How the Pub and Hospitality industry is overcoming retention issues with financial wellbeing
The annual staff retention level in the pub and hospitality industry is at 70% – way below the national average of 85% (You Gov Deputy Survey), a recent survey found, with many citing unsociable hours, low pay and lack of perceived career progression as the main reason for leaving the industry altogether.
With high levels of turnover becoming a chronic issue for the sector, ultimately impacting bottom lines, it’s no wonder that many employers are already waking up to the fact that they need to go further than a pay-check to retain their talent.
A recent survey by PWC found that almost 50% said that financial worries caused employees most stress in their lives and that 48% said that their financial worries affected them at work. Whilst turnover issues may not be wholly down to financial stress, it can’t be denied that by supporting your staff’s financial wellbeing they’re going to feel cared for, and practically, they’re not going to leave for another company that doesn’t offer this service.
Some chains within the hospitality industry are already focussing on the financial wellbeing of their staff, and by bringing in Wagestream, have seen an increase in retention almost immediately.
Immediate retention increase
Laura Burn HR Director of Roadchef, who recently rolled out Wagestream, said,
“It’s early days for us but our take up has been great. I’ve already seen an improvement in retention and we hope to see that grow. I think there’s just a buzz around it at our sites and employee’s are more engaged.”
Stonegate Pubs have seen similar results with a 40% increase in retention and a 22% increase in hours worked.
Their HR Director, Tim Painter, said,
“Getting early access to money you have already earned, that is to all intents and purposes yours, seems so simple but this is a real revolution in pay that is already making it easier to recruit and retain staff.”
What you should consider when implementing a financial wellbeing to solve retention issues
Here at Wagestream we want to make it as easy as possible for you to implement a financial wellbeing program that directly works for you and your employees, so we pulled together a checklist of measures that your programme should meet.
Must be available to 100% of staff
The 5.8 million people in the UK that are financially excluded from affordable credit options are often the ones that need it the most. By offering a universally inclusive financial wellbeing program, you can help to break the negative credit cycle of financial exclusion.
Must be available and accessible every day of the month
We know that payday lenders target the most vulnerable in the final days of the month, the period that can be the toughest financially. An effective financial wellbeing program must be available to everyone, every day of the month to stop them from turning to irresponsible lenders.
Must include independent financial education
Empowering employees to make the right decisions when it comes to their money can only be done through effective, independent financial education.
Doesn’t increase employee debt in any form
Encouraging debt shouldn’t be a part of a financial wellbeing strategy that is genuinely committed to improving the lives of employees. Loaning money won’t change behaviours or reduce financial stress, but more financial visibility and stability will do.
Must promote good saving habits
How we feel about our money depends on the choices we make every day. Encouraging staff to make the right decisions and build good savings habits early on is the best way to help them feel better about their money, reduce workplace stress and get on well at work.
Financial Wellbeing with Wagestream
Wagestream gives employees the power to access and track their earned wages as and when they need it, automatically stream wages direct into their savings account and provides independent money management tips. It’s available to 100% of staff, 100% of the time so your staff never become financially excluded or need to turn to borrowing.
In return you get a workforce that trusts you as an employer, stays loyal for longer and are more focussed on the job at hand.
Wagestream is a simple technology solution that can give you a business advantage, while at the same time, improving the lives of your employees.
Wagestream has no impact on payroll or cashflow, and integrates with all workforce management and attendance systems.
Get in touch and launch Wagestream in under 4 weeks.