As a tool for financial well-being, earned wage access (EWA) demands some attention. Particularly as we continue to navigate the coronavirus pandemic.
Ultimately, an employee who has the option to access their earned wages whenever they need to throughout the month can manage their finances better and budget for life’s unexpected costs. And what benefits the employee ultimately benefits the employer. In this post, we will introduce three key benefits that an employer can reap through the adoption of an EWA platform across their business.
Attracting new hires
One of the key benefits for the employer when it comes to adopting an earned wage access platform is that it is an excellent tool for attracting talent.
In a recent report, 61% of US employees supported the idea of flexible instant payment, and the numbers are increasing every year. In our uncertain economic times, money is often needed immediately, and in a fast-paced world of renting, subscriptions and bills, job hunters are frequently looking for flexible work and pay conditions when searching for a new position.
With easy integration, earned wage access platforms can effectively fill this need. It’s easy to communicate the benefits of on-demand pay in recruitment efforts and job postings. Simple, clear language like, “Access your wages when you need them the most, manage your finances, and organize your budget for next month’s payments,” quickly communicate value and can be just what an employer needs to entice new staff.
Retention & Productivity
And once the new talent is in the office, an employer probably wants to keep them around!
Employee retention is another crucial need for any modern company – particularly with the various positions available nowadays.. Having an earned wage access platform lets staff know that an employer actually cares about their financial wellness. It shows a company cares about how employees manage the money they earn. Simultaneously, it supports the idea that working hard, without the added pressure of financial burdens or distractions, increases productivity. Ultimately this is a win-win. Employees who want to work in their roles and are rewarded for doing so with these tools will massively outperform those who aren’t happy. EWA platforms help them manage their expenses, budgeting and savings, and the platforms are usually free to use too. With 53% of US employees claiming that financial stress distracts them from their day-to-day tasks, this employee perk may be the difference between retaining high performing staff and losing them to the competition.
A financially literate workforce
Worldwide, far too many people who earn more than enough to get by are living paycheck-to-paycheck. While most employers try and provide the best salary they can for their staff, modern lifestyles don’t always include frugality or budgeting, leading to many employees falling into financial troubles.
With this fact in mind, an EWA platform can also be seen as an educational tool of sorts. Using the platform allows staff to learn more about their spending and devise strategies to manage their budget more effectively. Access to basic budgeting and savings tools can ultimately help employees create a strong financial foundation to build upon as they progress through their careers.
It’s clear that EWA platforms can be extremely useful for employers.
Through the adoption of such tools, employees can benefit financially, and their employers can benefit indirectly from the productivity, financial wellness, and financial literacy of their staff.
At AnyDay, we have dedicated ourselves to creating the most comprehensive and intuitive platform on the market. To learn more about our offering, contact us today.