Questions to Ask Before Choosing an Earned Wage Access Provider
Choosing the right Earned Wage Access (EWA) provider is more than just ticking boxes on a feature list. For employers, selecting the right partner can impact employee satisfaction, financial wellness initiatives, and operational efficiency. But with so many options available, how do you know which provider to trust?
This guide lists the essential questions to ask when evaluating Earned Wage Access providers, ensuring you make a choice that’s the perfect fit for both your business and your employees.
What is Earned Wage Access (EWA)?
Earned Wage Access, also referred to as On-Demand Pay, is a financial service that allows employees to access a portion of their earned salary before payday. Rather than relying on high-cost alternatives like payday loans, Earned Wage Access gives employees flexible control of their income while supporting overall financial wellness. 15% of all UK employers now offer their employees Earned Wage Access, and in some industries this number is even closer to a third.
For businesses, offering Earned Wage Access can lead to increased employee satisfaction, improved financial stability, and better employee retention rates. However, the success of implementing such an initiative will largely depend on the provider you choose.
Questions to Ask When Choosing an EWA Provider
1. Which Workforce Management (WFM) and Payroll Systems Does the Provider Integrate With?
When implementing Earned Wage Access, ensuring seamless integration with your existing Workforce Management (WFM) and payroll systems is essential. A smooth integration not only reduces implementation time but also minimises disruptions to operations.
Some providers, like Level, have pre-existing integrations with many of the UK’s leading WFM and payroll platforms. This ensures a quick and efficient go-live process, allowing you to focus on delivering results rather than troubleshooting software issues.
2. Does the Provider Offer Both Manual and Automatic Reconciliation?
Reconciliation is another crucial aspect of choosing an Earned Wage Access provider. While some employers prefer the control offered by manual reconciliation, automatic reconciliation can massively reduce workload for HR and payroll teams.
Level is one of only two providers in the UK to offer both manual and automatic reconciliation. With automated reconciliation, the payday process becomes smoother, administrative errors decrease, and HR and payroll teams have more time to focus on strategic projects.
3. What Other Services Does the Provider Offer Alongside Earned Wage Access?
While Earned Wage Access is the core service, many providers package it with other financial wellbeing tools. Evaluating these additional services can help determine which provider aligns best with your company’s values and workforce needs.
For example, some Earned Wage Access providers offer debt-related services alongside Earned Wage Access. While this may appeal to some employees, it may not align with employers aiming to improve their employee’s financial flexibility. Level, for example, prides itself on being a debt-free platform. Instead, they focus on long-term financial wellbeing, offering tools like:
Budgeting: Helping employees track and manage their spending effectively.
Payroll Savings: Encouraging employees to build savings habits directly from their earnings.
Final Thoughts: Choosing the Right Fit
Implementing Earned Wage Access can transform your organisation, increasing employee satisfaction and improving financial wellbeing. However, to reap these benefits, it’s essential to partner with the right provider.
By asking the questions outlined in this guide, you’ll ensure that the Earned Wage Access solution you choose aligns with your operational needs, employee expectations, and organisational values. Take the time to evaluate core features like system integration, reconciliation options, and additional services, and choose a provider committed to both ease of implementation and long-term financial wellbeing.