Why Earned Wage Access Is Growing in the Care Sector

The care sector is facing a significant challenge. Currently, 71% of care providers report difficulties in recruiting new team members, with many workers leaving the industry for higher-paying opportunities. This trend has placed immense pressure on care organisations to find innovative strategies to attract and retain a skilled workforce.

One such strategy gaining traction is Earned Wage Access (EWA). For care providers, offering this benefit is not only a forward-thinking approach but also a practical solution to some of the financial challenges faced by workers within the sector. Here’s why Earned Wage Access is offered by approximately a third of care employers.

The Current Crisis in Recruiting Care Workers

The care sector has long been recognised as demanding but essential work. Yet, despite the vital nature of these roles, a significant proportion of workers are departing in search of industries that offer better pay and benefits. This leaves care providers the challenge of attracting talent in a highly competitive labour market.

For many workers, financial pressures play a substantial role in this move. Care staff often face challenges such as inconsistent pay schedules or the cashflow problems from dealing with unexpected expenses. Addressing these financial stressors could prove instrumental in retaining existing employees while drawing new recruits into the fold.

Earned Wage Access as a Solution

Earned Wage Access allows employees to access a portion of their earned wages before their payday. Unlike traditional pay systems that require workers to wait for a fixed payday, Earned Wage Access gives employees financial flexibility and more immediate access to money they’ve already earned.

For care workers, this has two major benefits:

1. Financial Flexibility and Control

Earned Wage Access enables employees to take control of their finances by allowing them to access funds when they need them most. Whether it’s an unplanned car repair, a medical expense, or simply staying on top of bills, having access to wages earned can alleviate significant financial stress.

2. Closing the Gap Between Work and Pay

For employees working tirelessly, waiting weeks for payday can feel like a disconnect between effort and reward. Earned Wage Access bridges this gap, ensuring workers feel the tangible benefits of their hard work sooner. This can enhance morale and increase job satisfaction, which in turn fosters stronger employer-employee relationships.

It can also incentivise the uptake of overtime, reducing the reliance on expensive agency staff to fill shifts. Level’s clients have seen an reduction of unfilled shifts by up to 62%.

The Competitive Advantage for Care Employers

Care organisations that implement Earned Wage Access are better positioned to stand out in a labour market where potential employees have plenty of options. By offering Earned Wage Access, providers demonstrate an understanding of the financial challenges their workforce faces and show a genuine commitment to improving employees' wellbeing.

This forward-thinking benefit also aligns with broader trends in employee expectations. Today’s workforce doesn’t view salary alone as the determining factor in job satisfaction. Instead, benefits that promote personal wellbeing, reduce financial stress, and empower employees are becoming increasingly influential when workers choose their next employer.

What's Next for the Care Sector?

The adoption of Earned Wage Access is a clear sign that care providers are starting to rethink the traditional employer-employee relationship. By acknowledging the financial realities many care workers face and offering actionable solutions like Earned Wage Access, the sector can take important steps towards solving its recruitment and retention crisis.

For care providers struggling to attract new team members or retain existing ones, the evidence is clear. Offering flexible, supportive benefits such as Earned Wage Access isn’t just a nicety; it’s becoming a necessity in maintaining a strong, motivated, and engaged workforce.

Earned Wage Access could be the catalyst for achieving a more resilient and sustainable care workforce, creating better outcomes for employees, employers, and, ultimately, the people they care for.