By Olivia Kotowski
Obtaining employees is one thing; retaining employees, however, is a whole different story. The need for workers, across the U.S., is growing rapidly. It’s important for hiring companies to stay competitive in their efforts so that the employees they’re putting time and effort into don’t move right on to the next company. In an economy where we are in dire need of workers, employers need to have a competitive strategy for consistent retention of quality employees.
There are many ways to foster employee retention within your organization by building a solid workplace culture. One great way to do that is by offering Earned Wage Access (EWA), which will benefit not only employees but also your company—at no cost to you. EWA is the ability for employees to access the money they have earned before their scheduled payday. Employees with EWA can receive their earned wages early, in a variety of ways: via the employee’s existing direct deposit, a prepaid card or even to a bank account managed by the EWA provider. Some providers offer users access through a mobile app. This is a preferable option to payday lenders, as EWA providers do not charge interest. It is especially useful for hourly workers, who often rely on having access to their paychecks more quickly. EWA is a recent industry offering, but many organizations have already seen its advantages.
And employees love it.
What Are The Benefits of EWA and On-Demand Pay?
EWA and on-demand pay benefits are about more than just convenience. For many, this innovation lessens the load of constant financial stressors. Right now, 41% of U.S. workers are living paycheck to paycheck, so a program with EWA can help ease their burden. Having access to on-demand pay is a luxury, especially in our current economic state. There are many benefits to EWA, some of which are:
- Attraction to work. Offering on-demand pay benefits to prospective employees is a great way to garner interest in the job you’re hiring for. Since it’s a newer industry offering, not all competing companies can offer the same luxury of having instant access to your earned wages.
- Retention. Not only is EWA a smart way to attract employees, but it is a smart way to retain employees. Once employees are able to reap the benefits of having early access to their earned wages, it would be difficult to adjust without them.
- Employee satisfaction. Employee satisfaction is key to a successful workforce. When employers offer on-demand pay benefits to their employees, they’re offering a way to lessen financial stress—which can be crippling these days. A satisfied employee is a successful employee.
- Financial support and access. By having access to on-demand pay benefits, employees can choose when and how they receive their earned wages. This completely changes the stress that comes with waiting for payday, struggling to pay bills and trying to avoid late fees.
Why do Employees (and Employers) Need EWA?
American financial services company DailyPay is a pioneer in the EWA industry. Its On-Demand Pay Benefit Program, known as PayEx, has changed the way employees can access their earned wages—and has opened the door for new opportunities to build financial stability. Through our partnership with DailyPay, and the integration of platforms, we offer on-demand pay to our EPAY customers.
Integration with an on-demand pay provider like DailyPay is of great benefit to EPAY and our customers. With our payroll and time and labor platforms, it would provide our customers with a seamless, easy-to-use process to get employees' paychecks back in their hands faster. This platform is just as easy for employers to manage and navigate, too. This integration is beneficial to employees and employers alike because it offers a simple process for employees to access their earned wages and it allows employers to pay, recognize and support their employees just as easily.
Employee retention is a key component of driving a successful, thriving business. When employers can find ways to foster this throughout their workforce, it’s a worthy venture. EPAY has partnered with DailyPay for this exact reason: we recognize the benefits. DailyPay is an industry leader in compliance and its programs and benefits can help your business grow and flourish. Want to learn more about our on-demand pay capabilities? Request a demo today.