73% of employees are stressed about covering necessities. Many workers worry about where their money goes, from paying bills to rent and mortgage payments to groceries. They are anxious if they’ll be able to save money for a vacation or school, or feel tapped if an emergency pops up.
There is a financial wellness benefit available to help ease employees’ worries: earned wage access (EWA).
EWA is a way for employers to be both competitive in a crowded job market and provide an essential benefit for employees. As employees' needs evolve, benefits must as well. Health and wellness are no longer the only way to support employees if the core issue—financial stress and strain—isn’t managed.
Earned wage access (EWA) is a convenient way for employees to access their wage in advance.
Often called on-demand pay, EWA is a flexible offering. It enables employees to get a percentage of their money without waiting until a traditional payday, which can be biweekly, semi-monthly, or monthly).
EWA is a financial wellness benefit used to avoid financial strain—such as overdraft fees, payday loans with a high percentage, or adding more credit card debt. Today’s workers are exceptionally stressed about their finances: 35% say they are stressed daily about their financial picture.
EWA at ZayZoon means an employee can receive part of their earnings via transfer in their bank account in minutes. Other EWA providers vary on cost to the employee or employer. Employees pay a small transaction fee for a direct transfer deposit. At ZayZoon, employees can also take advantage of free options such as a prepaid VISA card or instant gift cards to many
major retailers.
It’s not shocking to know that many workers are living paycheck-to-paycheck. According to a report from the Bank of America, 30% of workers are in this situation, noting that 26% of households spend 95% of their money on necessities.
There are a few ways for workers to get funds without having to rely on credit cards or overdraft but some are much more costly, accrue more debt and interest.
Either option beyond EWA has its cons: 62% of HR professionals say processing pay advances is somewhat too time-consuming, while payday loans can leave borrowers in a worse position because annual percentage rates (APR) can be as high as 300 - 500%!
Access to EWA can lead to improved employee wellness. Employers may see more engagement at work, attract and retain high-performing employees, and see a boost in employee morale and confidence.
33% percent of employees say their morale would increase if employers invested in their financial wellness.
For both salaried and hourly employees, the benefits of EWA include:
EWA costs employers nothing for employers. The only fees are for employees: $5 per transaction, or about what it costs to use an ATM machine.
ZayZoon does provide a couple free options for employees who want to get paid early.
Fee-free options include:
Providing employees with earned wage access not only strengthens their financial well-being but also leads to higher productivity, reduced stress, and improved job satisfaction—directly improving team performance.