As we emerge from a post-pandemic economy, there’s been a seismic shift in the labor and hiring landscape in nearly all industries across the country.
The pandemic has upended the way that workers look at their employment, and it’s having an undeniable impact on what organizations need to do to not only encourage employee applications, but to also sustain long-term tenure.
The struggle to attract and retain talent has become so great that organizations are turning to rarely-used tactics, such as signing bonuses, or even cash payments for attending interviews. But are these all short-term plays that don’t really address the underlying issues that the workforce is leaning toward?
In this blog post, we look at the shifts that have taken place in the current labor landscape, and provide some insight to what organizations could offer to see real value and results in hiring and retaining their talent over the long haul.
An Unprecedented Shift in the Workforce
The conditions of the pandemic have impacted employees in countless ways. We realize that millions of workers were either furloughed, laid off, or removed from the workforce entirely as sectors of the economy ground to a halt. Yet as economic conditions have improved, and organizations look to staff up again, we’re seeing a shift in the behavior of the workforce.
Employees have shifted their outlook on what they want their employment to look like, rethinking their long-term future, not only in terms of job settings and environment, but also in terms of the type of compensation and benefits they receive.
This type of inward reflection is having massive implications on businesses looking to recover coming out of the pandemic and rebuilding their workforce to support future growth plans.
Over the past number of months, there has been a noticeable change in how organizations are attempting to attract talent, as the fight for the workforce intensifies.
There is a confluence of factors at play here – an absolute shortage of talent combined with a shifting trend in the labor market, post-pandemic, as employees re-consider their employment options.
As a result, many businesses are resorting to short-term tactics as a method to incentivize would-be job seekers to choose their organization for employment, versus their competitors. These tactics are numerous – ranging from on-the-spot payments for taking an interview, to signing bonuses after a predetermined length of employment, and more.
But are these tactics the right approach? Research tells us otherwise.
What are Employees Looking For?
While the lure of an immediately gratifying incentive, like a signing bonus, may appear appealing, it appears as though employees are looking for more sustained and long-term perks as part of their employment, like access to their wages each day, instead of every two weeks. In fact, more than half of all employees surveyed, and over 75% of Gen Z employees surveyed say they would be more interested in applying for a job if an employer offers a daily pay option:
Question: If you were looking for a job, would learning that a potential employer pays you on the same day that you work increase your interest in applying for the job?
What Role Can Earned Wage Access Play?
For employers, the long-term value of offering a sustained benefit vs a short-term carrot, like a signing bonus, is unmistakable.
Across generations, we are seeing employees equally inspired to stay with an organization longer if they offer them access to same day pay; in fact, 30% of employees would stay a year longer at their current job if this benefit was offered:
Question: How much longer would you stay at your current job if you were able to receive immediate access to your earned pay after every day’s work?
The monetary value of this for organizations is massive.
At Instant, we have real-world evidence of the value that offering earned wage access can deliver. Our customer Sundance operates over 180 Taco Bell locations across the US, and by using Instant Pay, they have seen a 27% increase in employee retention. The money they have saved in not having to rehire and retrain employees is massive, and has led to significant improvements to their bottom line.
Additionally, offering daily access to wages can also dramatically affect employee morale and loyalty1:
- 78% of Gen Z employees say that having immediate access to their pay would inspire them to put forth more effort in their work
- 72% of Gen Z employees say that a daily pay option makes them feel more loyal to their employer
- More than 1 in 3 employees would stop looking for another job if they were offered the option to receive immediate access to their pay.
This sentiment to instant access to wages, and the impact it can have on organizations, is undeniable.
It’s Instant and It’s Fee-Free
At Instant, we believe daily access to wages should be free. Instant Pay is our revolutionary earned wage access solution that is fee-free to both employees and employers, and allows organizations to build a sustainable foundation to attract and retain talent for the long term.
To read our recent data report that highlights additional value that earned wage access can deliver, you can download it here.
To learn more about Instant Pay and how it can add value to your organization, you can request a demo on our website here.
1: Center for Generational Kinetics Wage Frequency Study https://www.instant.co/resource/wage-frequency-study/