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Fulfilling Retail Workforces with Financial Wellbeing

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A Sector of OpportunityThe retail sector is the single largest employer in the UK compared to any other private sector. One in every ten people in the UK works in retail1. As such, the sector is vital to the UK economy. In 2018 alone the sector generated £381 billion worth of sales2.

Retail is a sector of opportunity. Ambitious workers can join the ranks of high profile

companies within the nation’s 319,000 retail businesses with the prospect of working

their way up through a range of fulfilling roles.

Yet, despite the plentiful opportunities that retail presents, the

sector has a problem with maintaining a stable workforce across seasonal peaks.

1. https://www.telegraph.co.uk/business/tips-for-the-future/future-of-retail/2. https://www.retaileconomics.co.uk/library-retail-stats-and-facts

“Retailers are competing in a marketplace today where consumers’ expectations of the customer experience are elevated beyond simply finding and getting a product. The human element in retail is the most important factor in attracting customers and driving sales in-store, not product.”

Pamela N. Danziger, author, researcher and expert on

consumers and retail, writing in Forbes

Largest private sector employer in the UK

One in every 10 people work in retail

319,000 retail business in the UK

£381 billion in sales in 2018

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The Challenge: Maintaining a Stable Workforce Across Seasonal Peaks From conversations with many retail businesses, Hastee Pay understands the challenges of maintaining a stable workforce. Retailers are reliant on shift workers who regularly rotate jobs in search of higher pay and faster progression opportunities.

They also contend with low engagement from workers

– this problem becomes bigger with the size of the business

(we’ll explore the reasons for low engagement in a couple of

pages). All of this contributes to staffing issues in the sector,

restricting consistent staffing and customer service across

those seasonal peaks.

In 2016 the National Living Wage (NLW) increased hourly

rates to at least £7.83 for workers aged 25+. This is a

significant sum for retailers considering wages make up a

significant proportion of operating costs.

Salary increases are not the sole solution to reducing staff

turnover and promoting engagement in retail. The problem

isn’t necessarily how much retailers pay workers, it’s how

workers access their pay. The retail industry needs a solution

that can transform their image from stopgap employers to

destination employers.

'Destination Employer'

An organisation widely believed to be at the top of its game and considered the ultimate

destination for career driven workers; an organisation where people should want to

stay for much of their career.

Low engagement and high staff turnover

Staff TurnoverRequirement for consistent staffing and service

Recruitment and Engagement

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What WorkersWant

How do retailers increase recruitment, retention and engagement? The sector can

overcome these challenges by understanding workers’ problems and providing

workplace benefits solutions that help to address them. One of the biggest

challenges facing workers at all levels is financial stress and retailers can help alleviate

this with solutions that require no additional budget.

Hastee Pay’s Workplace Wellbeing Study revealed that the majority of workers

(78%) use high cost credit options between pay days. High cost credit options

include credit cards, overdrafts and payday loans. This means workers who might

already be stressed about their finances could be placing themselves into greater

financial burden by using high cost cost credit options every month.

Last year it was reported that one third of the UK’s middle classes would be unable

to pay an unanticipated bill of £500 or more without resorting to borrowing.

Meanwhile, workers earning less than £20k are the least likely to clear their personal

finance debts each month. It’s clear to see how easy it can be for workers to lose

control of their finances and find themselves in the dangerous debt cycle.

Due to the nature of the sector, retail workers are more embedded in consumerism

than workers in other sectors, working in environments that encourage people to

spend.They could be among the most likely to lose control of their finances,

without the right support.

From conversations with many retail businesses, Hastee Pay understands the challenges of maintaining a stable workforce. Retailers are reliant on shift workers who regularly rotate jobs in search of higher pay and faster progression opportunities.

78% of retail workers use high cost credit options

78%

One third of the UK’s middle classes would be unable to pay an

unanticipated bill of £500

32% of workers have been too short of funds to get to work

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What WorkersWantThe Business Impact of Financially Burdened Workers

It’s not just workers that suffer from financial burden.

Businesses suffer too. 32% of workers have been too short

of funds to get to work after having to cover an unexpected

expense. Calling in sick or borrowing from a high cost credit

source is often the only feasible solution for workers in this

situation or missing work all together, impacting the business

further.

At work, one in four people struggle to concentrate when

thinking about their finances while one in five have wasted

working hours dealing with repayments. In a retail environment,

such actions can negatively impact customer experience. In

turn, this can impact profit margins. A positive experience

with retail staff increases customer satisfaction by 33%3 –

that figure rises to 70% for fashion retailers – so it’s in retailers’

best interests to help staff remain happy and engaged.

3. http://info.inmoment.com/rs/463-JAW-587/images/InMoment_Report_RetailTrends_Nov2017.pdf

One in four people struggle to concentrate when thinking

about their finances

A positive retail experience increases customer satisfaction by 33%

33%

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The On Demand SolutionEmployers are placing more and more focus on workforce wellness including stress management, nutrition and fitness, but financial wellbeing needs to be part of the wellness agenda.

New payment technologies for customers are constantly

emerging, such as smartphone payments and checkout-free

stores. But retailers can also innovate in the way they pay their

staff. It’s time to give retail staff something they’ll value and that

is Earnings on Demand.

Earnings on Demand is a simple and ethical way to allow workers a fair opportunity to manage their personal finances. It’s available at zero cost to the employer, has no impact on business cash flow and integration is fast, simple and hassle free.

To protect workers, the early pay limit is capped to 50% of the month’s salary. Retailers can cap this further. For workers, it’s a straightforward, responsible and discreet way to access funds that belong to them without relying on dangerous borrowing or waiting for pay day. By adding Earnings on Demand to your wellbeing benefits package, you can increase and retain workers and be perceived as a destination employer.

'Earnings on Demand'

Earnings on Demand is a workplace benefit that tackles financial stress head-on. It’s not

lending – it’s allowing workers to access a portion of the money they’ve earned before pay day. They can do this through a handy

smartphone app which helps them manage their incomings with their outgoings. There is zero cost to employers and implementation is painless for payroll managers, with seamless integrations. By enabling access to a portion

of their earned pay, your workers have greater opportunity to balance their incoming with

their outgoing, avoiding high-cost borrowing just to get by.

Zero cost to employers Ethical and discreet for workers Hassle-free implementation

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Sign up today.It’ll cost you nothing and your staff will love you for it. hasteepay.com

Contact

hello@hasteepay.com

+44 (0) 207 199 8626

Thomas House, 84 Eccleston Square, Pimlico, London, SW1V 1PX, UK Hastee Pay Ltd is incorporated in England with number 10547122 and registered office at 15th Floor, 6 Bevis Marks, Bury Court, London, EC3A 7BA