For restaurant operators, chronic employee absenteeism has a number of pernicious impacts across the business. Frequent absences disrupt staffing, often leading to longer wait times, reduced service quality, and potentially missed customer orders. When employees are consistently asked to cover for absent colleagues, it can lead to increased workload, stress, and higher turnover rates.
One of the biggest factors driving absenteeism is financial instability. With the majority of American workers living paycheck-to-paycheck with many having no discernible savings, the ability to pay bills on time is becoming an insurmountable challenge. The reality is bills and payday don’t align. So to avoid paying exorbitant late fees, restaurant workers can be found calling in sick and driving an Uber or delivering Doordash to get the immediate cash needed to pay a bill on time.
Luckily, there is a solution. Many forward-thinking restaurant owners have discovered a way to drive employee retention and reduce employee absenteeism by offering a financial wellness benefit that empowers their employees with choice and control over their earned pay. So if they need to access their pay immediately, they don’t need to look elsewhere to do so.
By giving employees the ability to access their earned pay before payday, on-demand pay from DailyPay is helping restaurants reduce absenteeism, improve shift coverage, and boost retention—all without adding any extra costs or administrative burdens.
“The research shows that employees who are empowered with DailyPay call in sick less, pick up extra shifts, and are more engaged and productive,” says Phil Mark, Director of Franchise Business Development at DailyPay. “When a worker can clock out and immediately see what they’ve earned and how much is available to them, it changes their motivation. They see that an extra shift isn’t just ‘more hours’—it’s money accessible to them in real time.”
This leads to a critical shift in employee behavior that directly impacts staffing. A survey of QSR and fast-casual restaurant employees noted that about half (49 percent) would consider leaving their current employer for another employer that offers earned wage access, with 42 percent saying on-demand pay would be extremely or very important when looking for a new job.
Turnover is one of the most expensive challenges in the restaurant industry. Hiring, training, and onboarding a single hourly worker can cost thousands of dollars, and many locations are stuck in a constant cycle of recruiting, hiring, and replacing staff. According to Hanover Research, commissioned by DailyPay, restaurants implementing on-demand pay saw a 44 percent reduction in turnover. For a large franchise operation, that can translate to millions in saved rehiring and training costs.
“Offering DailyPay can make the difference between a job candidate choosing one employer over another,” Mark says. “It’s becoming a must-have benefit for frontline workers, and when operators offer it, they see the results in retention.”
Implementing DailyPay requires no changes to payroll processes and integrates directly with existing payroll and timekeeping platforms, making setup seamless and hassle-free.
“Five years ago, this was a nice-to-have. Now, it’s table stakes,” Mark says. “Operators who don’t offer on-demand pay are losing out on talent.”
To learn more, visit DailyPay’s website and discover how on-demand pay can transform your workforce strategy.
