If you’re reading this, your organization has likely already taken the steps to provide safe and flexible payment options to your workforce by offering employees instant access to their tips at the end of their shifts. Some of the core pieces to giving your employees complete freedom over when and how they receive their wages are in place. But there’s one final piece you need to truly complete the puzzle – implementing earned wage access (EWA) into your organization’s broader employee benefits program, and giving your employees full control over how they get paid.
The Benefits of Integrating Earned Wage Access with Same-Day Tip Payouts
The restaurant industry is currently facing a number of challenges in the workforce, specifically regarding attracting and retaining talent. With restaurant staffing at 3.6% below pre-pandemic levels, restaurant operators are having difficulty filling open positions and meeting demand. With restaurants being understaffed, turnover rates are high among the existing workforce, further exacerbating the issue.
While implementing EWA is not the only solution to the restaurant industry’s labor shortage, there are a number of advantages associated with adding this benefit to your existing tips program:
- Increased Job Market Competitiveness: There is an increasing demand for EWA among the workforce. According to our Wages and Wellbeing study, 79% of Americans report being more interested in applying for a job that offers EWA than one that does not. Our Clients can attest to this as they have seen a 30% increase in job applications since implementing Instant Pay. By offering EWA, your restaurant can increase its competitiveness in the labor market and attract top talent too.
- Increased Talent Retention: As a result of this increasing demand for EWA, implementing the benefit into your organization can improve employee retention. In fact, our Clients have seen a 27% increase in employee retention after implementing EWA. What’s more, 56% of working Americans reported that they would stay at a job from a month to a year longer if it offered EWA.
- Improved Employee Financial Wellness: As of early 2023, 61% of Americans are living paycheck to paycheck, and 54% of Americans worry about making their money last until payday several times a week or more. This problem is no less prevalent in the restaurant industry. With more than half of Americans struggling between pay periods, being able to access their earned wages at any time would improve overall financial wellness and reduce related stress.
- Higher Productivity: Implementing EWA has proven to increase productivity among employees. According to Fisher Phillips, 89% of employees reported higher productivity when being able to access their pay before payday. Employees have also reported an overall reduction in unplanned absences and higher motivation. Our Clients have seen this firsthand, with 25% reporting a reduction in absenteeism after implementing Instant Pay.
How to Implement EWA into Your Restaurant’s Tips Program
We’ll be honest, a common hesitation or concern about EWA we hear in the market is the perceived complicated implementation procedure. But to debunk this myth, we’re here to tell you that implementing EWA doesn’t have to be a difficult process. Especially if you’re already offering employees electronic access to their tips after every shift with Instant Financial, the implementation of EWA can be a seamless and easy process.
Instant Pay was built with your needs in mind. And therefore, it’s just as easy to implement as it is to use – with no additional changes to your existing processes or any added fees. When you choose to combine Instant Pay and Instant Tips, our team handles the implementation process and remains on stand-by post-implementation to provide continued assistance. From there, both programs can be accessed in the same portfolio, offering a cohesive experience for employers. Additionally, our programs are fully compliant in all 50 states, so you don’t have to worry about regulations. Once set up, your employees can start accessing their pay and tips sooner!
To learn how you can seamlessly implement EWA into your restaurant’s tips program with Instant Financial, contact your account representative or reach out for support here.