Ensuring the satisfaction of your team members involves offering benefits that cater to their unique needs. It requires a deep understanding of your workforce and tailoring benefits to different groups within your organization. While your management and sales leaders play a vital role in driving revenue, it’s your team members who interact with guests on a daily basis and hold down the fort overnight, contributing significantly to your bottom line. The satisfaction of your guests is heavily influenced by the interactions they have with these team members. Often, these employees live paycheck to paycheck, which means certain things matter more to them compared to your executive team members. Additionally, many of them work part-time and are unable to take advantage of the benefits offered to full-time employees.
One such valuable benefit that we’ve discovered is providing team members with daily access to their payroll funds. So, what’s in it for them? Team members can request an advance on their payroll to align with their financial needs, such as medical bills or car repairs. This eliminates the need for “payday” loans with high interest rates that can lead to a never-ending cycle of debt. Moreover, there is no cost associated with this service unless they opt for an instant transfer, next-day transfers are free of charge. The service we use also provides team members with access to their payroll information through a mobile application, enabling them to track how their payroll impacts their subsequent paycheck.
In the last seven days alone, our program has achieved a remarkable 53% enrollment rate among our workforce, which consists of over 1000 team members, with 31% actively engaging and making transfers totaling $81,000. Since its implementation two years ago, we’ve facilitated transfers amounting to $6,180,500, with an average payment of approximately $100. The primary reason cited for these transfers is to cover bills, followed by expenses related to food.
Our program also includes a free savings account for team members, which is especially helpful for those who do not have a regular banking relationship. This benefit is available regardless of whether team members choose to take payroll advances.
Now, let’s consider what’s in it for you, the employer. In previous discussions with hospitality professionals, there have been concerns about the potential impact of daily payroll on attendance. However, it’s important to understand that since this is an advance on their regular (weekly or bi-weekly) payroll, team members still need to work to receive a net payroll check at the end of the pay period. Instead of negatively affecting attendance, daily payroll can actually reduce stress in the workplace, as team members can promptly cover their financial responsibilities, reducing concerns about late fees and other financial burdens. In our experience, we have not observed a significant impact on attendance due to daily payroll.
The key to successfully implementing a daily payroll (payroll advance) option is to educate your team members. Conduct regular informational meetings to explain how the program functions and provide tools for team members to understand the impact of a payroll advance on their finances. Offering financial education resources on an ongoing basis demonstrates your commitment to their well-being. Maintain an open-door policy so team members can voice concerns, preventing issues from escalating and fostering a culture of transparency and support.
In summary, daily payroll access proves to be a mutually beneficial solution for your valued team members and your organization as a whole. It effectively addresses the immediate financial requirements of your workforce while concurrently boosting their job satisfaction and overall well-being. As the Chief Financial Officer of Newport Hospitality Group, I firmly believe that prioritizing the financial security and happiness of our team members is not just a compassionate choice but also a sound business strategy. By offering daily payroll access, your company can anticipate heightened employee loyalty, enhanced productivity, and potentially reduced operational expenses, ultimately positioning it for greater success in the long run.
By Nancy Nunn, Chief Financial Officer
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