Influence: New Standards for Financial Wellness
Definition: The Capacity to Cause Change Indirectly
“There is nothing more powerful than an idea whose time has come.”
– victor hugo
Walmart offers new financial wellness services for associates nationwide
Retailer joins financial technology startups Even and Payactiv to launch industry-first tools for personal money management, financial planning and on-demand access to earned wages Read Article
3 investors explain why earned wage access startups are set to cash more checks
It always feels good to get paid, so it’s no surprise that a payroll model like earned wage access (EWA), which lets employees withdraw their accrued wages at any time, has exploded in popularity Read Article
the question
Who's responsible for employee Financial Wellness?
In 2013, only 13% of employers that they were extremely responsible for employee financial wellness, but in 2022, 62% of employers feel that they are extremely responsible for employee financial wellness.
over the past decade...
Earned Wage Access has become a well-respected, sought-after, innovation in the payroll space
By challenging the traditional structure of biweekly, semi-monthly, and monthly pay, EWA has proven that it benefits both the employee and employer.
More and more employers realize that by offering Earned Wage Access, it’s easier to attract and retain workers that are confident and productive at work, because they feel good about their finances.
For employees, the increase in financial resilience and flexibility leads to a decrease in financial stress and more loyalty to their job.
Traditional workplaces can now compete with the gig economy with Earned Wage Access and other benefits that enhance the well-being of their workforce.
Of those companies that have already added earned wage access to their compensation packages, 89% of employees reported feeling more motivated and productive at work when they had access to their wages before payday and 74% reported having fewer unplanned absences
A new standard for employee benefits
Since the beginning of the pandemic...
more and more employers across the country have learned about the benefits of incorporating Earned Wage Access into their benefits packages, like increased recruitment and retention.
Employers have turned to EWA providers like Payactiv to attract workers and provide them with financial wellness tools during the pandemic and beyond.
KPMG states it will become ‘a table stakes employee benefit in the not-too-distant future.’
some studies show...
72% of the workforce wants on-demand access to their wages and this increases significantly among millennial (84%) and Gen Z workers (87%).
More than 47 million people quit their jobs in 2021 only a year after the start of the pandemic. Industries that require in-person staff, including food service and hospitality, have struggled the most with retaining workers, leading to even more competition in those industries.
60% of employers recognize that benefits like EWA can be a low-cost way to attract and retain employees and 66% of Payactiv users report higher levels of satisfaction with their employer because of EWA. Employers have also found that the financial confidence that results from EWA has led to happier employees who want to stay longer, with many citing retention increases up to 35%.
EWA Supports the Gig Economy
Earned Wage Access has proliferated alongside the rise of the gig economy. Companies have disrupted traditional industries and given rise to flexibility for people to work – and earn money – when they need to.
A recent Pew study revealed that roughly 6 in 10 gig workers say the money they earned through EWA platforms over the past 12 months has been essential (23%) or important (35%) for meeting their basic needs.* Another study found that 72% of gig workers will turn on their app to work hours when they need extra money.**
Many gig economy workers prefer the option to earn and receive money when they need it. But, gig workers are classified as independent contractors and often don’t qualify for many protections under U.S. labor law.
Earned Wage Access challenges this. By offering on-demand pay, employers are leveling the playing field for workers in different situations who would benefit from having more control of their money.
ted x wilsonpark
The Surprising Link Between Payroll Systems and Financial Stress
“Why do workers have to wait two weeks to one month to get paid? In a world where the history of recorded music is available on demand. Where Amazon can dispatch a drone in seconds; it can deliver and bring any package to our home in hours. Why do workers need to wait two weeks to one month to get paid?”
Why do they have to wait to access their own money?
"Room for Dreams"
Dear Diary,
The corporate office has been breathing down my neck about finding people to cover shifts over the holidays. It’s been tough – more and more employees are asking for higher wages and even though I want to say yes, I can’t get sign off.
If I can’t find more people, my only option will be to beg everyone on the team to take on extra shifts.
The candidates that are coming in are good, and I’ve been sending out job offers to a lot of them. But more than half of them are saying no because they found something else that has better benefits.
I finally asked one of them why they ended up going with another restaurant, when the offers were probably identical.
Dear Diary,
The corporate office has been breathing down my neck about finding people to cover shifts over the holidays. It’s been tough – more and more employees are asking for higher wages and even though I want to say yes, I can’t get sign off.
If I can’t find more people, my only option will be to beg everyone on the team to take on extra shifts.
The candidates that are coming in are good, and I’ve been sending out job offers to a lot of them. But more than half of them are saying no because they found something else that has better benefits.
I finally asked one of them why they ended up going with another restaurant, when the offers were probably identical.
They told me about something called on-demand pay. I think I heard about it at a conference a while ago, they called it Earned Wage Access. Apparently the restaurant they signed up with offers it, meaning they can get paid within a day of working their shifts. Instead of waiting weeks between paychecks.
I didn’t realize how popular it would be but after reaching out to more restauranteurs in the area, it’s been picking up steam.
Maybe I should bring it up with Andy next week during our leadership meeting. We can’t keep losing candidates like this. Just last week Mandy and Jo gave me their notice because they found another offer.
– Jackson
They told me about something called on-demand pay. I think I heard about it at a conference a while ago, they called it Earned Wage Access. Apparently the restaurant they signed up with offers it, meaning they can get paid within a day of working their shifts. Instead of waiting weeks between paychecks.
I didn’t realize how popular it would be but after reaching out to more restauranteurs in the area, it’s been picking up steam.
Maybe I should bring it up with Andy next week during our leadership meeting. We can’t keep losing candidates like this. Just last week Mandy and Jo gave me their notice because they found another offer.
– Jackson
Explore other sections
Book 3: INNOVATION
Data has proven that Earned Wage Access makes a credible difference to the bottom line and improves financial outcomes. And when you combine that with a collection of tools & resources to help them use their earned wages to reach their money goals, you’re promoting financial wellness.
Book 5: IMITATION
As Earned Wage Access gains traction, new entrants have joined the industry. It’s no longer about just offering Earned Wage Access, but offering the most accessible and advantageous solution for employees.
Contents
- Influence – A Quote by Victor Hugo
- Influence – Early Articles
- Influence – Employer Responsibility
- Influence – Over the Past Decade…
- Influence – A New Standard for Employee Benefits
- Influence – The Pandemic
- Influence – The Gig Economy
- Influence – The Link Between Payroll and Financial Stress
- Influence – “Room for Dreams”
- Influence – Dear Diary
- Influence: End