Why Financial Wellbeing Isn’t Just a Nice-to-Have Anymore
Financial Wellbeing in a Transforming World
The notion of financial wellbeing has become increasingly relevant in recent years, transforming from a ‘nice-to-have’ perk to an essential consideration for individuals and employers alike. With the cost of living rising and workers facing greater financial stress, we find ourselves rethinking how financial stability and security fit into overall wellbeing.
The recent cost of living crisis has left many households struggling to afford everyday essentials. Rising energy bills, inflated grocery prices, and mounting housing costs have created a perfect storm of economic anxiety. Meanwhile, wages in some sectors have failed to keep pace with these growing expenses. For workers, this creates a persistent sense of instability, and for employers, it presents a critical challenge to retain, motivate, and nurture their workforce.
On top of this, societal attitudes around work are changing. Employees today expect more from their employers – not just financial incentives, but tangible efforts to ensure their mental, physical, and financial wellbeing. Unsurprisingly, financial worries bleed into all other aspects of life, including relationships and professional performance. Research has shown that financially stressed employees are less productive, more likely to be absent from work, and more prone to disengagement. It’s no longer good enough for organisations to overlook this important dimension of wellness. Businesses must begin viewing financial wellbeing as a strategic priority, rather than a secondary benefit.
Why Employers Are Offering Earned Wage Access
Earned Wage Access (EWA), often referred to as “On-Demand Pay”, is a popular solution helping businesses take proactive steps to support the financial wellbeing of their employees. If you’re unfamiliar, Earned Wage Access allows workers to access a portion of their earned wages ahead of the traditional payday. For employees, this offers a much-needed lifeline during moments of financial difficulty. But Earned Wage Access isn’t just good for workers; it also serves as a smart investment for businesses seeking to stay competitive.
Here’s how employers are benefiting from introducing Earned Wage Access systems within their workplaces.
Reducing Staff Turnover
Employee turnover is a considerable cost for most businesses. Recruitment, onboarding, and loss of productivity add up quickly when staff are leaving faster than they can be replaced. When workers feel financially supported, they are more likely to remain loyal to their employers. Earned Wage Access is a relatively straightforward way to provide employees with a sense of control over their earnings, leading to increased job satisfaction and stability.
Industries with high staff turnover rates, such as retail, hospitality, and health and social care, can particularly benefit from this approach. Many workers in these sectors live paycheck to paycheck, turning to predatory payday loans or credit cards to bridge gaps. Providing access to earned wages can significantly reduce the financial pressures that drive workers to leave in search of more flexible employers elsewhere.
Filling Shifts More Easily
Businesses in sectors relying on shift workers often face a common headache: last-minute shifts that go unfilled. Offering Earned Wage Access has proven to encourage more employees to pick up additional shifts as they know they can access their earnings sooner. The flexibility Earned Wage Access offers empowers staff to feel more confident about taking opportunities to work and earn, especially if they rely on receiving money quickly for necessities.
Competitive Employer Advantage
The job market has become increasingly competitive, particularly in an era where skilled labour shortages dominate headlines. Employers who can demonstrate genuine care for their employees’ wellbeing, including financial health, hold a clear advantage when it comes to attracting top talent. Earned Wage Access not only differentiates businesses from their competitors but positions them as forward-thinking companies invested in their workforce’s success.
By adopting Earned Wage Access, businesses are meeting employees where they are, offering practical, meaningful solutions to help tackle financial stress.
Starting Your Search for an Earned Wage Access Provider
If you’re considering integrating an Earned Wage Access system into your organisation, choosing the right provider is critical. The market is growing rapidly, but not all Earned Wage Access providers deliver the same level of service or adhere to ethical business practices.
When choosing an Earned Wage Access provider, ensure they are certified against the Earned Wage Access Code of Practice. This certification ensures the provider meets high standards of quality, fairness, and transparency, giving you confidence that both your business and employees will receive an exceptional level of service. Providers adhering to the code are committed to ethical practices, including no hidden fees, employee data security, and maintaining financial education resources for users.
Transform Employee Wellbeing with Earned Wage Access
Financial wellbeing is no longer a ‘nice-to-have’; it’s a must-have for businesses serious about supporting their teams, improving productivity, and maintaining a competitive edge in the market. Introducing Earned Wage Access is a tangible way for employers to demonstrate their commitment to their employees' financial health while reaping significant business benefits in return.
By providing tools and flexibility to meet the challenges of modern financial uncertainty, businesses can foster happier, more secure teams who are ready to bring their best selves to work every day.