Employee retention is a challenging task for employers, especially when it comes to keeping younger employees happy. Although you might be tempted to stock your break room with free snacks or add a foosball table to the office, these perks may not do much by way of retention. Many younger employees are looking for unique benefits, such as alternative payment methods, so offering other ways to get paid may boost your retention rates.
Recent college grads are especially attracted to alternative pay methods like paycards, although employers haven’t always targeted this group. Paycards were often used to target employees who don’t have their own bank accounts, such as those going through bankruptcy or divorce, or those dealing with financial or personal challenges. However, members of the later generations, including millennials and Gen Z are choosing not to have bank accounts, which adds to the appeal of an alternative pay method. A paycard gives this group of employees the flexibility to spend their paychecks as soon as they receive them without being tied down to a specific financial institution.