Can the hospitality industry become more hospitable to its own workers?
Amid an ongoing labor shortage, Atrium Hospitality — a third-party hotel management group that operates Hilton, IHG and Marriott properties — has been looking for new ways to attract and retain talent. The organization recently started offering DailyPay Earned Wages Access (EWA) to its 7,000 employees, betting that giving workers on-demand access to wages will spark new loyalty.
“Our story is very similar to that of the rest of the hospitality industry: we have experienced significant talent shortages,” says Anneliesse Cooper, senior vice president of human resources at Atrium, noting particular difficulties in recruiting for positions. housekeeping and cooking. As Atrium has expanded its recruitment efforts to reach new talent via methods such as ICT Tac and quick talks, Cooper says they saw DailyPay’s EWA solution as another way to bolster the benefits and benefits package. “We work diligently to meet growing business demands, and this kind of innovation is one of the ways we strive to be a better employer.”
Read more: Does your payroll need a makeover? How Access to Earned Salary Can Help Employees Take Financial Control
Earned Wage Access is an employer-provided benefit that gives workers instant access to the money they’ve earned, eliminating delays in a standard pay cycle. For workers living paycheck to paycheck, EWA can create a more stable financial situation and help employees avoid costly payday loans. According to a 2021 Research Report from EBN’s parent company, Arizent77% of workers would adopt an EWA service if there was one, especially as the financial impact of the pandemic lingers.
“Employees sought out employers for household stability, especially when a roommate, spouse or significant other suffered a 40% pay cut or even job loss,” says Jeanniey Walden, CMO of Daily Pay. “Employers had to, overnight, reinvent the way they do business, and giving workers access to their pay was one way to help them. bridge the gap financially for their households.”
DailyPay’s app shows employees their earnings in real time; if needed, they can instantly access that money by transferring it to a debit or checking account – if a worker earned $100 on a given day, no waiting two weeks until payday to access that money . Internal company research has shown that employees will stay with a company up to 72% longer if their employer offers EWA.
Read more: Access to earned wages can be a critical benefit for small businesses and hourly workers
“It’s not a loan — it’s something that saves you from paying late fees, overdraft fees and high interest rates on payday loans,” Walden said. “To give people benefits that they find valuable and tangible from the first day they start working, you have a greater likelihood of attracting and retaining them. Work today, get paid today. makes a difference.”
In addition to creating an immediate financial cushion for users, DailyPay also aims to provide long-term stability and encourages users to build their savings in three ways: by giving them the freedom to transfer small amounts from their daily salary to ‘saving ; to round up when they pay their bills to save extra cents on the dollar; and allowing them to program savings, such as automatically transferring $20 to a savings account every time they earn $300.
“From there, we can use these habits to let an employer know if their workforce is saving money but not contributing to their 401(k) which corresponds to 100%for example,” says Walden. “It’s an opportunity for the employer to educate their employees and maybe suggest splitting that money between a rainy day fund and a 401(k) maximize their savings. »
Despite its benefits, EWA is still not a widely available benefit for most workers, and getting employees to adopt and use it will require thoughtful communication from employers.
Read more: Understand and evaluate earned wage access solutions
“Particularly in the hospitality industry, access to earned wages is not widely available, so one of the benefits of partnering with DailyPay has been the various options they have provided for communication,” says Cooper. “Whether it’s emails, newsletters, flyers in the back office areas, verbal communications at meetings, and associate stand-ups, we’ve been able to really leverage their packaged training on all internal communication channels.”
Cooper says adopting the app as a benefit had no impact on Atrium’s cash flow, and the implementation and onboarding process was easy for the employer as well. only for its employees.
“We are one of the largest hotel operators in our country, and some of our employees are going through tough times,” she says. “This benefit provides employees with flexibility and gives them a bit more control over their day-to-day income.”