For the past few decades now, the top financial concerns in the US workforce have related to paying back student loan debt – an expected result of rocketing college fees and lower salaries. While this issue is still as important as ever, though, the same workforce has started to raise concerns regarding their ability to pay day-to-day costs and bills. Some people have even been forced to draw funds against their 401ks to alleviate immediate financial hardships.
In an economy that looks less and less stable, it has become clear that the US workforce – and workforces everywhere for that matter – needs assistance when it comes to budgeting for life’s expected and unexpected costs. And it is here that Earned Wage Access platforms have been more useful than ever predicted.
Earned wage access can heighten retention through improved financial well-being
Earned Wage Access platforms represent a relatively simple solution for an increasingly complex financial world. In simple terms, employees can use EWA platforms to save money and access their accrued wages before payday arrives – a potential lifesaver for those that need to make immediate payments. Because of this ability to make payments quickly, the same people can also use EWA platforms to avoid predatory payday loans, unsanctioned advance-pay apps, and late/insufficient fund fees which can cripple their opportunities to
build long-term financial well-being.
From an employer’s perspective, EWA platforms offer a cheap solution when it comes to improving the financial well-being of their employees. And an employee that can save money for the future and has all their bills covered is a hard-working employee.
Earned wage access can reduce hiring costs through higher retention rates
Frontline workers with less than two years on the job are the segment with the highest risk of leaving and the group most vulnerable to unexpected costs. With this in mind, it is clear that EWA platforms can have a major role to play. With access to a free, same-day pay solution, employees, especially part-time workers, are motivated to cover more open shifts rather than seek employment elsewhere. Not only does this reduce turnover, but it also fosters ongoing career development.
When a company wants to keep its talented and dedicated employees long-term, offering a tool to allow them to save and pay necessary bills while advancing their chosen career is a no-brainer. Providing a free, company-sanctioned solution to help employees mitigate financial stress will also reduce the headache which comes with onboarding new staff. Hiring costs will be lowered dramatically when an employee sees your company as the
place to be!
And when a company is your client, EWA can (and should) be your tool of choice for helping them retain talent and provide modern benefits to recruit new employees. For a workforce management company, professional employer organization or HR company, introducing an earned wage access solution can transform how they support their customers and the impact they have on the organizations they serve. Companies actively aiming to help employees save and manage their finances are positioning themselves at the forefront. And it’s our belief that this positioning will pay dividends.
Employers, HR and workforce management professionals should be ready and willing to adopt earned wage access platforms and guide their employees towards proper financial management – a path that benefits both the employer and employee long-term.
The AnyDay low-to-no-cost Earned Wage Access platform is an extremely useful tool in bolstering financial wellness. Learn more about how we can support your company’s earned wage access needs today!