Employees who feel financially secure are more productive, more engaged and less likely to leave their organization. As such, employers are finding new and innovative ways to cater to financial wellness, while still being mindful of their own bottom line.
According to statistics from Aon Hewitt’s 2017 Hot Topics in Retirement and Financial Wellbeing survey, 92% of employers reported they are very or moderately likely to expand their financial benefits beyond retirement plans.
One perk employers have begun to adopt is the daily pay benefit. As organizations unroll daily pay benefits more frequently, it’s becoming critical to create a process to measure the success of the new perk.
These six steps can help anyone measure the success of their daily pay benefit.
Step one: Decide on your goals ahead of time
Daily pay services can improve an employee’s overall financial wellness, which has a host of benefits for both the employee and employer. Most employers who offer a daily pay benefit want to see a boost in employee engagement or productivity. The benefit is also often leveraged as a tool for recruiting and retention.
Action item: What was your motivation? Set a goal and write it down. Something like: By offering a daily pay benefit, my goal is to reduce turnover by 45% within my organization.
Step two: Measure your adoption and enrollment rate
For a daily pay benefit to have the best chance of success, it’s vital to encourage adoption rates. Many organizations improve adoption rates by sending frequent reminders, arranging training sessions, and tracking individuals who have been reluctant to hop on board.
Action item: Your daily pay benefit provider will typically track enrollment for you, but it’s good to keep your own internal numbers. Usually, a ‘healthy’ enrollment rate is 30% of your workforce and above.
Step three: Compare benefit data with other internal metrics
The success of offering instant access to earned wages relies on more than a high adoption rate. Measuring how often employees access the benefit is equally important. Determine how frequently employees log in to their daily pay account or withdraw funds. Next, determine how the frequency compares to other company-sponsored benefits. Which are used most often?
Action item: Find a provider that makes it easy to track usage trend reports. Compare these figures to other internal benefits when possible.
Step four: Determine if the benefit had a noticeable return
According to research by Employee Benefits, 11% of companies offer employee benefits to improve their bottom line. Remember setting a goal in step one? It’s time to see if a daily pay benefit helped achieve the goal. This is also the time to observe ancillary changes. Has the recruiting process become smoother? Is the workforce more engaged? A return may be quantitative or qualitative.
Action item: The easiest way to track a return is through control groups. Let’s say your daily pay benefit is optional, measure the turnover rate of those who enrolled in daily pay benefits versus those who did not enroll.
Step five: Get first-hand feedback
Through eNPS and Pulse surveys, organizations can gather anonymous feedback to help gauge employees satisfaction. In this case, deploying a survey is an excellent way to see if employees were happier after the daily pay benefit was introduced. When creating these surveys ask specific questions like:
- What do you use the benefit for?
- Has a daily pay benefit reduced stress or improved your overall financial wellness?
- What would you change about the benefit?
Action item: Send your employees an eNPS or Pulse survey to see what they think about the daily pay benefit.
Step six: Learn from your findings
A mix of data and information from steps one through five should help detail how well received the daily pay benefit has been. As a business changes and grows, it’s important to continue reviewing benefits and suppliers. What works today may need adjustments in the future.
Action item: Review your benefit programs annually. Part of your review should include research on the current marketplace. Are there any new benefits that may fit your workforce closer?