Business owners know the cash flow juggle, managing the ins-and-outs effectively is the foundation of a sustainable business. Your employees are facing the same rollercoaster at a personal level. The difference: They don’t get paid for their services when they deliver them. Instead, they face a multi-week lag between doing the work and getting paid.
Like in business, personal expenses, think groceries, transportation and life in general, happens on the daily. The stats tell us that 48% and 53% of Canadians do not have enough savings to cover an unexpected $500 expense. Effectively they are living paycheque to paycheque with the mental load that goes with having no safety net.
Like running a business, budgeting and financial planning can help to manage cash flow, but life is unpredictable and unexpected expenses arrive. Earned Wage Access (EWA) bridges the gap to avoid your employees having to turn to costly credit alternatives like payday loans, overdrafts or credit card debt.
A recent study by the University of Oregon found that on average net monthly income of employees after initial EWA usage increased 11.5% relative to a matched comparison group. The evidence indicates that EWA improves financial outcomes for most users.
Interestingly for employers, the research attributes this to more hours or longer retention which is exactly what employers desire. Loyal employees contribute directly to your bottom-line. Read more about that here.
EWA delivers on two of the pillar stones of employee loyalty - Employee wellbeing and support, as well as recognition and rewards programs.