The word on everyone’s minds: wellbeing.
Employers are doing everything they can to support all pillars of wellbeing: physical, mental, social, environmental, and financial. When it comes to financial wellbeing, it can be difficult to know just how involved an employer should get in their employees’ lives.
Financial wellbeing brings up the acronym on everyone’s minds: EWA.
EWA stands for Earned Wage Access. It goes by a few other nicknames: Flexible Pay, On-Demand Pay, or Instant Pay. No matter the name, Earned Wage Access is the concept that as soon as one works a shift, they should have access to the funds accrued during those hours.
In the olden days, you would leave your workplace and get handed a bag with money for that day’s shift. This was great for the workers but a burden on employers. Luckily, we have recruited skillful payroll teams and developed intricate systems that process payments and allow funds to go directly into bank accounts. EWA combines the convenience of having accessibility to your funds immediately and the technology of modern payroll and banking.
EWA is for both hourly and salaried employees. It is a revolutionary financial wellbeing benefit that gives people control over their finances. Bills come every day, why doesn’t payday?
No. EWA only allows access to money that your people have already earned. It actually promotes the death of loans, or at least predatory ones. Why use someone else’s money when you can use your own?
28% of Americans run out of money before payday. EWA was designed to combat this, giving people access to their earned wages in case of an unforeseen circumstance: an AC unit that gives up in the middle of July, a nail in a tire when driving the kids to school, an urgent care visit for the migraine that won’t go away.
When considering flexible pay, many employers fear that giving their employees access to their wages early will encourage them to misuse the funds. UC Berkeley did a study on just this, investigating if employers should regulate access to flexible pay. It was concluded that most employees use EWA for beneficial reasons and that removing the ability would likely harm them.
You have hired smart, talented people. Trust them, and your recruiting team who found them, to use the tools you give them wisely.
The payroll team plays a pivotal part in a company’s ecosystem. No benefit should seek to disrupt this. With an industry leading EWA provider, there will be absolutely no change to the way your payroll runs. Wagestream offers EWA, and the rest of its platform, without touching your payroll process. If a benefit would disrupt this paramount part of your business, it is best to look at another provider.
Absolutely. Financial wellbeing initiatives, including EWA, have been proven to quicken hiring processes by 27% and reduce turnover by 16% based on an Indeed study. Besides recruitment and retention, this also cultivates a community of promoting wellness.
No, the service itself is not inherently predatory. EWA actively seeks to support your people in moments where they need it most.
However, some companies may encourage improper usage of Earned Wage Access in order to drive a profit. This is why when picking your provider, you ought to be selective. It is best to look at companies that promote financial wellbeing as a whole and offer free versions to use the tool. Wagestream offers all the capabilities of its platform for free and is Certified B Corporation.
Anything you do to promote wellbeing at your company is a stride towards success. EWA is just one step in the walk you could take. When possible, look at EWA providers who offer a holistic platform rather than just one service. For example, Wagestream is a financial wellbeing solution that gives your people EWA, FDIC insured savings accounts, interactive budgeting calendars, financial literacy content, and more. EWA is one tool for financial wellness; when possible, give your people the knowledge and literacy they need to use the tool.
Yes. This is a life changing wellness tool that you can give to someone. Even better, there are some providers that will implement this at no cost. Being a social impact organization, Wagestream is one of those.
If you could change someone’s life at no cost to you, would you?
If you are considering implementing EWA and want to chat through it, we would love to set up some time to show you how it works and answer your questions.