7 September 2020
Earned wage access: a new way to build better financial resilience
We recently partnered with Wagestream to provide our clients and their staff with better financial resilience.
Wagestream believes that if employees can access the right tools and services, they can make informed decisions and build towards a secure financial future and therefore better financial resilience. Charity-backed, they design all their products with financial resilience as the key guiding principle - guaranteeing a lasting and positive impact on your organisation.
There’s been a lot of discussion lately about earned wage access schemes. But what is earned wage access and how can it help businesses? In a series of three articles to coincide with Payroll Week we will be looking at earned wage access schemes in more detail.
What is earned wage access?
Earned wage access or earned salary access schemes (ESAS) allow employees to access their wages as they’re earned. Wagestream only ever provides access to wages that have been earned, so there is no borrowing or interest charged. However, other solutions or providers can be slightly different.
Earned wage access provides more liquidity to staff, meaning that they can cover unexpected expenses, manage money better and build towards a more secure financial future.
Running payroll frequently is not an effective option for many organisations. These solutions provide a way for employees to benefit from increased liquidity without disrupting internal processes or creating more work for the organisation.
How does it work?
Wagestream looks at workforce data to understand, in real-time, the hours worked by a member of staff to then understand what they’ve earned at any given point during the month. A member of staff can then access the wages they’ve earned, and only the wages they’ve earned, for a transaction fee of £1.75. This is then automatically settled at the end of the month through the iTrent integration.
All data is exchanged automatically over Secure FTP and all data stores are Cyber Essentials certified.
Want to know more about earned wage access through iTrent and Wagestream, contact us today.