According to a recent Netspend survey of nearly 2,000 hourly workers, 77% said they want faster access to earned wages, and 37% indicated they were willing to switch employers for the benefit of early wage access.
This data confirms the hourly worker is now just as concerned about how they will be paid as they’ve historically been about other factors such as the hourly rate they will earn. In fact, in a job market that is brimming with a record 9.3 million U.S. job openings (as reported by the Labor Department this June), responding to this employee preference could be the difference between your company winning - and losing - quality employees.
Why is on-demand access to earned wages more critical today?
In short, the COVID-19 pandemic has negatively impacted the financial security of more than half (57%) of the hourly workforce. In addition, 65% reported being more likely to run out of funds prior to their next paycheck, with nearly half (44%) said they have not been able to save money as a result of the pandemic.
The lack of financial wellness also correlates to employee productivity and retention; critical issues for many employers seeking to stabilize workforces impacted by the pandemic.
Netspend also learned 68% of the employees they surveyed felt personal financial issues were impacting their health and 31% felt financially insecure, which led to many quitting a job due to financial challenges.
And employers are also impacted, with earlier statistics translating into 150 hours of productivity lost per employee each year due to financial stress, along with individual employees losing up to 33% of earnings each year due to financial stress.
With the current hiring market reflecting reluctance from hourly wage employees to apply for open jobs, it’s important for employers to understand what they can do to ensure their workforce can feel more financially stable.
Give employees on-demand access to earned wages.
Gaining an edge over your competitors in the job market could be accomplished by adding earned wage access. In fact, with nearly 80% of employees indicating they would switch jobs to gain access to earned wages, implementing this benefit will likely make employment with your organization more attractive for both new and existing employees.
Plus, enabling employees with on-demand access to their earned wages through digital payment options also helps to relieve their financial stress. Research has also revealed a link between financial insecurity in workers without digital access to their wages, and 27% of one study’s respondents said they would switch to digital payment options that don’t require a bank account.
If you’re contemplating what it will take to get the attention of jobseekers and make your compensation package more enticing than simply introducing higher wages, it could be time to implement a program that will give your employees on-demand access to their earned wages. It could potentially not only help new and existing employees gain a more stable financial foothold during difficult economic times, but the added productivity and wellness can also help improve your business’s bottom line.
To see more data on what hourly workers want and how financial health impacts recruiting, hiring and retention, download the research e-book for all industries.
Learn how Netspend Earned Wage Access works.
1. Netspend, “Power of the Pivot: Embracing Three Major Pandemic-Driven Trends”, April 2021 Page 4
2. Netspend, “Power of the Pivot: Embracing Three Major Pandemic-Driven Trends”, April 2021 Page 4
3. CNBC, “Job openings set record of 9.3 million as labor market booms”, June 2021
4. Netspend, “Power of the Pivot: Embracing Three Major Pandemic-Driven Trends”, April 2021 Page 2
5. Netspend, “Power of the Pivot: Embracing Three Major Pandemic-Driven Trends”, April 2021 Page 3
6. Netspend, “Power of the Pivot: Embracing Three Major Pandemic-Driven Trends”, April 2021 Page 5
7. Netspend, “The Restaurant Recovery: Three Pandemic Trends-Turned-Opportunities”, April 2021 Page 4
8. Chicago Business Journal, April 2019, “Employees’ Money Worries Drain Employers’ Bottom Line”
9. Decision Logic, “The Real Cost of Restaurant Employee Turnover”
10. Netspend Survey: Employee Health and Wellness, Survey of 1,000 U.S. adults, December 2020, pg. 40