Empowering Employees: Why HR Professionals Should Consider Earned Wage Access
Introduction
In today’s fast-paced world, financial stress is an increasing concern for many employees. From unexpected medical expenses to urgent car repairs, the need for quick access to earned wages can be a game-changer. Enter Earned Wage Access (EWA), also known as On-Demand Pay, an innovative solution that allows employees to access a portion of their earned wages before their scheduled payday. For HR professionals, payroll managers, and company decision-makers, considering Earned Wage Access can not only empower your workforce but also enhance overall company productivity.
What is Earned Wage Access?
Earned Wage Access is a financial service that enables employees to withdraw a portion of their earned, but unpaid wages. Instead of waiting for the traditional payday, employees can access their funds as they earn them, typically through a mobile app or an online platform. This flexibility can provide immediate financial stress relief, helping employees manage their finances more effectively.
Click here to watch a view demo for On-Demand Pay.
Benefits of Earned Wage Access
1. Reduces Financial Stress
Financial instability is a significant source of stress for many employees. By offering Earned Wage Access, or On-Demand Pay, companies can help alleviate this stress, allowing employees to focus better on their work. Reduced financial stress can lead to improved mental health, decreased absenteeism, and higher job satisfaction.
2. Enhances Employee Retention
Employees are more likely to stay with a company that demonstrates care for their well-being. Providing Earned Wage Access as a benefit can make your company more attractive and foster loyalty among employees. It shows that the organisation values their financial health, which can significantly boost morale and retention rates.
3. Improves Productivity
When employees are not distracted by financial worries, they can be more engaged and productive at work. With easy access to their earned wages, employees can better manage their personal finances, leading to fewer distractions and a more focused, efficient workforce.
4. Attracts Top Talent
In a competitive job market, offering unique benefits like Earned Wage Access can set your company apart. Top talent often looks for employers who provide comprehensive benefits packages. By including Earned Wage Access, you can attract skilled professionals who value financial flexibility and security.
5. Cost-Effective Solution
Implementing On-Demand Pay can be a cost-effective solution for companies. Many Earned Wage Access providers integrate seamlessly with existing payroll systems, reducing the administrative burden on HR and payroll departments. Furthermore, the potential reduction in turnover and increased productivity can provide a significant return on investment.
How to Implement Earned Wage Access
1. Research Providers
There are several Earned Wage Access providers available, each with different features and integration capabilities. Research and select a provider that aligns with your company’s needs and values, and is the best fit for your organisation. It's essential to understand the fee structures involved and the certifications held by providers, as some might differ.
One such certification that is a must, is membership of the ‘Earned Wage Access Code of Practice’. We strongly advise that you only consider working with providers that adhere to this code. Luckily, Level is a co-founder and a member of the first cohort to be independently assessed against the commitments laid out within it.
2. Ensure Integration
Ensure that the Earned Wage Access provider you choose can integrate smoothly with your existing payroll and HR systems. Seamless integration is crucial for minimizing disruption and ensuring a smooth implementation process.
Level is already integrated with lots of payroll and HR systems (see here for integrations). If you don’t see the technology you use on this list, don’t worry! Our dedicated technical team can work to integrate Level with your provider.
3. Communicate Benefits
Clearly communicate the benefits of Earned Wage Access to your employees. Where appropriate, provide informational materials to help them understand how to access and use the service effectively. Once onboarded, Level can help provide you with these communications, to ensure your employees are well-informed.
4. Monitor and Adjust
After implementing Earned Wage Access, continuously monitor its impact on employee satisfaction and productivity. Collect feedback from employees to make necessary adjustments and improvements.
Conclusion
Earned Wage Access, or On-Demand Pay, is more than just a financial benefit; it is a powerful tool for empowering employees and fostering a healthier, more productive workforce. By considering Earned Wage Access, HR professionals, payroll managers, and company decision-makers can demonstrate their commitment to employee well-being, reduce financial stress, and create a more engaged and loyal team.
Ready to empower your employees and transform your workplace? Explore how Level can be your Earned Wage Access provider today, and see the positive impact we can have on your organisation.