Financial stability is a cornerstone of overall well-being and productivity. However, many employees face the challenge of managing expenses until their next paycheck, leading to unnecessary stress and financial strain. Enter ‘Earned Wage Access’ (EWA), a concept that allows employees to access their earned wages before payday. 

 

Today, we share more about what wages on demand are and how our team at Vested HR can support employers who want to offer this incredible benefit to their valued employees.  

 

Key Takeaways:

 

  • On-demand pay gives employees immediate access to their earned wages, helping them manage unexpected expenses or avoid late fees.  
  • For managers, this benefit can give them a competitive edge when recruiting and can lower turnover rates 

paycheck with pen

Is Your Workforce Struggling Financially?  

 

In today’s economy, many workers are finding it increasingly difficult to make ends meet. Rising inflation, stagnant wages, and unexpected expenses have created a perfect storm of financial stress for many of the workforce. This economic pressure takes a toll on their personal lives and work performance.  

 

Consider these statistics: 

 

  • According to Forbes, 78% of employees are living paycheck to paycheck 
  • 60% of employees say financial stress impacts their overall work performance  
  • 65% of workers would use on-demand pay if it were offered, according to Insurica.com 
  • Overall, when businesses implement EWA, there is a 30% reduction in employee turnover 

 

Read More > How to Help Your Employees in Hard Economic Times

 

Now, let’s discuss how exactly this benefit works.  

 

How Does Earned Wage Access Work? 

 

Earned Wage Access, also referred to as on-demand pay, provides employees with a vital lifeline to bridge any financial gaps between paychecks. This system empowers workers by letting them access a portion of their earned wages at their discretion, offering a flexible solution to align income with real-time expenses.  

 

Generally, with on-demand pay, your staff can request earned wages through their employee self-service portal at any point during the pay period. There’s typically a low fee charged to the employee every time they make an early withdrawal of wages, but there is no cost to you as the employer.  

 

Providing this benefit to your staff can improve their general well-being and financial stability while also providing a great deal of peace of mind. 

 

The Benefits of On-Demand Pay 

 

On-demand pay presents many advantages for businesses looking to enhance their workforce’s experience and efficiency.  

 

Some key benefits include:  

 

  • Enhanced Recruitment: Stand out in a competitive labor market by offering instant access to earned wages, attracting top talent who value financial flexibility. 
  • Improved Staff Retention: Reduce turnover rates by providing a perk that increases employee satisfaction and loyalty, creating a more stable and experienced workforce. 
  • Increased Employee Motivation: By giving them control over their finances, your workforce will be more engaged and productive.  
  • Risk and Cost-Free: Implementing on-demand pay typically involves no financial risk or additional costs for the employer, as the service providers handle the front-loading of funds. 

 

Ultimately, integrating on-demand pay into your business model can foster a more positive work environment while supporting your broader financial and operational goals! 

young woman with curly hair working at computer

In(Vested) In Your Team

 

Offering earned wage access can have a big impact on employee satisfaction and financial well-being. By giving your team the ability to access their earnings when they need it most, you are providing them with the tools to better navigate their financial responsibilities. Empower your staff with the flexibility they deserve and watch as their morale and productivity soar! 

 

Ready to offer on-demand pay to your team? Contact Vested HR today to find out more about how you can implement earned wage access at no additional cost or risk to your business. 

 

 

 

 

For more HR tips & insights: