The team at DailyPay notes in an update that as so many retailers are struggling to hire and retain workers in an increasingly 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, firms need to “closely evaluate their offerings and make sure they’re compelling to potential applicants.” While 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,” according to a blog post by DailyPay.
Recently, DailyPay had joined retail leaders at the National Retail Federation to discuss the latest challenges and opportunities in the retail sector. Through conversations with their partners, they’ve found DailyPay to have “a significant impact on many problems retail employers and employees are currently facing.”
Here are some examples shared by DailyPay:
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 such as 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
As noted by DailyPay:
“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.”
The firm added:
“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.”
According to DailyPay, 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.”
For more details on this update, check here.
