Archie Heaton is Head of Growth at Level and here reveals how Hilton & Village Hotels Boost Staff Retention With On-Demand Pay.

With inflation high and union strikes dominating the headlines, many employers are naturally worried about what they can afford to pay their workers. Despite good intentions, the current economic climate is making it almost impossible to match the expectations many workers have for pay rises. In the hotel sector, where staff turnover remains an enormous challenge, this mismatch is causing even greater concern.

However, what you pay is only part of the puzzle – when you pay matters as well. By approaching this from a different angle, employers like Village Hotels and Hilton – as well as many other employers like Tesco, the NHS and Capita – are taking steps to reduce staff turnover and increase wellbeing by putting their employees in control of when they are paid. 

On-Demand Pay is a new technology that enables workers to access some of their earned income anyday they need, rather than having to wait until payday. This provides a debt-free solution for dealing with unexpected expenses and helps solve personal cashflow issues. 

Interestingly, many of the operators offering this service have almost eliminated unfilled shifts. While they haven’t increased their hourly rate of pay, by compensating overtime immediately, they have made the link between work and reward much clearer. This incentivises overtime with a more tangible reward, without increasing the wage bill.

Perhaps most innovatively of all, new technology now enables this in a way that doesn’t impact the payroll systems and cashflow of employers. Payroll simply runs as usual, and everything else is handled automatically by the On-Demand Pay provider. 

With On-Demand Pay already commonplace in America and many British sectors like retail, in addition to its recent launch at hotel giant Hilton, the technology feels increasingly inevitable for hotel operators, both big and small. The hope is that, as well as supporting staff through this awful cost-of-living crisis, innovative technology like this might finally help crack the high turnover that’s plagued the UK hotel industry for decades.