Insight: Earned Wage Access is Like a Pay Raise

Definition: to go beyond what is obvious

READ MORE

In many ways, employees today lend their employer an interest free loan for two to four weeks at a time by agreeing to receive their paychecks on a biweekly, semi-monthly, or monthly basis. 

But when an employer offers Earned Wage Access, they are putting the power back into the hands of the employee.

Employees who are able to access their money on-demand can avoid a significant amount of late fees, interest charges, overdraft fees, payday loans charges, and more.

In our book “Imitation”, we went over the different predatory systems that exist and lead to cyclical debt for workers.

But by empowering your employees through Earned Wage Access, you are fighting the system that is squeezing your workers and making profits at the cost of their sweat and blood.

Earned Wage Access
A Paradigm Shift Because providing dignity, security, and safety is our north star.

The result?

Peace of mind for hardworking employees which in turn leads to more productivity and fulfillment at the workplace.

Earned Wage Access is not about special treatment or being on the cutting edge of human resource benefits.

Earned Wage Access is about creating a new standard for financial wellness where employees are not only fairly compensated for their work, but given access to that compensation in a way that supports them. It provides them access to liquidity to manage life’s unexpected events and helps them stay afloat by providing dignity and security.

The Livelihood Index

One way to look at this is through the Livelihood Index. The higher the Livelihood Index number, the more purchasing power a worker has.

Earned Wage Accesses reduces the financial services fees, like interest rates, overdraft fees, etc. faced by an employee leading to a higher Livelihood Index.

“The Do Good, Feel Good Phenomenon.”

Researchers have discovered that the more people do acts of altruism, the higher they raise their self-esteem. And thereby the higher they also raise their happiness.”

For business owners, the more you support your employees and see them thrive, the better you feel about your organization.

Dear Diary,

At work today, my manager laughed at me in the best of ways. I asked him for an advance today and he chuckled and said “I don’t think you need one.” I was confused, obviously. Why would I ask for an advance if I didn’t need it?

He asked me why I wasn’t using my Payactiv app to use Earned Wage Access and I drew a blank.

I was embarrassed because I had no idea what he was talking about.

During our last all-staff meeting, they introduced this benefit that offers on-demand pay. I probably spaced out, thinking it was something like a 401(k).

We can download the app and link it to our employee ID and track  how much we’ve earned on a particular day and we can access our

Dear Diary,

At work today, my manager laughed at me in the best of ways. I asked him for an advance today and he chuckled and said “I don’t think you need one.” I was confused, obviously. Why would I ask for an advance if I didn’t need it?

He asked me why I wasn’t using my Payactiv app to use Earned Wage Access and I drew a blank.

I was embarrassed because I had no idea what he was talking about.

During our last all-staff meeting, they introduced this benefit that offers on-demand pay. I probably spaced out, thinking it was something like a 401(k).

We can download the app and link it to our employee ID and track  how much we’ve earned on a particular day and we can access our wages without waiting for the two week payroll cycle, basically accessing wages when we need to.

I was mind-blown. I got home and created an account  and realized I could take some of my money from earlier this week already. I called Jean to tell her and she laughed. Apparently, she had been using it for over a year through her company. A lot of my friends were already familiar with this benefit and were using it. It was so normal, no one ever brought it up. 

I guess the world’s changing, but I’m here for it. 

Rupa

wages without waiting for the two week payroll cycle, basically accessing wages when we need to.

I was mind-blown. I got home and created an account  and realized I could take some of my money from earlier this week already. I called Jean to tell her and she laughed. Apparently, she had been using it for over a year through her company. A lot of my friends were already familiar with this benefit and were using it. It was so normal, no one ever brought it up. 

I guess the world’s changing, but I’m here for it. 

Rupa

Explore other sections

Book 6: IMPACT

Did you know 80% of users who have access to EWA report they no longer use payday loans? Earned Wage Access financially supports workers by empowering them to get ahead of their finances with their earned wages. To find out more about the incredible impact EWA has had on many lives

Read "Impact"

TIMELINE

Empowering employees is a journey, not a destination. And at Payactiv, we have spent the last 10 years doing our best to ensure more and more workers are equipped to tackle their financial responsibilities and goals with accessible services like Earned Wage Access. Take some time and explore our timeline for an up close view at all the amazing milestones achieved over these past 10 years.

Explore "timeline"
Back to Bookshelf

Contents

Search

Menu

Books