October 1, 2020
Daily pay is the staffing industry’s new killer differentiator
Imagine ending your workday and your phone vibrates. What is it? It’s a notification that you’ve already been paid for your day’s work. You feel an immediate connection between the work you put in that day and the financial rewards.
This might seem like a far-off vision of the future of work. It’s not. Staffing agencies have made daily pay a reality by investing in technology and processes. What these agencies have found is widespread adoption and the ability to convert candidates into workers more easily than ever.
Daily pay has two primary advantages: For some, it’s the ability to have the flexibility to spend money as quickly as they’ve earned it. It’s for the staffing industry what binge watching is to Netflix. Immediate gratification. For others, it’s become an important way to manage finances and make sure they’re making ends meet.
“If staffing companies will want to continue to compete for just-in-time talent, they will need to support daily pay,” says Taryn Owen, President at PeopleReady. “We consider it to be one of our greatest differentiators.”
How quickly do your workers get paid? At this agency, workers get paid 8 minutes after a shift
Innovators like TalentBurst are taking care of their workers through daily pay. “Daily pay is embraced by anyone making less than $25-30/hour,” says Brad Talwar, Founder & CEO of Talenburst. “In fact, they really need it to make ends meet.”
Talwar describes this as often the most critical deciding factor for many candidates to accept the job or accept another one. How widespread is adoption of this new payment model? Almost 90% of TalentBurst’s lower-pay light industrial workers have chosen daily pay.
It’s not just good for the worker; it’s also good for the staffing agency. There’s a hidden value here for staffing agencies who meet their workers where they are financially. Financial stress is a powerful productivity killer. By adding new payment models and relieving that stress, staffing agencies can help their workforce feel taken care of and stay focused on the job at hand, according to Josh Bersin’s 2020 Tech Market study.
Technology is a key reason why daily pay is possible for TalentBurst. They even developed their own technology stack in partnership with a client in order to make it work. Thanks to that upfront work, a worker can now get paid eight minutes after they finish a shift.
To see how staffing agencies are innovating (and how you can too), download our free eBook
Daily pay models are just one part of a larger trend that’s transforming the staffing industry: the rise of signup culture. It’s what happens now that the world has been conditioned to expect everything immediately: whether that’s a package on our doorstep in two days or a rideshare arriving at our doorstep in five minutes.
The Rise of Signup Culture eBook is the first in our Staffing Trends 2021 series, a series of three eBooks which show you how the staffing industry will evolve in 2021 and beyond.
You’ll learn about these changes from some of the staffing industry’s leading innovators. Inside the eBook are insights from:
- Patrick Beharelle (CEO at TrueBlue)
- Michael Whitmer (Global CIO at Recruit Global Staffing)
- Taryn Owen (President at PeopleReady)
- Brad Talwar (CEO at TalentBurst)
- Nick Seger (COO at Elwood Staffing)
- Lars Asbjornsen (SVP Marketing at Upwork)
- And other staffing leaders who are transforming the staffing industry
Download the eBook today to learn the trends, statistics, anecdotes, technologies, and people who are embracing signup culture and changing the future of the staffing industry.
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“If staffing companies will want to continue to compete for just-in-time talent, they will need to support daily pay”
Taryn Owen, President at PeopleReady