Coborn’s gives workers access to on-demand compensation
- Coborn’s announced Thursday it now offers its workers the option to collect their pay as they earn it through a partnership between the grocery company and DailyPay.
- The new offering also gives employees the flexibility to pay bills, spend, save and invest, according to the announcement.
- The Midwestern grocer is rolling out the option at a time when food retailers are taking hiring and paying cues from the gig economy and looking for ways to give their employees more control over their earnings.
Overview of the dive:
Coborn’s partnership with DailyPay follows the grocer’s acquisition of Upper Midwest grocery chain Tadych’s Econofoods, which has expanded its workforce.
The deal, which was completed late last year, increased Coborn’s store count by approximately 10%, and Coborn said when the acquisition plans were announced that it would hire the some 800 Tadych employees. Today, the grocery business has nearly 9,300 employees and 66 grocery stores in Minnesota, North Dakota, South Dakota, Wisconsin and Michigan.
Dave Meyer, President and Chief Operating Officer of Coborn’ssaid in a statement that Daily Pay is a “significant improvement” to the grocer’s benefits package amid a challenging hiring landscape.
“We’ve been very impressed with the adoption rate our employees are experiencing with this new program,” Meyer said.
DailyPay already works with several companies, including Kroger, Dollar Tree, Berkshire Hathaway and staffing and recruiting firm Adecco. Businesses can use DailyPay as part of a financial wellness benefits package that helps workers avoid payday loans and overdraft fees, according to Coborn’s announcement.
Other companies in the grocery industry have also turned to instant payment programs. Last spring, Kroger said he rushed payment on demand for wages earned when the pandemic hit to help his associates.
Instacart, which launched instant pay for its employees in 2019, announced earlier this week that it had shortened the wait time for employees to collect tips after completing 24-hour order deliveries to two hours.