Why Sun Holdings Sees Modern Pay as a Tool for Employee Engagement and Retention
In the restaurant industry, employee turnover has long been considered a cost of doing business. With fast-paced environments, flexible schedules, and many workers entering hospitality as a short-term job, turnover rates have historically been high.
But some operators are proving that the right tools can change that dynamic.
In a recent episode of the Instant Payments Podcast, Laura McLand, Vice President of Human Resources at Sun Holdings — one of the largest franchise organizations in the United States with more than 30,000 employees — shared how the company views modern pay solutions not simply as a payroll feature, but as a strategic tool for employee engagement and retention.
Meeting Employees Where They Are
Restaurant employees often rely on tips and hourly wages to manage day-to-day expenses. Historically, that meant cash tips at the end of a shift or waiting for scheduled payroll cycles.
But as more customer payments move to credit cards and digital transactions, operators have had to rethink how workers receive their earnings.
For Sun Holdings, providing faster access to wages and tips has become a priority.
“It’s extremely important that they’re able to get those tips immediately, even the same day or the same evening,” Laura explained. “When employees can see that money right away, it makes a real difference.”
The Future of Pay in Hospitality
Modern pay solutions are also evolving quickly as technology advances.
In the past, many restaurant payment systems relied heavily on physical pay cards or manual tip distribution. Today, mobile apps and digital wallets are replacing those older models.
“In the past everyone relied on a card or cash at the end of the night,” Laura said. “Now employees can access their earnings through an app. You don’t need a card anymore.”
As digital payment technologies continue to evolve, Sun Holdings expects those tools to become even more integrated into the employee experience.
A Shift From Payroll Feature to Workforce Strategy
Sun Holdings didn’t adopt modern pay solutions simply as a technology upgrade. The company viewed it as part of a broader effort to strengthen employee engagement.
Restaurant workers often spend more time with their coworkers than with their families. Creating a workplace where employees feel supported, both financially and culturally, can have a significant impact on retention.
“Over the last couple of years our retention has improved by about 20%, which is huge in hospitality,” Laura said. “Instant payments and better employee engagement have definitely played a role in that.”
Reducing turnover by that margin can have a substantial operational impact. Lower turnover means fewer hiring cycles, reduced training costs, and more experienced staff members serving guests.
Engagement Is the Bigger Goal
While faster access to earnings is important, Sun Holdings sees modern pay as just one component of a broader workforce strategy.
The company is continuing to invest in employee training, career development, and engagement initiatives, many of which will be delivered through mobile tools that employees can access directly from their phones.
For Laura, the connection between employee wellbeing and business success is clear.
When employees feel supported and engaged, they’re more likely to stay—and more likely to deliver great experiences to customers.
As she put it during the podcast conversation: “If your employees are doing well, you’re much more likely to have happy customers.”
🎧 Listen to the full conversation with Laura McLand on the Instant Payments Podcast at instant.co/podcast or wherever you get your podcasts.
