MadRag × ChangeEngine

About MadRag

In retail, where turnover runs high and more than 60% of employees work beyond the desk, MadRag, a leading women’s fashion retailer with 1,000+ employees across 14 states, has built a people-first HR function that supports employees while protecting the business.

At the center of it is Ted Lazor, Director of Payroll, Benefits, and HR Compliance, who’s transforming his function into a true business driver—streamlining operations, strengthening retention, and ensuring every employee feels informed and connected.

“I’m big on compliance because I always like to watch out for the employees—but also find a balance with the business, and communicate those things. That’s really what ChangeEngine helps me do.” — Ted Lazor, Director of Payroll & Benefits

Challenges

• High turnover and dispersed workforce: Turnover rates averaging 34–37% across 14 states, with most employees part-time and in-store.
• State-by-state complexity: Different labor, payroll, and benefits regulations across all 14 states required precision and speed in communication.
• Hard-to-reach employees: Store staff didn’t always have reliable corporate email access, and messages often landed in spam.
• Manual, inconsistent communication: Before ChangeEngine, Ted relied on store managers to cascade updates, leading to missed or delayed messages.
• Urgent needs for emergency communication: Ensuring employees in hurricane-prone states were paid on time and informed of safety procedures.

“We have about a thousand employees across 14 states. How do you reach all of them? That’s the key. Especially those part-timers scattered throughout the U.S.—ChangeEngine solved that.” — Ted Lazor

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Solutions

• Multi-Channel Messaging (Email + SMS)
  Automated communications through email and text ensured every employee—especially frontline staff—received timely updates. Ted used text messages for hurricane preparedness and urgent payroll updates.

“If I see email open rates drop below 80%, I’ll switch to text. Everybody reads a text message real quick.”

• Automation for Payroll and Benefits
  • Earned Wage Access (Tapcheck): Automated reminders after new hires onboard drove participation to 37%, putting MadRag among the top five Tapcheck partners nationwide.
  • AFLAC Supplemental Benefits: Consistent reminders and education campaigns led to an 800% increase in enrollment, especially in states without temporary disability coverage.
  • Open Enrollment: Pre-launch messages and clear updates about plan changes enabled two consecutive years of no contribution increases for medical, dental, and vision.
  • Payroll Continuity: Automated texts to employees in hurricane-prone regions ensured zero missed paychecks during storms.
• Segmentation and Accountability
  Ted used ChangeEngine’s analytics to track who opened each message—and only followed up with those who hadn’t.

“We follow up just with the people who didn’t open it. That’s the key—you’re not spamming everyone, but you’re still making sure no one gets left behind.”

• Feedback and Education Loops
  Ted used surveys to collect employee questions about new benefits, then shared responses with all staff. This transparency built credibility and trust.
• Cross-Functional Team Use
  While Ted focuses on compliance, payroll, and benefits, his HR peers leverage ChangeEngine for onboarding, associate enablement, and training communications, ensuring a seamless employee experience.

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Impact

• 37% Earned Wage Access participation rate, among the top in retail.
• 800% increase in AFLAC enrollment, providing protection in states without TDI.
• Zero missed paychecks during hurricanes thanks to proactive, automated communication.
• Two consecutive years with no medical, dental, or vision contribution increases.
• Higher retention among employees using Tapcheck—Ted reports, “We’re pretty much keeping most of them.”
• Improved communication consistency: messages now bypass spam filters and reach every inbox.
• Time saved: Automated reminders replaced manual tracking, saving hours every pay cycle.

“ChangeEngine has been a big part of executing my programs. Without it, we wouldn’t have the participation we do today.”
“I love technology. You’d be a fool not to use a tool like this to communicate with your people.”

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