How Earned Wage Access is Proven to Make a Difference
In today's fast-paced world, financial stability is more important than ever, not just for employees but also for the organisations they work for. One groundbreaking solution that is gaining traction is Earned Wage Access (EWA). Earned Wage Access, also referred to as On-Demand Pay, allows employees to access a portion of their earned wages before their scheduled payday, providing a lifeline during financial emergencies.
But what do the numbers say? Let's explore the key benefits of Earned Wage Access and how it can make a significant difference for both employees and employers.
Key Benefits of Earned Wage Access
1. Boosts Financial Confidence
A staggering 88% of users feel more confident with their finances after adopting Earned Wage Access. This confidence doesn't just stay at home; it spills over into the workplace, leading to increased productivity and morale. When employees are more confident with and less stressed about their finances, they can focus better on their tasks and contribute more effectively to the organisation's goals.
2. Stabilises and Improves Financial Health
For 90% of UK employees, Earned Wage Access has either stabilised or improved their financial health. This is a game-changer in a country where financial insecurity is a significant concern. Stable finances mean fewer distractions and a more engaged workforce. When employees are financially secure, they are less likely to take unplanned leaves or be distracted at work, thereby contributing to a more stable and productive work environment.
3. Eliminates Short-term Debt
The impact of Earned Wage Access on short-term debt is nothing short of miraculous. 99% of short-term debt is eliminated for users who adopt this system. Imagine the relief of being free from payday loans or high-interest credit card debt. This not only improves the financial health of employees but also their mental wellbeing.
4. Improves Mental Health
Speaking of mental wellbeing, the correlation between financial stress and mental health is well-documented. Earned Wage Access users report significant improvements in their mental health, thanks to reduced financial stress. A mentally healthy workforce is more innovative, collaborative, and resilient, making it a win-win for both employees and employers.
Why Employers Should Care
Employers hold the key to unlocking these benefits for your employees. It all starts with including On-Demand Pay in your employee benefits package. And it’s not just the employees that benefit – there are tangible business benefits too. Implementing Earned Wage Access can lead to:
Higher Employee Retention: Financially secure employees are less likely to leave for another job, reducing turnover rates by up to 50%.
Increased Filled Shifts: Employees are much more likely to take on extra shifts or overtime if they know they will be able to access their earnings immediately after. This decreases unfilled shifts by 62%.
Reduced Absenteeism: Financially stressed employees are more likely to take time off work. Earned Wage Access can help reduce this absenteeism by 13%, leading to a more consistent and reliable workforce.
Enhanced Employer Reputation: Offering Earned Wage Access can make your company more attractive to top talent, helping you stand out in a competitive job market.
Conclusion
Earned Wage Access is not just a trend; it's a powerful tool that can transform the financial wellbeing of your employees and, in turn, improve your organisation's overall performance. With proven benefits like increased financial confidence, stabilised finances, eliminated short-term debt, and improved mental health, Earned Wage Access is a game-changer.
Don't miss out on the opportunity to make a positive impact on your workforce. Explore how Earned Wage Access can benefit your organisation today. By taking this step, you're not just improving the lives of your employees but also setting your organisation up for long-term success.