Instant access to earned wages for hourly workers is a company sponsored third-party employee benefit program specifically designed for the hourly worker at NO COST to the employer and requires NO INTEGRATION to payroll systems.

The days of the two-week pay cycle are slowly, but surely coming to an end. If you employ hourly workers you will find yourself at a competitive disadvantage if you’re not offering instant access to earned wages. With unemployment at historic lows, it’s becoming ever more difficult to attract and retain top talent. Offering instant access to earned wages is a benefit that can build loyalty with your hourly workers, and give you competitive a edge in recruiting top talent. Offering this benefit on average achieves the following results:

  • Increase in job applicants by 60%
  • Reduce employee turnover by 13%
  • Reduce absenteeism by 10%

The average cost to replace an employee is $3,228, and the average cost of absenteeism per employee is $3,600. Use the interactive impact analysis below to calculate the potential cost savings to your organization by offering this benefit to your hourly workers (you can modify fields highlighted in yellow). We referenced the percentage increase in job applicants by promoting this benefit in your recruiting efforts, but did not include the results in the impact analysis as the variables are different. Remember there is NO COST to the employer to offer this benefit to their hourly workers and NO INTEGRATION to payroll systems required, but significant benefit to both the employee and the employer.


SOURCES:

Let’s put it this way…if you pay your hourly workers $8.00 an hour and a company across the street offers the same position for $8.25, those hourly workers will leave for a $0.25 raise in wage.

In that same spirit…if you pay your hourly workers every other week and a company across the street is offering instant access to earned wages, those hourly workers will leave to get instant access to their earned wages.

Why is this the case? The reason is that hourly workers will follow the money. Not because they are greedy, but because of life. Below is what life looks like for many hourly workers. You need to pay attention to this if your want to retain the talent you’ve worked so hard to acquire.

These life events exist with or without this benefit. Without instant access to earned wages, employees under financial pressure between pay periods have few options and sadly many go down the path of Pay Day Loans, Title Loans, or tapping into their 401(k) or retirement savings. This valuable benefit can also help avoid costly overdraft fees that the banks make billions on every year. The cost to the employee with our program is basically the equivalent of a standard ATM fee with no interest or additional charges. Think of it as a “Payroll ATM” available on your mobile device when you need it. You earned it…you should have access to it when you need it. Very small price to pay compared to the alternatives if you need to relieve some financial pressure between pay periods.

This is why turnover and retention are such important metrics to monitor. Statistically, offering the benefit of instant access to earned wages can reduce turnover by 13% and absenteeism by 10%. There is a significant cost-savings component to our program with NO COST to the employer to roll it out and NO INTEGRATION to payroll systems required. You have to ask yourself…why you wouldn’t make this available to your hourly workers as an added benefit or perk.

Key Benefits:

  • NO COST to YOU, the employer – our provider funds the employee advances between pay periods
  • NO INTEGRATION to payroll system required
  • EMPLOYEE PAYS what is equivalent to an ATM fee for the convenience of instant access to their earned wages
  • Frictionless for the employee: no changes to payroll or banking experience, no pay-card issued
  • Equivalent of a standard ATM fee for instant transfer paid by employee; might think of it as a “Payroll ATM”
  • Complete hourly worker platform: only one application for your hourly workforce; add optional modules as-needed
  • Built for scale: Lightweight adoption process makes it easy to get started with enterprise-grade support

It’s almost irrational not to offer this benefit to your employees given the benefits for both the employee and the employer at NO COST with NO INTEGRATION required. For more information or to schedule a 15-minute overview, send your request to info@unruhenterprises.com.