From the team that unloads the truck to the cashier at the front of the store, every retail team member plays an important role in fulfilling the company’s mission. While retail industry employees are essential workers that customers rely on every day, recruiting and retention are notoriously difficult in retail.
As millions of retails workers already know, one of the best ways to build employee loyalty is supporting their financial wellness while offering a positive work environment. Here are strategies and tactics you can follow to improve your recruitment and retention efforts with a long-term focus on the bottom line.
If you want to wow your retail employees with a positive payroll experience, you have to do more than offer an archaic HR system that makes it hard to do basic things like add a bank account for direct deposit or request time off. To give your workers maximum flexibility, consider connecting your payroll provider, for example Payactiv partner ADP, as a benefit for your team.
With Payactiv, which comes at no cost to employers, workers can log into an app that gives them many options for their digital paychecks, including Earned Wage Access (EWA). With Earned Wage Access, employees can get paid minutes after clocking out from their shift. All they need is a smartphone with the Payactiv app and they can get paid for shifts they’ve already worked, but have not yet been paid.
If they need quick cash for an unexpected repair or have to pay rent a few days before payday, for example, Payactiv gives them an alternative to high-interest payday loans and credit cards. This benefit costs $0 to $5 depending on the employer program per pay period for employees and is free for employers.
Statistics show that the more than three quarters of Americans live paycheck to paycheck. 40% of U.S. households couldn’t afford a $400 financial emergency from savings. Financial fragility is very common in the United States and likely impacts a large portion of your retail workforce.
Employers can help employees overcome financial stresses through a combination of education and resources. Financial training sessions and workshops are perfect to teach essential personal finance skills. To go a step further, employers that offer Payactiv give their employees tools to improve financial literacy while tackling common financial struggles.
Employees who opt-in to Payactiv can work one-on-one with a trained financial coach at no extra cost. Other tools help manage bills, promote savings, and encourage good budgeting habits.
A survey of retail companies found that part-time, hourly workers in stores have an average turnover rate of 76% industry wide. Hiring and training so many replacement employees costs can be expensive. Each new hire costs an average of more than $1,000 to train, so cutting your turnover rate even slightly can add up to significant savings.
Payactiv is proven to improve loyalty and lower turnover. That’s why major retailers like Walmart use Payactiv to save millions of dollars on hiring and training while supporting their employees’ financial wellbeing. That’s a wonderful outcome for both retailers and retail workers.
Schedule a demo to find out how it works and how you can get up and running quickly with the holistic financial wellness platform from Payactiv.
*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 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 of 1-2 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 Visa 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.