Supporting Your Workforce’s Financial Security Through the COVID-19 Crisis

Webinar Series

Supporting Your Workforce’s Financial Security Through the COVID-19 Crisis

Webinar Series

Supporting Your Workforce’s Financial Security Through the COVID-19 Crisis

In this webinar you will learn about…

  • How COVID-19 is affecting and will continue to impact hourly employees in 4 key industries
  • Ways other companies are supporting their employees’ financial health during this time
  • What DailyPay is doing to help its partners and their employees throughout this challenge

At a time when every one of your employees is focused on the health and safety of their family, you are also tasked with helping to ensure your employees are financially stable in both the short term and the long term. 

The DailyPay Workforce Index has been following the need for employees to access their pay to prepare for, or battle, the effects of COVID-19. Our recent statistics show that 43% of employees using DailyPay are accessing their pay early for coronavirus-related expenses – a number that spiked 400% in recent days. 

We salute all of the employers who are going the extra mile for their employees. Learn from them and help ensure you are creating the best scenarios today and in the future. 

View On-Demand

Guest Speakers

Jason Lee

Chief Executive Officer

DailyPay

Jeanniey Walden

Chief Innovation & Marketing Officer

DailyPay

Webinar Transcript

Duration: 30 minutes

Jamie:

All right then. I think we’re ready to get started here. We have a healthy number of participants on our webinar today. Good afternoon, everyone. Welcome to today’s webinar Supporting Your Workforce’s Financial Security Through the COVID-19 crisis. We hope everyone is staying healthy and safe indoors today.

Jamie:

I’m Jamie. I’m a member of the DailyPay team. I’m reporting to you live from my living room in Brooklyn, New York. But before we get started, I’d like to just go over a few housekeeping items so you know how to participate in today’s event. First of all, let us know where you’re tuning in from by utilizing the chat function on the control panel. At the end of this webinar you will have the opportunity to submit to get your questions answered. We also have a chat function on the control panel. Submit your questions as we go here and our presenters will address them in that Q&A portion.

Jamie:

Now, I’d like to introduce to you our two presenters today. Jason Lee, the founder and chief executive officer at DailyPay. Jeanniey Walden, our chief innovation and marketing officer. Jason and Jeanie?

Jeanniey Walden:

Great. Thanks Jamie for that introduction. Jason, do you want to take it over from here?

Jason Lee:

Great. Thanks, everybody. It’s Jason Lee from DailyPay. Let me just start by welcoming everyone and hopefully folks can grab a cup of coffee or a sandwich and just breathe a collective sigh of relief. I’m sure everyone is adjusting to this new environment. What we wanted to do is just kind of create some space for you to sit back and actually just watch and listen and learn a couple of things that we’re seeing in our business.

I too am dialing in here from home so you will hear children crying, dogs barking and doors slamming, all three of those things related to one another. We’re here with you guys. We’re here going through the same things that you all are. We’ve got a pretty interesting vantage point from the balcony that we sit on because we’re obviously in the market providing a pretty critical service to our employer partners and their employees. What we thought we would do is share some of those observations with you today. Then kind of helicopter up and give you a sense of what we’re seeing kind of broadly in the marketplace specifically as it relates to how employers are interacting with their employees.

We’ve got three things to discuss today. You’ll see it here on the actual webinar screen. The first is we’ll give you a little bit of an inside look as to how the crisis is affecting and continuing to effect in particular hourly employees in four key industries. The industries that we selected were really meant to be sort of a cross section of the gross domestic product. We picked kind of four industries. The first was the call center industry. That’s kind of an indicator of what’s going on in B2B or professional services. Hospitals, obviously in terms of what’s going on in the healthcare industry. A representative sample from consumer staples, so the grocery industry. Then finally a sample from the consumer discretionary sector. Specifically there we looked at quick-service restaurants.

The second thing we’ll do, and Jeannie will take us through the rest of this, which is giving you a sense of just kind of what companies are doing anecdotally to ensure employee health, both personal, financial, mental, physical, all of those things. Then finally, we’ll give you a little bit of insight into what we’re up to, how we’re helping our partners and their workforce throughout this crisis.

Jason Lee:

Why don’t I start with just a little bit of some data. I thought this would be useful for folks just to get some texture around what we’re seeing. Feel free to screenshot or take pictures of any of this stuff. We’ll also post this online later. But we’ve got something that we call the DailyPay Workforce Index. We actually created it at the outset of this crisis. What we’re doing is sort of tracking really kind of how various industries are both staffing as well as the average hours worked by each employee.

There’s a lot of numbers on this slide. Let me kind of explain what you’re looking at and then I’ll give you the highlights. Basically the way we look at this is we look at kind of week over week, so Monday over Monday, Tuesday over Tuesday, Wednesday over Wednesday, et cetera throughout the actual crisis. Kind of what’s going on in terms of staffing levels, both in terms of the average hours worked as well as the number of working employees as a percentage of all employees. We’ve done this across or what we’ve shown here is really on each slide four representative sectors.

The first is the call center industry. Again, we thought this was an interesting industry to look at as just a proxy of what’s going on with B2B services. Obviously call centers don’t really have a consumer specifically, a consumer aspect associated with them. It’s not like someone walks into a call center and buys a burrito, but it’s sort of representative of kind of how business to business services are actually operating. For the most part, we’ve seen this industry and the sector broadly kind of hold fairly steady, but over the last week, of course, we have seen profound increases in absenteeism. Based on our anecdotal information, we do think a lot of this is being driven by of course school closures and the need for people to take care of children at home. It’ll be interesting to see what impact that has just more broadly on the B2B industries generally, but specifically here with call centers.

Moving next to the hospital industry, what you’ll see here is relatively unchanged activity. We haven’t seen frankly a dramatic spike and we haven’t seen a dramatic decrease in the hours worked or for that matter in staffing levels. That’s kind of to be expected. We don’t really expect there to be that much change. We’ll be watching this carefully. One of the interesting things that we are seeing, and this is probably something that you all are seeing in your businesses, is some of these industries are moving to per diem or third-party staffing models, which is why you haven’t seen some of their core employment numbers change date yet since a lot of that activity’s happening “off balance sheet” or through the staffing industry itself.

Moving to consumer staples, this is the industry or the sector rather that we have seen increase both in terms of hours worked as well as staffing. What you’ll observe here of course is a dramatic increase. We’ve picked here our supermarket sector across all of the supermarkets that we work with. Obviously, the volumes are up. This week of course is not yet complete, which is why that data set looks a little bit off, but I expect it to look very similar or to be on trend with other weeks. This is the one area of course where in consumer staples where we are seeing there to be expansion as opposed to contraction in the overall staffing and labor market.

Then finally no surprise, in consumer discretionary we did take a look at as an example of consumer discretionary, the quick service restaurant customers that we work with and the employer partners we work with. There has been double digit decline in the number of employees as well as hours that each employee is working over the last two weeks.

Jason Lee:

Let me just pause there again, a pretty broad cross section in our customer base. Our customer base sort of resembles the overall gross domestic product of the United States. If you unfortunately are someone who reads the news, what you’ll probably pick up from a lot of the economists is we are looking at something like a 25% contraction in the second quarter. That’s at least what some folks are saying. No surprise [inaudible 00:09:12] and when you look at our customers in terms of the workforce, we’re seeing a similar thing. On average about down kind of 20% to 25% in terms of hours worked with some bright spots in consumers staples as well as in the B2B professional services sector.

The last thing I’ll share in terms of our data is we do kind of track very closely why people happen to be accessing our service. We are in the business of course of allowing employees to access whatever earned income they have. We’ve seen a dramatic spike really kind of peaking at the high watermark of last year, pardon me, last week on March 20th of this kind of getting up to one in three reasons why people were accessing their pay before payday was in fact coronavirus-related either due to expenses associated with stocking up or other or healthcare-related expenses. We have seen that recede over the last day or two. We will continue to kind of watch this very carefully. All of this data we do publish in our Workforce Index, which we’ll send around after this call.

The point of all of this was to give you a little bit of backdrop in terms of what we are seeing on a more macro basis. Let me now turn it over to Jeanniey Walden who’s going to walk through what we’re seeing more anecdotally on a micro basis with some large employers. Then fill in some of the blanks with some of our own customer data. Jeanniey.

Jeanniey Walden:

Great. Thanks, Jason. It’s really interesting to take a look at the macro trends and see where the industry is moving, especially on the number of employees who have had to access their pay early so that they could prepare for the coronavirus or COVID-19. Now we’re starting to see some really interesting shifts where the number of people who are saying, “I need my pay to prepare for this pandemic,” are now starting to say, “I need my pay to prepare for the associated bills that come with staying at home and now having children at home and families at home and buying more groceries and really just managing a whole household.” I think you said it when you started the webinar, which is so true for all of us that today the workday involves online schooling at the same time that you’re taking care of a pet while there’s usually in many cases, two working adults trying not to overspeak each other while we’re both on conference calls.

Jeanniey Walden:

I think our world has changed. It’s been very refreshing to see a lot of organizations take responsibility for their employees and their employee health, both personal and financial. The stories that I’m going to share with you do represent some DailyPay clients. There are also included some stories that we’ve seen on the news or found as best practices. Hopefully it’ll give your organization some ideas or some validation that the steps you’re taking are in the right direction. Hopefully at the end of this, you will be able to ask any questions that you have for Jason and I. Because our focus at DailyPay is to make sure that we’re sharing this information, both the macro trends as well as the micro best practices with everyone so that we can provide some sort of advice and guidance to create the sense of personal and financial health.

If you go to the next slide, what you’ll be looking at is a recap of what’s happening with Postmates. I think this is just fantastic. For its delivery fleet, Postmates has created a fund that will credit Postmates for the cost of doctor’s appointments and medical expenses. This has been a highly-debated topic, especially as Jason said, if you unfortunately watch TV or listen to the news at all as to who’s responsible for these medical costs and the coverage. Because this is not certainly not any of our faults. We’re all just trying to manage through that. Kudos to Postmates for creating that fund and managing those appointments.

Jeanniey Walden:

For merchants, Postmates will waive the restaurant commission fee for new merchants. They’ll take a look at the impacted markets. There are some great maps online. If you ask us after this, we can share some of those maps that show where the impact of the coronavirus is strongest from a location standpoint. But really as we’ve been talking to people, we find that a number of small businesses and small merchants and mom and pop restaurants are truly being impacted by this. They just don’t have the operating capital to manage through one, two or three months of impact. For Postmates to do this is fantastic.

Jeanniey Walden:

We’re also seeing companies in the retail space making some significant changes where they’re not a delivery system. On this slide, what you see is a picture of the inside of Mall of America, but also a number of retailers inside there. DailyPay works with a number of retail organizations. We’ve been in very close contact with companies all across the board, different retailers who are from a positive standpoint seeing their online orders increase and increase fairly significantly, but not enough to offset the loss of foot traffic inside the stores.

Jeanniey Walden:

We have looked at the effects of a number of closed locations that again are not necessarily an employee’s fault and it’s not the company’s fault. They haven’t gone out of business because they filed bankruptcy. We’ve all been focused on this mandatory shutdown and doing everything that we can to stop the spread. Some places like Mall of America that are closing temporarily are actively paying out their employees through the end of this month at least. Others we’ve heard are paying employees through the middle of April. Still yet others have said, “We commit to paying employees as long as we can and as long as this virus and pandemic exists.” Very interesting approach from retail stores.

Jeanniey Walden:

A lot of them were hit really hard. A number of the conversations we’ve had suggests that a retail store overnight is having to furlough or lay off as much as 90% of their staff and close hundreds of stores in a matter of hours. Now, the encouraging piece of this is we are seeing CEO videos and other company videos that are going out to all of the employees letting them know that this is certainly not their choice. They will be paying them or taking care of medical expenses. The plan is to rehire the staff back as soon as we get the okay to reopen business again in a very safe environment. They’ve also been recommending that a lot of employees actually file for unemployment in the short term. If a company does run out of funds and the stimulus package has yet to be signed and there’s nothing left, at least they can look at unemployment as a way to manage their households through this. The focus on the employees and the promise and the commitment from the CEOs has been very impressive and very inspirational.

Jeanniey Walden:

On the next slide, we take a look deeper into what’s happening with that consumer goods space and what’s happening in companies and groceries like Kroger’s who are focusing on ramping up their hiring efforts. This weekend I was at a local grocery store. I was at an Acme in New Jersey. There were signs as big as you could possibly imagine saying, “We’ll hire you right now on the spot. We need you to work in any store that you’re close to or our operations center. We just really need the support of the community.” From this perspective, we’ve also started to see websites pop up that have community listings of temporary jobs at grocery stores or other locations with consumer staples where they need a tremendous amount of people immediately. They’re opening their doors for anyone who has been impacted by hour cut downs in other industries. We think that’s fantastic.

Jeanniey Walden:

But Kroger specifically in its effort to hire-up is also looking at creating similar things that you saw with Postmates, which is a fund, a Helping Hand Fund, which provides money to workers who are affected by COVID-19. I think this is a really scary reality for many of the workers that are still facing people on the front lines in service industries that are staples like grocery stores that there could be a risk of infection. Kudos to Kroger for creating their Helping Hands Fund and really making money available from an emergency perspective to any associates that could be having financial troubles during this outbreak.

Jeanniey Walden:

Then finally, the last story that we bring you on the next slide is companies that are focused from a perspective of staffing up in more staples. Companies like Target and we’ve also seen it with Walmart, we’ve seen it in other companies as well are offering $2 an hour pay raises and bonuses to workers that manage store departments. This is a great way to reinforce the commitment to that employee-employer trust and compact and say, “We really value you coming out every day and providing such a service for the community.”

Jeanniey Walden:

There are also taking a look at the reality of facing school and other care facility closures and providing backup care, which is something that we really think is tremendously appreciated. I know in speaking to some colleagues and co-workers, there have been situations where a daycare provider, a daycare organization, a nanny has been unfortunately affected with an illness, whether it’s COVID-19 or not, they’re unable to provide childcare. It’s sometimes difficult to manage childcare and be out supporting the community in these client-facing and employee-facing roles as well. Kudos to Target for providing the back-up care to the frontline members as well as waving absentee policies, which we think is fantastic. We’re seeing that across a number of organizations covering quarantine and confirmed illness pay, which you’ve seen throughout this conversation in a few different sectors. Then also continuing to offer pay benefits like family paid leave and free counseling.

Jeanniey Walden:

These are just a number of the initiatives that companies are doing to help employees have both a secure health and commitment to securing their health in the future as well as securing their financial health and making sure that as we get through this pandemic, that we can come out of it in a place with the least minimal negative impact on the people who work so hard to support us every day on the front lines. I think that’s pretty interesting when you look at it and consider all the options that are out there and very inspirational.

Jeanniey Walden:

If your company is looking for different ways that you can impact the service and support you’re providing your employees, hopefully this has provided a number of those options. But in addition to that, if you are doing something that we haven’t covered here and would like to share with us, this is a conversation and topic that we’ll be following throughout the crisis and beyond. Because we’re gathering such a great organized list of best practices that we’d love to share your story with our audience as well as with anybody who’s watching us or listening to us on the internet.

Jeanniey Walden:

As a final note so we can open it up to a question or two at the end, we are seeing one other initiative that’s starting to take off. Interestingly and possibly something that you might not expect, is we’re starting to see employees saving a little more than they had previously, at least at this point in time. Recently, DailyPay launched a few additional ways to save through our app than we had in the past. We included an AutoSAVE feature that automatically comes out of your paycheck, a RoundupSAVE feature where when you’re taking money out, you can save a couple dollars and put it away. Then DirectSAVE, which is a point in time savings capability.

Jeanniey Walden:

Interestingly, I just want to spend a moment on this RoundupSAVE. As people are taking money out of their earned pay using the DailyPay app, we are seeing 42% of them are using this RoundupSAVE feature, which is starting to just tuck a few dollars here and there away for emergencies. As we’ve all heard before in the statistics, the average American only has $400 in their savings account. The average American can’t support more than two weeks off of work without running into financial challenges and ruin. In this case, we’re hoping that the opportunity to get additional pay or extended pay from employers will continue to enable people to start saving at least a little bit here and there and that as we come out of the pandemic, the habits towards saving towards a financially secure and stable future will be one of the staples that we think about and consider.

Jeanniey Walden:

From that perspective, we are almost out of time, I think we’ll just flip all the way down to the end, Jamie, and open it up for Q&A. As we leave you there on the last slide of key takeaways, I think we can open it up if there are any questions. I know I saw a few coming through.

Jason Lee:

Yeah, Jeanniey. I’m actually in the web chat right now. I’m just seeing this one question around how does it … okay. I think there’s a spelling mistake here, but I think it says, “How can you help with furloughed employees?”

Jeanniey Walden:

Yeah. I think that’s a great question as far as furloughed employees go. I think, Jason, if you have anything to add on this from our standpoint I think what we are recommending is first you have to understand what the law is in the different area of the United States are for the furloughed employees. Are they eligible for unemployment? Are you furloughing them completely or part-time? We’ve had a lot of companies working with us putting people on part furlough, reducing hours, which makes them still eligible for unemployment in certain cases because they’re below the traditional full-time hours. Otherwise, the furloughed employees can if they’re completely furloughed start to accrue unemployment benefits and come back when a company is ready to assume their full efforts back in the market again. I don’t know if you have anything to add to that.

Jason Lee:

No. I think the only thing I would add is yeah, I think we’re seeing a mix in the marketplace obviously between outright termination as well as furlough. I think candidly some of this tracks with the size of the company. This is a wholly unscientific observation rather. But I have seen the concept of furlough be a lot more rife with kind of smaller and medium-sized enterprises versus the larger companies.

Jeanniey Walden:

Yeah, Jason. I see … oh, go ahead.

Jason Lee:

Jeanniey, the other thing I would just mention here because I know that this question was also put in the chat here. The other kind of big takeaway from some of these examples that we’re seeing is the question here was more actually around what can we do about if we are in a position where we are adding folks? I don’t know if we’ve got folks in the line who are more in the consumer staples area.

Jason Lee:

I think the one thing that I would observe from a lot of these large companies, and I think you can do this at any level, it’s they have used their own PR and media in a really positive way. Certainly if they’re hiring people or they’re advertising kind of new employee programs, the whole reason why we know about those things today is because they probably have used the local or national media to advertise that. I think certainly if you are in one of those industries that is looking to hire, I think using the media to your advantage, and the media wants to report on those types of opportunities as well. Not just that the world is falling apart. I think that also is something that folks have clearly taken to if you’re on the hiring side.

Jeanniey Walden:

Yeah. It’s funny. I saw a request from a journalist come in just yesterday to us that said, “Please tell us anything good that’s happening. We’re desperate for some good news stories.” I think that’s great. The last question, because I know that we are almost out of time here is, “If you’re not offering a daily pay service, how quickly can you get up and running?” I love that question because I think there’s a little bit of variance based on who you’re using from a payroll perspective and from a timekeeping perspective, time management system. But I think pretty immediately is the answer.

Jeanniey Walden:

I think it’s a great way to be able to offer that added benefit to the employees and let them know that you’re there for them and they have access to their earned pay as they need it so they don’t have to wait for payday and run the risk that there’s no more chicken or toilet paper on the shelf, which I did run into on Saturday. There were no paper goods in my grocery store at all, no napkins, no paper plates, nothing. There was no paper.

Jason Lee:

Okay, with that …. go ahead, Jamie.

Jamie:

Yeah, I was just going to close out the webinar because I know that we are at time. But just so everyone knows on the call, we will have rebroadcast this webinar and provide you the link to the rebroadcast as well as the Workforce Index that Jason was speaking to. You’ll get all of that coming too soon.

Jamie:

Then I also wanted to give you a preview of an upcoming webinar that we have. This is How to Maintain Your Employee Experience in These Unprecedented Times. Obviously as a company, DailyPay is going through this as well. We’re putting together and being proactive with our BCP and continuing to keep the morale high at DailyPay. We wanted to share some of those tips and tricks and things that we’re doing and obviously observing from the marketplace as well. Tune in next Tuesday. Thank you again, Jeannie and Jason, for hopping on the line today.

Jeanniey Walden:

Thanks so much, Jamie.

Jason Lee:

Thanks, everybody. Bye-bye.

Jeanniey Walden:

Bye-bye.

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