BUILDING EMPLOYEE FINANCIAL WELLNESS ENHANCES EMPLOYEE RETENTION
By Sabina Bhatia, VP Strategic Alliances, PayActiv Inc.
The call center industry has some of the highest employee turnover rates; on the average ranging from 30% - 45% but in some centers over 100 percent.
One in five employees miss work to deal with a financial problem and 71% of employees identify money as a source of stress. A new HR benefit from fin-tech company PayActiv allows employees to access their earned yet unpaid wages and in turn helps reduce employee financial stress
, decrease turnover, and further engage employees.
Employee financial stress directly impacts businesses: According to Mercer’s Inside Employees Minds Survey, companies lose over $250 billion annually. About 5 percent of the total annual payroll. On a per employee basis this is an aggregate 20 hours lost per month worrying about financial issues. Even at minimum wage this amounts to $200 every month.
How and why PayActiv works
Available at no cost for companies to implement or administer, the PayActiv financial wellness platform gives low-to-moderate income workers access to their earned but unpaid wages between pay periods. The platform also includes tools to help workers budget, save, pay bills, receive financial counseling, and get various useful discounts – all from an app on their smartphone. Businesses that offer PayActiv report reduced rates of absenteeism and turnover, increased productivity and reliability when their workers are more financially secure. Businesses that have adopted PayActiv include Walmart.
Mitigating Persistent Business Issues
While no workplace is immune to turnover, employees who are living paycheck to paycheck, earning near minimum wage, experience debilitating financial stress and often need to access wages more frequently than their established pay period.
Short term borrowing between paychecks is now a fixture in the lives of Americans living without savings. Financially underserved consumers spend over $138 billion in fees and interest on alternative financial services to meet between-paycheck finances.Financially stressed individuals spend ~$1,500 per year in payday loans, subprime auto and title loans, along with late bill, overdraft and monthly bank fees.
Stressed employees are distracted employees, and distracted employees cannot fully engage customers. Keeping apprentice call center reps engaged is an essential part of business success and customer engagement. The longer employees are retained, the higher level of performance they provide. Long employee tenure creates high workplace morale, which provides a myriad of benefits such as increased productivity, improved workplace culture, and happier and healthier employees.
PayActiv is backed by SoftBank Capital and has won best-in-class awards in both FinTech and HR Technology categories.
ABOUT THE AUTHOR:
Sabina Bhatia is Vice President of Strategic Alliances at PayActiv, innovator of financial solutions giving hourly workers timely access to their earned yet unpaid wages. She is an advocate of empowering workers with tools to maximize their wages for greater financial wellness.
Sabina spent 15 years on Wall Street, and today PayActiv has given her the avenue to make a positive impact in the lives of all working people irrespective of their age, gender or income level.