The Importance of Choosing the Right Payroll Provider in the Franchising Industry

As a business owner in the franchise industry, it can be daunting to learn the ins-and-outs of the payroll process, especially as your business grows. Finding the right payroll provider to help you run your business successfully is more crucial than ever.

By finding the provider who can best cater to your business, successful franchisors and franchisees can save time and money and allow themselves to focus on more significant tasks. 

Let's take a look at three examples of how choosing the right payroll provider can ease some of the common challenges faced by franchises today.

Attracting Top Talent With Earned Wage Access
Earned wage access refers to the ability for employees to access their earnings before a scheduled payday. Various research studies across numerous industries suggest the same idea - most US workers would appreciate instant access to their wages and be more interested in working for an employer that offers this feature. When Visa conducted a survey of 1,000 workers across various industries, the results showed two very telling takeaways:

• 89% of those surveyed said they would be more likely to stay at an employer longer if they offered earned wage access.
• 79% of workers in the survey said they would be willing to switch to employers who currently provide earned wage access.

For business owners who struggle to find reliable hourly workers, these statistics should be encouraging. Increased interest can result in more applications and a larger talent pool, and early access to earnings can increase employee satisfaction and lower turnover rates.

The Benefits of Tip Pooling
The idea behind tip pooling is simple: Combine all tips and evenly distribute them among hourly staff members to level the playing field and create a more fair work environment.

You can read about the full benefits of the tip pooling in this case study. With the help of our ReadyPay Today tool, Pepperjax was able to streamline daily tip pool calculations and allow employees instant access to both their wages for hours earned as well as all tips. Almost immediately, the chain observed concrete results primarily due to decreased time spent by managers on administrative tasks that had previously been done manually.

By using a payroll provider that offers tip pooling within their system, franchise owners can increase interest and employee satisfaction for positions such as cooks, dishwashers, and bussers who otherwise would be left with their base hourly wage, as well as for managers who no longer have to spend time tediously working on tip pooling by hand. 

Increase Retention Rates & Productivity Through Effective Onboarding
One of the most important aspects of running a successful franchise is implementing a straightforward, successful onboarding process. The statistics are there – strong onboarding leads to:

• 82% increase in retention rate
• 70% increase in employee productivity
• 60% year-over-year revenue improvement

Selecting a payroll provider that offers an engaging onboarding experience demonstrates to new hires that their employer has an organized plan to set them up for success while also allowing themselves to track metrics crucial to long-term business success, like retention rate and employee satisfaction.

In short, strong onboarding helps franchisees realize benefits such as enhanced productivity, increased employee engagement, and improved company culture, making employees feel more connected and loyal to their employer long-term.

Overview
Finding the right payroll provider can be an intimidating and time-consuming task, but it’s essential to a company’s success. 

By taking the time to select a payroll provider that fits your specific needs, franchisees and franchisors can save time, money, and stress while putting their business in prime position for long-term success. 

To learn more about how Proliant can improve your franchise’s payroll and HR systems, schedule a meeting today.