How Texan Employers Can Win the War on Talent as the Great Resignation Intensifies
Learn how stress-relieving employee benefits like Earned Wage Access (EWA) can help improve your recruitment and retention amidst the lingering Great Resignation.
Small business owners are currently in a “war on talent” as employees continue to quit at record rates. The national quit rate sat at 2.7% in July of this year — up from 2.2% in January 2020. [1] Further, 27% of Texan employees who switched jobs in the past year are already looking for a new one. [2]
So, how can you attract new employees and keep those that you have? The findings from a recent survey point to offering meaningful benefits, like Earned Wage Access, to help resolve your employees’ biggest stress drivers.
Why are employees quitting their jobs?
Employees say they’re quitting primarily because they’re dissatisfied with their base pay, advancement opportunities, and benefits packages, according to Grant Thornton’s most recent State of Work in America survey. [4] Further, 60% of survey respondents who recently found a new job, had at least two competing offers on the table during their job hunt. With the demand for talent high, employees don’t have to settle.
How can Texan employers attract and retain employees?
The elevated quit rate sends one message loud and clear — the needs of employees aren’t being met. Tim Glowa, principal of Grant Thornton’s Human Capital Services in Houston, Texas, says, ”There’s an opportunity for organizations to get back to basics, listen to employees, keep a pulse on employee needs, and try to differentiate the value proposition they give to employees in a meaningful way.” [2]
While it’s not always possible to invest in expensive benefit programs and salary increases, all companies can reconsider their current compensation packages. Is yours meeting the deepest needs of your employees, or is it just ticking a box?
According to the Grant Thornton survey, only about half of employees think their company’s benefits are unique. Additionally, about 90% say they’d be at least somewhat likely to stay at a company that addresses their top stress driver. That poses some questions — are your employee benefits relieving your employee’s top stressor? Do you know what that top stressor is? Nationwide, personal debt, medical issues, and mental health all topped the list, but it can fluctuate from one company to the next.
Glowa advises, “Above all, companies should be learning in detail what their own employees value, as those findings can vary. Sound, unbiased, thorough surveying of one’s own employees can identify particular pain points which can then be addressed in a tailored benefits program.” But what type of benefits can relieve employee stress?
Earned Wage Access: A stress-relieving benefit
With personal debt being a top stressor for U.S. employees, earned wage access is a perfect example of a meaningful benefit. Instead of employees having to wait for payday, EWA lets them request their earnings on-demand for a small fee. As a result, they can get paid early if they need to pay a bill, cover an emergency expense, or meet another financial need between paychecks. The amount is then deducted from their paycheck on payday.
But how impactful can one benefit be? According to Visa, 95% of employees say they want EWA, and 79% say they’d switch jobs for it. [5] Additionally, it’s been found to improve productivity by 25%, lower employee absenteeism by 26%, and reduce turnover from 25% to 50%. [6] Not to mention— EWA is still an effective differentiator for employers. A recent 2022 study found that only about 10% of 3,000 employers were offering the benefit. [7]
Want to learn more about how EWA can help your business and employees? Download our one-pager and schedule a demo.
References
[1] U. S. D. o. Labor, "Table 4. Quitslevels and rates for total nonfarm by state, seasonally adjusted," 102022. [Online]. Available: https://www.bls.gov/news.release/jltst.t04.htm.[Accessed 2022].
[2] D. Nguyen, "Study exploresemployee turnover amid the Great Resignation," Houston Business Journal,22 August 2022. [Online]. Available: https://www.bizjournals.com/houston/news/2022/08/22/texans-job-change-grant-thornton-study.html.[Accessed 2022].
[3] L. Mutikani, "U.S. job openingsdrop sharply, labor market starting to loosen," Reuters, 4 October 2022.[Online]. Available:https://www.reuters.com/markets/us/us-job-openings-post-biggest-drop-nearly-2-12-years-august-2022-10-04/.
[4] Grant Thornton LLP, "Americanworkers find their voice: State of Work in America survey finds employeesdemanding workplace flexibility," U.S. member firm of Grant ThorntonInternational Ltd. In the U.S., visit gt.com for details, 2022.
[5]Visa, "Visa Insights 2019: Earned Wage Access," Visa, 2019.
[6] T. B. a. S. Kumar, "The Power of the Salary Link: Assessing the Benefits of Employer-Sponsored FinTech Liquidity and Credit Solutions for Low-Wage Working Americans and their Employers, "Harvard Kennedy School Mossavar-Rahmani Center for Business and Government,Boston, 2018.
[7] D. Macklin, "Earned wage access is only one piece of the financial wellbeing puzzle," ALM Benefits Pro, 11 May 2022. [Online]. Available: https://www.benefitspro.com/2022/05/11/earned-wage-access-is-only-one-piece-of-the-financial-wellbeing-puzzle/.
