9 September 2020
Earned wage access and your business: what are the benefits?
In the first of three articles this week we looked at what earned wage access is. In this second article, we’ll be addressing some of the benefits for employers and employees.
The link between employee satisfaction and a more efficient and sustainable business has long been understood. A key element of employee satisfaction is financial wellbeing, as financial worries can often be the biggest stress factor in our lives.
With 77% of their users feeling less stressed as a result of using Wagestream, earned wage access can be a powerful tool in improving employee satisfaction.
1. Improved retention
By supporting the financial resilience of their staff, organisations working with Wagestream have seen up to a 16% reduction in people leaving their business. What’s more, providing this service means your employees are likely to feel more positive about you as an employer. 82% of Wagestream users feel more positive about their employer through access to earned wages.
2. Easier recruitment
The link between better benefits and hiring the best talent has long been understood. Wagestream recently did some research to understand the impact of mentioning earned wage access schemes in job ads. They found that clients mentioning access to earned wages were able to fill their vacancies 27% faster than those that didn’t.
3. Improving your brand
Many brands have suffered at the hands of poor staff treatment, especially during the aftermath of the pandemic. Brands who get staff reward and recognition right on the other hand, such as John Lewis, are renowned for doing so and have a strong level of trust with the customer. Looking after your staff will help you to strengthen your employer brand and therefore your overall brand recognition.
The benefits for your staff
Getting paid as they work means employees have the liquidity to do the things they need, without having to worry about it. We’ve all been in that situation where an emergency has arisen but it’s still seven days until payday. If an employee has worked enough to cover it, then it’s frustrating that you can’t access their earned money to pay for it.
The monthly pay cycle exposes 3.1 million people in the UK to payday lenders every year. Earned wage access provides employees with the liquidity to make their wages work them for them and avoid expensive forms of credit.
Earned wage access has helped:
- 42% of Wagestream users avoid turning to a payday lender
- 37% of Wagestream users avoid going into their overdraft
- 65% of Wagestream users cover an unexpected bill with their own wages
If you would like to take advantage of our partnership with Wagestream to improve financial wellbeing in your organisation, contact us to find out more.