Reducing Employee Turnover
Statistically, there is 100% turnover within the hourly workforce across all industries. In some cases it can be as high as 400%. Some of this is expected with seasonal workers, but it doesn’t change the fact that it’s a major and costly challenge employers have to address and control. With all-time low unemployment rates, this only compounds your labor challenges and we have the solution. The two-week pay cycle is going to be a thing of the past as Instant Pay continues to build momentum. With unemployment hovering around 3%, you can’t afford to lose your hourly workers to a competitor for lack of offering benefits like instant access to earned wages. Not doing so puts you at a competitive disadvantage and will cost you thousands if not millions of dollars. Understanding the life pressures of your hourly workers is essential to keeping them. With nearly 80% of all American workers living paycheck to paycheck, managing cash flow between pay periods can be challenging. Any unexpected disruption of cash flow can create financial pressures that result in a distracted and less productive employee. A two-week pay cycle can feel like an eternity to an hourly worker under financial pressure. All too often they revert to predatory lenders or drawing off their 401(k) thinking this is the answer. The reality is that it makes their situation much worse. Offering instant access to earned wages can be a lifeline for the hourly worker allowing them the temporary relief they need without the long-term consequences. This can build loyalty with your hourly workforce and improve retention, and is also a great recruiting tool for hiring.
What are the financial pressures your hourly workers are dealing with? It’s rather shocking that the #1 reason they take an advance on their paycheck is to put food on the table. #2 is a personal emergency. All of these are life events that can distract your employees from their jobs and impact productivity. As hard as it is to fathom, this is what is on the minds of your hourly workers. This is life. You need to understand this, or you’re going to lose your hourly workers as they will follow the money. We can do better.
Instant Pay is a feature of the Branch mobile app designed for the hourly worker allowing instant access to earned wages at zero cost to the employer. For a small transaction fee, the hourly worker can take an advance on his/her paycheck. This fee is paid by the employee each time they receive an advance from the app, and then backed out of his/her checking account when the next direct deposit is made. Branch funds the employee advance, not the employer. All the employee needs to do to get started is create his/her profile in the app and link a debit card. There is no need to integrate to the employer’s payroll, making this frictionless.
Instant Pay is available to any hourly worker with an Android or iPhone. These devices are where they live their lives, but they can now separate their work lives from their personal lives with the Branch app and enjoy the benefits of Instant Pay along with other optional features that improve productivity and drive significant cost savings to the employer.
Expectations are changing with the hourly worker. Bottom line, if you’re not offering instant access to earned wages, you will be at a competitive disadvantage. Hourly workers will follow the money, and having early access to earned wages is not only a benefit to the employee, it will drive significant cost savings by reducing turnover and attracting top talent. Waiting for this to become mainstream is too late. This is happening now… and you need to get on this now. Waiting could cost you thousands of dollars and the loss of good talent.
Statistically, it costs employers $2,500 to replace a departing employee. On average, Instant Pay decreases your employee turnover by 13%. Let’s apply some numbers to give it some context. With 1,000 employees 13% translates to 130 workers. Having to replace 130 workers would cost you $325,000! Do the math if you employ 5,000, 10,000, 20,000 or more hourly workers. There’s no cost to you to get started, yet significant financial benefit.
In addition to InstaPay, Branch also offers other features to help you and your employees.
- Promote financial wellness – Financial stress kills productivity. Four out of every five employers report that employees’ financial issues negatively impact job performance. Branch Pay is the first app to improve financial outcomes for your hourly employees
- Increase coverage rates – Incentivize your employees to pick up open shifts across company locations by providing instant access to earnings.
- Shift Flexibility – Branch’s Shift Flexibility Engine™ gives employees the ability to pick up open shifts or VTO requests at their convenience
- Mobile Schedule distribution – Employees receive their schedule to the tips of their fingers.
- Enhanced Access – Provide employees with instant access to earnings, paycheck transparency and budgeting tools to improve their financial health.
- Messaging Channels – Chat with employees and managers in a private or group chat setting
- Secure Communication – Chat with employees and managers in a private or group chat setting
- No Payroll or tax implications – Branch carries the financial load, so there is no pre-funding payroll, tax implications or need for constructive receipt.
- Get the most out of your labor pool – Post open shifts to nearby locations for extra coverage
Now is the time to get started! Imagine your employees knowing this is readily available, but you’re not offering it like the hundreds of referenced brands and millions of users. There’s no cost to you and no reason not to get started today. Instant Pay is taking the industry by storm and you simply can’t afford to miss out and risk losing your hourly workers to other companies offering this as a benefit or perk. NOW is the time to get on board.