The global COVID-19 pandemic has pushed many interesting and unexpected changes out into the world. Many of those changes have impacted the economy and our everyday way of life. One of the things that many people have noted since the early days of the pandemic was its impact on workers. Many companies are struggling to find employees as the pandemic has sickened many and made others pursue early retirement. As such, service industry companies, in particular, are desperate to find workers to take shifts. Recently, signs have popped up in the storefronts of some of these companies promising things like “next day pay.” This move was made to incentivize people to come work for these companies with the promise of near-instant payment for that work. It is something that some workers cannot pass up.
Increased Retention And Loyalty
It is unfortunate that many restaurant workers and others in the service industry live paycheck-to-paycheck, but it is the cold reality that they face day in and day out. This is precisely why some restaurants have taken it upon themselves to offer instant or same-day pay as an incentive to attempt to attract more workers. Modernrestaurantmanagement.com reports that restaurants that have done this have noted improved employee retention and happiness:
Some of these restaurants have reported that the benefits to offering early access to pay has included better retention, attraction of more talent, and a reduction in turnover. With many restaurant employees living paycheck to paycheck, the ability for employees to access money early has proven to increase loyalty. With a more stable workforce, restaurants report increased productivity, as employees are happier and more motivated.
If workers know that they will be paid for their hard work by the next day (or sooner), they are more likely to put real effort into that work. They can more directly see the benefit of what they are doing, and they can receive a reward sooner. Therefore, it makes sense to reward the hard work these individuals put into their craft by paying them as quickly as possible for that diligent work.
Less Financial Stress For Employees
Another benefit of offering instant pay for employees is that they will have a little less financial stress on their shoulders. Constantly worrying about money is a quick way to get burnt out. If they don’t have to worry about how they are going to keep the lights on in their home or how they will make their rent payments, they are less distracted at work and less likely to give up.
Restaurants have to look at their balance sheets and see if they can afford to pay daily. It is a costly proposition in some ways, but there are benefits to doing so. Happier employees constitute a significant benefit that restaurants can receive. Still, it is also true that those employees will very likely stay around longer as well, and there is nothing better than knowing that you have managed to retain an employee.
A Nice Shot Of Good PR
Finally, don’t forget the positive public relations piece of the puzzle. Those who pay their employees daily can enjoy the fact that they will likely get a nice bit of positive PR out of the experience. This comes in the form of:
- People notice the signs advertising daily pay and talking about them
- Workers report to their friends the excellent benefit they get with daily pay
- Media making a story out of the fact that certain restaurants are paying daily
Any type of buzz that this move generates is likely to be quite positive. The public, by and large, appreciates when a company is willing to go the extra mile for its employees, and there is no doubt that a move like this will very likely engender some of those positive feelings among the public.
For more information about how instant pay can improve the lives of employees and steer up positive feelings about a business please contact us for the latest details.
