Rethinking Employee Benefits: Flexible Pay and Schedules

The volatile economy has generated a lot of uncertainty over the past year, causing employees to want stability and, therefore, stay at their current jobs. The 2.1 percent quit rate in January was the lowest level since August 2020 — despite multiple companies offering higher wages. To attract and retain the best employees, retailers need to think beyond compensation and offer more flexibility.

Traditional biweekly or monthly payment structures can create unnecessary stress and financial strain for retail workers since compensation can change week-to-week. Whether employees take overtime or work fewer hours, these fluctuations in payment amounts can make it difficult to determine personal budgets for expenses like bills and groceries. And with everyday prices rising due to inflation, planning for necessities is even more burdensome. In 2023, 80 percent of hourly workers reported being affected by economic challenges, with 52 percent indicating their stress levels had increased as a result.

Although raising wages is a start to solving employees’ economic problems, companies emphasizing a modernized pay experience and flexible work arrangements will stand out in the ongoing battle for hourly talent. By meeting the evolving needs of their workforce, businesses can drive better outcomes and foster a culture of employee satisfaction and loyalty.

Flexible Pay

Having the ability to access earnings when needed can alleviate financial stress and increase job satisfaction among retail workers. Earned wage access (EWA) offers a flexible pay solution by allowing employees to access a portion of their earned wages before the regular payday. This not only provides immediate financial relief for workers facing unexpected expenses, but it also empowers them to better manage their finances and break the cycle of living paycheck to paycheck.

Since a happier workforce is likely to be more engaged and productive, this also leads to a better employee experience, improved customer service and, ultimately, increased sales.

With modern workforce management (WFM) technology, companies can seamlessly integrate EWA into their operations. This allows employees to access their wages through a single user-friendly mobile app immediately after completing their shifts, eliminating unnecessary delays.

Flexible Schedules

Nearly half (47.5 percent) of managers agree that “not providing the schedule flexibility employees want” was the most challenging part of retaining hourly employees in 2023, according to Legion Technologies’ 2023 State of the Hourly Workforce. Flexible scheduling is essential for hourly retail workers, who often juggle multiple responsibilities outside of work, such as caring for family members or pursuing education. With so much to balance, they appreciate the ability to customize their schedules to accommodate personal commitments or preferences.

By leveraging artificial intelligence-powered WFM technology that automates scheduling processes, retailers can empower their employees to take greater control over their work-life balance. Modern WFM platforms deliver intelligent automation that provides employees with their preferred schedules and real-time shift swapping — while ensuring the needs of the business are still met.

Flexibility is critical to the modern hourly workforce experience. Incorporating flexible pay and schedules into the workplace not only benefits employees but also yields tangible advantages for retail businesses. A more satisfied and engaged workforce leads to reduced turnover rates, lower recruitment and training costs, and higher customer satisfaction. Retailers that prioritize the well-being and financial security of their employees are also likely to enjoy a positive reputation in the marketplace, attracting top talent and loyal customers alike.

Michael Spataro is the chief customer officer at Legion Technologies, a workforce management platform that maximizes labor efficiency and employee engagement simultaneously.