Podcast Summary: B2B Agility™ with Greg Kihlström – Episode #18: Employee Experience as Competitive Edge with Nico Simko, Clair
Introduction
In Episode #18 of the B2B Agility™ podcast, host Greg Kilstrom delves into the critical role of employee experience in gaining a competitive edge. The episode features Nico Simko, Founder and CEO of Claire, a company dedicated to enhancing financial wellness for employees. The discussion centers on how financial wellness benefits, particularly on-demand pay solutions like Claire, are transforming employee satisfaction, retention, and overall business performance in high-demand sectors such as retail and hospitality.
Background of Nico Simko and the Founding of Claire
Greg Kilstrom opens the conversation by welcoming Nico Simko back to the show, highlighting his previous appearance over a year ago. He prompts Nico to share the inspiration behind founding Claire and the company’s mission.
Key Points:
- Origins of Claire: Nico explains that his experience as an economics tutor during college exposed him to the inefficiencies of traditional payroll systems, such as delayed payments via physical checks.
- Inspiration from Uber Money: Witnessing Uber’s introduction of instant payment solutions spurred Nico to create a similar service accessible to all businesses across the United States.
- Mission: Claire aims to provide medium to large-sized businesses, as well as small mom-and-pop shops, with on-demand pay solutions to improve financial wellness for their employees.
Notable Quote:
Nico Simko [03:05]: "From there on, I kind of didn't do anything for five years. But when Uber came out with Uber Money, I was like, someone needs to invent this concept for the rest of the US Economy."
Financial Wellness Benefits in High-Demand Sectors
Greg shifts the focus to the significance of financial wellness benefits in industries characterized by high demand and seasonality, such as retail and hospitality. He emphasizes the dual benefits of these programs in employee satisfaction and business competitiveness.
Key Points:
- Talent Wars: High-demand sectors face intense competition for talent, exacerbated by the COVID-19 pandemic.
- Competitive Edge: Offering on-demand pay is a strategic advantage for attracting and retaining employees.
- Stress Reduction: Financial stress is a leading cause of anxiety among workers, affecting their productivity and job satisfaction.
Notable Quote:
Nico Simko [04:45]: "The number one cause of stress in the United States is financial stress. So ultimately the thing you want to do is help them with that."
Benefits of Reducing Financial Stress for Employees and Companies
The discussion explores how alleviating financial stress through solutions like Claire leads to tangible benefits for both employees and employers.
Key Points:
- Employee Attendance: Financially secure employees are less likely to miss work or seek additional gig jobs to make ends meet.
- Productivity and Focus: When employees are not preoccupied with financial worries, their focus and productivity at work improve.
- Long-Term Financial Health: Over time, employees using Claire take fewer wage advances, allowing them to save and plan better financially.
Notable Quotes:
Nico Simko [06:29]: "I think specific example is we've seen in our application that people come for wage advances... but as they've been with us for about a month, two months, they take less and less wage advance, which is a great thing."
Nico Simko [07:51]: "Employees’ minds are on work, and they're focused because they're paying their bills on time and putting a little bit away for a rainy day."
On-Demand Pay and Its Impact on End Customers
Greg inquires about how on-demand pay benefits extend to the end customers of the businesses implementing these financial wellness solutions.
Key Points:
- Quality of Service: Happier and less stressed employees are more likely to provide exceptional customer service.
- Self-Fulfilling Prophecy: A positive work environment leads employees to take greater care in their roles, benefiting the company's products and services.
Notable Quote:
Nico Simko [09:00]: "Treat your employees the best way possible because in return they will treat your customers the best way possible."
How Claire Works
Nico provides an overview of Claire’s operational model, detailing how employers and employees interact with the platform.
Key Points:
- Integration with Payroll Systems: Employees discover Claire through their payroll systems, managers, or in-office materials like QR codes.
- User Experience: Upon clocking out, employees can access a portion of their paycheck immediately if they choose to sign up for Claire’s FlexPay option.
- Financial Empowerment: Claire enables employees to manage their finances more effectively, reducing reliance on high-interest wage advances and improving savings habits.
Notable Quote:
Nico Simko [11:34]: "They sign up, they get at least a portion of their paycheck every month. We don't force them to. Absolutely not."
Outcomes for Companies Using Claire
The conversation highlights the positive outcomes experienced by companies that implement Claire’s solutions.
Key Points:
- Differentiation in the Job Market: Offering on-demand pay sets employers apart from competitors.
- Employee Retention: Enhanced financial benefits encourage employees to stay longer with their employers.
- Reduced Absenteeism: Financial stability leads to fewer instances of employees needing to leave work unexpectedly for additional income.
Notable Quote:
Nico Simko [12:46]: "They can be differentiated when they hire people and they can convince people to come work at their place instead of the place across the street."
Generational Differences and Workforce Expectations
Greg and Nico discuss the evolving expectations of different generations in the workforce, particularly the entrance of Gen Z, and how employers can meet these expectations.
Key Points:
- Common Needs Across Generations: Despite perceived differences, fundamental needs such as financial security and a supportive work environment are universal.
- Cultural Fit: Building a strong, mission-driven culture is crucial for retaining employees across all age groups.
- Technology and Flexibility: Leveraging modern workforce management solutions enhances employee experience and satisfaction.
Notable Quotes:
Nico Simko [14:08]: "Gen Z is, at the end of the day... they are looking for the same stuff as we all do. Right. They're looking for something aspirational, but they also want to make a living."
Nico Simko [17:31]: "A lot of it applies and I think that also means you got to treat the Gen Z... the same way you treat everybody else."
Future of Financial Wellness and Employee Benefits
Looking ahead, Nico shares his vision for the future of financial wellness and employee benefits, emphasizing the integration of banking and employment.
Key Points:
- Banking as an Employer Asset: Nico predicts that traditional banking relationships will be seen as liabilities unless they are integrated with employment-related financial services.
- Enhanced Financial Services: Future employee benefits will likely include better access to credit, pre-tax benefits, and comprehensive financial planning tools tied directly to employment.
- Holistic Approach: Combining financial wellness with other aspects of employee experience will become standard practice for forward-thinking businesses.
Notable Quote:
Nico Simko [19:52]: "I think it's time to bring financial services back to the world of employment."
Conclusion
Greg Kilstrom wraps up the episode by thanking Nico Simko for his insights and encouraging listeners to explore more about Claire’s approach to financial wellness. He underscores the importance of subscribing and rating the podcast for continued access to valuable discussions on B2B marketing and employee experience.
Notable Quote:
Greg Kilstrom [21:27]: "Until next time, stay focused and stay agile."
Final Thoughts
This episode of B2B Agility™ provides a comprehensive look into how financial wellness benefits, specifically on-demand pay solutions like Claire, serve as a strategic tool for enhancing employee experience. By addressing financial stress, companies can foster a more productive, satisfied, and loyal workforce, ultimately driving better business outcomes and superior customer service.