In the evolving landscape of employee benefits, Earned Wage Access (EWA) is becoming a game-changer. This innovative approach to payroll allows employees to access a portion of their earned wages before their traditional payday. But why is this the benefit your employees actually want? Let's explore the reasons behind its rising popularity and the advantages it brings to both employees and employers.

What is Earned Wage Access?

Earned Wage Access, also referred to as On-Demand Pay, is a financial service that gives employees access to their accrued wages as they earn them, rather than waiting for the end of the pay period. This can be a lifeline for employees facing unexpected expenses or financial emergencies. Read more about what Earned Wage Access is here, or check out the guide made for employers here.

Key Benefits of Earned Wage Access

1. Financial Flexibility and Stability

One of the primary reasons employees value Earned Wage Access is the financial flexibility it offers. Unexpected expenses, such as medical bills or car repairs, can throw a wrench into even the most meticulously planned budget. Earned Wage Access allows employees to tap into their earned wages, providing a much-needed financial cushion.

2. Reduced Financial Stress

Financial stress can significantly impact an employee's wellbeing and performance at work. By offering Earned Wage Access, employers can help reduce this stress, leading to happier, more productive employees. The peace of mind that comes with knowing they can access funds when needed cannot be overstated.

3. Increased Employee Retention

Offering innovative benefits like Earned Wage Access can make a company more attractive to current and potential employees. Providing Earned Wage Access can reduce turnover rates and foster loyalty among employees. Companies that use Level have seen a 50% reduction in staff turnover rates, see our Capita case study here.

4. Enhanced Recruitment

In a competitive job market, benefits can be a deciding factor for candidates. Earned Wage Access is a modern benefit that sets progressive companies apart from the crowd. It's a signal to potential hires that the company values financial wellness and is willing to invest in solutions that support it. Companies that use Level have seen a 62% reduction in unfilled shifts. Read more about the Mentor case study here.

5. Improved Financial Literacy

Some Earned Wage Access platforms also offer tools and resources to help employees manage their finances better. With Level, along with On-Demand Pay, employees get access to Budgeting, Saving and AI Finance Guidance tools. These additional features can empower employees to make smarter financial decisions. Read more about these additional financial wellbeing tools offered by Level here.

Conclusion

Earned Wage Access is more than just a trendy benefit—it's a practical solution that addresses real financial challenges faced by employees. By offering Earned Wage Access, companies can enhance employee well-being, improve retention and recruitment, and demonstrate a commitment to innovative employee benefits.

Ready to take the next step? Consider implementing Earned Wage Access at your organisation and witness the positive impact it can have on your team's morale and productivity.