By Ryan Ashton
In this third installment of our 2024 Wages & Wellbeing Study breakdown, we explore the profound connection between wage frequency and employee retention and loyalty. As employers face increasing pressures to retain top talent, the role of pay flexibility has never been more crucial. This part of the study delves into how offering same-day pay options can significantly improve retention rates and build stronger, longer-lasting relationships with employees.
Key Findings
- 85% of workers say they would stay longer at a job if they had immediate access to their earned wages.
- 79% of employees would be more likely to accept a job offer if same-day pay were available.
- 77% of employees would work harder and pick up extra shifts if they had more frequent access to their pay.
- 72% of workers believe companies should be required to offer no-fee earned wage access (EWA).
The Retention-Boosting Power of Same-Day Pay
Employee retention has become a top priority for businesses as they struggle with the high costs of turnover and the ongoing challenge of finding skilled workers. One of the most significant insights from the 2024 study is that 85% of workers would stay longer at a job if they had immediate access to their earned wages. This is a substantial increase from 2022, signaling that wage flexibility is not only an attractive perk but also a critical factor in long-term job commitment.
This trend is especially prominent among younger generations. Millennials and Gen Z, who now make up a majority of the workforce, have made it clear that financial flexibility and independence are key priorities in their job satisfaction. Offering same-day pay can be the difference between a one-year stint and a long-term employee relationship.
Immediate Pay and Job Loyalty
The study also shows that same-day pay influences employee loyalty in several ways. Not only are employees more likely to stay at a job longer, but they’re also more likely to recommend their employer to friends and family, boosting the organization’s reputation as a desirable place to work. This effect is particularly strong among Millennials, with 89% of them indicating they would be more inclined to stay longer at a job that provides immediate access to earned wages.
Moreover, having the ability to access pay as soon as it’s earned leads to a stronger sense of trust and respect between employees and employers. Workers who feel they have more control over their finances report feeling more valued and appreciated in their roles, which further cements their loyalty to the company.
Same-Day Pay and Workplace Productivity
Retention isn’t the only benefit that comes with wage flexibility. The study highlights that 77% of employees would work harder and even pick up extra shifts if they had more frequent access to their wages. This means that offering EWA not only improves retention but can also lead to higher productivity levels and a more motivated workforce.
The Future of Pay: A Competitive Advantage
The 2024 Wages & Wellbeing Study shows a clear shift in the expectations employees have about pay frequency. Employers who offer same-day pay are better positioned to attract, retain, and motivate their workforce. As the demand for more flexible payment options continues to rise, companies that embrace this change will find themselves ahead of the curve in the war for talent.
Ready to Offer Same-Day Pay?
If you’re looking to improve employee retention, loyalty, and engagement through more flexible pay options, Instant Financial can help. Our fee-free earned wage access solutions allow your employees to access their pay in real time, fostering a more loyal, motivated, and productive workforce. Visit Instant Financial to learn more and start building a stronger, more engaged team today, or download the full Wages & Wellbeing report here.
