The Key to Winning the Battle for Top Talent
By Tal Clark, CEO, Instant Financial
It’s a hyper-competitive hiring and labor landscape, and HR professionals face the dual challenge of attracting new applicants while also retaining the high-value talent they already have. Many of them recognize that balancing the evolving expectations of a diverse workforce with the need for innovative recruitment and retention strategies is critical for success amid fierce competition for top talent and high turnover rates.
How can the dual challenges of recruitment and retention be solved?
The answer lies in pay flexibility. By offering employees greater flexibility in how they access their pay, organizations can enhance overall financial wellbeing, and give employees the freedom of choice. Earned wage access (EWA), or on-demand pay, exemplifies this benefit, enabling employees to access a portion of their earned wages before their next scheduled payday.
By offering employees same-day access to their earnings, organizations can help alleviate employees’ financial stress, creating a more supportive work environment. This is crucial because according to our 2024 Wages & Wellbeing Study, financial stress is a major concern for many employees, with 54% of American workers worrying frequently about making their money last until the next paycheck.
Our study also reveals a growing demand for EWA among employees. 86% of working Americans are now more likely to apply for a job that offers same-day pay, up from 79% in 2022, with Gen Z and Millennials showing the greatest inclination (89%). Considering that these two generations will soon dominate the workforce, employers have the opportunity to appeal to them by offering flexible access to wages, all while enhancing their financial stability amid challenges like student loans, rising living costs, and economic uncertainty.
In addition to improving employee recruitment, earned wage access positively affects retention and loyalty. Employees report that having access to earned pay would impact several aspects of their lives, including increased financial security, greater confidence, and a stronger sense of pride in their work.
While more frequent access to pay would make workers more satisfied in their positions, 74% of respondents said it would also make them feel more valued by their employer, a 12% increase from 2022. When you feel more valued, secure and satisfied by your work, you’re also much more likely to want to stay in your current job. The survey data backs this up, with a resounding 85% of workers saying that they would stay at a job much longer than normal if they had immediate, no-fee access to their earned pay.
The results of our comprehensive study on pay flexibility strongly support that offering earned wage access as part of a broader employee benefits program can provide organizations with a competitive advantage in attracting and retaining top talent. In fact, based on its findings, 72% of working Americans believe companies should be required to offer no-fee EWA to their employees, significantly higher than in 2022 (58%).
To explore more insights on employees’ current financial landscape and how pay frequency impacts job considerations, retention, loyalty, and more, download the full 2024 Wages & Wellbeing Study or learn more about Instant at instant.co.
About the Author
Tal Clark is the Chief Executive Officer at Instant Financial, where he leads the organizational strategy behind the industry’s leading responsible earned wage access solution. Before working at Instant, Clark worked at Money Network as a member of the prepaid card team. In 2008, First Data bought Money Network; from there he continued his career at First Data in various leadership roles through 2018. One of those roles was General Manager of the Money Network business.