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Employees Stay Longer with DailyPay

Amazon’s Announcement: It’s Real. And Here’s What You Can Do About It.

Yesterday, Amazon fired a shot heard ‘round the world in the labor market.

 

You can hear my take on the news in this video, or continue reading below the video.

 

 

Amazon—the employer of some 400,000 hourly workers—declared that they will be raising their minimum wage to $15/hour, just in time for their seasonal hiring push. If you don’t think Amazon has the ability to single handedly move markets, then think again.

 

Following the acquisition of Whole Foods earlier this year, economists are already attributing Amazon’s low food prices, as one reason CPI (inflation) remains low. If you aren’t concerned about Amazon’s announcement, you are living on a different planet. Amazon is coming for your workers. At the very least, the competitive pressure that this puts on all employers of hourly workers is enormous.

  

 

Amazon Can Afford Not Making A Profit

You see, Amazon is unique. They can afford to pay their people more because their company is the only company in the world that employs that many people, but yet is still valued on growth. Most employers can’t get away with not making profits, but Amazon can.

 

The way I see it, you have to two choices:

 

 

Click to tweet button: Amazon employees would rather get paid daily than get paid more.Capitulate or Innovate

Capitulate. Give up. Raise wages. Eat into margins. Cut costs elsewhere.

 

Or...

 

Innovate. Through the millions of payments that DailyPay has made, the hundreds of thousands of lives we have touched, one thing is clear: employees would rather get paid daily than get paid more.

 

Our data shows that employees are willing to take 13% less if they were to have a daily pay option.

  

This move by Amazon is real. It’s serious. But offering DailyPay is one way that best in class companies can continue to compete.

 


Written by Jason Lee

Jason Lee is CEO and co-founder of DailyPay, a venture backed financial technology company that enables employees to access their wages before payday. DailyPay partners with large enterprises to offer its technology solution to their workforces, which results in a meaningful reduction in turnover and related cost savings. Every Saturday morning, Jason enjoys spending his time at the Father’s Soup Kitchen, helping serve hot breakfast to New York’s homeless population.


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