What is Instant Pay, and why should dispensary owners and operators care?
In this article, we will explore the benefits of Instant Pay and why it's the talk of the town in the cannabis scene.
Instant Pay is a relatively new concept to hit the cannabis and service industries. And it's helping dispensary owners across the country stay competitive and retain more staff.
In the ever-evolving and competitive landscape of cannabis, hiring and retention are big-time challenges. So as a dispensary owner, it's crucial to stay current on the latest trends, enter Instant Pay.
In this article, learn more about this new phenomenon and why you should jump on the bandwagon as you read 5 reasons your dispensary should consider offering Instant Pay.
Before diving into why all dispensaries should be offering their employees Instant Pay, let's first explain what it is.
Also known as earned wage access (EWA), Instant Pay gives employees the ability to access their pay on-demand instead of waiting every two weeks (or whatever your dispensary's predetermined pay period may be).
Some of the industry-leading Instant Pay providers, including KOHO, provide free payroll benefits to dispensary employees, including the ability to cash out up to 50% of earned Pay for each workday on a daily basis.
Most typical dispensaries have payroll periods that process on a biweekly calendar, meaning employees are paid every two weeks for the work from the previous two weeks. Keeping this in mind, we'll draw up a very realistic scenario.
Imagine you have a part-time job as a budtender, and you just completed your shift for the day. Through Instant Pay services like KOHO, your employer can verify the hours you worked or your earned income, including non-cash tips (if applicable).
Once your employer has verified the information, you will gain immediate access to view and link those wages to your preferred payment method, all via the Instant Pay company's provided software (usually a phone app). You can then access your funds before your regular payday by having your bank account or other chosen payment method linked to the app.
As the industry expands and contracts quickly, employee and budtender turnover has increased. As a rule, hourly positions always tend to have higher turnover rates than their salaried counterparts.
Managing finances for hourly employees can be a struggle with such economic strife, especially if you're waiting two weeks for your next paycheck.
Considering all of that, providing employees with the option to pull their working funds before waiting for that paycheck means they have access to interest-free cash the lack of which might otherwise have sent them into further economic turmoil.
Fintech Instant Pay services, such as KOHO, are focusing their efforts to help swing the pendulum back in favor of the dispensary employees, in turn benefiting dispenssary owners and managers worldwide.
Here are 5 reasons why every dispensary should be offering Instant Pay.
Now, more than ever, employer perks and benefits are being scrutinized by the workforce, who currently have the upper hand in the relationship with such widespread demand of workers across the globe.
In addition to providing your employees with access to funds before their paychecks, Instant Pay services like KOHO have even more benefits to offer your team.
With KOHO, your employees can earn 0.5% cashback on all purchases, with the ability to earn up to 10% cashback for in-store or online purchases with KOHO partners. KOHO users can cash out their earnings in the mobile app whenever they're ready.
Anyone looking to improve or build credit scores can work with KOHO to take out a line of credit. But, don't worry, no heavy interest rates here. For $7 per month, KOHO will take out a line of credit, repay it on time, and help your employees build their credit history.
Employees can earn 1.2% interest on spending and savings accounts, in addition to the instant cashback with KOHO.
The KOHO mobile app and prepaid Visa credit card work together to help your employees stay on top of their money management through closer monitoring of their budget, spending, and saving.
The competition is fierce for dispensaries these days looking to hire quality staff. Owners and managers need to offer something unique to entice prospective employees to stand out from the others. In an industry that comprises almost entirely of hourly workers who don't get to cash in on salary benefits, having a service like Instant Pay can make all the difference.
Integrating an Instant Pay system, such as KOHO, will show that you care about your employees, but it will also help build upon your employee retention.
When it comes to employee moarle, great business owners know it's all about the little things.
Over the last couple of years, our service workers have been through enough. Constantly changing protocols and cutting down on staffing have taken its toll.
It's time to show your staff that you genuinely care about them and want to help them become more financially successful. With an Instant Pay app like KOHO, you can promote better money management within your team, with features such as building up a credit history, cashback promotions, and interest rates for savings and spending accounts.
Opting for a prepaid Visa solution like KOHO can be a big decision. After all, it is choosing a banking service. Ultimately, your prepaid credit card should be an attractive solution and a powerful tool for your employees. Here's how.
With the help of prepaid Visa cards and mobile app pairings, like KOHO, for Instant Pay, your employees can get on top of their money management. Since the average Canadian has nearly $73,000 of debt, it's clear to see that KOHO can become an invaluable tool for your restaurant workers.
Without damaging long-term credit, KOHO allows your employees to set up controls for smart budgeting, like automatic bill payments, automatic savings, and tracking of spending.
Some of the Instant Pay options out there might be limiting in terms of where they can be used. Thankfully, with KOHO, your employees will never have to face this issue because it is linked with a prepaid Visa card. Across Canada alone, Visa is accepted across 44,000 retailers, including most online retailers.
Non-sufficient fund (NSF) fees can be brutal for people already experiencing economic hardship as a result of the Covid-19 pandemic. The average NSF fee charged from financial institutions is $45!
Unlike other Instant Pay services out there, KOHO won't allow your employees to accrue any NSF fees. Instead of charging extra fees, KOHO won't allow the transaction to proceed if there are insufficient funds.
As the world continues to shift towards more digital transactions, it's time to bring that reality to your employees' payroll as well. Instant Pay services like KOHO will help to minimize any worries about surface-borne pathogens through contactless payments. As soon as funds are authorized from your end, employees can gain access right away through the convenience of the mobile KOHO app.
The average Canadian owes $8,600 in credit card bills at any given time. Owning a credit card is a massive responsibility for anyone, including your employees. Rather than contributing to potential long-term burdens to their credit, why not offer ways to help improve it?
The risk of any long-term adverse effects on credit is wholly eliminated with services like the prepaid Visa card offered by KOHO. Since employees are unable to accrue debt, you can help their financial literacy while building positive habits like living within their budget.
One of the most beneficial features of Instant Pay apps like KOHO is that the technology has evolved to be able to connect with your existing restaurant payroll system (like KayaPush payroll). This means that dispensary managers responsible for payroll processing won't add any more to your workload.
By staying on top of your daily payroll with a few clicks of a button on Push, you can immediately give your employees access to their daily work funds. Your employees can enjoy all the perks of KOHO at no added cost to your business or changes to your payroll process.
KOHO has been trusted by some of Canada's top employers, and it makes sense. At the end of the day, there truly is no downside to integrating your existing payroll system with an Instant Pay service like KOHO.
Offering a whole suite of money management tools, KOHO is a full-service account. Within the KOHO mobile app, employees can take advantage of automated savings features such as RoundUps and Saving Goals. Users can also earn interest on their entire account and cashback on every purchase. KOHO even offers a credit-building tool.
With all of the countless benefits for employees, the results for dispensary owners and operators are nearly limitless.
Looking for more ways to engage your existing staff and attract prospective employees can be challenging as a dispensary owner. So using an easy and mutually beneficial solution like Instant Pay, is a great win!
That sums up the 5 reasons why every dispensary should be offering Instant Pay.
Now, the only question for you is—what are you waiting for?
Are you looking for more great ways to retain great people at your dispensary?
Check out our budtender onboarding checklist for free below!