Earned wage access (EWA) is gaining popularity among businesses in practically every industry. EWA, the financial wellness benefit that allows workers to access earned wages instantly, has helped employees address short-term financial needs or emergencies that arise before payday. Since the payment is money that's already earned, there's no interest to repay or extensive forms to fill out.

While earned wage access is enticing to workers, employers who offer EWA are seeing benefits as well. By offering financial flexibility with EWA, businesses have been able to reduce key areas costing HR departments:

Reduce Employee Turnover

EWA has a significant effect on the cost of employee turnover by providing the incentive employees need to stay. Giving employees control over their earnings is a way to offer financial stability and peace of mind. While some people argue that instant pay will promote irresponsibility, results of those using the program already show the opposite effect, with only about 20 percent of employees accessing available pay per month.

While the majority of Americans live paycheck to paycheck, hourly wage earners often face changing schedules and unpredictable paychecks. EWA can mean the difference in paying a monthly bill, taking care of an emergency, or even putting gas in the tank to get to work. The ability to meet these needs gives employees the financial stability they need to feel secure in their current position instead of seeking other employment.

Eliminate Requests for Payday Advances

Since earned wage access comes from a third party provider, employers and HR staff are cut out of the equation. Instead of complicated requirements, interest costs, and potential compliance issues, employees can access the advance directly from an app on their smartphones. This removes the stigma from asking for an advance and employees can get the funds they need to address their financial issue. Depending on the frequency and the number of employees seeking payday advances, HR savings could be substantial.

Help Managing Employee Shifts and Hours

Earned wage access provides incentives to employees in more ways than one. The ability to collect wages immediately can entice workers to volunteer for additional shifts. The result is fewer absences and staff that are willing to work to earn the money they need to fill income gaps.
In addition to instant pay, EWA apps often have other helpful features. Our platform allows employees with the ability to see available shifts from their smartphones. Since schedules are often unpredictable, workers who have the ability to see their projected income and choose to pick up additional shifts at their convenience are getting closer to overall financial stability. These empowered workers provide a ripple effect that frees up HR time usually spent scheduling employees.

Improve Employee Recruitment

Earned wage access provides many great benefits over time, but recruitment often means concentrating on the immediate needs of your new employees. Luckily, EWA is a great perk for new hires. Beginning a new job often comes with the dreaded delayed first check. This can be a big problem for employees who have been out of work or are experiencing other financial distress. Hourly wage earners often need cash sooner rather than later when changing jobs. For this reason, EWA can literally seem like a lifeline for workers seeking a new job.