It may seem odd, but mobile apps that allow employees to access their earnings every day instead of having to wait for payday are turning out to be helpful in reducing turnover.
The Society for Human Resource Management reports that the apps, which allow workers to access half the pay they earn in a day as a way to cover unexpected expenses and avoid pricey payday loans, are useful to companies in attracting and keeping employees in high-turnover jobs.
With the apps, pay is typically downloaded to debit cards, and taxes are deducted when workers get their final biweekly or weekly paycheck. For those using payday apps, most workers take only an average of $27 per early access to their money; in addition, it’s not something they do every day—maybe an average of two to three times per pay period.
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