Earned Wage Access (EWA), also called on-demand pay, is quickly becoming a go-to strategy for businesses that are looking to help with their employees financial well-being. According to a survey conducted by Payroll.org, overall, 78% of Americans are living paycheck to paycheck, up from 72% in 2022. A vast majority of employees are at risk of financial hardship if they experience an unexpected expense. EWA provides employees with the ability to access a portion of their earned wages before their next payday. This can help employees to cover unexpected expenses, pay bills on time, and avoid costly overdraft fees.
According to a survey by The Workforce Institute, 72% of employees would stay with their employer longer if they had access to earned wage access. A study by Ernst & Young found that companies that offer earned wage access have a lower turnover rate than those that don't. In 2021 alone, startups offering EWA products raised over $1.13 billion. This shows that investors believe in the potential of this industry.
Walmart is a prime example of how popular earned wage access is among businesses. In fact, half a million Walmart employees use earned wage access, making it the third most popular benefit after healthcare and 401(k). This shows that earned wage access can help businesses attract and retain employees.
In a recent PwC survey, 20% of employees will quit their job before year’s end, but it doesn’t have to be that way. Candidate expectations are at an all-time high which can make hiring a challenge. Businesses that offer financial benefits like EWA receive 2x more job applicants as those who don’t. Employees don’t like asking for a cash advance but sometimes they don’t have a choice. And it can take hours of your time to customize a payroll run. With EWA, employees get their wages when they need them and you don’t need to lift a finger.
How PayBridge Can Help
A recent PwC survey estimated that 20% of employees will quit their job before year’s end. Why let that happen?
Using Wagelink, a mobile app that connects to PayBridge Payroll and PayCard, you can:
- Draw on your earned wages before payday to help with unexpected expenses. WageLink’s built-in EWA feature can help eliminate certain financial burdens as well as help you keep talent and attract new talent.
- Direct a portion of your paycheck to your WageLink PayCard to help you keep track of your weekly expenses and manage your finances. The PayCard can also be used by employers to set up new employees or contract workers faster by eliminating the need to obtain and connect a bank account to the payroll system. Say goodbye to paper checks!
- Use the PayCard Instant feature to instantly send a portion of your wages to family and friends internationally, allowing you to convert wages earned in USD into the currency of your choosing in regions where the Card is supported. Global remittance is now fast, easily accessible, and completely free- no more wiring fees!