Planning for the new year? Why you should consider On-Demand Pay now
What is Earned Wage Access?
Earned Wage Access (EWA), also known as On-Demand Pay, is a financial service that allows employees to access a portion of their earned wages before their regular payday. Instead of waiting for the traditional monthly or fortnightly payroll, employees can tap into their earnings instantly, giving them more flexibility and control over their finances. Read more about what Earned Wage Access is here.
Why are its benefits important early in the year?
January can be a challenging month financially. With higher bills piling up, many individuals find themselves in a tight spot. Here's why considering Earned Wage Access early in the year can be advantageous:
Financial Flexibility and Control
Earned Wage Access offers employees the flexibility to manage unexpected expenses without resorting to high-interest credit cards or payday loans. By having access to their earnings when they need them most, they can maintain better control over your budget and avoid accumulating debt.
A Buffer for Unexpected Costs
Winter often brings unforeseen costs, such as increased heating bills or car maintenance due to cold weather. Earned Wage Access can provide a cushion, ensuring you have the funds to cover these expenses without derailing your financial plans.
Implementation Process
Implementing Earned Wage Access is easier than you might think. Here’s a brief overview of the process:
Choose a Reputable Provider: Research and select a trusted Earned Wage Access provider that aligns with your financial needs and offers transparent terms. We recommend looking at ones which are certified under the Earned Wage Access Code of Practice.
Understand the Integrations: Familiarise yourself with any fees involved and understand how the provider can integrate with your existing payroll of workforce management systems. Providers, such as Level, often integrate with many of the leading software. If you don’t see the software you use, don’t worry! Level can integrate with new systems to bring you On-Demand Pay.
Educate Employees: Ensure your staff are informed about how Earned Wage Access works and the benefits it offers, ideally in the lead up to launch. Providing educational resources can increase adoption and satisfaction with the service, and can make sure people know about the service in case they need it in an emergency.
Monitor Usage: You can check in with your provider to ensure you're employees are managing your finances responsibly while taking advantage of the flexibility Earned Wage Access provides. Your provider will be able to help with any questions you may have.
Conclusion
By integrating Earned Wage Access into your new year plans, you can start the new year with greater peace of mind and a more robust financial wellbeing benefits strategy. Consider it a proactive step towards helping your employees achieve their financial goals while navigating the unpredictability of everyday life.
To find out more, book in to talk with one of our On-Demand pay specialists: