Independent grocery chain Supabarn has become the first supermarket in Australia to offer workers immediate access to their earned wages as a rush of retail stores look to new ways of attracting retail staff, amid dire labour shortages in the sector. 

Over the past four months alone, payroll technology platform Paytime has seen a 600% surge in enquiries for its offering, which allows employees access to a portion of their earned pay before pay day. 

“In the US and UK this is already commonplace in the retail industry with stores like Foot Locker, KFC, McDonalds, Burger King, Pizza Hut and many more, already offering it to their staff,” says Steven Furman, Founder & CEO of Paytime.

“Stores are increasingly seeing the value in offering this to their team, both in attracting and retaining staff in a tight labour market,” says Furman.

“The days of employees having to wait for a fixed payday is quickly becoming redundant. Like having flexibility around work from home, employees, and especially millennials are demanding a solution that allows them to access a portion of their earned pay at anytime in the month. Its important that companies are aware that our solution is not a loan whatsoever, we are simply allowing staff to access what they have already earned. We are getting over 200 inquiries a week,” he says..

A just released independent survey of more than 1000 Australian workers, across retail, education, healthcare, manufacturing, mining and hospitality, found that 81% would like to have the opportunity to access their earned pay before payday.

The data also found that 83% also believed their mental wellbeing would improve if they could access their pay when it suits them and 72% would likely choose one employer over another if they offered early access to their earned wages.

Four benefits of offering staff access to their earned wages:

Protecting staff for unexpected expenses: If staff need money before they are next paid, due to the car breaking down, an unexpected medical expense or even if their CTP Greenslip falls due before payday, the only other option is credit cards, personal loans or payday loans.

Attracting and retaining staff: Waiting a week, a fortnight or even a month for one's pay is behind the times - employees now want access to what is already theirs.

Loyalty to the company: Studies show that when staff feel that the company they work for wants the best for them, they are more likely to do their best and less likely to look for another job.

Simple solution: The integration is simple,  the platform easily integrates with Payroll and Timekeeping systems utilising Application Programming Interface (API). Employees can typically withdraw 50-70% of their earned payand it is received within minutes into their bank account.

Free to the Employer: The solution is offered for free to the company (no implementation fee and no ongoing fees whatsoever). A small fixed withdrawal fee (think ATM fee equivalent), regardless of amount accessed, with no other fees and charges, is payable by the employee.

Supabarn owner Theo Koundouris says offering staff access to their earned wages helped attract talent and has seen quick uptake.

“It’s been hard to find staff with the absence of international student and visa holders the past few years. Now we’re looking for new, innovative ways of doing things to attract and retain our staff,” Koundouris says. 

“Half of our employees live paycheck to paycheck. In the first week we introduced it we had a huge uptake and very positive feedback,” he adds.

About Paytime

Paytime provides businesses with a free technology platform that allows employees the ability to access a portion of their earned pay at any time during the month. It plugs seamlessly into the company’s payroll software and accesses real-time information. It runs seamlessly in the background with no need to change payroll. There is also no effect on a company’s cash flow when staff access their pay, as Paytime funds these withdrawals on behalf of the company.

It’s not a payday loan,there is no percentage interest charged, there is no need to do credit checks as there is nothing for the employee to repay - employees can only access the money they’ve already earned. Steve Furman spent 25 years in private equity and advisory before coming up with the HR fintech solution after realising how many Australians are financially stressed, living paycheck to paycheck and their daily expenses simply do not match their periodic payday cycle.