Q&A: Rebuilding employee trust after layoffs
Jeanniey Walden, CIMO at DailyPay, shares some thoughts on how employers can reassure their workers during these chaotic times.
In the months since the COVID-19 pandemic took root in the United States, there are very few facets of life that have not been fundamentally altered. Some changes have been welcome, such as the embrace of remote work and digital tools, while others have been harder to adjust to (see masking and social distancing).
Businesses, in particular, have had to face some difficult choices as demand and supply chains have been interrupted. But, like everything else, those that survive this pandemic will be those that are willing and able to pivot and adapt to a new reality.
Related: An agile workforce will be key to success post-pandemic
Jeanniey Walden, chief innovation and marketing officer at DailyPay, recently shared some thoughts with BenefitsPRO on how employers can reassure their workers and offer the resources and support they need to weather the pandemic.
How has the economy recovered so far from the initial outbreak of COVID-19 and what do you foresee happening during a second wave?
The economy was on track to recover from COVID-19 until the second wave hit sooner than expected. While there was a gradual uptick in numbers when life came to a halt back in March, recent spikes across the country have stalled progress.
According to DailyPay’s Rehire America Index, which tracks hire rates in key industries that were affected by COVID-19, quick-service restaurants and supermarkets are two industries that have seen a double-digit growth rate in rehires since May. But nothing surpasses consumer services, which has seen an 89% increase from May 18 to July 26.
As the waves come and go, there will continue to be severe economic implications that will impact businesses, families, and ultimately the economy. There isn’t a single business that hasn’t suffered in some sort of way during COVID-19. As a result, many companies have had to readjust and shift their focus and strategies. However, being able to pivot and do something about it is what will differentiate tomorrow’s leaders.
With many workers being brought back as a result of reopening states, how can employers rebuild trust with their employees after previously laying them off?
Employers need to focus on financial solutions that offer employees access to their pay to help get them back on their feet. This is how you rebuild trust after the complications of layoffs and furloughs, as virtually every compensation option has been employed during the pandemic.
Employees are looking for companies they can trust with their personal and financial well-being. A recent survey found that 1 out of 6 people looking for a job are now seeking an employer who offers an on-demand benefit. Having access to money as you earn it creates a sense of trust and validation, a powerful agreement between two parties, an employer and employee, to return value in response to receiving value.
What are some ways employers can motivate their workforce when layoffs are still possible?
Transparency is key to making staff feel comfortable during these uncertain times. Employees realize we are all in this together. Providing constant and specific feedback, emphasizing their value to the company, and creating opportunities that are focused on physical and mental health will help assure employees that they are top priority.
Maintaining productivity has proven to be a challenge for employees amid the pandemic, so a leadership team should be providing workers with benefits that help keep teams motivated and focused, like an on-demand pay benefit. Flexibility is no longer a convenience, it is an absolute necessity.
How can employers address employees’ fear of losing their jobs?
Employers need to make sure their employees know the “virtual door” is always open for questions or concerns. In a situation of high tension and fear of potential layoffs, employers need to openly, and frequently, communicate the current financial situation and the trajectory of the company. Over-communication can also prevent assumptions and strengthen trust between the employer and employee.
Employers should also urge their employees to save and plan for their future. DailyPay launched a survey recently where they learned that 51% of people said they are more likely to save for the future as opposed to 15% who stated they were less likely to save. For many, this marks the first time that they have embarked on a personal savings initiative, as 65% of those surveyed said they don’t have any type of savings account and 41% stated they almost never put money away for the future.
What types of resources can employers offer their employees to help them remain financially stable in the midst of a pandemic?
Companies need to prioritize wellness programs for employees, like mindfulness training, activities to boost morale and financial wellness training. In order to educate and prepare employees for financial emergencies, employers need to get savvy with creative benefits, like on-demand pay.
Amid the pandemic, when and how fast employees get their pay has never been more important. Empowering employees with access to their own funds transforms payday from transactional and cold to a powerful experience not just for employees, but for their families as well. Many Americans have found themselves financially trapped with funds insufficient to pay their bills under the traditional payroll system. As many households find themselves depending on one source of income during COVID-19, an on-demand pay benefit became a must-have tool for survival. It is with this benefit that employees are able to pay bills and put food on the table.
What can employers do to show their employees the value in saving a part of their paycheck?
Employers should be offering money management materials that dive into the importance of financial literacy, demonstrating the clear benefits for both organizations and workers. As employers look to rehire, leveraging your company’s financial programs to new candidates during the hiring process is an added bonus.
Along with providing educational financial learning resources, companies should equip their employees with saving tools. For example, DailyPay launched an innovative savings tool that elevates the employee experience while simultaneously encouraging saving, called SAVE. Users can earmark money each day or each week to send directly into a bank account with this new function.
Another benefit that many companies should offer is a retirement plan. With many businesses offering to match a certain amount of savings employees put in, workers are more encouraged to put their funds into a retirement account.
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