The United States is experiencing a tight labor market, or in other words, there are more jobs than workers. This off-kilter job to employee ratio makes it difficult for companies to hire employees.
According to a research report conducted by Society for Human Resource Management, more than two-thirds of organizations (who participated in their study) say they are having a difficult time hiring staff.
This pinch is happening nationwide.
How to solve recruiting challenges?
Trying times call for drastic steps. Some of the biggest companies in the world are experimenting with different perks to see what will attract new employees.
- Amazon piloted a 30-hour workweek.
- Airbnb provides a $2,000 stipend, annually, for employees to travel.
- Netflix gives one year of parental leave.
But, there are shortcomings with perks like these.
They are not universal.
For example, the 30-hour work week from Amazon would not be useful to employees who are part-time, or hourly. Similarly, Airbnb’s option of $2,000 travel stipend may not benefit a single-parent household where travel isn’t in the cards at this moment.
They are not always scalable.
While there are arguments that a 30-hour work week can boost productivity at an organization, some companies may not be able to get by scheduling these hours - business doors are still open 40 hours a week. And again, these perks might not be useful to hourly or part-time employees.
They usually have a waiting period
Some benefits offered by large companies aren’t automatically handed to new hires. The glitz and glamour of the perks are enough to bring them in, but then employees may need to wait three or more months before they can participate in the program. According to a report by Equifax Workforce Solutions, more than 40% of turnover happens within an employee’s first month - this could mean the perk wasn’t useful in minimizing retention.
How can DailyPay help?
DailyPay is a perk that can make it easier to hire employees while still addressing larger needs within the organization. DailyPay is free for a company to use, which makes it scalable. It also can address a wider pool of employees. As long as an employee enrolls in direct deposit, they can access the benefit - regardless of part-time or hourly employment.
More granularly, here is how DailyPay can help your business attract new talent:
Get employees paid faster
In some organizations, a major challenge for recruits is a slow hiring process and the gap between the hire date and first paycheck.
Let’s say a recruit you’re interested in has been out of the job for a while. Every day matters to them. Every interview they drive to costs money. Every day they are unemployed is money drawn from their savings account.
If your competitor can get them through the recruiting process faster, they will win the hire.
It’s likely your recruiting process takes time for a reason. It’s not always possible to sideline portions of the process. Rather than letting this deter employees, focus on solving this problem - which is one traditionally left unaddressed.
By offering DailyPay, your employees don’t need to wait until their first paycheck to access their earned wages. You can ensure them that your recruiting process takes time because you value hiring correctly the first time. But, as a DailyPay partner, they can get paid before their first paycheck. As soon as they have available funds in their account, they are able to access them, which can help bridge the gap in payments and keep your company in the running.
According to the Employee Financial Wellness Survey, conducted by PricewaterhouseCooper's (PwC's) in 2016, 52% of workers surveyed said they worry about their finances. Worse, the stress is not going away. 45% said their finance-related stress had increased over the last 12 months.
DailyPay is meaningful to employees because it helps them feel financially secure. Small withdrawals from a DailyPay can save your employees money in the long run - like the difference between paying a late fee for rent, or not. Offering DailyPay has become a solution that shows results. 78% of employees who use DailyPay at least once a week say they are more motivated to come to work.
This increased loyalty and financial security create positive word of mouth. Employees are excited to talk about their company, and how well they take care of their employees. Positive word-of-mouth by way of employee referrals is an influential way to grow your recruiting pool.
Offer an employee benefit program
Barclays recently conducted a study showing that, when considering a job, 6 out of 10 employees believe a comprehensive benefits package is essential. Still, there is a gap between what an employee wants and what an employer offers. 85% of employees felt their benefits package failed to provide the support and flexibility required to meet current and future financial obligations.
DailyPay is dedicated to financial wellness. We know that when employees achieve financial security at a job, they stay longer. A University of Arizona study showed that offering rewards made teams more cohesive, even when the members didn't all get along.
Incentives don’t have to be a bottom line buster either. DailyPay is free for businesses to offer.
Recruiting faithful employees today is no different than fostering client relationships. It’s important to approach both situations with the mentality to serve before getting served.
This “me-first” culture might be a different way to look at hiring employees, but the outcome is positive. With happy employees, you can get your profits back. Happy employees will mean reduced employee turnover and less absenteeism which both eat away at your bottom line.
Curious as to how DailyPay would work with your business? Reach out to us and request a demo!