The Alternatives to Earned Wage Access
Earned Wage Access: Problem
Imagine that it's a week before payday and one of your employee’s cars breaks down. They need to get it repaired so they can get to work but, they don’t have enough money to cover this unexpected expense so late in the month. What are their options?
What if, like a third of all British adults, they don’t have a credit card and are already in their overdraft? You also don’t offer Earned Wage Access and a staff benefit.
Technically, their manager might have to power to give them an advance on their wage, but they’re too embarrassed to ask. They don’t want everyone at work to know they're struggling.
With no other choice, they might do what millions of UK workers do every year and apply for a payday loan.
Even though they only need the money for 7 days, payday loans have to be taken out for a minimum of 3 months: meaning your employee will pay hundreds of pounds in interest and, possibly a lot more if they do not make the repayments.
Sadly, their faulty car, combined with a lack of savings, could be the start of a downward financial spiral. At the very least, it's been expensive and stressful.
Earned Wage Access: Solution
Now, imagine instead that you offered Earned Wage Access. Instead, your employee could have accessed some of his earned income for a small, flat fee of just a few pounds. No interest, no embarrassing conversation with their manager and no risk of debt spiralling. And, with Level’s payroll savings feature, they could also start effortlessly putting money aside so they’re better prepared for the next unexpected expense.
