Streamline HR Operations: Unveil the Advantages of Earned Wage Access

Human Resources plays a crucial role in ensuring effective recruitment, employee development and retention strategies. All these tasks are pivotal to fostering a productive and motivated workforce.  

The HR department is responsible for designing comprehensive benefits packages tailored to meet the needs of employees, with a focus on enhancing retention rates, productivity, morale, and overall job satisfaction. These efforts involve identifying and implementing benefits programs that address employees’ diverse needs and preferences, such as health insurance, retirement plans, flexible work arrangements and wellness initiatives. 

The success of these initiatives is measured through key performance indicators (KPIs) such as employee retention rates, productivity metrics, morale surveys and feedback mechanisms, which enable the HR department to continually refine and optimize benefits offerings to support the company’s strategic objectives and enhance the overall employee experience.

Earned wage access (EWA) is often overlooked as a potential benefit by HR professionals despite its potential to impact all the metrics mentioned above positively. While it allows employees to access a portion of their earned wages before the regular payday, its significance in improving employee financial wellness and reducing financial stress is also significant. 

Integrating EWA into benefits packages can provide employees with greater financial flexibility and stability, ultimately contributing to a more engaged and satisfied workforce. 

An earned wage access platform does more than just give employees access to their pay early. It also can help make the people in Human Resources’ lives a bit easier. When an employer offers earned wage access, they have an advantage in recruiting because employees will know they will have a more flexible schedule when it comes to their pay. 

According to a Hanover Research study, 96% of companies offering an earned wage access solution today believe it has a positive impact on employee recruiting.¹ Recruiting employees might be the most important and notable role that HR has in companies, so HR professionals should know how earned wage access can boost this.

The positive impact of earned wage access doesn’t stop at just recruiting, it also is known to boost employee retention. Employees will stay longer at their jobs because of the financial freedom and flexibility that it gives them. 

The Hanover study found that 95% of companies offering an earned wage access solution today believe it has a positive impact on employee retention.² Recruiting employees is one thing, but keeping them is a whole other ballgame. But with earned wage access, you can have an additional tool to give your employees everything they need, which in turn will help them stay longer.

Employees are also happier at work when they have earned wage access, which in turn makes them better and more efficient workers. The same Hanover Study found that 95% of companies offering an earned wage access solution today believe it has a positive impact on employee wellbeing.³ 

Along with those who work in Payroll, HR is the most important department in companies when it comes to implementing earned wage access. It can only help companies with their recruiting, retention and employee wellbeing. 

HR professionals started seeing EWA as more than just a pay function but rather as a strategic tool to enhance employee financial wellness and overall satisfaction. By considering EWA from a broader perspective and integrating it into their benefits strategy, HR departments can align with their goals of improving retention, productivity, morale, and job satisfaction. By offering EWA, HR professionals can empower employees with greater financial flexibility and peace of mind, fostering a more positive work environment and contributing to the overall success of the organization.