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Competition between restaurant employers to fill open roles has left general restaurant and QSR workers with a greater variety of options to choose from. To lure qualified talent, some employers are turning to daily pay apps, an effective payroll tool that has been used successfully to attract, hire and retain workers.
Daily pay apps give employers a competitive edge, which makes their business stand out to job-seekers and may reduce the costs associated with hiring. According to a recent poll by Forbes, 83% of U.S. workers believe they should have next-day or same-day access to their paychecks.
How do daily pay apps work?
Instead of waiting for a weekly paycheck, employees can access the money they earn immediately or up to 50% of their current day’s pay by using daily pay mobile apps. They can download popular apps like Branch, DailyPay, or Dayforce Wallet on their iPhone or Android device. These apps can inform employees how much they’re earning at the touch of a button and even provide options that encourage employees who don’t currently save money to start.How daily pay apps help restaurants succeed
1. Improves employee retention
Workers and job-seekers in the food service industry, and especially QSR’s younger generation of workers, are seeking jobs both attractive pay and incentives that will benefit them immediately. Daily pay apps have been shown to speed up the hiring process, the volume of new hires, worker satisfaction, and productivity, and reduce turnover. McDonald’s franchises in Tampa, FL reported that its employee turnover rate decreased by almost 10% since the company adopted an instant pay app service.2. Helps restaurants stand out from the competition
With so many restaurant and QSR roles open, how do employers stand out from the competition? Post-pandemic staffing shortages in the food services industry have prompted employers to get creative to gain an edge. Waiting two weeks for a standard paycheck is a hardship for many when short-term family and financial obligations need to be met. It makes choosing between a company that offers the service and one that doesn’t an easy decision. According to North Carolina State University economist Mike Walden, when people have bills to pay and have a lot on their plates, more frequent pay makes all the difference.3. Keeps employees happy
Trying to keep staff happy and engaged is a challenge most business owners face every day. With nearly 63% of Americans living paycheck to paycheck, daily pay apps provide valuable incentives and motivation for workers, especially hourly, who may need more assistance to pay bills sooner than later. Workers also report reductions in stress due to the ability to access funds whenever they need them. With the financial control they offer, daily pay apps go a long way to motivate employees and keep them engaged in their work. This often results in higher self-esteem, which in turn leads to higher-quality customer service.4. No-cost incentive
It is estimated that nearly 250,000 employees today use daily pay apps to access funds earlier than standard paydays. For both employer and employee, it’s a win-win situation. Most daily pay apps require no initial costs or investment, although some may charge a small fee to the employee when making a bank transfer. Because the platform provider is repaid by the employer upfront or on the actual payday, there are no extra fees involved.5. Integrates easily with your payroll system
There are many benefits to daily pay apps, but one that especially benefits restaurant managers is that they work with most existing restaurant and payroll systems. For restaurant managers responsible for payroll processing, this can be a definite advantage. These daily app platforms make for an easier transition ensuring the business runs smoothly throughout the day. It causes less stress for the manager and won’t add any more demands to their already packed daily workload.Happy employees make for happy customers
Exploring new ways to engage job-seekers and existing staff is becoming more of a challenge for hiring managers and restaurant owners. Unsatisfied employees lead to higher turnover rates, higher operating costs, and sub-standard customer service. 2023 marks a time of change for many employees, signaling more flexibility, more immediate rewards, and more control over their daily earnings. Daily or next-day pay apps are an effective way to attract and retain qualified talent, as well as differentiate employers from the competition. Most experts agree, keeping employees happy is the best way to ensure they’ll stay, and daily pay apps are winning platforms designed to benefit both employer and employee with long-term rewards. Wizehire is a hiring solution that can help your food services business thrive. Our experienced hiring coaches review your job ads to ensure that you’re using the best practices to find quality candidates, each job posting is immediately posted on over 100 job boards, and our easy-to-use applicant tracking system keeps track of all your candidates in one place. If you’d like to learn more, check out our pricing page here or contact a hiring strategist today!Author
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