How to Choose the Right Earned Wage Access Solution for Your Business
In the modern workspace, Earned Wage Access (EWA) is revolutionising how employees interact with their pay. This innovative system, also known as On-Demand Pay, allows workers to access a portion of their earned wages before the regular payday, providing flexibility and support in times of unexpected financial need. For businesses in the United Kingdom, selecting the ideal Earned Wage Access solution is pivotal for ensuring smooth payroll operations and enhancing employee benefits. In this article, we'll explore how UK businesses can make the right choice.
Understanding Earned Wage Access
Earned Wage Access schemes have been gaining traction, offering a pragmatic alternative to traditional pay cycles. More than just a payroll convenience, Earned Wage Access is a powerful tool that can improve employee satisfaction, reduce financial stress, and improve overall workplace productivity. That's why 15% of all UK employers, and 30% of employers in some industries, now offer this solution to staff as a benefit.
Evaluating Employee Needs
When considering an Earned Wage Access solution for your UK business, understanding the financial needs and preferences of your employees is crucial. Conduct surveys or focus groups to grasp what employees value in an On-Demand Pay service. This can include the frequency of access to their wages, the amount they can withdraw, or the ease of use of the Earned Wage Access platform.
Regulatory Compliance
In the UK, payroll and employee benefits are subject to specific regulations. Any Earned Wage Access service you choose should be in complete compliance with UK labour laws and financial regulations to avoid any legal complications.
As easy shortcut is to only work with providers who abide by the industry's FCA-suggested and CIPP-approved Code of Practice.
You can learn more about this code here.
Integration with Existing Payroll Systems
The most efficient Earned Wage Access solutions are those that integrate seamlessly with your current payroll systems. Look for providers that can sync with your existing setup to reduce administrative overhead and potential errors in wage calculations.
See all of Level’s pre-built integrations here.
Cost and Fee Structure
Cost is always a concern when implementing new employee benefits. Analyse the fee structure of various Earned Wage Access services. Some solutions charge the employer, while others might charge the employee a small transaction fee. The objective is to strike a balance between providing a valuable service and maintaining cost-effectiveness. Book a call with one of our experts to discuss the cost of offering On-Demand Pay to your employees.
Employee Education and Support
The success of an Earned Wage Access program also depends on how well it is communicated and supported. Ensure that the Earned Wage Access provider offers resources for employee education about how to use the service as well as support for any questions or concerns that may arise. This may include tools that help employees budget from their income, to see how much they have left to spend until payday.
Security and Privacy Considerations
With financial data involved, the security and privacy of employee information are paramount. The service provider should have robust cybersecurity measures in place to protect sensitive data from unauthorised access or breaches.
A shortcut is to only consider providers with independently assessed accreditations like Cyber Essentials.
View all of our security & compliance information 🔒
Choosing a Provider with a Solid Reputation
Research potential Earned Wage Access providers and look for those with good reputations within the industry. Read reviews, ask for case studies, or speak to other businesses that have implemented the solution to get an idea of the provider's reliability and customer service quality. Read Level’s case studies here.
Monitoring and Feedback
After implementing an Earned Wage Access solution, keep an eye on its usage and gather employee feedback. This will help you assess whether the service is meeting the needs of your staff and what improvements could be made.
By thoroughly considering the needs of your employees, alignment with payroll systems, regulatory compliance, and the reputation of providers, you can select the right Earned Wage Access solution for your UK business that offers not only a competitive edge in terms of recruitment and retention but also contributes to the financial wellbeing of your personnel.
Keywords: Earned Wage Access, On-Demand Pay, payroll, employee benefits uk
