Prompted by the COVID-19 pandemic, and a change in workplace expectations, more than 47 million Americans quit their jobs in 2021 — an unprecedented mass exit from the workforce now being called the “Great Resignation” (also referred to as the “Big Quit” or the “Great Reshuffle”).
The third year of the pandemic has brought with it record-breaking inflation, supply chain issues, worries of a recession and more. But despite concerns about the economy, Americans are still quitting their jobs at a record pace. In fact, 1 in 5 workers plan to quit their jobs this year, meaning workers have greater power than ever before when it comes to hiring. The spike in demand for labor, coupled with recession worries, have companies taking a second look at what benefits they can offer as they compete for employees.
Our recent Wages & Wellbeing study found that 56% of working Americans say immediate access to their earned wages after every day’s work is more important to them now than before the pandemic. And for businesses hoping to recruit and retain talent during this labor crisis, on-demand access to wages may be the most cost-effective way to do so.
Earned wage access: the solution to the labor shortage?
The labor shortage has many employees fulfilling more than one role at their job. And while companies have been heavily recruiting, those efforts are likely to slow down as recession concerns increase.
To help, some companies are offering more perks and benefits – in a recent Harris poll, more than 50% of workers reported that their employers have added new or increased their existing benefits over the last six months. Some businesses began offering higher wages to employees, but considering the current rate of inflation, this won’t be a sustainable solution.
With more and more Americans struggling to make ends meet, immediate access to wages can help employees avoid late fees, and ensure they have money for daily necessities like gas and groceries. In fact, 62% of American workers say they would be more likely to stay longer at a job that offers immediate access to their earned pay after every day’s work.
Our study also found that a majority of working Americans (58%) believe companies should be required to offer responsible fee-free earned wage access to its employees. Responsible EWA solutions, like Instant Financial, save businesses money while also providing employees the financial freedom they are seeking.
As employee preferences continue to shift, companies will need to consider benefits such as earned wage access to keep up with the demand for labor. Download our Wages & Wellbeing study to learn how implementing a responsible EWA platform can boost your recruitment and retention efforts today.