Companies are in a war for talent. The labor shortage has caused many restaurants, retail stores, and hotels to limit operations or even shut down from staffing woes. Retaining employees has become just as crucial to survival as hiring them in the first place, and on-demand pay access gives businesses a powerful new benefit aimed at retaining workers.
Pre-pandemic, most of the workforce consisted of hourly employees.
- The U.S. Bureau of Labor Statistics estimated hourly wage workers represented almost 60 percent of all U.S. workers
- Even while COVID-19 resulted in many early retirements and the nationwide labor shortage, hourly labors still account for a majority of the American workforce
As businesses endure the labor shortage of a post-lockdown economy, hourly workers remain essential to hospitality and service industries.
- The relationship between employer and employee has shifted — hospitality and service businesses continue to depend on hourly personnel, but pandemic disruptions forever shifted workers’ concerns
- Organizations need to reevaluate the perks and benefits they offer talent — not even signing bonuses are a convincing factor for prospective hires
- Companies must find ways to differentiate from competitors if they want to attract top talent long-term
On-demand pay access provides a solution to both employee and employer. While workers traditionally receive their paychecks twice a month, on-demand pay gives employees early access to earnings so they’re able to tackle life’s surprises on their schedule.
This e-book provides an in-depth look into the concept and how it incentivizes hourly employees to stay long-term — all as a no-cost benefit to the employer.