How Earned Wage Access Impacts Workplaces
Updated: Jul 11, 2022
Earned Wage Access, also known as On-Demand Pay, is a financial product that allows Software Employees to access a portion of their earned compensation before payday.
Earned Wage Access (EWA) has gained in popularity and is helping to improve payroll cycles by allowing workers to access their earned income whenever they need it. The financial strains that employees are under, might be harmful to business IT organisations.
EWA marks a significant change in the way employees are paid for their efforts. Instead of getting their pay at predetermined, fixed times, Software Employees accrue pay every day and can withdraw a portion of their collected pay at any time, offering them unparalleled financial flexibility and freedom.
According to a survey carried out by Refyne, financial pressure has become a frequent occurrence since the COVID-19 epidemic broke out. Employees' capacity to perform at work is being impacted.
Productivity loss, workplace distraction, and absenteeism are all results of these variables.
Earned Wage Access, once completely integrated and operational, provides benefits that can be disseminated far and wide throughout a Software Development Company.
Earned Wage Access allows Software Employees to have control over when they are paid, allowing them to organise their paychecks around their financial obligations. They can acquire emergency funds if payment or events arrive unexpectedly, without accumulating further debt, thanks to rapid access to funds as and when required. Further, IT Employees are far less likely to skip a day's work when they can see the impact of their efforts in numbers.
For Software Employers in a competitive job market, EWA is a strong selling feature that can help you attract the best prospects and support simpler recruitment. Software Companies that can demonstrate a commitment to supporting their employees' financial well-being through EWA will achieve a positive reputation among both current and potential employees. While IT Software Employees who feel in control of their income are less anxious about their finances, more motivated to come to work, and more productive when they are there, it helps reduce absenteeism.
According to a Refyne survey, employees are positive about the new concept. While 77% of respondents are excited about the concept and are willing to test it, only 28% stated they would utilise an EWA service. Specifically, 59% of the respondents said that EWA will be a deciding factor in their next job.
Given that the survey indicates a change in employee mindset, is the Earned Wage Access model creating a shift in employees' attitudes towards their next career move?
(Author: Abdul Rafeeq is a social media coordinator bursting with creative ideas at TechDoQuest.)