A new report entitled, Earned Wage Access’ Role in Recruitment and Retention, finds that employers are able to reduce employee turnover by offering them access to same-day wages. The data insights come at a time when restaurants, retailers, manufacturers and more are facing highly competitive job market conditions, with many resorting to short term tactics in order to incentivise and attract workers.
As a long-term foundational recruitment and retention strategy, more and more employers have begun turning to on-demand pay as a benefit. For example, US-based Church’s Chicken rolled out Instant’s on-demand pay to 165 locations, and 41% of employees quickly opted into the program. Similarly, eight months after rolling out on-demand pay, Argo Contact Center decreased its absenteeism rate by 13%.
“The EWA movement is upending the traditional one or two-week pay period by giving workers instant access to the wages they have earned,” said founder of Instant, Steve Barha. “EWA ensures employees are not only able to take control of how they spend the money they earn, but also how and when they receive it. In return, they create greater loyalty to their employer.”
Instant’s data report reveals that these retention benefits result in significant cost and productivity savings for employers. It’s estimated that companies can lower their annual hiring costs by 35% simply by offering workers on-demand pay.
For the full data set and details of the research, please see: https://www.instant.co/employer_data_report/