Just as today’s online consumer wants to be in control of how they pay, employees are finding they have more employment opportunities than ever before. They also want the power to take control of how they pay and get paid, says Kelley Knutson, president of Netspend. Read his thoughts in the PYMNTS eBook, “In one word: 50 thought leaders sum up 2021.”
2021 was a time of digital and online innovation, resulting in an overwhelming choice of payment options for consumers, but the phenomenon of having many options to choose from extended beyond the world of e-commerce. Just as today’s online consumer wants control over how they pay, employees are finding that they have more employment opportunities than ever before and the ability to take control of how they pay and get paid. Employers looking to attract and retain employees need to stand out from the crowd and ensure they can offer flexible benefits so their employees feel more financially stable through higher wages and faster access to income.
At the start of the pandemic, many essential workers took personal risks and worked long hours while others lost their jobs. Now, it is more likely that many of these equal-hourly, frontline, and minority workers will want to quit their jobs, and at significantly higher hourly rates than usual mercer. Hourly workers have always been concerned about paying bills or paying off debts; Unfortunately, the pandemic has added more stressors, leading many to completely reevaluate their career paths. At the same time, millions of workers have had to make the difficult decision of taking early retirement, which has led to more vacancies than ever.
Now American workers are confident they can find new employment elsewhere. So what is the common theme that is causing these personnel changes? Employees want to feel valued, heard and rewarded appropriately while feeling empowered to take control of their careers and income.
While year-end bonuses may keep some employees short-term satisfied, employers need to look for sustainable solutions to retain employees well into the new year and beyond – especially hourly workers who may not be eligible for bonuses. Research shows that more than half (57%) of hourly workers report feeling financially insecure, which can lead to stress and reduced productivity for employees and employers, which translates to reduced profits.
Another key trend that has emerged is workers who want their employers to do more to support their financial health with on-demand access to income through wage access solutions. In fact, workers would consider changing employers to gain earlier access to their earned wages, with 79% of workers interested in working for employers that provide on-demand access to wages.
Many employers try to retain employees by offering more creative compensation packages. Wage rates were clearly the main factor for employers trying to attract hourly workers. However, in today’s job market, how workers are paid is just as important when it comes to employment preferences and selection. It’s important that employers better understand what they can do beyond increasing wages to ensure their workforce feels financially stable and confident.
My prognosis for the new year? Employers that offer comprehensive financial wellness platforms to help their employees manage and stabilize their financial security will stand out from the hiring crowd and be able to attract and retain employees who are more loyal, productive and are financially more stable.