Companies that hire seasonal workers often have trouble retaining them, and for good reason. Fluctuating work hours can leave employees financially strapped during the off-peak season, giving them no choice but to look elsewhere for work. But one company is offering a new benefits program in hopes of solving this problem.
Encore, an events company specializing in corporate conferences, launched a digital “wallet” that can connect to individual bank accounts, created by HR technology company UKG, for use by employees at the start of this year. The wallet allows workers to access wages earned before payday, saving funds accumulated from overtime hours for use later. Of the 12,000 employees, about 2,500 of them use this technology. Among this group, employee retention rose 14%, according to the company.
“Due to event-related business volatility, employees are beginning to demand a way to have more stability on their income during periods of low employment, which for us is June through August,” said Charlie Young, Encore’s head of human resources. luck. “So we educate them and teach them that this is an opportunity to save money, to help you get through the tough times.”
Employees across the board are becoming increasingly interested in the benefits of financial well-being, especially after several years of high inflation. Help growing their savings, access to money during emergencies, debt management, and student loan assistance are all perks employees say they want, according to a recent WTW poll. As companies like Chipotle roll out new ways to recruit and employ their seasonal workforce, we may see more overtime wallets like this in the future as companies try to tailor their perks to fit their employee base.
To encourage workers to sign up, Encore offers a $100 bonus to workers who contribute $500 or more to the account. Young adds that because the company’s employees tend to be younger (the average age is between 33 and 34), managing finances directly on their phones is an important part of the offering.
“We have a lot of high-tech people traveling all over the country, and they don’t always have access to a computer,” Young says. “So having a feature they can access directly on their phone is key.”
Brett Morse
brett.morse@fortune.com
Today’s edition has been curated by Emma Burley.
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