A business cash advance can be used for numerous purposes, including making sure all employees are paid in full and on time. This obligation could be even more important in today’s business world, as a recent survey found that not only are workers in favor of increases to the minimum wage, but many businesses are as well.
A CareerBuilder Survey discovered that 62 percent of employers think the minimum wage in their state should be increased. This includes 58 percent of company senior leaders.
Data also shows 27 percent of employers are hiring minimum wage workers this year, including 51 percent of retailers and 58 percent of leisure and hospitality businesses. Of businesses that already employ minimum wage workers, 45 percent are hiring more now than during the pre-recession period.
Timely employee pay essential to retention
While paying employees for their work is one of the most basic duties of a business owner, there are times when businesses may find themselves short on cash reserves. It’s times like these that a business cash advance can be vital, especially as the cost of losing an employee can be high.
“Thirty case studies taken from the 11 most-relevant research papers on the costs of employee turnover demonstrate that it costs businesses about one-fifth of a worker’s salary to replace that worker,” stated the Center for American Progress.
This is due to a reduction in productivity, as well as the cost of hiring and training a new employee.
With that said, businesses would be wise to do everything they can to retain their current workforce. Paying employees on time is a vital part of this, and it’s a challenge businesses can overcome if they ensure they have the right amount of working capital on hand.
