What Every Employer Should Know About Offering Earned Wage Access

Financial stress affects 76% of UK workers, leading to decreased productivity, increased absenteeism, and higher staff turnover. As employers search for innovative ways to support their workforce while strengthening their business operations, Earned Wage Access (EWA) has emerged as a powerful solution that benefits both parties.

This comprehensive guide explores everything employers need to know about implementing Earned Wage Access programmes, from understanding the basics to selecting the right provider for your organisation.

What is Earned Wage Access?

Earned Wage Access allows employees to access a portion of their earned wages before their scheduled payday. Rather than waiting until the end of the month or pay period, workers can withdraw money they've already earned through their completed shifts or hours worked.

The process is straightforward: employees use a mobile app to request access to their earned wages, typically up to 50% of what they've accrued. The funds are usually available within minutes, providing immediate relief for unexpected expenses or financial emergencies.

Unlike payday loans or salary advances, Earned Wage Access doesn't create debt. Employees are simply accessing money they've legitimately earned through their work. When the regular payday arrives, the accessed amount and any associated fees, is deducted from their usual pay, creating a seamless cycle that doesn't disrupt cash flow.

Who Offers Earned Wage Access?

The Earned Wage Access market has expanded rapidly, with various types of providers entering the space. These range from specialist Earned Wage Access companies to broader fintech platforms offering wage access as part of their services.

Specialist providers such as Level focus exclusively on delivering high-quality Earned Wage Access solutions. These companies typically offer the most sophisticated integration capabilities, dedicated customer support, and industry-specific features tailored to different sectors.

Traditional payroll companies have also begun incorporating Earned Wage Access into their service offerings, whilst some banks and financial institutions provide wage access through partnership arrangements with specialist providers.

The key is choosing a provider that aligns with your company's values and operational requirements.

Why Should I Offer My Employees Earned Wage Access?

Boosting employee financial wellbeing isn't just the right thing to do, it delivers significant business benefits that directly impact your bottom line:

Reduce Staff Turnover

High staff turnover costs UK businesses thousands of pounds per departing employee when you factor in recruitment, training, and productivity losses. Financial stress is a leading cause of employee dissatisfaction and job searching behaviour.

By providing Earned Wage Access, you're addressing one of the root causes of workplace stress. Employees who can access their earned wages when needed feel more secure and supported, leading to stronger loyalty and reduced turnover intentions. Level clients have seen up to a 50% reduction in staff turnover.

Minimise Unfilled Shifts

Shift-based industries often struggle with last-minute cancellations when employees face financial emergencies. Without access to their earned wages, workers may seek alternative income sources or take time off to address financial crises. It can also be difficult to motivate shift uptake as the reward is delayed until the end of the month.

Earned Wage Access eliminates this problem by giving employees the financial flexibility they need to maintain their work commitments. When staff can access their earned wages for emergencies, they're more likely to maintain regular attendance and cover scheduled shifts. Staff are also more likely to take on a last minute shift when they know they can access their earnings the next day. Level clients have seen up to a 62% reduction in unfilled shifts.

Reduce Absenteeism and Distraction

Financial worries don't disappear when employees clock in. Stressed workers spend significant time during work hours dealing with financial concerns, calling creditors, or searching for quick cash solutions online.

Research shows that employees with access to earned wages report lower stress levels and improved focus at work. When financial emergencies arise, they can quickly address them through Earned Wage Access rather than allowing concerns to fester and impact their work performance. Earned Wage Access can reduce absenteeism by up to 13%.

What Should I Look for in an Earned Wage Access Provider?

Selecting the right Earned Wage Access provider requires careful consideration of several critical factors that will determine the success of your programme.

Industry Certification and Standards

Your chosen provider should be certified against the Earned Wage Access Code of Practice. This certification sets the benchmark for quality in the industry and ensures that providers meet strict standards for transparency, fair pricing, and responsible lending practices.

The Code of Practice covers essential areas including clear communication about fees, data protection standards, and ethical business practices. Providers who achieve this certification demonstrate their commitment to operating responsibly and protecting both employers and employees.

Integration Capabilities and Partnerships

Check out the provider's list of partnerships and integrations. Strong partnerships with workforce management (WFM), time and attendance systems, and payroll providers will enhance your experience.

Seamless integration between these systems creates a smooth process for both you and your employees. For example, Level is trusted by an extensive list of partners, including DailyPay, IRIS, SAP, and other leading HR technology providers. These partnerships ensure that wage calculations are accurate and that the Earned Wage Access system works harmoniously with your existing infrastructure.

Look for providers that can integrate with your specific payroll system without requiring significant technical changes or additional administrative burden.

Service Philosophy and Cross-Selling Policies

Pay close attention to each provider's approach to additional services. Some providers will attempt to cross-sell financial products to both employers and employees, including debt products, loans, or credit services.

Many employers feel uncomfortable about providers who use their Earned Wage Access platform as a gateway to sell debt products to their workforce. This approach can create conflicts of interest and potentially harm the employees you're trying to support.

It is recommended to choose providers that focus exclusively on Earned Wage Access services without attempting to monetise your employee relationships through additional financial products. Level, for instance, commits to never offering debt products to employees, maintaining clear boundaries that protect your workforce from predatory lending practices.

Making the Right Choice for Your Organisation

Implementing Earned Wage Access represents a strategic investment in your workforce that can deliver measurable returns through reduced turnover, improved attendance, and enhanced employee satisfaction.

The key to success lies in selecting a provider that aligns with your company values, integrates smoothly with your existing systems, and maintains the highest standards of service and ethics.

Take time to evaluate potential providers against the criteria outlined above, request demos of their platforms, and speak with existing clients about their experiences. The right Earned Wage Access provider will become a valuable partner in supporting your employees' financial wellbeing whilst strengthening your business operations.