Fourth, the leading global software partner for the leisure and hospitality industry, has partnered with Wagestream in a ground-breaking move that will combine their technologies to give hospitality workers complete control over when they get paid. Simply put, employees can withdraw the pay they have earned up to that point, including tips, at any time during any month.
The exclusive partnership demonstrates the companies’ commitment to supporting the hospitality industry, in a revolutionary move that will improve the financial health and welfare of employees; while reducing the churn rate of workers and associated training costs in the current competitive environment – particularly important for back-of-house roles, such as chefs.
Considering a recent survey stated nearly half of employees stressed about finances are distracted at work, and that staff who worry about finances are twice as likely to miss work, according to the PWC Employment Financial Wellness Survey, May 2018. This latest move will clearly alleviate financial strain and mental stress on hospitality workers – who are often paid the National Living Wage in four-week cycles – for situations where they would have previously relied on predatory pay-day loan companies.
Under the agreement, employees will be able to see the total amount of money they have earned in a month via an easily-navigable app, and will have instant access to their pay, whenever they need it. Employees are typically able to access 30-40% of their pay ahead of their monthly payment date. There will be no interest charge for accessing their pay just a £1.75 administration fee per transaction, regardless of amount, which can be paid by the employee or the employer.
By cohesively streamlining technologies, all payments facilitated by Wagestream are deducted from the normal monthly pay cycle overseen by Fourth, meaning there is no impact to the normal payroll process or company cash flow.
Ben Hood, CEO at Fourth, commented, “Hospitality employees will now have more control over their cash flow, removing one-off payment pinch points to reduce the negative impact of financial stress and predatory pay day loan companies, and giving the opportunity to work an extra shift on a Friday to be able to buy the latest Nike trainers being released the next day – the power of this cannot be underestimated.
“This will make a fundamental difference to the lives of thousands of workers, in doing so generating a more motivated workforce, while reducing sick day frequency and creating a tangible point of difference in attracting and retaining the best staff – particularly amongst millennials and centennials who demand autonomy and control. This is the future of payment and we’re delighted to be at the forefront.”
Peter Briffett, CEO at Wagestream, added, “I firmly believe this partnership will have a long lasting and material impact on the financial health of UK hospitality workers, who have been prayed on for too long by greedy pay-day loan companies. This move will further encourage all employers in the industry to put the financial and mental wellness of their staff firmly at the top of the agenda.”