LOWELL, Mass. & WESTON, Fla.--(BUSINESS WIRE)--UKG, a leading provider of HR, payroll, workforce management, and culture solutions today announced that Encore, a global event technology and production services provider and Great Place To Work® Certified™ organization, is pioneering a first-of-its-kind ‘Overtime Savings Program’ in the U.S. with UKG technology to further provide financial wellness and stability to its frontline workforce.
For both Encore and UKG, business and employee retention are critical for outstanding service delivery. To further solve the earnings inconsistency caused by a seasonal industry and understanding the financial challenges and economic landscape across the U.S., together, the organizations innovated a solution in UKG Wallet™ — the UKG earned wage access and financial wellness platform — that allows frontline workers to save their hard-earned overtime pay for future need periods.
“Encore has always believed its team members are the heart of our story. This people-first mindset motivates us to constantly be evolving our team member experience and innovate around challenges, like the impact of seasonality, that the industry previously viewed as immutable,” said Ben Erwin, president and CEO of Encore.
Encore employs 12,000 team members who provide event technology and production services at 2,200 hotels and conference venues in 20 countries. The hospitality industry, like many service industries, experiences seasonal fluctuations, when workers’ hours fluctuate from ample overtime to fewer scheduled hours in off-season periods. The seasonality of the hospitality industry creates a challenge for workers looking for consistent earnings, as well as companies striving to retain talent.
According to a new global study by UKG of nearly 13,000 frontline employees and managers in 11 countries, pay and compensation is the single most important factor for frontline workers (31%) when choosing an employer. Additionally, financial wellness benefits were rated the most important factor by 19% of frontline workers. Encore’s Overtime Savings Program was created as a direct result of actively listening to employees’ challenges and feedback and, upon early launch of the program, usage increased 10 times over the prior year’s period.
“We established the program as another way to support our team members so that they can be at their best in delivering for our customers,” said Erwin. “With this innovation, they can better plan and save their premium overtime pay for periods of the year when they might not work as many hours. Providing this capability and funding a company-paid match for a portion of the savings should motivate financial wellness and enable them to continue to build their career with Encore. Team member reaction tells us we are on to something.”
A 15-year customer already leveraging the AI-powered UKG Pro® suite, Encore added the UKG Wallet solution to its UKG portfolio in 2023 to give people access to their wages when and where they need it, as well as financial wellness tools. Nearly 30% of Encore’s employees adopted UKG Wallet, and the organization provided $10 million in earned wages during the first year of deployment. The UKG Wallet platform has additionally increased employee retention at Encore by 14%, and the new offerings further underscore the organization’s commitment to being a Great Place To Work.
“Financial stress is not a problem isolated to our industry, it’s a stressor for nearly everyone,” said Charlie Young, chief human resources officer at Encore. “Nearly 70% of Americans are living paycheck to paycheck1 and Americans spent $9B in bank overdraft fees in 2023. The more we can do to reduce stress for our team members, the more focused they can be on our customers. We are successful in the event production business because of the unique combination of our technical expertise, hospitality mindset and ability to work under pressure and through challenges. Seasonal fluctuations are part of our business, but with a partner like UKG that understands every industry has unique challenges, we were able to innovate to support those unique needs to make our team members’ lives better.”
Encore’s success with UKG Wallet is just the latest in its history with UKG. During the COVID-19 pandemic, Encore leveraged people analytics in UKG to recover $48 million in tax credits and subsidies from the U.S. and Canadian governments, which it used to keep hundreds of employees on active status.
“Every industry is unique with its own set of challenges, which is why we are hyper-focused on constantly innovating to solve those specific pain points,” said Hugo Sarrazin, president, chief product and technology officer at UKG. “Whether those issues are related to recruitment, retention, scheduling, or pay, UKG technology is purpose-built to help every organization across every industry become a great place to work. Encore is proof that when people feel supported, they are inspired to do their best work which leads to better business outcomes.”
Supporting Resources
- Frontline workers are a critical park of the workforce. Read the game plan for crafting a strategy that prioritizes your people in support of better business outcomes.
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About UKG
At UKG, our purpose is people. We are on a mission to inspire every organization to become a great place to work through HCM technology built for all. More than 80,000 organizations across all sizes, industries, and geographies trust UKG HR, payroll, and workforce management, and culture cloud solutions to drive great workplace experiences and make better, more confident people and business decisions. With the world’s largest collection of people data, work data, and culture data combined with rich experience using artificial intelligence in the service of people, we connect culture insights with business outcomes to show what’s possible when organizations invest in their people. To learn more, visit ukg.com.
About Encore
Encore creates memorable experiences that engage and transform organizations. As the global leader for event production and technology, the Encore team of innovators and experts deliver real results through event strategy, design, technology, production and digital solutions. Encore operates in 20 countries across North America, Europe, the Middle East, Australia and Asia Pacific. It is the trusted partner of choice for more than 2,200 premiere hotels and venues worldwide, interacting with 25 million people annually. To learn more, visit encoreglobal.com.
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1 Forbes Advisor 2023 Survey: How Many Americans are Living Paycheck to Paycheck? https://www.forbes.com/advisor/banking/living-paycheck-to-paycheck-statistics-2024/
