The Pay Experience: How to Attract Millennials and Gen Z

Webinar Series

The Pay Experience: How to Attract Millennials and Gen Z

Webinar Series

The Pay Experience: How to Attract Millennials and Gen Z

In this webinar you will learn about…

  • Millennials and Gen Z are looking for a meaningful experience in everything they do from coffee to health care to their workplace.
  • These segments have created the experience economy. Their desire for uplifting experiences pervades their working lives, and work becomes the stage for new experiential offerings.
  • At DailyPay – leader of the on-demand pay benefit – we have developed and are ready to announce a new software category and product platform that will bring tools and skills to the millennial and Gen Z workforce. We call it the Pay Experience or PayEx.

Enjoy this recorded workshop from the NAHRES 2020 event DailyPay previously attended. DailyPay’s Chief Innovation and Marketing Officer was joined by BIC Graphic’s Chief People Officer, Barbie Winterbottom. Barbie is a strategic and insightful business leader with experience building healthy, people centered cultures and strong diverse leadership teams.

During this Q&A session, they discuss a new generation of workers, how to create meaningful experiences for all employees and how DailyPay and BIC Graphic have partnered together.

View On-Demand

Guest Speakers

Jeanniey Walden

Chief Innovation & Marketing Officer

DailyPay

Barbie Winterbottom

CEO

Business of HR

Webinar Transcript

Jeanniey Walden:

This is an incredible turnout and we’re really here to have, hopefully an interesting and entertaining but informative conversation with everyone here in the audience. We do want it to be more interactive than not. So we’re going to speak for a few minutes and then we’re going to open it up and make this more of an interactive session if that’s okay with everybody. So with that said, Michael introduced us all, but I’m the chief innovation and marketing officer at DailyPay. I’m not in HR, but I’ve spent a lot of time in HR. I was the global CMO for Mercer before coming to DailyPay. And my job is to focus on figuring out how organizations can take the insights that are used in consumer marketing and translate that into internal marketing and branding. And I write a blog on LinkedIn about the intersection of HR and marketing. So conferences like this are just as fascinating for me as they are for all of you because I gain so many insights.

Jeanniey Walden:

And spending time with Barbie who is one of our amazing client partners, she’s just extremely filled with insights that I think are relevant to many of you that I’ve spoken at over the last couple of days, based on your industry and the goals and challenges that you’re trying to fulfill. So we thought we’d open it up with just a little video about DailyPay. It’s not a sales video because I hate those and I don’t like being sold to. But just to give you context because how many people know what DailyPay is? Oh good, so my branding is working. So yay, thank you. Thank you.

Jeanniey Walden:

So we’re going to open up the little video. I’m going to talk a little bit about the insights that we’ve seen inside DailyPay with millennials and gen Z and some changes that we’ve decided to make to who we are as a business and what we do as a company. And interview Barb, you have some questions about what she’s seeing at BIC Graphic and then we’re going to open it up for some more commentary. So if you’re on social media, please feel free to hashtag any of the things that we’re sharing. And I’m happy to share these videos or other slides after the presentation, but if you could go to that first video.

[VIDEO]

Russ Jenkins:

Hi, my name is Russ Jenkins and I live in San Diego, California. One of the most beautiful and probably in my opinion, the greatest state in the entire United States, but also one of the most expensive. I want to talk to you about DailyPay. The first time that I use DailyPay was Christmas. I had bills that I need to pay, so I didn’t know where to turn. Then I remembered that my company had said that they recently contracted with DailyPay. It was easy to sign up for it the first time and I was surprised how quickly I got the money. I made my expenses and how I felt after it was, I felt empowered. I felt that I had something that I could count on when things go bad. I live in California alone. I don’t have any family. I’m single. This is a resource that helped me feel more independent. And I want to say thank you to my employer for contracting DailyPay and I want to say thank you to DailyPay.

Jeanniey Walden:

So what we do in a nutshell is we integrate with payroll and time management systems and it’s free to employers, but we enable employees to access money that they’ve earned, so not a loan, before their pay day. So if you’ve worked five days and you’ve made $1,000 minus taxes, wage garnishments, any other pretax deductions, DailyPay shows how much money you’ve earned, and then you can take it out early to pay bills, to cover an unexpected expense, to invest in the stock market. I mean, basically every working American has a reason to take money out before payday and DailyPay just makes it easy and accessible in a very compliant, secure way to do that.

Jeanniey Walden:

So Barbie is one of the clients that has implemented DailyPay, and we can talk about that in a minute, but really, the company felt the need inside the workforce to do something good. Something that was very focused on enabling the world to be a better place and create some sense of going beyond financial wellness. So not just helping people to take care of their expenses, but helping to train and educate them so they can make more intelligent decisions about how they’re budgeting, how they’re using their funds, but do that in a way where they can avoid some fees. I don’t know Barbie, if you want to talk about DailyPay and why you chose to put it inside BIC, because one of the things that I’ve seen is that DailyPay is often a choice of an incremental benefit, when companies are looking for new things that they can invest in for their employees, to increase retention or build that trust between the employer and employee.

Barbie Winterbottom:

Yeah, absolutely. So I joined BIC Graphic just a little over two years ago and I didn’t come into an organization that had been purchased by PE firms. So many of you are familiar with the BIC brand, BIC pens, BIC razors, that organization. So this was the promotional products division of BIC and they sold that division to a PE firm. And everything about the culture that had existed for the previous 50 or so years, had just been disseminated, just gone. Literally the light switch flipped and they were no longer part of this mother ship that they had known for years. And I came in about six months after that happened and we’re having to rebuild everything. For those of you who have ever worked in a scenario where you come in and there’s multiple fragmented, broken pieces, it’s much more difficult than building it from scratch. So you’re building the plane while you’re flying it, kind of scenario.

Barbie Winterbottom:

And the organization had not traditionally been very progressive and benefits were kind of tried and true. It was medical, dental, vision, [inaudible 00:06:24] and we’re done. And I was looking for ways to move the organization forward in many different facets. And one of the first things that I felt passionate about was establishing our fundamental kind of leadership competencies and behavioral competencies that would be relevant to the organization. And two of those, three of those are own it, raise the bar and customer obsession. When you think about the generational variances in the workplace today, you can apply leadership competencies to anyone and with the changing marketplace, how many of you are experiencing the volatility of rapid change as a result of the Amazon effect on the marketplace and how that has changed consumer behavior?

Barbie Winterbottom:

Take that and apply it to your employees because if you are thinking in the mindset of customer obsession with your external customers, you have to apply that same mindset to your internal customers, your employees. So I was looking for ways to do that, that also aligned with the experience they have outside of work because it has to be integrated. We’re not even focusing anymore on work life balance. It’s work life integration and what can we do to help support that. And DailyPay was one of those opportunities that I saw to really help people in a way that’s meaningful to them. It’s a huge benefit that it doesn’t cost me anything. That’s great. The PE firm loves that. But I think at the end of the day, it’s really providing something that has meaning to the people who I get to serve and work with every single day. And that’s why we brought it in. And I’m happy to answer any questions, but that was really the impetus for bringing it in and it’s been fabulous, absolutely fabulous

Jeanniey Walden:

So tell us a little about your employee base, younger, older, mix of both?

Barbie Winterbottom:

Very, very diverse workforce. So BIC Graphic, while many people may think, “Oh it’s a marketing focused company.” We’re very heavily manufacturing. So like those pad folios that you have, from I4CP or of those pens, anything that has a company logo on it, we likely have, way in the back end, participated in the manufacturing of and we are a thrice removed from the customer organization, we’re a supplier who sells through distributors or buying groups, who sells companies who then may or may not sell to the end user. So there’s very little direct end user interaction. And so again, it was making sure that there’s those connections for our people. We have a vast generational, I think, diversity within the organization. Some folks have never worked anywhere else their entire career. So I have people who have been there for 40, 45 years with their grandmother, their auntie, their daughter, their granddaughter, their cousin.

Barbie Winterbottom:

We have some remote locations in the Midwest and we are in some ways kind of the anchor to those communities. We’re a big employer there. Even though the company as a whole is about 1800 employees, when you have 500 in a small town, that’s a big employer. I’ve worked for Amazon, so scale is relative. And so when I think big employer, I’m thinking global, 400,000 employees, 500 employees in a small town is huge. So we have that impact to those communities and being able to address the generational variances in those communities as it’s relative to them, is really important. My average age is about 46, that’s average. My average tenure is about 15 years, again, average. So what we find is we have the churn in that two years or less and once it’s beyond two years, they never leave.

Barbie Winterbottom:

And sometimes that’s great, sometimes it’s not. But what can you implement that can be leveraged by anyone at any stage in their life? And with DailyPay and the product, one, it’s instantly accessible to them. So it’s simple, because we know beyond anything, if it’s not simple and intuitive, they’re not going to use it, they don’t care about it. That’s the external consumerism effect on employees. It truly does help improve their lives. My first concern, as I’m sure everyone in this room who isn’t using DailyPay, your first concern is, “Oh my gosh, they’re going to spend all their money before payday and it’s going to put them in a worse financial position than beforehand.” And I can attest to that that is not what happens. When you look at your lower wage earners and I would say folks who are at that $20 or less per hour wage earner, a flat tire on your way to work is life changing.

Barbie Winterbottom:

They don’t have the extra 40, 50, 60, $100, whatever it is to buy that new tire. And what does that cause? It causes a spiral effect to happen, they’re late for work or they don’t make it to work that day. Maybe they already have some other tardies or late or disciplinary, who knows what’s going on with them. It creates a cascade because now they’re not earning money because they’re not at work that day and so it puts them further and further behind. Or they have an unexpected expense, a kid gets sick, there’s an elderly parent, I mean you guys know what unexpected expenses are. We all have them. It’s whether or not you are in a position where you can absorb and handle them or is it going to push you over the edge. And folks write checks and they hope that it doesn’t clear the bank before payroll and then they incur when it does, they incur those 34, $35 per balance check fee.

Barbie Winterbottom:

DailyPay stops that cycle from happening because they can withdraw what they need in that moment to cover that expense. So it really is serving a purpose. It’s not giving them access to free money that they can just, “Ooh, let’s go, it’s crazy, let’s go to the casino or whatever it is.” It is absolutely changing their experience as an individual. And when you can emotionally connect your employees to the company and they see you providing something that truly changes their life for the better, then you got them, then they’re yours and then they get it. So when those other not so great messages come out, that if you’re an HR where you get to share them like I do, all the time, it starts to create some point of that balance and trust. Because that’s, at the end of the day, what really matters to them is, can I trust them? Do they really have my wellbeing in mind? And this is one of those things that shows them that we really do.

Jeanniey Walden:

So you mentioned that emotional connection. And I think that’s super interesting because at DailyPay the company, not the product, we’re always looking at how do we attract top talent? And it seems like with millennials and gen Z coming into the workforce, they need to have that emotional connection where they feel like they’re doing something good. And while a solution like DailyPay as a product, gives you the ability to do something great financially but also do something good for yourselves, we find it to be so important. We actually coined a term for the new people entering the workforce. They’re called MAGGIEs. And if you take one thing out of this conference, it’s to focus, go back to all your teams and bosses and say, “Hey, we need to focus on our MAGGIE strategy.” Because MAGGIE stands for, millennials and gen Z who get instant everything.

Jeanniey Walden:

And we were talking about this on the way over, my daughter, my oldest daughter is 22 and she got a credit card, her very first credit card. And she called me and said, “Discover won’t let me pay my bill.” And I said, “What?” And she said, “Well, I charged on it a couple of days ago and now I want to pay for it, but they won’t accept my payment. They keep telling me I have to wait until some random date in the future.” And so I realized that she didn’t understand statement cycles and her bill hadn’t come out yet. But she bought something, she had the money because she got paid and she wanted to pay for it. It’s a very millennial and gen Z mindset. You get money, you buy something, you pay for it, you have access to something, everything comes instantly.

Jeanniey Walden:

And so inside DailyPay, we started to look at how does that impact, how does the impact of the MAGGIE affect every single one of our company cultures and what is it that we need to be implementing and doing that supports that thought process. So we decided to think through this and brainstorm because we are a company, very much made of millennials and gen Z. In fact, I’m one of the old people at the company. And we decided to have a brainstorm and think about if millennials and gen Z are used to getting instant everything, they want instant pay, they’re used to instant cars with Uber, they’re used to instant lodging with Airbnb. They’re used to instant food with every company under the sun, they can do delivery. What kind of experience is it creating and how do we have to focus on that and what is the most boring thing on the planet that we can think of and how can we try and turn that into an experience to figure out how to create a better product, a better company?

Jeanniey Walden:

So we started to think about coffee. So I see around the room, everybody raise your hand if you’ve coffee or tea this morning. Okay. So how many of you thought outside of this thought, “Oh, it’s morning, I need some coffee before the day starts.” Did anyone actually put more thought into their coffee than that? Okay. If this room were filled with millennials and gen Z, the answer will be totally different because what we realized were for all of us, we get up, we either tell Alexa or Google or somebody to make our coffee or we dare go all the way the kitchen, press a button ourselves. But we get our coffee, we drink it while we’re getting ready for the day. Check a few emails, put the coffee cup in a mug to take in our car or we stick it in the sink and that’s it. Our day has gone.

Jeanniey Walden:

But not the new workforce, not this new generation, they’re used to experiences. So this is how it goes for millennial. They wake up, they go on Instagram, Slack, TikTok. They’re trying to find out who’s got the coolest coffee place. Where is the coolest place they can get coffee? Spend about an hour researching that, while they get ready. Then as they’re leaving in their Uber, their Lyft, their Rideshare, on the subway, whatever, they order the coffee online because God forbid they have to wait in line when they get to wherever to pick up their coffee. They don’t have time for that, they just spend it trying to figure out where to get their coffee. They get there. They have the most beautiful coffee. It’s got this little butterfly on it with the foam. And so they pay more, but it’s worth it because it’s beautiful.

Jeanniey Walden:

But do they drink it? No, no, no. They spend 12 minutes on average. We actually did a survey, 12 minutes taking the perfect picture of their coffee. It could be just the coffee, could be them and their coffee, could be me and Barbie and their coffee. It could be anything. But it is 12 minutes to take the perfect social media picture. Why? Because they don’t want their coffee experience to end. Once they take a sip, it is over for that. They want it to live forever. So they drink their coffee while they look at the likes and the conversations on social media. But if this happens with coffee, imagine everything that it’s happening with in each of your workplaces. And I think one of the things that was fascinating is you’ve created that culture of experiences in your workplace, but they’ve hit in with other things and I think that that’s so important to do.

Jeanniey Walden:

So we took a look at that and we were like, “Look, we have DailyPay and it’s a product and all of us as buyers, yes, we need this benefit. We need to do this, we need to reduce turnover, we need to increase productivity. But for the millennial and the gen Z user, wouldn’t it be better if there was no longer just this pay product or this pay app? Wouldn’t it be better if there was a whole pay experience?”

Barbie Winterbottom:

As long as it has a filter.

Jeanniey Walden:

Couldn’t it be better if there was an actual pay experience that turned to all of you guys into the heroes of the pay experience. And this is the missing element of employee experience. And so that’s actually what we did. So the video that I screamed, “Don’t show it. Don’t show it.” If you show that video, what we’ve done, and you guys were the first to see this video, by the way. Well the second since you already saw it partially once, but we created this video that you might see now, maybe.

[HERO VIDEO]

Speaker 5:

In a world where employees expect more from their employers and millennials demand careers built around experiences. Payroll can seem cold, transactional, leading to financial instability for some and for others, quitting to find greener, more experiential pastures to work. It will take a superhero to maintain the employer employee compact and to protect the future of work. Together with her sidekick, the most secure and brilliant pay experience platform in the universe. She will stop at nothing to deliver pure joy to an empowered workforce.

Speaker 6:

What am I going to do? Friday’s payday, rent is due tomorrow and I need gas to get to work today.

Speaker 5:

Pay.

Speaker 7:

I want to book a family vacation this year, but how can I afford that? I can’t even say for retirement.

Speaker 5:

Save.

Speaker 9:

I would work more hours to make an impact, if there were an easy way for me to be recognized.

Speaker 5:

Reward.

Speaker 10:

There was a glitch in the payroll system. I really can’t afford to wait for a new check. I need the money now.

Speaker 5:

Cycle. With great power, comes fully compliant and secure responsibility. Your employees can work productively, knowing that you, the real hero here, are hard at work, providing a platform that exceeds their expectations, transforming a pay day into a powerful pay experience. This is beyond financial wellness. You’re enabling them to live better lives. That’s real heroics. DailyPay, coming to your workplace everywhere.

Barbie Winterbottom:

That’s awesome.

Jeanniey Walden:

Thank you. So we decided that you can’t have a company if it’s not experiential and that experiences go into every product that we build into an organization. And from a marketing perspective, like I said, my role is to take everything that I’ve done for the last 25 years marketing to customers outside of the company and look at how we put that inside the company to support everything that HR teams are doing. So I think you’ve done some really incredible work inside Bic, in addition to DailyPay, to bring that culture together. And before we open up for Q and A, it’d be great to hear just any other final comments that you have about how you bring that experiential feeling into workplace and build a culture.

Barbie Winterbottom:

Okay. There are so many different facets of what we have to do. One of the things that we all focus on as HR or the people team, whatever you guys call yourselves, is also, there’s the experience, but there’s a huge focus on diversity and inclusion. Have you guys been beaten over the head with that one yet? But it’s incredibly important and because of the three, we have three different locations in the US and one or two in China. It was remarkable to me how siloed folks were and how there was a lack of commonality even though they all work for the same organization. And I did something very simple and it doesn’t cost money as long as you have a good friend in marketing. We asked our people what they celebrate, what days of the year are important to you?

Barbie Winterbottom:

It doesn’t matter why it’s important. Doesn’t matter what it is, but what days do you celebrate? And if you could tell us why, that’d be great. So we took all this data and we sat down and we created a calendar for the year, of everything that’s important, outside of birthdays, we’re not including birthdays and anniversaries, but days with significance. And we met with our marketing team and said, “How can we take this?” Because what companies, I think, have done because of discrimination cases and we have to treat everyone the same, we’ve gotten so vanilla that we celebrate nothing. And I wanted to take a stance to say, “Why can’t we celebrate everything? Why can’t we validate and encourage people to be who they are and then educate the rest of the population so that we’re not discriminating. We’ve opened it up to everyone.” So every time one of these days occurs, we send out a PDF email flyer with images around the holiday. It’s origination, where it’s celebrated, why it’s celebrated. So it provides some education to our folks.

Barbie Winterbottom:

And this goes on our communication [inaudible 00:24:44] throughout all the buildings, email, we create videos to put on our employee hub, which is like our intranet. And it has, again, been one of those game changing ideas that kind of sparked just randomly because now people are like, “That’s the coolest thing. I didn’t know who Harriet Tubman was and why she was important. I didn’t know why Holocaust remembrance day was so incredibly important to this population or what Chinese new year was about.” If any of you work with folks in China, they peace out for a month. They’re out celebrating. Nobody over here understands why and the significance. So again, it’s small things like that, but if you can do those small things, repeated over time, you start to create a culture where it opens up the conversation.

Barbie Winterbottom:

It allows people to start talking with one another, appreciating the variances and the differences and what they bring to the table. And there’s been some really neat holidays and celebrations that I had never even heard of before, that are really important to folks that are from different countries, different places in the world. And bringing that to them is yet another way that we’re opening up their worlds and helping them understand the connectivity that we need. Again, it’s reestablishing, reaffirming that emotional connection because now we’re providing them education to a world they didn’t even know existed. And so it doesn’t connect necessarily with DailyPay, but from an emotional connection to us as an organization, it absolutely is one of those, we’re building those blocks of the foundation and it’s one of those things we did that we’ve gotten tremendous feedback on.

Jeanniey Walden:

Yeah, well it sounds like emotion experience is all super important for millennials, for gen Z, for the gen X’s and the baby boomers.

Barbie Winterbottom:

Yeah. We focus a lot on, I hear this a lot, you have not said this, but I hear this a lot, you’ve got to prepare the millennials in the workforce. They’re here, y’all, they’re 50% of our workforce. They’re not coming, they’re here, so you either need to catch up real fast or take a look and see where the gaps are. But I also think they’re still human and yes, there’s different characteristics at every generation, which you can look up in Google what those are and you want to be sensitive and aware from a communication and experience perspective, but they’re still all people and there’s some core fundamental things that you can latch onto there. And DailyPay is one of those that doesn’t matter your generation.

Barbie Winterbottom:

If you’re in that sandwich generation where you have the aging parent and perhaps the college age and just out of college and grandchild. I have people who have got it going on at every level and I’m like, ‘I don’t know how you function, but if I can help you with this product, let me do that for you.” They’re buying adult diapers for mom and baby diapers for grandchild and all these other things, and these are tools that are very, very helpful to them.

Jeanniey Walden:

Yeah. Awesome. Well we have about five minutes left, a little bit less than I did want to open it up for questions. If anyone has a question, I think there’s a microphone coming around. Oh, there’s lots of questions. So if we run out of time, we’ll meet you outside the room for other questions. But there’s a lot of questions over here. There we go.

Speaker 11 (Audience member):

I’m curious about the savings portion because I get the immediacy thing but share the same concern that it doesn’t help people to bankrupt themselves every week, by getting all their money and not learn to save or put some aside. How much is that utilized? Do you have any statistics about how much, what percentage usage involves a saving?

Jeanniey Walden:

Yeah, so we’re super data obsessed, data obsessed. So the great thing about inside the app, when you take out money, it asks you why you’re taking out money. And we do a lot of analysis, generally across all DailyPay users, hundreds of thousands of employees and then specifically for companies that we work with. So we can tell you, the number one reason for your employees might be medical bills or it might be something else. From the savings feature, 67%. And what we found is it goes up and down based on lifestyle. So typically when I have other presentations, I’ll show three examples.

Jeanniey Walden:

So there’s one employee, I don’t have the slide here, but I can send it to you. There’s an employee, she started out just using the savings piece, like that guy wanted to save for the vacation. She got in a car accident so she couldn’t save as much anymore, had do you use the pay piece for a while, but then went back to savings and because she had saved so much, the amount she had to take out from the pay side of it was less than it would have if she wouldn’t have had any savings.

Jeanniey Walden:

We have a booth over in the thing and you can talk to our guys over there, they can explain more about it. But on the savings feature, we have three ways you can save. We actually try and educate people in the app. So when you take money out, it’ll say, “Do you want to save a couple dollars too?” So if you’re taking out, first of all, people usually take out random numbers. It’s not like an ATM, they’re not taking out $40 or $100, they’re taking out $28 and 14 cents, they’re taking out $111 and 9 cents. It’s the cost of an unexpected expense. So we’ll say, just like those Roundup apps, “Do you want to take out $120 and put the rest in your savings bank for future?” So we try and build that savings piece even when people are taking money out and do a lot of other things as well. Try and get through a few more questions. There’s one up here.

Speaker 12 (Audience Member):

So I can honestly see the attractiveness of this, in comparison to a payday loan, but you mentioned [inaudible 00:30:27] an employer. I’m interested in how the fees work on the employees side.

Jeanniey Walden:

Okay, so there’s no fees for savings. Obviously you’ve saved it, it goes into your bank account, that’s yours and we put it right into your bank account. So there’s some other apps that allow you to save with no interest, but that doesn’t help anybody if you’re not making money on your savings. The fee to take out the money, it’s $1.99 if you want it the next day or it’s 2.99 if you want it immediately, meaning right here while I’m sitting on this stage, which is less than an ATM fee.

Barbie Winterbottom:

And as an employer, if you choose, you can pay those fees. So for example, during the holidays, if you want to save, we will cover the expense of one withdrawal for you if you’re concerned, payday happens the day after Christmas, so people need to front load and meet some of their obligations. So you can do that as a gesture if you’d like to. You can carry some of those costs or you can choose not to, it just depends on how you want to implement it.

Jeanniey Walden:

Yeah. Great. And we’re getting the word, we’re out of time. Someone’s trying to kill us. So thank you so much. I know there were a lot of other questions. Mike, raise your hand. There’s Mike. He will be outside and we’ll be outside too, if you have any. But thank you so much, we really appreciate it.

Who’s DailyPay

DailyPay, the premier provider of the daily pay benefit, goes beyond financial wellness with a flexible, simple, and compliant pay experience that strengthens the employee-employer bond and significantly enhances the employee experience throughout the enterprise, at no cost to the employer.

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