Good morning!
Companies that hire seasonal workers often have difficulty retaining them, and for good reason. Fluctuating hours can leave employees strapped for cash during the off-peak season, giving them no choice but to look elsewhere for work. But one company is introducing a new benefits program hoping to solve that.
Encore, an events company that specializes in corporate conferences, launched a digital “wallet” that can connect to individual bank accounts, created by HR tech company UKG, for employees to use at the start of this year. The wallet allows workers to access earned wages before payday, and save money accrued from working overtime hours for later use. Out of 12,000 employees, roughly 2,500 use the technology. And among that group, retention has increased by 14%, according to the company.
“Because the events business fluctuates, employees started asking for a way to get more stability around their income during periods of lower employment, which for us is June through August," Charlie Young, CHRO of Encore, told Fortune. “So we're educating them and teaching them that this is an opportunity to save money, to help you get through the slow times.”
Employees across the board are increasingly interested in financial wellbeing benefits, particularly after several years of high inflation. Help growing their savings, access to money during an emergency, managing debt, and help with student loans are all perks that employees say they want, according to a recent WTW survey. And with companies like Chipotle rolling out new methods to recruit and hire their seasonal workforce, we may see more overtime savings wallets like this in the future as companies try to tailor their perks to their employee base.
To encourage workers to sign up, Encore provides a $100 bonus to workers who contribute $500 or more to the account. Young adds that since the company’s workers tend to be on the younger side (with the average age hovering around 33 and 34), managing finances directly on their phones is an important part of the offering.
“We have a lot of highly technical people traveling all over the country, and they don't always have access to a computer,” says Young. “So having a benefit they can access right there on their phone is key.”
Brit Morse
brit.morse@fortune.com
Today's edition was curated by Emma Burleigh.
