Employers Have Advantage with Earned Wage Access
The relationship between American companies and their employees is undergoing a dramatic shift for the first time in decades. Today, it’s a worker’s market. Across the wage scale, employers are willing to pay and train more, take chances on people without relevant qualifications, and show greater flexibility in where and how people work. Merchants who are taking these steps are looking to stay competitive in a landscape where workers are leaving their jobs at historically high rates.
One way employers are seeing this new trend play out is how employees would like to be paid. Today’s consumers want to use contactless payment technologies to purchase items instantly, and that sentiment is becoming similar for the work environment. Workers don’t want to wait every two weeks for a payday or rely on a paycheck to access their wages. As a result, workers want to be paid now rather than later.
The Role of Earned Wage Access (EWA)
A recent Harris poll revealed that four out of five workers in the U.S. between the ages of 18 and 44 believe they should have access to earned wages at the end of each day. The survey also revealed that eight in ten workers would prefer to have their pay automatically deposited into their bank accounts the day they earn it. A large majority (78%) said on-demand pay would increase loyalty to an employer.
So how does a merchant accommodate these payroll demands and stay competitive? By shifting to an on-demand Earned Wage Access product. EWA refers to the ability for an employee to access the money they’ve earned before or on their scheduled payday. The EWA industry is relatively new but has gained traction during the pandemic, while gig, hourly, and salaried workers were trying to make ends meet.
Using on-demand pay solutions for employee retention is a useful idea, especially in this highly competitive market, in which retailers, manufacturers, and other employers have had to cut back on operating hours due to a lack of employees. As some companies have been waiting to see how the regulatory environment might change, others have already begun offering this option to employees and are gaining an edge.
EWA Can Be A Win-Win
EWA can be a great win-win solution for both ends — the employees and employers. The employee gets paid early, and the employer secures workplace satisfaction, which enhances productivity. There are plenty of benefits for both employers and employees and, with the right vendor, there is no risk involved to companies who choose to offer it.
Benefits to Employers:
- Increased applicants to a job that offers on-demand pay benefit
- Reduction in employee turnover
- Increase in employee productivity
- Ability to fill positions quicker
- Reduced absenteeism
Benefits to Employees:
- Increased access to wages helps them pay bills on time
- Reduction in financial stress
- Improves financial health
- Ability to spend less and save more
- Promotes job satisfaction
Learn More About i3 Merchant Solutions Payments:
Contact us online or call 1-800-621-8931.
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