The Link Between Earned Wage Access and Shift Filling: Latest Insights
Unfilled shifts can be a source of frustration for employees, managers, and customers alike. Whether it’s a restaurant scrambling to cover a busy Friday night or a care home unable to staff essential services, the ripple effects of unstaffed time slots are wide-reaching. But what if a simple solution like Earned Wage Access (EWA) could help organisations tackle this issue head-on?
The Hidden Costs of Unfilled Shifts
Unfilled shifts don’t just result in short-term disruption. The longer they’re left unresolved, the deeper the impact on a business's operations, finances, and reputation. Here’s where the true costs lie:
Impact on the Quality of Service
When shifts go unfilled, businesses often rely heavily on the remaining staff to pick up the slack. This can lead to:
Overworked employees, resulting in errors or burnout
Reduced customer satisfaction due to slower response times or lower service standards
A hit to a company's reputation, as consistent understaffing sends the message that the business is unreliable or poorly managed
For industries like healthcare, hospitality, and logistics, unfilled shifts can mean failing to meet critical demands. A care facility without adequate coverage, for example, risks compromising patient safety, while a hotel short on staff might miss key guest service benchmarks.
Cost of Hiring Expensive Agency Workers
Many organisations turn to agencies or temp services to address staffing shortages. While this approach can be effective in the short term, the costs quickly add up:
Agency staff often charge premium rates compared to regular employees
Businesses must invest time and effort in onboarding temporary workers who may lack familiarity with company processes and culture
Over-reliance on agency workers can result in significant financial strain, eating into profit margins
Negative Impact on Team Dynamics and Morale
When a workforce experiences recurring staffing shortages, it doesn’t just affect their workload. Morale can take a nosedive as employees feel unsupported or undervalued. This in turn increases absenteeism and turnover rates, further exacerbating the staffing problem.
Clearly, solving the issue of unfilled shifts is vital. Could Earned Wage Access hold the solution?
What is Earned Wage Access?
Earned Wage Access (EWA) is a financial solution that allows employees to access a portion of their earned wages before their scheduled payday. Unlike traditional payroll cycles, which often delay compensation by weeks, Earned Wage Access provides workers with flexible access to the money they’ve already earned.
Earned Wage Access is rapidly gaining popularity across industries because of its dual benefits:
For Employees: It enhances financial flexibility, reducing reliance on loans or overdraft fees.
For Employers: It stands out as an engaging benefit that attracts talent and reduces staff turnover. But how does this help with unfilled shifts?
How Does Earned Wage Access Incentivise Shift Uptake?
Offering flexibility in wage access doesn’t just help employees manage their finances. It can actively encourage them to pick up more shifts, filling gaps and reducing operational issues. Here’s why:
Making Overtime More Appealing
For many workers, the decision to take on extra hours boils down to one question, “When will I see that money?”
Traditional pay cycles, where employees have to wait weeks to be compensated for overtime, sometimes discourage them from taking on the extra shifts.
When employees know they can access their earnings immediately after completing a shift, the appeal of taking on additional work increases significantly.
For businesses, this means there’s suddenly a larger pool of workers willing to step up during peak times or staffing shortages. This saves on last-minute agency fees and ensures shifts are staffed with employees who are already familiar with company standards.
Boosting Motivation for Hard-to-Fill Shifts
Certain shifts, like late nights, weekends, or holiday cover, are notoriously difficult to fill. Earned Wage Access can provide added motivation where needed:
Employees working less desirable hours can see the immediate financial impact of their efforts.
Companies can use Earned Wage Access as an additional perk for these shifts, effectively sweetening the pot without needing drastic wage increases.
Real-Life Success Stories
Level’s clients have been able to reduce the number of unfilled shifts by up to 62% by introducing Earned Wage Access.
Read more about Level’s case studies here.
Next Steps to Enhanced Workforce Management
Unfilled shifts are a challenge for businesses across all industries, but especially in retail, hospitality and care. Solutions like Earned Wage Access are changing the game. By empowering employees with faster access to their earnings, companies can unlock a wealth of benefits, from reduced costs to happier, more motivated staff.
If your organisation is grappling with the costs of unfilled shifts, it’s time to act. Explore how Earned Wage Access can transform your workforce management strategy and create a win-win for your employees and your bottom line.