Author: Jason Lee, CEO of DailyPay
Greater New York, USA: Employee turnover is an enormous cost for the amusement park industry. According to the SHRM, it costs over $4,000 to replace a single employee. The countless hours and resources spent on recruiting, training, outfitting, and on boarding new employees – only to see that employee quit in one month – is staggering.
My company works with the world’s largest water and theme park resort Mt. Olympus in Wisconsin Dells. Together, we have implemented a novel approach to retain their valued employees while improving their lives. How did they combat the problem of employee retention? The answer was simple… they enabled their employees to get paid instantly, without having to wait on their bi-weekly paychecks.
The Wisconsin Dells, known to many as the water park capital of the world,has several theme parks in the area, making staffing a constant struggle. With 44 water slides, 4 rollercoasters, 7 Go-Kart Tracks, and full-service hotel, motel & camping cabin facilities, Mt. Olympus is no stranger to the importance of consistent staffing. The industry has its staffing challenges: parks are largely seasonal, workers are mostly paid hourly with variable shifts, and the competition for qualified hires is fierce. All of this can result in high levels of turnover, which impacts bottom line profits.
In January, Mt. Olympus decided to work with my technology company DailyPay to tackle the problem of turnover, while also improving the lives of their team members.
How does it work?With a tap of a button, a Mt. Olympus employee can access his earned, but unpaid wages on-demand before payday.This enables the employee to pay his bills on time, make rent, and importantly avoid late fees.
The onboarding process was simple and free for Mt. Olympus. DailyPay’s technology bolts on to any existing payroll system so there’s no change to a company’s current payroll company and process. When employees request money, DailyPay funds those payments off of its own balance sheet, and does not require the company to pre-fund any payroll dollars. The company simply runs payroll as it normally would week to week with no change to its timing of funds. Importantly, there are no transaction fees to the company. The employee pays a small transfer fee each time he requests funds.
To date, DailyPay has advanced earnings to several Mt. Olympus’ staff and we have seen a 100% retention rate for both seasonal and non-seasonal employees on DailyPay since the implementation. In this and other cases, we have observed that when employees are able to attain financial security at a job, they stay longer.
Beth Boyce, Chief Financial Officer of Mt. Olympus said, “We brought on DailyPay to improve the lives of our employees, while the company benefits from those employees staying longer.”
Consistent with their leadership in the industry, Mt. Olympus is one of the first theme parks in the nation to implement instant payouts, but we believe many other theme parks will follow. Given the importance of reliable staffing and lower turnover, we predict more theme parks – and hospitality companies broadly – will consider adding this to their human resource toolkit.
About Jason Lee
Jason is Founder and CEO of DailyPay, a technology company that integrates with a company’s payroll system to offer employees the ability to receive their earned but unpaid wages instantly and directly into their bank accounts. DailyPay works with industries such as amusement parks, cleaning, transportation, hospitality, and logistics to reduce their employee turnover and expand recruiting.
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