Did you know…
78% of Americans are living paycheck to paycheck, and
44% have less than $500 saved for expenses?
A rising trend among employers to help ease their employees’ financial burdens is to implement solutions that enable employees to access earnings outside of the traditional payroll timetable. Earned wage access (EWA) is one such solution. This approach allows employees the ability to access their wages promptly through pay cards and digital wallets without disrupting business operations. This not only benefits the employees but also enables employers to enhance the overall employee experience. In fact, 95% of employees would be interested in working for an employer that provides EWA.
Benefits of Earned Wage Access for Employees:
Financial Flexibility
EWA enables workers to retrieve wages before the next scheduled payday. This access is crucial for handling unexpected expenses like medical bills or car repairs without resorting to costly loans or credit card debt. It also helps in avoiding overdraft fees by ensuring employees have funds when needed.
Reduced Stress
Financial stability is closely tied to mental well-being, and the ability to access earned wages can alleviate anxiety about meeting financial commitments. It empowers employees to take control of their finances, leading to a more positive mindset.
Better Work-Life Balance
Employees can attend to personal matters without the stress of waiting for payday, enhancing their productivity at work. This benefit extends to reduced dependence on payday loans with steep interest rates, breaking cycles of debt.
Benefits of Earned Wage Access for Employers:
Boost Retention and Recruitment
Companies that offer this benefit demonstrate care for their employees’ financial health. This helps with attracting and retaining top talent. It also contributes to a fairer workplace, promoting equality and appreciation for employees’ hard work.
More Productive Workforce
When workers have access to their wages, they are less distracted by financial worries and can concentrate better on their tasks. This can result in higher efficiency and output across the organization.
Streamline HR Processes
EWA reduces the need for manual payroll advances or responding to inquiries about pay. This saves time and resources, allowing HR teams to focus on more strategic initiatives.
Cost Savings
Finally, and perhaps most importantly, with improved retention rates and increased productivity, organizations can see a positive impact on their bottom line.
Is it Right for Your Business?
EWA can benefit a wide range of companies, but certain industries may find it particularly advantageous, particularly those where employees often face financial challenges due to irregular work schedules, hourly wages, or high turnover rates. These industries include retail and hospitality, service, healthcare, manufacturing and construction, and education.
To learn more about EWA and how it can potentially benefit your company, schedule a call with us.
