With the busy season fast approaching, logistics companies are gearing up for an expected surge in demand. One of the biggest challenges they face is attracting and retaining enough couriers to handle the increased workload. Offering On-demand Pay, or Early Wage Access (EWA), is a powerful benefit that can set companies apart and meet the urgent needs of their workforce.
As shown more in the press, large logistics companies such as Evri, are looking to recruit 9,000 more workers for peak season, and are introducing benefits with Onsi to help.
The need for more couriers
The busy season between October - December puts immense pressure on logistics operations (shown in the graph below). The need for timely deliveries spikes, and having a reliable workforce to match is crucial. However, the competition for hiring couriers also intensifies. Traditional benefits like retail discounts and gym memberships often do not address the immediate financial needs of couriers. On-demand pay, however, directly improves financial liquidity and offers a more meaningful benefit that workers genuinely want. Especially at a time of year when people often need access to money, to deal with additional season expenses.
On-demand Pay gives the financial stability couriers want
On-demand pay allows couriers to access a portion of their earnings before the traditional payday. This financial flexibility is highly attractive to workers who often live paycheck to paycheck and face unpredictable expenses.
Many workers in the logistics sector struggle with financial instability. Recent studies show that a significant portion of the workforce lives paycheck to paycheck, with minimal savings for emergencies. On-demand pay can alleviate this stress by providing immediate access to earned wages, reducing the need for high-interest loans.
Business Advantages
Introducing On-demand pay offers several benefits for logistics companies, particularly during peak seasons:
Enhanced recruitment: With the demand for couriers peaking, offering On-demand pay can make your company more attractive to job seekers. In fact, 79% of workers are willing to switch to a company that offers this benefit1
Improved retention: On-demand pay can significantly reduce turnover rates. 89% of workers are more likely to stay with a company that offers this benefit, ensuring you retain experienced couriers throughout the busy season2
Boosted productivity:
Fewer absences: Financial stress is a major cause of absenteeism. Providing financial flexibility through On-demand pay can reduce unplanned absences, with 74% of workers reporting fewer days off when they have access to this benefit3
Better performance: Financially secure employees are more focused and productive. Companies see a 42% improvement in job performance and customer service with On-demand pay4
Implement in time for October
Adopting On-demand Pay is simpler than many businesses assume, many of which even start by offering the benefit just for new couriers. Platforms like Onsi handle a large part of the process, from funding to delivery and even worker communication, ensuring minimal disruption to existing payroll systems and no impact on cash flow.
Conclusion
As the busy season approaches, logistics companies must find effective ways to attract and retain couriers. Offering On-demand pay is a strategic move that addresses the financial needs of workers, enhances recruitment, and boosts retention. Implementing this benefit can give your company a competitive edge, ensuring you are well-prepared for the seasonal surge.
For more information on how Onsi can help you implement on-demand pay, contact us at hello@onsi.com.
