Many workers today have become expert jugglers … that is, when it comes to their paychecks and personal expenses. By the time payday arrives, utility bills, car payments and even the mortgage may already be overdue. Dropping the ball can lead to costly late fees, damage to credit scores, service disruptions or worse. Emergencies can be especially challenging, as less than half Americans say they have enough cash on hand to cover an unexpected $1,000 expense.
But as an employer, you can help.
Express Wages Is Fast Financial Relief for Workers
By implementing Earned Wage Access (EWA) with Express Wages, you can help ease this burden for employees — and it won’t cost your organization a dime. EWA makes any day payday by enabling employees to access their money as they earn it. Instead of having to wait for their next scheduled paycheck, employees can receive wages for the time they’ve already worked in the current pay period. It’s not a payroll advance, and it can be a game changer for workers.
Improve cash flow and financial flexibility. There are many reasons an employee might be short on funds between paydays: a car repair, a medical bill, a family emergency or a child’s school tuition. EWA gives workers the flexibility to use their earnings when they need them, giving them greater control over their personal finances. They’ll be better positioned to consistently pay bills on time, avoid late payment penalties and prevent credit damage. For those lacking an adequate emergency fund, EWA can provide an essential safety net, facilitating better budgeting and financial planning for future goals.
Reduce financial stress. The reassurance that wages are accessible when needed can help reduce financial anxiety. Employees who are less worried about paying their bills can be more productive, happier on the job and may face fewer stress-related health issues. Express Wages can help you alleviate financial distress for your employees — and their families.
Curb high-interest debt. Express Wages provides a cushion for unexpected expenses. When faced with a financial emergency, employees will have a better option than turning to predatory payday loans or piling on unnecessary and costly high-interest credit card debt to deal with it.
Support underserved communities. For companies with employees who live in underserved communities or with limited access to banks and financial services, EWA can be a critical lifeline. It gives workers a powerful tool to help regain control of their personal finances and support the communities where they live and shop.
Increase financial wellness. EWA empowers employees to make better financial decisions. They’ll be less likely to tap their 401(k) in a pinch, which can have profound long-term consequences for retirement readiness and overall financial health. And with reduced reliance on high-interest loans, employees can focus on saving more and work more effectively toward long-term financial stability and security.
Provide the Benefit Employees Really Want
According to an ADP research study, more than three-fourths of employees say that availability of EWA would influence their acceptance of a job offer, and 93% of companies offering EWA say it helps them retain staff. You can’t do anything about high prices at the grocery store, but you can give employees one less thing to juggle every payday by providing them the financial flexibility and support they want and need.
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