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Employees Stay Longer with DailyPay

Attracting More Job Applicants - How DailyPay Helps Employee Recruitment

One of the most significant costs impacting the bottom line of your business is employee turnover. 

 

Constant turnover leads to increased costs for recruiting and onboarding new employees to keep your workforce at capacity and productive.


An image of new employees onboarding. Recruiting and training new employees can cost businesses up to $4,129 per new employee.According to the Society for Human Resources Management (SHRM), it takes an average of 42 days and $4,129 to replace an employee. While new technology like artificial intelligence (A.I.) has made it easier for CHROs to automate portions of recruiting and hiring, finding high quality candidates who are are good cultural fit still takes time to properly vet candidates. 


In an effort to recruit more new employees, employers have offered higher pay, recruiting bonuses, more benefits, fringe benefits, financial perks, gym memberships, free meals—practically every incentive they can think of. In addition to all of these options, daily pay benefits are now emerging as an attractive incentive for new job seekers.

 

 


 

READ MORE: Six Other Employee Recruitment Strategies That Employers Use Frequently

 


 

 

Obviously, as a daily pay provider, we also think that daily pay is a creative employee recruiting idea, but we wanted a way to prove that theory.  


So we ran several unique tests to determine how offering daily pay affects recruiting and payroll cost. In these tests, there were two questions that we set out to answer:

  1. Does offering daily pay increase the number of interested applicants for a particular job?
  2. Will those same applicants accept a lower salary if they were to receive daily pay versus weekly pay?

 

On-Demand Pay Survey Methodology

We posted three sets of virtually identical job postings on the same online recruitment website to measure the difference in applicant behavior for jobs that offered daily pay versus weekly pay. The ads were posted in large cities across the United States (New York City, Chicago, Seattle, & San Francisco). In all cases, we ran the ads for the same duration of time.

 

More details about these tests can be found in the appendix below.

 

 

On-Demand Pay Survey Results

Jobs offering daily pay received 1.9 times more applications than identical positions offering only weekly pay. While it is not
surprising that the daily pay ad garnered more interest, we were surprised that is was almost twice as much.


On average, applicants were willing to take a 13% pay reduction for the job that paid daily versus the job that paid weekly.

 

We posted two signing-bonus jobs: weekly pay with X-amount bonus, and the same job with daily pay but half the X-amount signing bonus. To our surprise, the lower-bonus job received 1.5 times more applications.

More details about these results can be found in the appendix below.

 

 

Appendix

 

Test 1:

Daily vs. Weekly Pay

Test 2:

Daily Pay with Lower Wages

vs.

Weekly Pay

Test 3:

Daily Pay with Lower Signing Bonus

vs.

Weekly Pay

Purpose To determine the difference in number of applicants for jobs with weekly pay versus daily pay. To determine the difference in payroll cost for jobs with weekly pay versus daily pay. To determine difference in signing bonus accepted for jobs with weekly pay versus daily pay.
Test Methodology Two ads for identical jobs posted: (i) offered weekly pay and (ii) offered daily pay. Multiple ads for identical jobs posted: (i) offered weekly pay at an average competitive wage and (ii) offered daily pay at a below average wage. Two ads for identical jobs posted: (i) offered weekly pay with a signing bonus and (ii) offered daily pay with half the signing bonus.
Region New York

Test 1 - Caregivers

  • Chicago

Test 2 - Trash Collection

  • Seattle

Test 3 - Professional Cleaners

  • New York City

Test 4 - Delivery Drivers

  • New York City
San Francisco
Duration 3 Days

Test 1 - Caregivers

  • 5 Days

Test 2 - Trash Collection

  • 2 Days

Test 3 - Professional Cleaners

  • 2 Days

Test 4 - Delivery Drivers

  • 2 Days
7 Days
Conclusion Applicants are 1.93 times more likely to sign up for the same job that offers daily pay versus weekly pay.

On average, applicants are willing to take 13% less pay for a job that offers weekly payments versus daily pay.

 

Test 1 - Caregivers

  • Applicants are 1.1 times more likely to apply for a caregiver job with 3% less pay if the job offers daily pay versus weekly pay.

Test 2 - Trash Collection

  • Applicants are 3.5 times more likely to apply for a trash collection job with 7% less pay if the job offers daily pay versus weekly pay.

Test 3 - Professional Cleaners

  • Applicants are 4.5 times more likely to apply for a cleaning job with 13% less pay if the job offers daily pay versus weekly pay.

Test 4 - Delivery Drivers

  • Applicants are 2.5 times more likely to apply for a caregiver job with 25% less pay if the job offers daily pay versus weekly pay.
Applicants are 1.5 times more likely to apply for a delivery job with 50% less signing bonus if the job offers daily pay versus weekly pay.

Written by Megan Wells

Megan Wells is a data journalist and content strategist based in San Francisco, California. Wells' work has appeared on Fox, Nasdaq, MSN, Motley Fool, and more. Wells also spoke at the 2015 Exceptional Women In Publishing conference.


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