Retaining staff with wage access technology
Employee compensation is one of the most common factors leading to employee turnover. As such, wages, timeliness of pay and the accuracy of pay are all important factors when considering retention strategies.
How can technology help?
Security providers around the globe have faced challenges in recent years from combined variables – the pandemic and labour shortages to name just two. Companies are turning to technology solutions to fill gaps presented by these variables and make sure contractual duties are delivered upon.
But, technology – like technology that increases accuracy and frequency of officer pay – should be considered as a tool to help address those challenges before they happen. By addressing officer retention strategies early on, you can circumvent the need to fill gaps in shifts created by high turnover.
World Employment and Social Outlook (WESO) trends suggest the global labour force will remain lower in 2022 than in previous years, with around 40 million people no longer participating. Though different countries are experiencing different levels of challenges, when examining the workforce specifically, it’s arguably one of the biggest challenges currently facing the professional workforce worldwide.
While an immediate reaction to this challenge may be to focus energies on attracting potential candidates into a security company’s hiring funnel, it is equally important, if not more so, to target technological resources towards retaining current employees.
Employee compensation is one of the most common factors leading to employee turnover. As such, wages, timeliness of pay and the accuracy of pay are all important factors when considering retention strategies.
Technology to support accurate pay
Scheduling is always a complex activity. As flexible working becomes more of an expectation rather than an exception in manned guarding, tools that help configure multiple schedules actively improve accommodations for the various demands from clients and employees.
It is especially important to approach scheduling from a well-rounded approach, with technology that enables schedulers to quickly address no-shows, time off or late requests for extra personnel, and communicate those changes efficiently.
From an employee perspective, these tools are critical as they ensure the accuracy and ease of pay. Accurate scheduling reduces the need for security officers to manually review pay slips, while self-service employee portals give employees direct access to these materials via mobile devices. Officers are also able to operate more autonomously, submitting requests or queries directly through digital means, rather than having to report to a physical location and complete manual paperwork.
Often, we put forward technology as being a method to streamline work for a security company’s end clients. While that’s true, benefits reaped from technology (like reduced data error, streamlined communications and gained efficiencies) are just as important for your employer-employee relationship. Technology can make labour-intensive tasks easier, information more accessible, and supervisors more available for your frontline staff – all of which impact retention.
Technology to support accessible pay
Combined with, and perhaps, because of, the current labour market being what it is, we are seeing record inflation rates across the globe. In Britain, we saw prices rise by over 5% at the end of last year. The eurozone is experiencing record month-over-month increases in inflation. In the security industry, companies are struggling to raise wages, when real wage growth is being hampered by inflation.
Now is the time for technology to step up and support frontline workers in our industry with other wage benefits, pay on demand being a prime example.
On-demand pay occurs when employers offer a benefit which gives their employees access to their earned pay, prior to regular payroll processing. The positive implications to this kind of added technology include:
- Reductions in turnover (as high as 90%)
- Decrease in hiring costs related to turnover
- Increase in interests from job applicants
- Decrease in employees experiencing financial stress
In talking to leaders in the security industry, we’ve heard direct feedback that this model of more frequent pay (especially driven directly by the needs of individual employees) is a true retention tool for customers. Earned wage access and on-demand pay could be just what you need to strengthen your employee retention strategy and keep your contracts fully staffed.
Security companies may experience hesitancy when thinking about implementing new technologies, including an on-demand pay program. There is a perception of added processes and associated costs. But, most financial wellness programs are built so all that extra work happens outside your current payroll processes, with liabilities carried by your on-demand payment provider as well.
Looking towards what’s next
Knowing global economic forecasts are anticipating continued challenges well into the year, the time to implement technology as a retention tool is now.
To learn more about how technology can support security companies and their frontline workers, or to learn more about retention strategies like on-demand pay programs, please visit teamsoftware.com/retention.
Graeme Hughes
Managing Director
TEAM Software
