3 Tips to Spice Up Recruitment and Retention

How Hospitality Can Overcome Staffing Shortages During the Post-Pandemic Recovery

• The leisure and hospitality industry accounted for 39% of all jobs lost during the pandemic.
• Employment in the leisure and hospitality industry is down by 2.8 million, or 16.8%, since February 2020.
• The national fill rate was 83% in December 2020 — only 83 hires for every 100 job openings. 
• 9 in 10 full service operators reported staffing levels that were lower than what they would normally be in the absence of COVID-19
• 62% of fine dining operators and 54% of both family dining and casual dining operators said their staffing levels were more than 20% below normal.

Help Wanted

Next time you pass by your favorite restaurant, you may notice that sign hanging in the window. Take a look around. There’s actually a lot of restaurants hiring. It’s a sign (pun intended) — The earth is healing. But as you’ll see, it’s going to take a lot of work and workers for the hospitality industry to return to “normal.”

Today’s special — Talent by the dozen

Hospitality is facing a historic staffing shortage. After massive job losses during the pandemic, many restaurants are scrambling to hire new employees to meet demand. There’s just less incentive for them to come back to work.

From McDonald’s to Wendy’s to Panera Bread and Burger King, some fast food restaurants (known as QSRs, or Quick Service Restaurants)  in local markets have had to cut operating hours because they can’t find enough staff to stay open. For customers, this may mean long lines and slow service. For your business, long waits until a full staff can be hired. Either way, we all have to be patient. This too shall pass.

In an uncertain world, Payactiv can improve restaurants’ recruitment and retention rates. 

Here’s some food for thought to consider during your hiring process.

1. Contribute to employees’ financial wellness.

The typical lag time between a new hire and their first payment can often cause financial stress. Payactiv closes that. To stand out in a competitive market, provide employees access to their funds from Day 1. 

When employers offer Payactiv, employees are able to get paid on their own schedule with Earned Wage Access (which we invented). This benefit lets employees access their money as early as the next day and makes payroll and off-cycle payments easier and more efficient. 

On top of earned but unpaid wages, employees can even get tips and mileage disbursements before payday. And with direct deposit to the Payactiv Visa^® Card*, they can receive their paychecks up to 2 days early¹.

That’s just the start. Payactiv also comes with practical tools and resources that support employees’ financial stability for long-term growth, like: 

• Smart saving and budgeting tools
• In-app bill pay²
• Contactless and P2P payments with Payactiv Visa Cardholders
• Free 1-on-1 financial coaching 
• Discount marketplace for Rx medicine, car insurance and more

In the bigger picture, Payactiv helps employees avoid penalties and fees, so that they can become more financially stable. And the best part, there’s no cost to your business. 

2. Communicate with employees.

•  87% of Gen Y believe the “success of a business should be measured in terms of more than just its financial performance.”
• A McDonald’s in Florida is paying people $50 just to show up for a job interview. But it’s still not attracting many applicants

With stimulus checks and recovery aid, you’ll have to think beyond money. Most people want to work. The thing is, they’ve been through a lot. 

But is it all worth it? With fewer employees during COVID, workers have had to work longer hours – sometimes 50-60 hours – and it’s taking a toll on them. Staff is burnt out.

Many workers have had epiphanies about life, health, family, work, passion, you name it. Today’s workforce wants to do things that provide purpose, and acknowledge and reward their efforts. 

That’s exactly what Payactiv’s Connect communication platform is designed for. Now, staff (new and old) can stay connected to work with company announcements and direct messaging. Employers can also post up extra shifts and set incentives, such as access to 65% of earned wages as soon as a shift ends and awards points for cash (coming soon).

As staff – old and new – transition to a regular routine, having strong communication will greatly impact employee engagement and your effectiveness to retain workers.

3. Evolve your strategy. 

By offering flexibility and choice over their schedule and pay, employees feel trusted and confident to succeed at work, customers are happy with outstanding service, and your business thrives. 

Increase employee satisfaction and hiring conversion rates by keeping your employees fully engaged in both work and life. Our all-in-one livelihood platform takes a holistic approach to addressing your employees’ immediate needs with a plethora of financial wellness tools and helpful discounts. 

Because the Payactiv benefit helps users manage their finances, create savings plans, and save on everyday items (like prescription medicine, gas, movie tickets, and more), businesses can convey a positive company culture by showing support for employees’ well-being. 

The take out: Plan for a busy summer. The public is getting over staying at home, making their own meals, and having the same dishes over and over and over again. Restaurants have a unique opportunity to cook up some serious profits, but first, they’ll need to attract and retain talent quickly to meet the upcoming surge in business.

Payactiv can increase employee satisfaction and hiring conversion rates. Our platform was designed so employees can access their earned wages before payday, stay connected to work, and live the life they’ve earned. Learn more at payactiv.com.

* The Payactiv Visa Prepaid Card is issued by Central Bank of Kansas City, Member FDIC, pursuant to a license from Visa U.S.A. Inc. Certain fees, terms, and conditions are associated with the approval, maintenance, and use of the Card. You should consult your Cardholder Agreement and the Fee Schedule at payactiv.com/card411. If you have questions regarding the Card or such fees, terms, and conditions, you can contact us toll-free at 1(877) 747-5862, 24 hours a day, 7 days a week.

¹ Many (but not all) employers, government benefits providers, and other originators send direct deposits early with an effective date of 1-4 days later. Beginning with your second direct deposit of at least $5 from the same source, Central Bank of Kansas City (CBKC) will post the funds to your Payactiv Card when we receive it, rather than on the effective date. This may result in your having access to the funds sooner. The date CBKC receives your direct deposit and the effective date are controlled by the originator.

² Standard message and data rates from your wireless service provider may apply.