4 Questions You Should Be Asking About Earned Wage Access
Earned Wage Access (EWA) is transforming how employees access their pay, but many employers remain uncertain about its implementation and benefits. If you're considering Earned Wage Access for your workforce, asking the right questions can help you make an informed decision that benefits both your business and your employees.
What exactly is Earned Wage Access?
Earned Wage Access allows employees to access a portion of their earned wages before their scheduled payday. Instead of waiting for the traditional fortnightly or monthly pay cycle, workers can withdraw money they've already earned through a digital platform or app.
This isn't a loan or advance, it's simply providing employees with earlier access to wages they've legitimately earned.
Could Earned Wage Access help me reduce unfilled shifts?
Staff scheduling challenges plague many industries, particularly hospitality, retail, and healthcare. When employees face unexpected expenses or cash flow problems, they might seek additional work elsewhere or struggle to maintain consistent attendance.
Earned Wage Access can address this issue by providing financial flexibility that keeps employees engaged. Research suggests that workers with access to earned wages are more likely to pick up additional shifts and maintain better attendance rates. When employees know they can access their earned pay immediately after working extra hours, they're more motivated to fill those vacant shifts.
This financial security can be particularly valuable for hourly workers who often live paycheque to paycheque and might otherwise seek alternative employment or gig work to meet immediate financial needs.
How do I go about getting Earned Wage Access?
Implementing Earned Wage Access typically involves partnering with an Earned Wage Access provider. The process generally follows these steps:
Research providers: Compare different Earned Wage Access platforms based on fees, integration capabilities, and user experience. You can compare some of the leading providers here.
Assess payroll integration: Ensure your chosen provider can work smoothly with your existing payroll and workforce management systems. Most modern Earned Wage Access platforms have existing integrations with many of the leading software.
Plan the rollout: Your chosen provider should help you build a communication strategy to educate employees about the new benefit and how to use it responsibly.
Will Earned Wage Access actually improve employee satisfaction?
Evidence suggests that Earned Wage Access can significantly impact employee satisfaction and retention. Workers appreciate the financial flexibility, especially during unexpected expenses or emergencies. 9 in 10 workers would prefer to be paid on-demand, and 88% of workers report feeling more confident with their finances when they have access to On-Demand Pay. This can translate into improved loyalty and reduced turnover costs.
In fact, employers report a 50% reduction in staff turnover and 62% reduction in unfilled shifts as a result of introducing Earned Wage Access. When combined with other tools providers offer, such as Payroll Savings, Earned Wage Access can demonstrate genuine care for employee financial wellness.
Making the right decision for your workforce
Earned Wage Access offers compelling benefits for businesses with hourly workers, irregular schedules, or high turnover rates. The technology has matured significantly, making implementation more straightforward than ever before.
Success depends on choosing the right provider, ensuring smooth integration with existing systems, and clearly communicating the benefit to your workforce.
By asking these essential questions and carefully evaluating the answers, you can determine whether Earned Wage Access aligns with your business goals and employee needs.