Small businesses face a pivotal moment in how they engage with their frontline employees, according to a new report by DailyPay and Workday. The study, titled “The Frontline Worker Expectation Gap,” reveals a widening chasm between what these workers expect in terms of schedule flexibility, pay transparency, and digital tools, and what they actually receive from their employers. Understanding these dynamics is crucial for small businesses seeking to attract and retain talent in an increasingly competitive job market.
Frontline workers—the backbone of many small businesses—are reevaluating their employment decisions based on financial realities and perceived employer support. The report indicates that a staggering 78% of frontline workers consider the costs of commuting, childcare, and other expenses before accepting shifts. Nearly half (46%) report borrowing money between pay periods, showcasing the pressure many face. With almost 70% monitoring their pay after each shift, it’s clear that financial clarity is a priority.
The findings highlight three critical gaps: autonomy, transparency, and access to digital tools. The survey shows that while 72% of frontline workers value control over their schedules, only 51% are satisfied with what they have. Similarly, despite nearly 90% prioritizing pay clarity, only 57% feel they achieve this with their current employer. The mismatch extends to technology—70% want better mobile tools, yet only 53% are content with what they currently have.
Andrew Brandman, COO of DailyPay, emphasizes the urgency of bridging these gaps: “Employee expectations regarding their time, money, and jobs have evolved. Yet, the systems supporting them haven’t kept pace. As employers look to close the gap, they’re also positioning themselves to have a competitive advantage in hiring and retention.”
For small business owners, the implications are significant. Recruiting efforts can be enhanced if employers recognize the importance of scheduling. The report reveals that 45% of frontline workers cite their schedules as a top reason for accepting a job. To retain talent, access to on-demand pay is pivotal; 77% of frontline workers indicated that this benefit influences their choice between job offers. Investing in technology that aids productivity is equally important, with 36% stating that digital tools enhance their efficiency.
Josh Secrest, Vice President of Paradox at Workday, adds another layer of insight: “Frontline workers want tools that make their daily lives easier, not more complex. Employers won’t solve retention issues with piecemeal technology. When you bring scheduling, pay clarity, and frontline support together on one intuitive platform, you are able to build trust with your teams while helping your business thrive.”
Despite these insights, many frontline workers—over half—do not anticipate any changes from their employers to address these gaps. This disengagement poses a challenge for small businesses that wish to foster an inclusive and responsive workplace environment.
Additionally, navigating the basic challenges of implementing these changes can be daunting. Small businesses often operate with limited resources and may struggle with the upfront costs of integrating new digital tools or pay systems. The potential transition to more flexible scheduling may also require a cultural shift within the organization, necessitating training and support for management teams.
However, the long-term benefits of closing the expectation gap could outweigh the initial hurdles. By offering greater autonomy, transparent pay structures, and the right digital tools, small businesses can cultivate a loyal workforce. This, in turn, not only fulfills operational needs but also positions the business as an attractive option in a competitive job market.
As the workplace landscape continues to evolve, small business owners must prioritize understanding and meeting the expectations of their frontline workers. Fostering an environment that emphasizes flexibility, clarity, and appropriate tools can lead to improved employee satisfaction, enhanced retention rates, and ultimately, a thriving business.
To delve deeper into the findings, you can access the complete report at DailyPay’s resource center here. For further information about DailyPay and Workday, visit their respective websites at DailyPay and Workday.
Image via Google Gemini
