Compelling Reasons Why You Should Know About Earned Wage Access?

Compelling Reasons Why You Should Know About Earned Wage Access?



 According to the American Payroll Association (APA), Earned Wage Access programs are evolving into more chronic business practices and part of the employee benefits package.

Earned wage access, also known as early wage access, is an ingenious method of providing wages. Traditionally, payroll is sprinting most often on a bi-weekly or monthly basis.

 

But now, employers – by connecting up with EWA providers – can offer employees direct access to earned wages for hours already the employee has worked. Rather than delaying their bi-weekly pay day, an employee can access earned wages within hours of delivering their work. 

 

The process of EWA completely differs from the practice of payday lending. With this EWA program, the employer can now give access to employees on their already performed tasks for which they are being paid. 

 

89%  of surveyed workers would be willing to work longer for an employer who offered EWA. 

 

This process of EWA simply permits the employees to receive their earned remuneration ahead of their traditional payday. The major benefit of an EWA provider is that it typically provides wage access to employees through many means, including direct deposit, automated clearing house transfer, or a payroll debit card.  

 

This was a brief about what Earned Wage Access is about. Now that you’re clear with it, scroll down to unlock the benefits it carries for both the employers and employees. 

 

79%  of surveyed workers are willing to switch to employers already offering EWA. 

 

How Does EWA Benefit The Employees?

 

Because they're incompetent to access their wages earlier than payday, many workers, be they white or blue-collar, may have to resort to applying for unsecured loans from banks or even predatory lenders.

 

They may be levied very high fees-sometimes, up to 400 % for these loans. An EWA program with quicker payments can deliver essentially the same level of funds but at far lower (or no) cost to the employee and offer:

 

  • Immediate access to cash, which is critical for those who can't easily obtain affordable credit or need funds immediately.
  • Reduced pressure on having to budget from paycheck to paycheck.
  • Reduced reliance on high-interest loans to cover cash flow issues.

 

How Does EWA Benefit The Employer/Organization?

 

Most employers, 60%, admit that presenting programs such as EWA and quicker payroll can be a low-cost way to entice and retain employees and develop goodwill among the workforce. 

 

This can pay off in more motivated employees who go that extra mile to innovate and deliver improved customer service.

 

Moreover, over 30% of job candidates conveyed that the availability of an EWA program would impact their decision to accept a position. 

 

In addition, 79%  of surveyed workers are willing to switch to employers already offering EWA. 

 

  • Reward and incentivize workers at a low cost, facilitating recruitment efforts while decreasing employee dissatisfaction/turnover.
  • Provide value-added services to employees (e.g. financial advice, forecasting, overdraft protection, local store discounts.
  • Reduce the timeline for payroll onboarding.
  • Potentially generate new revenue streams (e.g., from fees or value-added services) and keep funds in-house. 

 

How Right Can Technology Help Companies To Implement Such Process?

 

A big yes to the right technology is a must in order to implement the EWA process. The right technology will permit the organization to maintain transparency among both the employers and employees and sidestep the chance of misunderstanding.

 

Eliminate manual timesheets, streamline payroll, set up job site-specific geofence, send out bulk emails, and manage accounting and reviews- all in one integrated timesheet management software.

 

NextCrew’s timesheet software is one of the best and most user-friendly timesheet management software for staffing businesses. Easily keep track of the employees’ clock-ins and clock-outs with a robust GPS geofencing technology within the timesheet calculator that not only provides instant alerts about the employee’s presence on the job site but also allows to effortlessly collaborate with the staff on the job site, making it the best timesheet software for staffing businesses.

 

Having said that, we recognize the importance of a streamlined process and leveraging the EWA process within the software. 

 

In order to accomplish this, Immediate and TapCheck have partnered with us to integrate their EWA system with our staffing software, making the process as simple as possible. 

 

Contact us if you are ready to learn how you can leverage this solution and increase workforce engagement with NextCrew.

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