How DailyPay Helped a Leading Retailer Double Employee Retention Rates for New Hires
DailyPay: Redefining the Pay Experience for Financial Wellness
DailyPay is transforming the way people get paid by offering a first-of-its-kind on-demand pay solution. This innovative platform allows employees to access their earned wages in real time, enabling financial stability and reducing reliance on predatory financial products like payday loans or overdraft fees. By giving employees control over their pay as they earn it, DailyPay empowers organizations across industries—including retail, healthcare, hospitality, and manufacturing—to improve employee satisfaction, retention, and engagement.
DailyPay is a winner in the 2024 HR Tech Awards program. The following case study was a major contributor to DailyPay’s entry and subsequent win. For more information, please visit HRTechAwards.org.
Case Study: On-Demand Pay Boosts Retention for a Leading Retailer
The Challenge: Retaining Employees in a Competitive Industry
Comoto Holdings, one of the nation’s largest powersports aftermarket retailers, operates over 170 stores in 45 states. The company faced significant challenges in retaining employees in a highly competitive labor market, particularly in fulfillment centers where nearby competitors offered slightly higher wages to lure workers away. Chief Talent Officer Abby Ludens noted, “Absenteeism is at an all-time high, and retaining workers is incredibly challenging in such a competitive industry.”
The Solution: DailyPay’s On-Demand Pay Platform
To address these challenges, Comoto partnered with DailyPay to offer employees instant access to their earned wages. This benefit allowed workers to manage unexpected expenses and improve their financial stability without resorting to loans or other costly financial options.
Key Features:
- Real-Time Pay Access: Employees could transfer their earned wages to any bank account, debit card, or payment card at their convenience.
- Usage Insights: Top reasons for pay transfers included bills (32%), transit (18%), and food (15%), highlighting employees’ responsible use of the benefit.
Abby Ludens explained, “Giving employees access to their pay early is incredibly valuable. For some, a flat tire could be financially crippling. DailyPay solves a crucial need by offering access to earned wages when it’s needed most.”
The Results: Doubling Retention for New Hires
Since implementing DailyPay, Comoto has seen remarkable results:
- Retention: New hires using DailyPay stayed with the company twice as long as those who did not use the benefit.
- Employee Satisfaction: Employees reported spending their early pay access on essential items, demonstrating responsible use and improved financial wellness.
- Improved Engagement: The ability to access earned wages helped employees feel more secure and valued, fostering loyalty and reducing turnover.
“The early results were compelling. Employees are using DailyPay responsibly, and the positive effects on retention are clear,” Ludens shared.
Conclusion: A Strategic Advantage in Retention
DailyPay has proven to be a game-changer for Comoto Holdings, enhancing employee financial well-being and delivering measurable improvements in retention and engagement. By offering real-time pay access, Comoto empowered its workforce to overcome financial stressors, improving satisfaction and loyalty in a highly competitive industry.
For organizations facing similar retention challenges, Comoto’s success story demonstrates the transformative power of DailyPay’s on-demand pay solution.
Ben Eubanks is the Chief Research Officer at Lighthouse Research & Advisory. He is an author, speaker, and researcher with a passion for telling stories and making complex topics easy to understand.
His latest book Talent Scarcity answers the question every business leader has asked in recent years: “Where are all the people, and how do we get them back to work?” It shares practical and strategic recruiting and retention ideas and case studies for every employer.
His first book, Artificial Intelligence for HR, is the world’s most-cited resource on AI applications for hiring, development, and employee experience.
Ben has more than 10 years of experience both as an HR/recruiting executive as well as a researcher on workplace topics. His work is practical, relevant, and valued by practitioners from F100 firms to SMB organizations across the globe.
He has spoken to tens of thousands of HR professionals across the globe and enjoys sharing about technology, talent practices, and more. His speaking credits include the SHRM Annual Conference, Seminarium International, PeopleMatters Dubai and India, and over 100 other notable events.