How HR Leaders Can Drive Change with Earned Wage Access
Attracting, retaining, and motivating employees is tougher than ever in today’s competitive labour market. For employers, the challenge lies in creating strategies that resolve key workforce issues while remaining innovative and cost-effective. Earned Wage Access (EWA) is emerging as a transformational tool to achieve these goals.
This guide explores how HR leaders can leverage Earned Wage Access to tackle major workforce challenges, promote financial wellbeing, and drive tangible business results.
What is Earned Wage Access?
Earned Wage Access, also referred to as On-Demand Pay, allows employees to access a portion of their earned wages before their normal payday. By enabling workers to access their money when they need it, Earned Wage Access enhances employee financial flexibility and control, reducing reliance on high-interest borrowing or payday loans.
Here’s how Earned Wage Access can help HR leaders address critical workforce challenges.
Challenge 1: Navigating a Competitive Labour Market
Attracting top talent has become increasingly difficult, with workers prioritising employers who demonstrate both flexibility and innovation in their benefits offering.
Offering Earned Wage Access sets your organisation apart from competitors.
Prospective employees often gravitate towards companies that address their personal and financial wellbeing. By making Earned Wage Access part of your benefits package, you can position your business as a forward-thinking, employee-first workplace.
Challenge 2: Reducing Staff Turnover
High turnover rates are not only disruptive but can also dramatically increase recruitment and training costs.
Financial stress is a leading cause of employee dissatisfaction and disengagement. Earned Wage Access gives your employees financial empowerment by improving cashflow management, reducing the anxiety of living from payday to payday. When employees feel supported, they’re less likely to leave, leading to higher retention rates.
For example, Level’s client Capita experienced a 50% reduction in staff turnover after introducing On-Demand Pay to their benefits package. Read more here.
Challenge 3: Filling Shifts and Incentivising Overtime
Shift-based roles, particularly in industries like healthcare, can leave organisations struggling to fill essential shifts or incentivise take up of overtime hours.
Workers are more likely to want to sign up for overtime if they know they can access these wages immediately rather than waiting until the next payday cycle. This immediacy creates a tangible and real-time incentive. For care providers or manufacturing firms, this can also help reduce agency costs by filling shifts with internal staff instead of temporary external labour.
Level’s clients have seen up to a 62% reduction in unfilled shifts. Read more here.
The Business Benefits of EWA
Beyond directly addressing employee challenges, implementing Earned Wage Access has organisation-wide benefits, including:
Boosting Productivity: Earned Wage Access alleviates financial stress, which can improve job focus and performance.
Lowered Costs: Reduced reliance on agencies or temporary staff.
Improved Employee Satisfaction: Happier employees lead to better customer experiences and organisational reputation.
Making the Case for Earned Wage Access
For employers, Earned Wage Access represents an opportunity to push boundaries and pioneer innovative solutions to workplace challenges. Workers see it as more than just a "perk" but as a meaningful way to improve their quality of life.
The companies that stay ahead in competitive labour markets are those willing to adapt to employee needs and prioritise their people. Earned Wage Access is more than a financial tool; it’s a step toward building a modern, resilient workforce. That’s why 15% of all employers in the UK now offer it. In some industries, this number is much closer to a third.
Ready to make a real change in your organisation? Explore how Earned Wage Access could transform your HR strategy today.