A new technology solution claims to give hospitality workers "complete control" over when they get paid.
The software, produced by global tech firm Fourth in partnership with Wagestream, allows employees to withdraw pay they have earned up to a given point, including tips, at any time during any month.
The solution aims to improve the financial health of employees – as well as assisting in the high churn rate of workers in the industry, and the associated training costs for pubs, especially for back of house roles such as chefs.
Currently, hospitality workers are mainly paid National Living Wage on a four-week cycle, but the new system will allow employees to see how much they have earned through shift work on the app – and have instant access to the cash when they need it.
The system allows for employees to typically access around 30 to 40 per cent of their pay ahead of the normal pay date – with the only cost a £1.75 transaction fee, and no additional interest charges on early payment.
For the employer, the system works by all payments being facilitated by Wagestream, with normal monthly pay cycles overseen by Fourth, meaning there is no impact on the standard payroll process or company cash flow.
Fourth also believe the system will encourage workers to do more shifts – as when they can see their payment easily on the app, it will incentivise additional shifts to bulk up wages and buy consumer items.
Ben Hood, CEO at Fourth, said: "Hospitality employees will now have more control over their cash flow, removing one-off payment pinch points to reduce the negative impact of financial stress and predatory pay day loan companies, and giving the opportunity to work an extra shift on a Friday to be able to buy the latest Nike trainers being released the next day."
"This will make a fundamental difference to the lives of thousands of workers, in doing so generating a more motivated workforce, while reducing sick day frequency and creating a tangible point of difference in attracting and retaining the best staff – particularly amongst millennials and centennials who demand autonomy and control."
Peter Briffett, CEO at Wagestream, added: "This move will further encourage all employers in the industry to put the financial and mental wellness of their staff firmly at the top of the agenda."