Retaining good employees is a universal challenge, especially in the restaurant industry. Turnover is expensive, too — estimates indicate hiring and training a new employee can cost upwards of $3,5001. This is why Netspend recently partnered with QSR Magazine to outline simple ways restaurants can leverage their payroll processes to boost employee retention and satisfaction, all while experiencing cost savings.
The slideshow highlights the considerable advantages of adopting electronic payroll processes, which includes:
- Increased employee satisfaction. With electronic payroll processes, including direct deposit and Paycards, restaurants can easily change how often employees are paid, even if only for a short period of time. For many employees, this seemingly minor adjustment can drastically impact their satisfaction levels. As Netspend Senior Vice President for Commercial Prepaid Jeff Johnson explained: “Restaurant staff is often focused on cash flow and the ease of accessing their hard-earned money. Offering employees more frequent access to their income can help staff improve financial stability and avoid cash flow problems.”
- More access to online services. More than 25 percent of US households don’t have bank accounts2, including many restaurant workers. As such, it can be tricky for them to access e-commerce and many of the conveniences it brings, like ridesharing and Amazon Prime’s quick delivery. But one electronic payroll method, the Paycard, can be used for online transactions — making restaurant employees’ lives more convenient while supporting financial inclusion.
- Cost savings for everyone involved in the process. For people without access to a bank account, the seemingly simple act of gaining access to their paychecks isn’t always easy or affordable, as many of them face steep check cashing fees2. And paper checks aren’t cheap for businesses either, as they incur approximately $3.15 in expenses per check written3. With the high costs associated with paper checks, electronic payroll processes can result in savings across the board.
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1 Inc.com, February 27, 2014, “Try Fixing the Problem Before Replacing It” https://www.inc.com/the-build-network/turnover-costs.html
2 U.S. News, March 8, 2019, “How to Cash a Check Without a Bank Account” https://money.usnews.com/banking/articles/how-to-cash-a-check-without-a-bank-account
3 NACHA, “Direct Deposit for Business” https://electronicpayments.nacha.org/direct-deposit/businesses/direct-deposit-businesses