How to Retain Talent in a Competitive Market

The U.S. labor market right now is the most competitive in the world when it comes to finding the right talent for the right role.

In a recent study, the U.S. Chamber of Commerce found that there were around 0.88 U.S workers available for every job opening and 28 states with more jobs available than people to fill them. This means that top talent can essentially shop around and find the best position for their needs.

The report also detailed that:

• There has been a lack of skilled talent among the available workforce in recent years. Nearly three-quarters (74%) of respondents agreed.
• Employers and hiring managers are preparing for a world where competencies – not degrees – are the most important factors when filling a job.
• Respondents (78%) acknowledged the need to overhaul their hiring practices to make this shift to focus on competencies.

But what are hiring managers actually doing to respond to this situation? And how will the world of work need to change to accommodate this new reality?

One of the most useful tools in attracting top talent is earned wage access.

In a recent report, 61% of US employees supported the idea of flexible instant payment of their accrued wages through an earned wage access platform. In our uncertain economic times, money is often needed immediately. And in a fast-paced world of renting, mortgage payments, monthly subscriptions and recurring bills, employees are increasingly looking for flexible work and pay conditions when searching for a new role.

Importantly, earned wage access platforms also position a company as one which places employee financial wellness as a top priority. If a company cares about its employees’ finances and money management, then it also cares about them as individuals. And when the talent finally enters their chosen role and the financial stressors of day-to-day life inevitably raise their ugly head, it’s important that a company is there for them.

From the financial side, earned wage access platforms can help employees manage their expenses, budgeting and savings in a low-to-no-cost way. Further, when an employee can pay their bills on time and actively monitor their spending, they are more motivated to earn their money and be the best employee they can be.

With 53% of US employees claiming that financial stress distracts them from their day-to-day tasks, earned wage access is crucial in providing this financial literacy – increasing retention in the process.

From a morale standpoint – and this is perhaps the most important of all – earned wage access supports a motivated, engaged workforce. It allows workers to be more confident in their financial life and more focused at work.

Oftentimes, this focus translates to a happier, more committed workforce. And in turn, a culture of open communication and feedback can be established among HR departments and management teams.

In short, harnessing the power of financial wellness can only bring positive things to a company. New hires and seasoned vets who feel valued and appreciated through beneficial offerings like earned wage access understand their contributions are acknowledged. This opens new avenues to discuss important elements of the day-to-day that impact performance and, ultimately, the bottom line.

The world of work is changing and key companies are changing their culture with it. To not do so at this point is a major mistake; top talent will stay where they feel valued the most.