New Research: Why HR Leaders Are Adding Earned Wage Access to Their Employee Benefits

As competition for talent intensifies, innovative employee benefits are becoming essential components of successful recruitment and retention strategies. A compelling new study reveals that Earned Wage Access (EWA) is rapidly emerging as a must-have benefit that delivers measurable results for both employees and employers.

A set of independent reports prepared by impact-measurement specialists 60 Decibels in December 2024 has revealed significant benefits of implementing Earned Wage Access solutions. The research, based on telephonic interviews with both users and key stakeholders at organizations using Paymenow's EWA service, provides clear evidence that HR professionals should take note of.

The findings highlight impressive outcomes that directly address common HR challenges:

• 9 out of 10 employers believe that EWA streamlines payroll, boosts employee wellbeing, and reduces administrative stress
• 6 in 10 employers reported that the amount of time employees spend worrying about finances had "very much decreased"
• Nearly all employersfound Paymenow's rollout beneficial, with 9 in 10 "strongly agreeing" that EWA streamlines payroll administration
• Nearly all employers "strongly agree" that Paymenow ensures the security of employees' financial data and is user-friendly
• 8 out of 10 employers would be "very disappointed" to lose access to Paymenow's services

The research included employers from diverse sectors: fashion and retail, management and facilities, financial services, call-centre services, manufacturing, hospitality, and logistics. Respondents worked in payroll and benefits management, finance and accounting, and HR, with an average implementation period of 31 months—providing substantial experience to evaluate long-term benefits.

Denise Neethling, Head of Marketing at Paymenow, explains the significance: "This independent research validates what we've seen anecdotally: providing employees with access to their earned wages when they need it helps them manage their finances better, reduces stress, improves their well-being, and positively impacts their productivity. This is a win-win situation that benefits both employers and employees."

For HR professionals specifically, the research highlights several key advantages:

1. Administrative Efficiency: The report details how Paymenow streamlines payroll processes, resulting in lower administrative burdens and improved efficiency.
2. Enhanced Employee Value Proposition: As organizations compete for talent, EWA is emerging as an essential component of modern compensation packages.
3. Zero Implementation Cost: Paymenow's financial wellness solution is offered at no cost to employers while delivering substantial benefits.
4. Reduced Absenteeism: The study shows a significant decrease in financially-related absences, addressing a critical productivity challenge.
5. Data Security Confidence: Employers consistently rated Paymenow's data security features highly—a crucial consideration when implementing any financial service.

EWA represents a significant advancement in employee financial wellness programmes, providing a sustainable alternative to traditional credit while fostering a more engaged and financially secure workforce. For employers seeking to optimize payroll, curb theft and fraud, and improve staff productivity, the business case is compelling.

As an HR professional responsible for maximizing workforce potential while managing costs, exploring EWA implementation offers a strategic opportunity to address multiple objectives simultaneously. Is your organization ready to join the growing number of employers benefiting from earned wage access solutions? Reach out to us!