How payments companies hope to deal with the Great Resignation | PaymentsSource
Companies that don’t pay their employees when and how they want to be paid can find themselves short of workers at a time when entire national economies are looking for workers.
“The concept of waiting two weeks for a paycheck no longer seems natural,” said Jim Filice, vice president and head of new payments at Visa in Toronto.
In late March, Visa launched a product that allows Canadian DoorDash drivers to get paid in near real-time with work-based compensation. It’s just one development among a series of payment companies, banks, and fintechs that are using real-time payments, digital assets, short-term merchant lending, and automated expense reports to expand relationships with client companies concerned with finding – and keeping – workers. .
“Wage flexibility has become just as much a benefit as medical or dental,” Filice said.
Labor shortages are permanent and international. More than 4.3 million workers in the United States voluntarily left their jobs in February, an increase of 94,000 from the previous month, according to US Bureau of Labor Statistics published at the end of March. This figure represents a higher percentage of the workforce who resigned: 2.9% in February compared to 2.8% in January. There were 11.3 million job openings in the United States and 1.8 jobs for every one unemployed – statistics that are all at or near record highs and have remained flat for much of of the past year.
There are similar pressures in Canada, where Jobs remained near record highs for several months, and the UK reports a high number of job vacancies in the context of a declining population and, as in the United States and Canada, a wave of resignations. Europe also reports labor shortages, but not as widely as the United States
By streamlining or digitizing payroll, or allowing salaries to increase, the following payment companies are trying to give employers an edge over a competitor that doesn’t offer as much flexibility.