What are Earned Wage Access Solutions?

Imagine an employer paying their employees their earned pay when they want/need it, instead of making them wait until payday. The act of making workers’ earned pay available to them at any time, on demand, is known as Earned Wage Access (also sometimes goes by On-demand wage access). This is currently not the way payroll is commonly done, as it is expensive, cumbersome, and manual. Paytime, is here to change that!

Paytime provides a frictionless system for Australian employees to access their paycheck before payday, whenever they need it. For less than the cost of a cup of coffee (which can be subsidised by the employer), you can access your earned pay any time before payday, effectively accessing your paycheck early. This is done in partnership with your employer and through a mobile app, with the ability to transfer funds to your bank accounts in real-time (even on weekends) with the click of a button!

Why Earned Wage Access is Becoming Increasingly Popular

Popularity for Earned Wage Access solutions is surging as the benefits of financial wellbeing for Australian workers becomes increasingly clear. Around 50% of Australians are living paycheck to paycheck. This is a startling statistic that shows millions of our colleagues would be unable to meet most unexpected expenses on time. As a result, Aussies have accumulated more than $32 billion in credit card debt, costing participants an average of $700 in interest every year.

As you can imagine, financial stress is a serious consequence and plays a major role in the workplace. According to the ANZ Financial Wellbeing Report, almost half of the Australian workforce worry about their financial situation. Furthermore, they spend almost 10% of their paid working hours thinking about financial issues. Financial stress does not just impact an employee’s mental health; it also results in lower productivity and taking more sick days, estimated to cost employers over $30 billion each year!

If an employee has access to their pay as needed, it may prevent interest due on accumulating credit card debt, late payment fees as well as the use of dangerous payday loans. Using an Earned Wage Access solution can help address the underlying cause of financial stress – contributing to a healthier, more focussed and productive workforce.

Cost Savings Realised from Implementing Earned Wage Access

While Earned Wage Access can benefit all employees, those working in high turnover industries may get the most value. Since staff turnover is increasingly frequent and competition for quality employees is high, the benefits of Earned Wage Access flow through to employee satisfaction and retention. It can cost thousands of dollars to recruit and train even an entry-level waiter or call centre worker. A high rate of labour attrition leads to these costs adding up fast. Using an on-demand pay or wage solution such as Paytime may help increase your applicant pool, increase employee engagement and decrease turnover.

If your business wants to empower your employees and improve their financial wellbeing by enabling on-demand access to their earned wages, or if you are an employee who can see the value in having Earned Wage Access in their workplace, contact Paytime today!