Driving Operational Improvements: The Power of Embedded Earned Wage Access in Legion
October 4, 2023
by Matt Cromar
Adaptability and innovation have become cornerstones of today’s business environment for hourly employees. For employers, balancing operational efficiency with employee satisfaction can present significant challenges. Workforce management software (WFM) plays an integral role in this, and Legion is setting new standards by merging employee-centricity and intelligent automation.
Operational Metrics that Matter
At Legion, we are focused on improving operational metrics. Our WFM software suite not only captures dozens of data points for each hourly employee and each store location but our intelligent automation processes these data points and creates metrics that our customers can use to measure performance and improve their businesses.
For businesses employing hourly workers, specific operational metrics can make or break efficiency. Some of the most important metrics our customers focus on are:
- Schedule Accuracy: The ability to match the correct number of employees to the anticipated demand is vital. Overstaffing leads to higher costs, while understaffing can result in missed opportunities and poor customer experience.
- Timekeeping Accuracy: Ensuring employee punches align with scheduled shifts can save businesses from unnecessary overtime expenses and compliance issues.
- Employee Turnover: High turnover can result in increased training costs, loss of knowledge, and potential disruptions in operations.
- Employee Engagement: Engaged employees are more likely to be productive, committed, and loyal, leading to better overall performance and reduced turnover.
- Operational Costs: Efficient management of labor costs, overtime, and other associated expenses can significantly impact a company’s bottom line.
The Impact of EWA on Operational Metrics
Earned Wage Access (EWA) is a game-changer. It offers employees the flexibility to access their earned wages before their traditional payday. But why embed EWA in WFM software, and how does it enhance operational metrics?
The embedded connection between daily timesheet approvals and access to earned wages shows how companies can impact operational metrics by implementing Legion InstantPay. We looked at key metrics around “clock hygiene” for one of our customers who has implemented InstantPay. Here is what we found:
Figure 1: Improvements in Clock-in Behavior
Before Legion InstantPay, these users were, on average, 26 minutes late to clock into their shifts. After Legion InstantPay was implemented, the same users were only 8 minutes late. The users quickly realized that timesheets are approved faster when they match the shift on the schedule.
We also wanted to see how employees who use Legion InstantPay compared to those who have not opted in to use the service. A Legion customer reports that InstantPay users have 72% better clock-in performance than non-users. This metric, combined with direct feedback from the employee base, demonstrates that InstantPay users have realized that when their timesheet hours match their scheduled hours, approvals are automated, and wages are made available almost instantaneously after finishing a shift.
While WFM software is generally not part of the recruitment process, more companies are advertising EWA as a key benefit to attract new workers. With Legion WFM embedded with InstantPay, workers discover this benefit and sign up on their first day of work. Our data shows that new hires who join after InstantPay is turned on in WFM are signing up at a rate of 4 times that of existing employees.
Figure 2: Improvements in Hiring
Offering EWA demonstrates a company’s commitment to the financial well-being of its employees. This boost in morale translates to higher productivity and engagement, directly impacting the company’s operational metrics positively. One way our customers see better engagement is through shift fulfillment.
Legion WFM enables intelligent automation to create the right shifts for hourly employees based on when and where they can work. As the work week progresses, shifts open up for various reasons, including callouts and changes in forecasts, which might increase demand. To account for this, Legion helps to manage the process of filling open shifts. When looking at shift offer claims, companies with EWA typically see an 18% increase in open shift fulfillment:
Figure 3: Improvements in Shift Uptake
Legion’s Unique Benefits Across the Organization
Legion’s WFM software isn’t just another tool in the market; it’s an advanced solution designed to enable the intelligent automation of labor operations. With embedded EWA, everyone stands to gain from the inherent advantages of Legion WFM. Some additional metrics that companies can expect to realize include:
Increased financial wellness, improved ability to budget, and reduced financial stress¹
- 77% use flexible pay to pay for daily expenses
- 28% of people use EWA to replicate a weekly pay cycle
- 68% see their financial situation improve
Improved operational control and organizational stability
- Fill open shifts 18% faster
- Incentivize clock hygiene
- 16% reduction in team turnover
HR and Payroll Benefits
Reduced support, onboarding, and training costs
- 27% faster recruitment
- 16% increase in retention and reduced training costs
- 40% reduction in payday inquiries
In a rapidly evolving business landscape, companies that prioritize both operational efficiency and employee satisfaction are poised for success. Legion’s WFM software is a testament to what’s possible when innovation meets necessity. By embedding EWA directly within its software, Legion offers businesses an unparalleled advantage, allowing them to improve operational metrics while simultaneously enhancing their employees’ financial well-being. In the end, it’s a win-win for all parties involved. To learn more, sign up for a demo of Legion InstantPay today.
¹Data sourced from over 900 companies listing on indeed.com