Employers are mentioning earned wage access in job posts to boost applications.
EWA player DailyPay is working with employers to help recruit and sort through resumes.
DailyPay also piloted a job board on its website, featuring openings from its employer customers.
With labor shortages impacting nearly every industry, employers are looking for more ways to attract talent.
For many, offering on-demand pay, also known as earned wage access, is becoming a recruiting tool. Services like DailyPay, an EWA player used by restaurants, retailers, and healthcare companies, have long been sold as a way to retain talent. But now, DailyPay is getting more involved in its customers’ recruiting processes.
The startup beta tested a job board on its website for North Carolina-based roles. Users could search for jobs from employers that offer DailyPay.
DailyPay has plans to expand that, Jeanniey Walden, chief innovation and marketing officer at DailyPay, told Insider.
“We think that will enable those who have gotten used to on demand pay to find more jobs, and help get the most productive people staying in that same circle,” Walden said.
DailyPay is one of several EWA players that works with employers to set up on-demand pay as an employee benefit. Other players, like Dave and Earnin, go direct-to-consumer, giving consumers access to earned wages regardless of where they work.
Coming out of a massive rebrand, DailyPay is now leaning into the employee-facing side of its business and getting more involved in the hiring process. It’s the first time the fintech will advertise directly to consumers, Walden said. And it’s hoping that consumer awareness will drive more candidates to its employer partners.
“When they’re in the market for their next job, we hope that they’ll look for DailyPay and be more aware of it,” Walden said.
DailyPay is banking that its consumer brand could boost its value-add to employers
In addition to its job board beta, DailyPay has been testing the impact of advertising EWA in employers’ own job postings. DailyPay customers are able to fill roles 53% faster when candidates saw that on-demand pay was a benefit, Walden said.
At Applebee’s franchise locations owned by Flynn Restaurant Group, a DailyPay client, menus feature a QR code that links to job openings at the restaurants, promoting the ability to get paid on-demand as a perk. And grocery chain Kroger featured DailyPay prominently as a perk during its job fairs.
“We’ve seen a number of our clients using DailyPay to help recruit in a variety of ways,” Walden said.
And DailyPay is also looking for ways to help companies filter through candidates.
DailyPay has found its users are more productive at work, meaning they call out less frequently and pick up more shifts, Walden said. Approximately 10% of DailyPay users haven’t drawn on their wages, but check their balances daily.
“If you’ve got a choice between candidates that look the same, and one used DailyPay in the past, you know that they’re most likely going to be very aware of their financial state, picking up those extra shifts and calling out less,” Walden said.
Come September, when several federal COVID-related unemployment benefits expire, DailyPay is preparing for a wave of job seekers.
Unemployment benefits are typically paid weekly, as opposed to the more common bi-weekly or monthly payroll schedules in the private sector. And DailyPay is positioning itself as a way to transition workers back to the job market, offering the flexibility to access wages whenever they need.
Originally shared by Business Insider: https://www.businessinsider.com/earned-wage-access-recruiting-tool-employers-dailypay-labor-shortage-2021-8