Employee turnover is costly and disruptive, affecting the bottom line of the business and impacting company culture. But two companies managed to significantly lower their turnover rates through a combination of strategies, each with a common goal: looking for good people and treating them well.
Pal’s Sudden Service: A Lesson in Rigorous Hiring and Training
Pal’s Sudden Service is a fast-food chain with locations in Tennessee and Virginia. Despite a zany exterior design and a menu full of off-the-wall versions on class drive-thru fare, Pal’s hiring strategy is no-joke. It focuses on attitude and cultural fit during a thorough interview process, which includes a 60-point psychometric survey to evaluate candidates.
High effort? Sure. High impact? Absolutely. Pal’s boasts an annual turnover rate of just 1.4 percent, significantly lower than average in an industry defined by turnover.
But hiring is just one piece of the puzzle. New employees at Pal’s undergo 120 hours of rigorous training, ensuring they are well-prepared for their roles. The company also emphasizes continuous learning, with regular retraining and recertification to maintain high standards of performance.
The result? Customers at Pal’s are treated to an average service time of just 18 seconds at the drive-up window, plus an error rate of just one in every 3,600 orders. For comparison, Taco Bell‘s average service time was 221 seconds (about 3 and a half minutes) and Chick-fil-A’s 325 seconds (about 5 and a half minutes) according to a 2022 QSR magazine report.
Jiffy Lube: Earned Wage Access in Action
Stonebriar Auto Services, a Jiffy Lube franchisee, operates 100 locations across the United States, from large cities in Texas to small towns in Wisconsin. With more than 800 employees, they faced a wide range of workforce needs when it came to payday.
The Challenge: Turnover in a Competitive Industry
The auto maintenance industry is no stranger to high turnover. For Stonebriar, employees often left for small pay differences or more flexible benefits. Technicians who were underbanked faced another challenge: receiving paper checks every two weeks and paying fees at check-cashing services.
Others struggled to wait until payday to cover routine expenses like rent or car payments, turning basic bills into financial emergencies.
The Solution: Tapcheck Earned Wage Access
Stonebriar turned to Tapcheck to give employees access to their earned wages on demand.
“I told Tapcheck that if they integrated with isolved, it's a done deal. I'm coming over. And sure enough, the team built the integration and we got everything up and running. I wanted it to be as hands-off as possible and I can say I'm happy with how everything has been.”
— Alan Barrington, Head of HR, Stonebriar Auto Services
Tapcheck’s integration with isolved made payroll seamless and hands-off, delivering the flexibility employees wanted without creating extra work for HR.
The Results: Strong Retention and Adoption
Tapcheck delivered measurable business impact for Stonebriar:
- 58% of employees hired in March 2024 who used Tapcheck remained with the company, compared to 12% who did not register
- $2.6 million in total transfers funded
- 43% employee registration rate
- 82% of users transferred funds in the last 30 days
Alan at Stonebriar also found Tapcheck to be one of the few no-cost benefits that delivered meaningful results.
“A recruiting or retention tool in today's world is a very valuable thing to have. And everything else, benefits or insurance or discounts, will cost the business money. This doesn't. It's one of the few valuable, no-cost to business benefits I've found.”
At a Glance: Stonebriar + Tapcheck
Why It Matters
Tapcheck helped Stonebriar address financial stress among its employees and build retention in a high-turnover industry. Alan realized employees could handle expenses like rent, car payments, and unexpected bills without turning to costly alternatives.
“Things came up, so just having Tapcheck as an option has helped a lot of people.”
FAQ
Does earned wage access really improve retention?
Yes. When employees can access their earned wages, they are less likely to leave for a competitor that does not offer the benefit. Employers that add Tapcheck often see measurable improvements in retention.
Will offering Tapcheck disrupt my payroll process?
No. Tapcheck integrates with 300+ payroll and timekeeping systems, keeping everything accurate and seamless without creating extra manual work for payroll teams.
What kind of adoption rates can I expect?
Employers typically see strong employee adoption. Most workers use Tapcheck at least once per month, and many rely on it regularly to manage expenses between paychecks.
Is there a cost to employers?
Tapcheck is free for employers. There are no setup fees, no ongoing costs, and no impact to your cash flow.
How do employees access their wages?
Employees download the Tapcheck app and can transfer a safe portion of their earned wages instantly or the next day. Each transfer is itemized on their pay stub for full transparency.
How Your Business Can Apply These Strategies
- Emphasize Cultural Fit in Hiring: Like Pal’s, businesses should prioritize cultural fit and attitude in their hiring processes. This approach ensures a cohesive work environment and aligns employees’ values with those of the company. One concrete way to apply this is to look at your current “perfect” employee for the role you’re hiring and determine the characteristics that make this employee great. Once that’s done, you’ll be able to hire new employees based on those characteristics.
- Offer Competitive Benefits and Career Growth Opportunities: Following the example of those two companies, businesses should consider offering a competitive range of benefits and opportunities for career advancement. This not only attracts talent but also encourages long-term commitment. While offering higher salaries isn’t always possible, one benefit that has been shown to reduce turnover is earned wage access (EWA), a tool that allows employees access to their wages after they finish their shift. Effectively, EWA allows employers to move to a daily pay schedule instead of weekly/bi-weekly. Tapcheck provides this benefit to employers and employees for free, if you’re an employer click here to learn more.
- Invest in Employee Training: While employers don’t need to go the length of creating a 60-step evaluation program like Pal’s, healthy training programs can lead to greater efficiency and employee satisfaction.
- Foster a Positive Work Environment: Both Pal’s and Jiffy Lube prioritize a positive and respectful work culture. Creating an environment where employees feel valued and respected is key to retaining talent. This could be on/off-site team bonding exercises, employee awards or simply making the workplace environment more comfortable to work in through practical benefits.
Pal’s Sudden Service and Jiffy Lube provide compelling examples of how businesses can effectively reduce high turnover rates. By focusing on rigorous hiring and training processes, offering strong benefits, and fostering a work culture that emphasizes autonomy and flexibility, companies can create an environment where employees are motivated to stay and contribute to long-term success.
Want a broader review of earned wage access to learn how it can impact your business? Visit our guide here.
Want to see how Tapcheck can help you stay competitive? Schedule a free demo.
