We all know that earned wage access (EWA) makes a whole lot of sense from the employees’ perspective. With just a click of a button, employees can get access to the wages they’ve already earned through their workplace. They get to cover their immediate financial needs without having to wait for their next paycheck—and opens up the door for a whole host of opportunities.
But while the main driver of EWA has been to help employees manage their finances, it’s also a great tool for businesses.
In this article, we take a closer look at all the ways EWA can benefit employers. You might be skeptical now, but by the end of it, you’ll see why EWA is a must-have for businesses!
Attracting Better Employees
Let’s face it: in today’s world, if you’re not offering EWA, you’re likely going to be overlooked by top-tier talent. EWA is becoming a must-have for many job seekers, and businesses that offer it are in a much better position to attract the best and brightest employees.
Think about it from their perspective. Why do you get to sit on their paycheck when they need it now? By offering EWA, you’re letting them know that you understand their financial needs and are willing to accommodate them.
Reduced Employee Turnover
Employee turnover costs you time and money to onboard new hires and get them up to speed. It disrupts the workflow of the entire team while they adapt to the addition or subtraction of personnel. Losing just a few members can have a major impact on the whole team’s performance.
Take away one of the biggest reasons why employees leave—lack of financial stability—by offering them EWA. This helps give them peace of mind and the security they need to continue working for you.
The workplace can be a stressful place and the financial burden of living paycheck to paycheck can take its toll. When employees are struggling financially, it affects their mental health, leading to exhaustion, fatigue, and overall lower morale.
EWA gives them the flexibility they need to avoid one unexpected expense from ruining their whole month. With one less thing to worry about, employees can focus on the task at hand and come in energized every day.
We all know how lighter on our feet we are when we’re in a better state of mind. That’s why you can count on EWA to help improve the morale within your organization.
More Financially Literate Employees
Even the most dedicated employees can suffer from a lack of financial management skills. They might be struggling to keep track of their expenses or simply don’t know how to make the best use of their finances.
Learning about how EWA helps them just might be the trust they need to start taking control of their finances. Whether that means growing their savings, building their credit, or just taking away some of the stress associated with payday, EWA allows them to become financially savvy.
Helps Them Avoid Shady Debt
On a similar note, having access to the wages they’ve already earned prevents employees from turning to certain debt solutions that might not be in their best interest.
Unlike business loans, these predatory loans can come with high-interest rates, unfavorable repayment terms, and other hidden costs. Not only does EWA help employees manage their finances better, but it also shields your team from potential harm.
And we’re not talking about a broken kneecap here: we’re talking about long-term damage to their financial stability. A major emergency surgery could sink them into debt they’ll never be able to dig out of—on top of piling on stress and worry that, in the long run, will only hurt their performance.
No More Stressful Paydays
Getting paid is technically a good thing, but it doesn’t always feel that way if employees are living paycheck to paycheck and waiting for payday to come around so they can cover their expenses.
The psychological toll of this constant stress can get in the way of their work, leading to decreased productivity and morale.
EWA Earned Wage Access gives them greater control over when they receive their wages, helping to ease that financial pressure and allowing them to focus more on their job performance.
It’s Simply the Right Thing to Do
No, this isn’t just a nice-sounding rhetorical statement: it’s the truth.
EWA Earned Wage Access should be mandatory for all organizations that can afford it. By providing your employees with access to their earned wages, you’re making a statement that they matter—not only as part of the team, but also as individual members of your community.
Workers today are drawn more to organizations that display a commitment to their well-being, so it’s in your best interest to make sure you have EWA benefits in place.
More and more employees are demanding EWA Earned Wage Access and it’s becoming a staple in many organizations. It’s the right thing for your business and your employees, so don’t wait any longer to make it happen. The sooner you do, the sooner everyone in your organization will benefit from it.
By offering this type of financial service, your organization is showing its dedication to the growth and success of its employees. With EWA Earned Wage Access, they can feel more secure and empowered while contributing to the success of your business!