The world has changed. Have you? You don’t have to look far to know that businesses are struggling to find hourly workers. Recent headlines about McDonald’s raising their wages an average of 10% across their workforce is just one example demonstrating the difficulty of hiring in the post-COVID labor squeeze. This challenge exists coast to coast across the United States.
As a business owner, executive, or HR manager, you may be looking for creative solutions to help you find quality people to fill out applications and work in these critical roles. Consider these initiatives to bring back workers and keep your business moving forward.
It is well documented that women have been disproportionately affected when it comes to COVID-19 era unemployment. Women saw a net job loss of 5.4 million during the COVID-19 recession, about 1 million more lost jobs than men.
While there are complicated causes behind this statistic, a common challenge among women is finding affordable childcare that allows them to work. Forward-thinking employers have added childcare-related benefits to help moms get back to work.
Among women, those of color have taken the brunt of job losses with outsized unemployment compared to the general population. Because women of color often work in frontline hourly positions, adding a childcare benefit could be a massive help in getting this critical population back to work.
A combination of low wages and enhanced unemployment benefits may make it that women are better off financially staying home than working. When they have good childcare benefits, it may change the equation and give women incentives to rejoin the workforce.
Even with a steady paycheck, the majority of Americans live paycheck to paycheck. A recent survey found that 64% of Americans admitted they live paycheck to paycheck. Credit cards and predatory payday loans often fill in the gaps, but that could leave borrowers in a worse position than when they started.
Payactiv Earned Wage Access (EWA) gives your employees access to their paycheck before payday as long as they’ve worked the hours. This isn’t a loan, so there’s no interest or repayment required. Payactiv is free for employers and integrates with your existing payroll system. It’s free for employers and costs just up to $5 per pay period for employees. Even if they don’t take advantage of EWA for that pay period, they can get paid up to two days early through direct deposit and access cash at more than 37,000 ATMs with no fees. On top of that, employees avoid expensive overdraft fees, late payment fees, and even payday loans that result in less financial stress, more engagement at work, and an all around better life.
That feeling of a better life is reciprocal across employers and employees. “PayActiv helps my employees better manage their lives in a tough industry, which gives me a competitive advantage. Doing the right things for your employees ultimately leads to the success of the business, creating employees who stay with me longer, are more engaged and deliver better customer service. That helps drive more sales and makes for a better business overall.” Henry Loving, Owner and CEO, Lee’s Famous Recipe Chicken.
We have seen a 36% increase in worker retention when businesses added the Payactiv benefit. But in some situations, it is worth looking at your company’s minimum wage. After all, the federal minimum wage of $7.25 per hour isn’t enough to get by depending on the worker’s location, hours, and family situation.
PricewaterhouseCoopers found 72% of millennials and 71% of Gen Xers are more likely to be attracted to another company that cares more about their financial well-being.” That’s why companies including Starbucks, Chipotle, and Olive Garden have made corporate-wide pay increases for their lowest-paid hourly workers. McDonald’s recent announcement, as mentioned earlier, puts its employees on track for a $13 minimum wage by the end of the year and $15 by 2024 at its corporate-owned locations.
The right minimum wage for your workers is up to you to decide, but it’s essential to note recent nationwide trends toward a $15 hourly minimum wage when setting your pay rates.
When your workers opt-in for Payactiv, they get more than Earned Wage Access. Payactiv includes these additional features to support holistic financial wellness to break the paycheck to paycheck cycle for good.
This is just a snapshot of what workers can do with Payactiv. Other features help them find additional shifts to grow their income, book Uber rides to get to work when their car is in the shop, and more.
According to our research, 9 in 10 workers want the Payactiv benefit. And in this ultra-competitive labor market, offering Payactiv could be the difference between filling your schedule and struggling with recruitment. “We added the PayActiv benefit to our job postings, and our recruiters report that candidates are paying attention to this benefit.” Trasee E. Whittaker, Chief Human Resources Officer, Masonic Homes of Kentucky.
Offering this solution can not only help you attract candidates, but keep them as well. The Payactiv benefit has been proven to decrease attrition after onboarding by 36%, 29%, and 24% within 30, 60, 90 days respectively. The data is clear. “By improving financial wellness, PayActiv helps us optimize productivity.” Kendall Johnson, CFO Baton Rouge General Medical Center. If companies want to attract and retain workers, the right combination of pay and benefits is necessary to keep workers motivated, engaged, and excited about coming to work. Giant employers and small businesses alike find Payactiv is an incredible win-win for their business and their employees.
Reach out to learn how we can support your recruitment and retention goals in a post-COVID world with the Payactiv benefit today.