“Why shouldn’t employees get their money right after they earn it? »

To further support employee financial wellness journeys, HR managers can offer their employees payroll cards, also known as charge cards, as an alternative to traditional paper checks. These cards work like a debit card, but instead of receiving a paper check and having to take it to the bank to deposit, a cash card gives employees immediate access to their wages earned on the day of the pay.

A financial wellness program could also encompass EWA, also known as pay-as-you-go, which provides instant access to wages so employees can tap into their earnings when they need it rather than pay-as-you-go. expect a typical two-week or monthly pay cycle. Plus, with cash cards and EWA, employees don’t even need a bank account. These solutions come in the form of a digital or physical card that the employee can use to access their income on or before payday – depending on the offering in place. And the funds can often be managed through an accompanying app.

According to the American Payroll Association’s Understanding Earned Wage Access and Payroll, EWA solutions can help employees better manage the lag in their expenses between paydays. When used effectively, they help them gain greater financial security and flexibility. The report also suggests that a well-implemented EWA program can greatly improve employee retention and become an effective way to provide employees with financial awareness, progress, and well-being.

Employees want and appreciate EWA. A 2021 study found that 90% of workers surveyed want flexible pay and around 15 million employees have an EWA. Additionally, more than three-quarters of those who use EWA say it helps reduce stress.

The on-demand society is hungry for on-demand pay

And why shouldn’t employees get their money right after they earn it? In today’s world, people are used to getting a variety of on-demand services, from meals to carpools to their favorite TV shows and movies. EWA works the same way – almost like a financial center in the palm of your hand.

About Yvonne Lozier

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