How technology that facilitates access to earned wages can help employers retain more employees.
A company’s team is its greatest asset. No matter what business a firm is in, its employees ultimately determine its success or failure. Many labor changes that were already taking hold, like the demand for more flexible work hours and locations, were expedited by the Covid-19 pandemic. Not all businesses are able or ready to continue with flexible working, even though many have evaluated their office allocation, flexibility for hybrid working practices, and rules that provide employees with more flexible working hours.
To respond to workforce requests for a flexible work environment and improved perks, earned wage access is a crucial perk. Employees with earned wage access can see how much money they have previously earned in a particular month. Employees are given the choice to get their paychecks sooner or more frequently than is typical, giving them more freedom to manage their money. However, why would a company care if its employees are engaged and content? According to a Hays study, a business may boost production by more than 40% on average if its employees are highly motivated. According to a Glassdoor survey, 87% of workers want their employers to support and assist them with their obligations. It can make the difference between having a stressed-out employee who is disengaged from work and one who is highly appreciative of and motivated to work for the company if an employee is struggling financially. Simplified methods to help them manage their cash flow through early wage access can help. The least they can do is contribute to lowering financial stress in their personal lives if a company is seeking an employee who can adapt to difficult circumstances and manage stress better at work. According to PwC research, more than half of workers report feeling stressed, with six out of ten of them attributing their woes to money-related issues. Similar surveys have revealed that over a third of workers have allowed their financial difficulties to affect their productivity at work. According to information published by FlexxPay, a typical company with 1,000 employees wastes over $300,000 annually as a result of productivity losses and a low retention rate for disgruntled workers. Employee turnover is increasing in the area as a result of this discontent, with more employees than ever considering changing careers. According to a survey conducted in H1 2022 by the recruitment firm Robert Half, 65% of employees are seeking new jobs, and 78% of employers think it will be difficult to find someone to replace them. Offering advantageous choices like early wage access can help, as employee retention is crucial for corporate stability and efficiency. Employers claim that flexible salary on demand can reduce absenteeism by up to 20 percent, which is consistent with the motivational and morale boosts that early wage access can offer. Requests for wage demands are burdensome for administrative teams and equally significant to enterprises. The average company can reduce its HR and finance effort by up to 10 working days by implementing a digital method of automating and managing these requests. Flexibility in salary access is proven to be a highly effective tool for employers looking for methods to attract and keep talent. A brand-new method of working is just getting started.The flexible employer-employee relationship is now in place and is based on a work-from-anywhere culture, adaptive working hours, and now, flexible access to salary whenever and wherever is required. Employees are more inclined to choose and stay with employers who provide access to earned wages, regardless of how complicated the situation may seem.
From the perspective of the employer, Earned Wage Access is a creative method to improve payroll, a chance to be modern and forward-thinking, and a flexible solution to support workers’ changing work and personal schedules. EWA is the payment model that best fits the post-pandemic future in a company environment where remote, distributed work will become much more prevalent.