On-Demand Pay Explained

Staffing challenges have forced many restaurants, retail stores, and hotels to limit hours or close entirely from a lack of workers. Keeping teams in place has become just as important to profitability as hiring them in the first place, and employers have scrambled to add perks and benefits to retain staff.

Before the pandemic:

• The U.S. Bureau of Labor Statistics estimated hourly wage workers represented almost 60 percent of all U.S. workers
• Even while early retirements and the nationwide labor shortage brought on from the COVID-19 pandemic have altered the labor market, hourly workers still account for a sizeable portion of the American workforce

With pandemic-era restrictions largely a thing of the past:

• Service industries will continue to depend on these hourly workers, but the time off during lockdowns has forever shifted workers’ priorities
• Organizations can no longer count on the same perks and benefits to attract talent, and not even signing bonuses are a convincing factor for prospective hires
• Companies need to find ways to differentiate from the crowd if they want to attract top talent

On-Demand Pay offers a solution to both sides. The concept is simple: workers traditionally receive their paychecks twice a month, but on-demand pay gives employees the option to receive their wages as soon as immediately after a shift has been approved.

This e-book gives an in-depth look into the concept and how it creates an offering that incentivizes hourly employees to stay long-term — all as a no-cost benefit to the employer.