Earned Wage Access (EWA) is a benefit for both employers and employees.
With increased job retention and more motivated workers, employers can enjoy valuable returns for very little cost.
For employees, access to their wages before payday for free, reduces the need for expensive borrowing and increases financial and mental wellbeing. This means happier and more motivated employees. Learn more about how Earned Wage Access works in our blog.
Before using EWA, there are certain features employers need to be aware of. Here are five things employers need to know about EWA for their employees.
What’s the difference between Earned Wage Access and Early Wage Access?
Although they sound similar and both fit the EWA acronym, their structural models are slightly different. Income Group uses Earned Wage Access – this means that any funds drawn are already earned and not loaned.
Early Wage Access works more like a salary advance scheme, where the funds have not necessarily been earned yet.
Some EWA providers make your employees pay
It may be less common now, but withdrawing cash from an ATM is a hassle. Having to pay for the privilege of doing so is unacceptable! Many EWA providers charge end users, with fees ranging from £1-£2 per withdrawal to access their own money.
Income Group’s EWA scheme is free for your employees to access the money they have earned.
In fact, employers can absorb the cost of EWA for very little per employee. Get in touch for our EWA ROI data sheet to learn some more.
Employees can’t withdraw all of their wages with EWA
EWA increases financial wellbeing, but also requires financial responsibility.
That’s why EWA from Income Group is limited, reducing the likelihood of workers withdrawing more than they can afford when bills are due at the end of the month.
Earned Wage Access for employers – retain and attract the best talent
On demand is in demand! Job hunters value EWA as a benefit and current employees are more likely to stay if they have access to on demand pay. A PWC study found that EWA boosts employee retention by approximately 36%.
59% of millennials would give priority to a job offer with an employer that offers earned wage access
EWA is used by employees across all pay ranges and ages
Earned Wage Access is not just for younger or lower paid workers. Data shows that EWA is used equally by those more experienced workers in higher paying roles. A French study found 65% of under 35s would like to have this kind of flexible access payment solution. Three quarters of surveyed employees across all age, education, and income levels said it was important for their employer to offer EWA.
If you’re thinking of implementing an EWA scheme for your employees, please get in touch with our team who will be able to provide expert advice and benchmarking.