Staffing agencies are among the most vulnerable as workers leave their jobs in droves. With a 415% turnover rate in the industry, there’s plenty of room for improvement.
What if one change could make a difference?
According to 83% of employees, it’s possible. With instant wage access, employees get more of what they need so that they can give you what you need. Let’s take a look at how adding this benefit can help your staffing agency improve retention, make clients happier, and improve your bottom line.
Instant wage access – also called earned wage access (EWA) or same-day pay – is the ability of an employee to be paid as they earn their wages. Instant wage access allows much more frequent payroll to the employee–even on the same day the pay is earned.
Today’s job market is largely candidate-driven, giving job seekers the freedom to choose employers with more attractive offers. This leaves staffing agencies on the hook for finding effective ways to attract and retain workers.
Since satisfied employees are less likely to leave, the logical solution for improving retention is a perk that provides a better employment experience. Instant wage access is an easy-to-use and affordable program to do just that.
In the last few years, the job market has increasingly favored employees rather than employers. And this puts particular pressure on staffing agencies, where turnover tends to be high and recruiting talent can be difficult.
Surveys have noted that benefits surrounding pay were the highest motivating factor for job satisfaction. Happy employees are motivated to work and less likely to leave when they are satisfied on the job. Even if increasing salary isn’t an option, implementing instant wage access is a pay-associated benefit that can hit the same vein, providing a little relief from financial stress and boosting worker happiness.
As inflation reaches an all-time high, many people find their wages are not keeping up. This results in financial stress or the worry about providing for essential needs.
Financially stressed employees are not only distracted employees, but they also unwillingly create an added burden to the workplace with increased absenteeism and employee retention issues. Unengaged employees, employees with absenteeism issues, and turnover all lead to dissatisfied clients.
Implementing instant wage access helps boost employee financial well-being. Having access to early pay allows workers to:
- Access funds early for emergencies
- Avoid predatory lending practices
- Have more control over pay flexibility
- See the direct impact of hours worked
Accessing pay early and as needed helps boost employee productivity and financial well-being. Satisfied employees don’t have a reason to seek different work opportunities.
The workforce’s face is shifting. Baby boomers are leaving, millennials are leading, and GenZ is emerging. Before you can meet the needs of your workforce to keep them engaged, you must understand what those needs are.
Millennials account for the largest population in the workforce today. With GenZ poised to take that spot. Together, both generations favor flexible pay options like instant wage access. Many of them are stuck with:
- Large student loan debt
- Lack of retirement savings
- Paying higher rent
- Families to support
With the financial facts in mind, your retention strategies must focus on the specific struggles. While paying back high-interest student loans, the younger workforce may find it challenging to navigate a financial emergency.
Instant wage access offers what younger workers desires in a workplace, including:
- Pay flexibility
- Employers who care
- Positive workplace environment
As staffing agencies seek a solution to high turnover, they should look for real solution-based incentives. If an issue surrounding financial wellness is identified in a specific population, instant wage access offers value while communicating a caring workforce. Employees who feel valued experience increased loyalty.
Recruiting and retention continue to be one of the significant challenges experienced across the board. Amid titles such as the Great Resignation, where employees are resigning to seek better opportunities, staffing agencies in particular are finding it hard to compete with private employers.
Employees have the upper hand in our current candidate-driven market. They can hold out for higher pay, greater flexibility, or a better work-life balance. This creates a talent shortage for staffing agencies. In fact, 72% of staffing agencies note a lack of talent as a recruiting issue.
There is much competition currently available among those hiring new workers. Still, the demand for staffing agencies serving clients remains the same. Clients need positions filled, and staffing agencies have promised to fulfill that obligation.
Instead of constantly seeking new talent, retaining top talent may be more beneficial. After all, the cost of hiring, training, and replacing employees when they leave can be a financial drain on a business. Talent agencies can use instant wage access to:
- Create stronger relationships with employees
- Serve clients promptly by retaining top-talent
- Implement realistic and cost-effective solutions for worker needs
Providing access to instant payments can be cost-effective and easy to implement. Providing instant wages on reloadable pay cards, for example, allows an easy direct wire transfer of funds with limited fees to employers and employees. The instant wage access increases the incentive to work and prevents employees from looking for work elsewhere in challenging financial times.
In a time when employees have the upper hand, employers need to meet the demands of the workforce. This can be difficult amid the current competition and without limitless funding. However, implementing instant wage access is a mutually beneficial solution and provides:
- Attractive Recruitment Tools
- Higher Employee Satisfaction
- Increased Productivity
- Greater Retention
Providing incentives like instant wage access communicates that you care about employees and their well-being. Not feeling valued is one reason why employees may leave a company. When employees leave, it’s difficult to replace them, costly to train new employees, and results in lost productivity. Employees who feel valued are less likely to seek new employment.
As hiring and retention continue to be a significant challenge faced in the workplace, staffing agencies may find the competition fierce. Without unlimited funds available to increase salary, they may need to seek practical, cost-effective tools to use in retention.
Instant wage pay can help with job satisfaction and financial well-being, and satisfied employees are more likely to stay. If you’re ready to implement instant wage access, get started today in partnership with Juice Financials’ Pay Today solution, trusted by staffing agencies nationally to provide instant wage access.