Employee turnover is a major issue for most grocery retailers—one that stands to cost businesses thousands of dollars per exiting employee. And with annual turnover rates averaging 69% (NGA), it’s a bit like trying to fill a bathtub without plugging the drain.
Traditional retention strategies like benefits packages and career advancement are great, but often don’t get to the root of the problem. The truth is, many employees are leaving their positions due to financial strain.
This is where financial wage access comes in. In industries like grocery retail, financial wellness programs can help companies attract, support, and retain one of their most important assets—their employees.
Let’s take a closer look at how.
The high cost of grocery retail turnover
High turnover industries like grocery retail face a unique challenge when it comes to employee attrition. Recruiting and training new employees is a time-consuming and expensive process. Doing so frequently can put undue strain on an organization and its culture.
According to a study conducted by the Center for American Progress, the cost of replacing employees earning less than $30,000 a year is equal to approximately 16% of the worker’s annual salary. At up to $50,000 annually, the cost is slightly higher, at 20% of the annual salary.
When multiplied across a store, and then, a company, these costs can significantly impact profitability in an industry already operating on thin financial boundaries.
But to properly address this issue, we first must understand why employees leave in the first place. The answer? Finances.
While there may be other considerations behind leaving a job, a majority of retail employees report dissatisfaction with their paycheck and/or payment policies. Among employees who recently quit their jobs, 54% cited unfair pay practices. Of those considering leaving, 56% said low pay would be among the top reasons they’d make a departure (LotisBlue).
Understanding the financial challenges of grocery workers
Grocery employees face unique financial challenges, as many work hourly jobs with unpredictable schedules that make it difficult to budget for monthly expenses. When you add in the additional strain of traditional biweekly payroll, you’ve got a recipe for stress.
Imagine this: you work 40 hours in the first week of the pay period, but are only scheduled for 25 in the second. Either way, you have to wait two weeks to get paid for any of it. Then, if an unexpected expense like a car repair or family emergency comes up, waiting for payday may just feel impossible.
The fact is, the traditional pay cycle was designed with salaried workers with predictable expenses in mind. This often fails to meet the unique needs of hourly retail workers. And this financial stress doesn’t just stay at home; it follows employees to work, too, and can impact attendance, performance, and ultimately, retention.
The promise of faster wage access
Now, instead of the previous scenario, picture this: an employee works their usual shifts Monday through Wednesday and is able to access part of their paycheck by Thursday, rather than waiting until the following Friday.
Here’s how it works:
- Payday, on-demand: Employees can access earnings for hours they’ve already worked, usually through a mobile app—whether it’s payday or not.
- Seamless integration: Wage access systems usually integrate directly into existing payroll platforms, so there’s little to no interruption.
- Immediate relief: Retail workers gain the financial flexibility they need to succeed at work and at home at any time in the pay cycle.
It’s not just about convenience—it’s about giving employees the financial breathing room they need to show up as their best selves at work.
Marqeta's banking & money movement solutions
Marqeta's banking & money movement platform lays the foundation for empowering grocery workers with financial wellness tools to help them succeed. By enabling real-time payment processing, instant fund transfers, and frictionless integration with existing payroll systems, it provides the backbone for innovative wage access programs.
Here’s how Marqeta makes it happen:
- Rapid fund movement: Once wages are calculated, Marqeta's infrastructure enables immediate transfer of funds to employee accounts, dramatically reducing the typical delays associated with payment processing.
- Effortless integration: The platform smoothly connects with existing payroll, HR, and banking systems, allowing retailers to roll out wage access programs without overhauling their current setup.
- Compliance and security: Built-in compliance features help ensure that wage access programs meet regulatory requirements while safeguarding every financial transaction.
Building comprehensive financial wellness programs
Faster paydays are only the beginning when it comes to employee financial wellness. To truly address turnover issues, grocery retailers should begin to think bigger.
Here’s what this could look like:
- Financial education: Tools and resources to help employees budget, save, and plan for their futures.
- Emergency savings programs: Structured plans to help workers build a financial safety net.
- Personalized financial counseling: Access to experts who can guide employees through topics like debt management and long-term financial planning.
- Integrated financial tools: Mobile apps that combine wage access, budgeting tools, savings programs, and educational resources in one platform that employees can conveniently access.
Implementation strategies for grocery retailers
Introducing faster wage access and financial wellness programs doesn’t have to be overly complicated.
Here’s how to get started:
- Choose the right tech: Look for products that seamlessly integrate with your existing payroll systems.
- Educate your team: Make sure employees understand how to use any new tools and the benefits they offer.
- Start small: Rome wasn’t built in a day. It’s okay to start with a small pilot program to test the waters, gather feedback, and tailor your approach.
- Set clear policies: Establish how often employees can access wages, any associated fees, and other details.
Measuring success
How do you know your hard work is paying off? Keep an eye on these key metrics:
- Turnover rates: The first 90 days will be critical here. A drop in turnover in this time period is a strong indicator that your program is working.
- Employee satisfaction: Regular surveys can help determine how your team feels about both their financial wellness and experience on the job.
- Absenteeism: As we’ve mentioned, financial stress often leads to unplanned absences. This number going down is another win.
- Cost savings: Compare the total cost of your programs to the savings from your reduced turnover and boosted productivity.
The future of grocery retail retention
The grocery industry is at a pivotal moment. Traditional retention strategies aren’t cutting it anymore, but wage access and financial wellness programs offer a new way forward. By tackling the root causes of employee financial stress, retailers can build a stronger, more satisfied workforce—and that’s a win for everyone.
At the end of the day, it’s not just about keeping employees—it’s about helping empower them to thrive at work and beyond. And when your team thrives, so does your business.
Ready to take the first step?
Get in touch today to learn more about how faster wage access can help transform your employee retention strategy.
