Capita
How On-Demand Pay helped Capita cut staff turnover among users by more than half, saving hundreds of thousands of pounds in year one.
The challenge: an industry with staff turnover double the UK average
Annual staff turnover in the customer management sector is twice the UK average, and replacing even a junior member of staff costs around £6,000 on average. In financial services call centres, replacement costs can be even higher because of the expensive vetting the industry requires.
Every person who leaves takes training, experience and customer knowledge with them. For a large employer like Capita, reducing that churn has a direct effect on costs, service quality and team morale.
“This has had a real impact on us as an organisation.”
Scott Hill, Chief People Officer & Board Member, Capita
The solution: On-Demand Pay
On-Demand Pay lets employees access a portion of the pay they’ve already earned before payday, straight from an app on their phone. It isn’t a loan: there’s no interest and no credit check, because employees are drawing on money they’ve already worked for. Anything they access is simply deducted from their next pay packet, so payroll carries on as normal.
Capita offered On-Demand Pay alongside payroll savings and budgeting tools, giving employees a joined-up way to handle unexpected costs, build a savings buffer and plan ahead.
The results: turnover cut by more than half
After 12 months, Capita’s internal data showed that staff who used On-Demand Pay left at less than half the rate of those who didn’t. That reduction saved Capita hundreds of thousands of pounds in the first year alone.
The financial support continued to drive higher engagement and loyalty through the 2022 cost-of-living crisis, when many employees were facing rising bills and squeezed budgets.
Why it matters
In high-turnover sectors, the cost of losing people adds up quickly. A benefit that helps employees manage money worries without turning to costly credit can make staff more likely to stay, and that makes a measurable difference to the bottom line.
This case study describes On-Demand Pay delivered by our partner, Level. My Money Matters did not work directly with Capita. It is shared with Level’s permission.