As a business owner, one of your main goals should be smart management. Creating a positive workplace culture and constantly improving employee happiness should be your goal.
Earned wage access is just one of the many ways in which you can increase the overall productivity of your company. But what are the business benefits of earned wage access? Well, we’ll explain the answer to that question and more below.
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What is Earned Wage Access?
Earned wage access (EWA) is a financial wellness incentive that allows employees to gain access to their wages as soon as they earn them. It’s an on-demand plan that offers workers peace of mind knowing that they can access their earnings when they need it most.
Usually, employees get paid on a weekly or biweekly schedule. However, that type of pay routine often leads to financial burdens because workers have to wait on their paycheck to pay for bills and other emergencies.
However, with earned wage access, employees no longer have to stress over payday because they can use their money as soon as they earn it. By offering this type of benefit to staff members, it automatically increases employee happiness!
How Does Earned Wage Access Work?
Earned wage access gives employees around the clock access to their money now. EWA allows them to get instant cash once they’ve earned their pay for the day. Essentially, it protects them from having to borrow loans or overdraft their bank accounts.
The most common way to execute this financial wellness program is via an API integration with payroll and HR. Most companies already give workers access to their schedules, hours accumulated, etc.
But with earned wage access, employees can also use those same payroll systems to deduct money from their upcoming paycheck, if needed.
The Business Benefits of Earned Wage Access
Believe it or not, there are advantages to incorporating earned wage access into your business model. It doesn’t just benefit the employees, but your company as well. Some small business owners forget how important it is to support their employees.
When workers feel unappreciated, they lose motivation to do their job, and they lose respect for their employers. By offering this type of incentive, it lets your workers know that you care about them.
Remember, employees are the lifeblood of your business. If they are happy, they will be more efficient in their day-to-day duties. Not only that, but they are more likely to stay with your company, which reduces your turnover rate.
Also, when your employees are less stressed, the more positive they’ll be. In most cases, workers feel frustrated because of their financial situations. Oftentimes, they’ll feel resentment towards their employer because of their income.
Some team members may feel like they are constantly working, but never reaping the financial reward. As a result, they’ll bring those negative emotions into the workplace.
But when the financial burden is lifted, workplace culture improves.
Increase Employee Happiness
Earned wage access is one of the best ways to make your employees happy. They’ll appreciate your efforts, and in return, put their best foot forward in their daily duties. You won’t regret making the decision to incorporate EWA into your business model.
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