Reducing staff turnover with innovative benefits
In the fight to reduce staff turnover, hospitality businesses are looking at different ways they can engage their employees. Thanks to an exclusive partnership between Fourth and Wagestream, a new benefit to employees can be offered – more control over when they get paid.
For lower paid staff waiting for pay day can feel like forever, especially when unexpected expenses come up. In some cases, staff feel the need to resort to predatory pay day loans or expensive credit cards, which not only means they are paying interest but also creates undue stress and a ‘cycle of poverty’.
This then impacts the business too. A PWC Employment Financial Wellness Survey from May this year found nearly half of employees that are stressed about finances are distracted at work, and staff worried about finances are twice as likely to miss work.
By integrating our technologies, the Fourth and Wagestream partnership now means you can give employees access to a percentage of their earned wages ahead of pay day. Each employee can see the total amount they’ve earnt in a given pay period via the Fourth Wagestream mobile app, and can choose to instantly make a transfer to their current account – the maximum percentage they can transfer being set by the employer. Any transferred amount is then deducted from their pay in the next pay run.
As all payments are facilitated by Wagestream and deducted from the normal monthly net pay cycle once payroll has been processed, there’s no impact to the payroll process or on company cash-flow. There’s also no interest charges or penalties for the employee, just a small £1.75 transaction fee for each payment.
Providing this type of benefit to employees improves their financial health, which in turn improves their happiness, engagement and loyalty, and in turn their productivity. It effectively eliminates the need for employee advances and loans, or the use of high interest pay day loans or credit cards. It also encourages employees to take on additional shifts to access more pay, more quickly.