Earned Wage Access is the Innovation We Had to Have

Today’s workforce needs are changing rapidly, and we need new ways to address them. Working from home is one example of a significant shift that has impacted almost all of us in some way over the last eighteen months. The pandemic, and democratisation of talent and work had led the workforce to embrace remote working. The one disruption that is about to come is the way employees get paid.

The current dilemma for employees

If we work every day, and have expenses every day, then why do we have to wait to be paid? Sometimes it’s a fortnight, other times it’s a month. This question is rarely asked in the current workplace but is increasingly a topic of discussion between teenagers and their parents when they are about to sign their first employment contract. 

We all face challenges in life, and while we are relatively well-off as a country, there are many of us struggling to make ends meet. Millions of workers live paycheck to paycheck, with one in five Aussies not having any emergency savings, while 31% don’t have enough to cover one month of their living expenses. This is a stressful situation to be in since no two months are the same. Their paycheck may cover their usual, expected expenditures, although what options are they left with if an unexpected or emergency cost arises?

Often the answer is debt, including personal loans, credit cards and other unsustainable methods of financing that don’t address the underlying cash flow problem. In a recent Visa survey, 68% of workers reported that their personal finance worries affect their health, and in turn, their performance and engagement at work. If employees are financially stressed, they’re not at their best; it’s as simple as that.

The current challenge for employers

While this issue may appear to be employee-centric, the reality is that employers have just as much of a vested interest to get it right and explore sustainable financial solutions. Financial stresses are pervasive; they don’t just disappear when someone walks through the office doors. A similar Visa survey found that 84% of workers spend some time thinking about their finances while at work. When employees are worried about their personal circumstances, they’re not putting all their effort into their job.

EWA is a mutually beneficial solution that also helps employers attract and retain talent in a competitive labour market. 79% of surveyed workers are more willing to switch to employers already offering EWA, and 89% of them would be willing to work longer for one that does. It’s clear what is best for both parties – EWA is the innovation we had to have.

Your company can empower your employees to take control of their financial wellbeing and reduce their financial stress by offering an EWA solution. Get in touch with Paytime today to arrange a free consultation.