How Earned Wage Access Could Benefit Your Company

Introduction

In the dynamic world of HR and employee benefits, staying ahead of the curve with innovative solutions is crucial. One such solution that's making waves is Earned Wage Access (EWA), also referred to as On-Demand Pay. Earned Wage Access can significantly transform both employee satisfaction and overall company performance. Let’s firstly look at what Earned Wage Access is, and then identify the company benefits which can be achieved from it:

What is Earned Wage Access?

Earned Wage Access allows employees to access a portion of their earned wages before the traditional payday. Rather than waiting for the end of the month or fortnight, employees can tap into their earnings as they accumulate.

Learn more about Level’s On-Demand Pay here:

Benefits of EWA for Your Company

By improving and supporting your employee’s personal financial wellbeing, many companies see business benefits too. Let’s take a look at some of these:

1. Enhanced Employee Satisfaction

When employees have the flexibility to access their wages as needed, it directly impacts their financial wellbeing. This reduces stress and enhances overall job satisfaction, leading to happier and more productive employees. The BBC recently reported on research which found that saving small amounts increases people’s sleep.

2. Improved Employee Retention

Financial stress is a common reason for job dissatisfaction and high turnover rates. By offering Earned Wage Access, companies can show they care about their employees' financial health, which in turn fosters loyalty and reduces the likelihood of employees seeking other job opportunities. For example, as a result of introducing Level, Capita saw 50% lower staff turnover. To read more, see below:

3. Attract Top Talent

In a competitive job market, offering innovative benefits like Earned Wage Access can set your company apart. Potential employees are increasingly valuing financial wellness programs, with 9/10 of workers wanting On-Demand Pay. Earned Wage Access can be a significant draw for top talent to your organisation.

Mentor introduced Level which resulted in a reduction of unfilled shifts by 62%.

4. Increased Productivity

Financial stress can severely impact an employee's focus and productivity. With Earned Wage Access, employees can resolve financial issues more promptly, allowing them to concentrate better on their work. This results in higher productivity levels across the board.

5. Reduced Absenteeism

Employees who face financial difficulties are more likely to be distracted or miss work. Earned Wage Access provides them with a safety net, enabling them to manage unexpected expenses without the stress that can lead to absenteeism. Companies which have introduced Level have experienced up to 13% less absenteeism.

6. Cost-Effective Solution

Unlike traditional payday loans or advances, Earned Wage Access is a more cost-effective solution for both employees and employers. It eliminates the need for expensive loan services, providing a financially sound alternative that benefits everyone involved, and removes the additional time cost of manual advances.

Conclusion

Implementing Earned Wage Access is more than just a financial benefit; it's a strategic move that can enhance your company's culture, improve employee satisfaction, and boost overall productivity. If you’re interested in learning how Earned Wage Access can fit into your company's benefits program, book a consultation with our experts today.

By integrating EWA into your benefits package, you're not just improving the financial health of your employees—you're investing in the future success of your company.