The staffing shortage is here—and it’s not expected to let up anytime soon, as the long-term care and senior living industries will need nearly 2.5 million workers by 2030. Low unemployment, high turnover and high competition for talent make it crucial for senior care organizations to create an awesome culture that retains current employees and attracts new ones.
One way to do that is by embracing non-traditional perks that have the ability to improve the daily lives of your employees. Enter instant pay: a new trend in payday models which allows employees to access earned but unpaid wages between paydays. Geared toward hourly workers, instant pay models promote employee financial responsibility without any risk to the organization or changes to payroll processes.
Not sure if this new trend could benefit your employees? Here are three reasons senior care providers should embrace instant pay models.
1. Competition for hourly workers is high.
Competition both in and outside the industry for hourly workers is on the rise. Now providers don’t just have to worry about losing employees to the community down the street, but to big-box retailers and restaurants.
Walmart, McDonald’s, Outback Steakhouse and Uber are among the corporations now offering forms of instant pay. And these companies are seeing positive results. In 2017, Walmart executives noted in a New York Times article that instant pay was helping workers avoid costly payday loans.
Access to earned wages also helps employees avoid banking fees from overdrafts and high interest rates from credit card debt. Reducing these fees can give hourly employees a leg up on their financial future—allowing them to spend more of their money on the essentials they need, such as rent and groceries.
2. Many caregivers cite being under severe financial stress.
Particularly for long-term care providers, margins are extremely thin, making it difficult to provide the level of wages they’d like to. A recent study conducted by the Paraprofessional Healthcare Institute (PHI) found that wages for nursing assistants have been stagnant for nearly a decade, nearly 15% live below the federal poverty line and 37% rely on some form of public assistance.
Financial stress has been shown to hinder performance at work – often in the form of absenteeism, health issues and workplace accidents. What’s more, this loss of productivity from financially stressed employees can cost companies with 10,000 workers an estimated $3.3 million per year.
Providing a no-risk solution that helps ease this burden not only helps your employees, but also has the power to boost your organization's performance.
3. Benefits like instant pay models show employees you care, minimizing turnover.
According to a Glassdoor report, 57% of U.S. job candidates report benefits and perks are among their top considerations before accepting a job. Offering access to earned wages, between paychecks, shows staff you care about their financial well-being, which can have a big impact on overall engagement.
Florida-based Caspers Company has seen the benefits of instant pay models at its 53 McDonald’s franchises in the area. Caspers Executive Vice President Ed Shaw told USA Today in 2017 that the employee turnover rate at these McDonald’s fell by 10% after the company adopted an instant pay model.
Convinced that instant pay models and senior care are a perfect match, but not sure where to start? Financial wellness software like OnShift Wallet gives employees mobile access to earned but unpaid wages, making it quick and convenient to get their money when they need it.