have a significant impact on many problems retail employers and employees are currently facing. Here are a few examples:
1. Attract Better Job Candidates and Reduce Employee Turnover
A strong on-demand pay solution is a competitive recruiting tool to attract high-performing talent. DailyPay’s research shows that jobs advertising DailyPay receive, on average, 1.9x more applications than jobs that don’t, and DailyPay’s customers have seen candidates opt to accept a position that offers on-demand pay access for up to 15% lower pay than another competitive job.
It also helps reduce employee turnover. Once workers have the opportunity to enjoy the flexibility of utilizing their funds on an as-needed basis, the prospect of switching to an employer where that benefit is not available is far less attractive. Even though issues like inconsistent scheduling and difficult customers have historically pushed employees out of roles in retail, they are more likely to stay if it means they can continue to exercise more control over their finances.
2. Increase Employee Productivity
Pay transparency is a critical feature that enables employees to recognize when they need to work longer hours or when to offer to pick up extra shifts to maintain their income. By accessing their pay information in real time, employees know what they need to do to earn the funds they need to meet their financial goals and achieve greater stability, while demonstrating a deeper commitment to their role in the business.
That financial transparency and control results in an increase in employee productivity. DailyPay’s research shows that 59% of users are more motivated to go to work and work 11% more than non-DailyPay users, and employees who begin using DailyPay are 30% more likely to get a raise within 6 months. Instead of dealing with money matters at work — spending time online or on the phone trying to come up with the funds they need in the near term, for example — workers can be more engaged with customers and focused on accomplishing their duties. This is especially important now, when many employees have the added responsibility of upholding COVID protocols within the stores and ensuring that customers do the same.
3. Improve Employee Loyalty and Overall Wellness
Employers can improve employee loyalty and overall wellness by offering an on-demand pay solution that’s flexible and easy to use. DailyPay empowers employees to make better decisions about money, their health, child care and other priorities. This symbiotic relationship builds trust between employees and employers while creating a better, more transparent environment for everyone.
A survey conducted by DailyPay showed that access to this technology saves users an average of $1,205 annually in late fees, overdraft fees and payday loan interest. Beyond their financial wellness, access to on-demand pay can improve users’ mental and physical health by reducing the amount of stress they’re under.
4. Facilitate Payroll Continuity
The ability to facilitate payroll continuity is vital for any employer. Payroll professionals are deeply committed to a reliable and timely process. DailyPay has taken extraordinary measures to be the industry leader in compliance whose operating protocols are seamless, simple and designed to avoid disruptions to employers’ existing payroll procedures.
Want to see what DailyPay can do for your employees? Book a free demo today!