.webp)
The State of the Industry
Retail employees form the backbone of one of the largest sectors in the economy, yet many of them are facing significant financial challenges.
According to a survey from PwC, 64% of retail workers reported feeling financial stress, and the median annual wage was just $28,000. Half of all retail workers said they’d contemplated leaving due to anxieties caused by their work.
Additionally, season swings in retail can lead to unpredictable schedules and inconsistent earnings from pay period to pay period. Financial instability is one of the top causes of discontent cited by retail workers in recent surveys.
Financial benefits like earned wage access (EWA) have emerged to alleviate some of these burdens. While they’re not a silver bullet for employee engagement, EWA services can be highly impactful in industries like retail where hours and wages fluctuate from week to week.
Below is a snapshot into the current economics for the retail industry in the United States.
Retail Industry Fast Facts
- Median hourly wage: $16.19
- Average weekly hours worked: 29.1
- Annual turnover rate: 60%
- Job satisfaction rate: 55%
- Industry-wide job cuts as of June 2024: 22,000
These factors have combined to create a perfect storm of financial instability for retail workers. When it comes to paying bills and making ends meet, retail workers report having to choose between expenses and safeguarding against losing hours in the future.
Enter Earned Wage Access Programs
EWA programs offer a lifeline to retail employees by allowing them to access a portion of their earned wages before their scheduled payday. This innovative approach to payroll can have far-reaching positive impacts:
1. Reduced financial stress: By providing access to earned wages when needed, EWA programs help employees avoid late fees, overdraft charges, and high-interest loans.
2. Improved budgeting: Workers can better manage their finances by aligning income with expenses as they occur.
3. Increased job satisfaction: Financial peace of mind can lead to higher job satisfaction and improved employee retention.
4. Enhanced productivity: 86% of workers said financial stress impacts their productivity. Employees free from financial worries are likely to be more focused and productive at work.
5. Better work-life balance: Access to earned wages can help employees address personal needs without having to miss work.
Real-World Impact
Consider Michelle, a retail associate at a Metro by T-Mobile store. When her stepfather unexpectedly passed away, Michelle was able to use her EWA provider to help her mother with the family bills. Without an EWA solution, Michelle might put those expenses on her credit card, exposing her to high interest and debt. With access to her already-earned wages through an EWA program, she can help cover those bills immediately, avoid debt, and maintain her work schedule without added stress.
Implementing EWA Programs
For retailers, implementing an EWA program like Tapcheck can be a game-changer in supporting their workforce. Tapcheck is easy to integrate with existing payroll systems and is offered at no cost to the employer. The benefits also extend beyond individual employees, offering the business as whole:
- Improved employee retention
- Enhanced ability to attract talent
- Reduced absenteeism
- Increased overall workplace morale
Retail can be a challenging industry for workers. Employers can show a commitment to financial wellness through earned wage access programs -- powerful tools in addressing the financial challenges faced by retail employees. By providing flexible access to earned wages, Tapcheck can significantly reduce financial stress, improve job satisfaction, and contribute to a more stable and productive workforce.
As the retail industry continues to evolve, embracing EWA programs is not just a perk – it's a crucial step towards empowering employees and fostering a more resilient and engaged workforce.
At Tapcheck, we're committed to providing innovative EWA solutions that benefit both employers and employees. By partnering with us, retailers can take a significant step towards supporting their workers' financial well-being and building a stronger, more loyal team.
