New Whitepaper: Easy Win

How Offering Daily Pay Expands the Applicant Pool and Reduces Payroll
…At No Cost To the Employer

One of the most significant costs impacting company bottom lines today is employee turnover and recruiting. Turnover is a meaningful expense for companies who constantly have to recruit new employees and bear the cost of that employee ramping up and becoming productive.

According to Glassdoor, it takes an average of 52 days and $4,000 to fill an open position in 2016.

These statistics tell us that the balance of power has shifted and qualified job seekers have more opportunities now. In addition, technology has enabled employees to switch jobs more frequently, work more flexible hours, and have multiple jobs at once.

Employers have tried everything from offering higher pay to recruiting bonuses to generous benefits/perks in an effort to recruit and retain employees.

But what if employees could access their pay earlier?

In November 2016, we ran several unique tests to determine the impact of offering daily pay on recruiting and payroll cost. There were two questions that we set out to answer:

1. Does offering daily pay increase the number of
interested applicants for a particular job?

2. Will those same applicants accept a lower salary if
they were to receive daily pay versus weekly pay?

Methodology
We posted three sets of virtually identical job postings on the same online recruitment website to measure the difference in applicant behavior for jobs that offered daily pay versus weekly pay. The ads were posted in large cities across the United States (New York City, Chicago, Seattle, & San Francisco). In all cases, we ran the ads for the same duration of time.

Results
1. Applicants were 1.9 times more likely to apply for the job with daily pay versus the job weekly pay. While it is not surprising that the daily pay ad garnered more interest, we were surprised that is was almost twice as
much.

2. Applicants were willing to take on average a 13% pay reduction for the job that paid daily versus the job that paid weekly.

3. For jobs that offered a signing bonus applicants were 1.5 times more interested in the job that offered half the signing bonus and daily pay than the job that offered the full signing bonus and weekly pay.