Promoting Financial Wellbeing Through Earned Wage Access

In today's fast-paced world, financial wellbeing is more important than ever. For employers and HR professionals implementing innovative strategies like Earned Wage Access (EWA), also known as On-Demand Pay, can significantly enhance employee satisfaction and loyalty. But what is Earned Wage Access, and how does it benefit both employees and employers? Let's explore.

What is Earned Wage Access?

Earned Wage Access allows employees to access a portion of their earned wages before their official payday. Essentially, it provides an alternative to traditional fortnightly, monthly pay cycles or manual advances, giving employees more immediate access to the money they have already earned.

Learn more about Level’s On-Demand Pay here:

Benefits of Earned Wage Access

For Employees:

1. Improved Financial Stability:

Immediate access to earned wages helps employees manage unexpected expenses without resorting to high-interest loans or credit cards. This can reduce overall financial stress and improve overall wellbeing. With Level, 88% of users feel more confident with their finances.

2. Better Budgeting:

Employees can better align their income with expenses, making it easier to budget and avoid late fees on bills. Better cashflow management can decrease people’s financial stress. Learn more about budgeting here.

3. Increased Engagement:

Financial stress can be a major distraction, both personally and professionally. Reducing this stress can lead to higher productivity and engagement at work, and benefit individual’s physical health.

For example, the BBC recently published an article about how saving small amounts can boost sleep. Read more about this here.

For Employers:

1. Enhanced Employee Retention:

Financial stress is a primary factor contributing to employee turnover. By offering Earned Wage Access, employers demonstrate a commitment to their employees' financial health, which can increase loyalty and reduce turnover rates.

Capita, who are an industry with staff turnover double the UK average, was able to decrease their staff turnover by 50% by using Level. Read more about this here.

2. Improved Productivity:

Employees who are not preoccupied with financial worries are more focused and productive at work. Earned Wage Access helps employees manage their finances more effectively, reducing the distractions associated with monetary concerns.

3. Attractive Recruitment Tool:

In a competitive job market, offering financial wellbeing programs like Earned Wage Access can be a unique selling point. It shows potential hires that your company cares about their financial stability, making you a more attractive employer.

Mentor reduced 62% of unfilled shifts by introducing Level. Read more about this case study here.

4. Cost-Effective Solution:

Implementing Earned Wage Access is often more cost-effective than other financial wellbeing programs. It doesn’t require significant changes to payroll systems and can be seamlessly integrated with existing financial management technologies.

Conclusion

Earned Wage Access is more than just a financial perk; it's a powerful tool for promoting financial wellbeing among employees. By implementing Earned Wage Access, employers and HR professionals can foster a more satisfied, productive, and loyal workforce. Consider exploring On-Demand Pay options today and take a proactive step towards enhancing your employees' financial health.

Book a demo and learn how Level can benefit you and your employees.