Earned wage access (EWA) offers a number of benefits from for both employers and employees.
A set of independent reports, prepared by impact-measurement specialists 60 Decibels in December 2024 and based on telephonic interviews with both users and key stakeholders at employers who had rolled out an EWA service from Paymenow, show that EWA provides a responsible lifeline that more of the most financially excluded employees are able to access, and which is increasingly seen as a necessary component of an employee value proposition.
EWA is a financial service offering that allows employees to access a portion of their earned wages before their regular payday.
Denise Neethling, Head of Marketing at Paymenow, comments: “We are proud of the positive impact Paymenow has on employees and their workplaces. 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.”
In the 60 Decibels Employers Insights Report, employers observed that EWA enhances employee well-being, modestly boosts productivity and retention, and significantly reduces financial worries and absenteeism.
- Nine out of 10 employers believe that EWA streamlines payroll, boosts employee wellbeing, and reduces administrative stress for employers.
- Six in 10 employers reported that the amount of time their employees spend worrying about finances had “very much decreased”.
- Nearly all found Paymenow’s rollout beneficial, and 9 in 10 employers “strongly agree” that EWA streamlines payroll administration.
- Nearly all employers “strongly agree” that Paymenow ensures the security of employees’ financial data and is user friendly.
- Eight out of 10 employers would be “very disappointed” to lose access to Paymenow’s services.
Employers surveyed were in the fashion and retail, management and facilities, financial services, call-centre services, manufacturing, hospitality and logistics industries. Respondents worked in payroll and benefits management, finance and accounting, and HR, and had been using Paymenow’s services for an average of 31 months.
The report also details how Paymenow streamlines payroll processes), resulting in lower administrative burdens and improved efficiency for employers. The ease of use, data security features, and effective communication were all highly rated by participating employers.
Paymenow’s financial wellness solution is offered at no cost to employers and is designed to help improve staff productivity, curb theft and fraud, and optimise payroll. The offering is particularly beneficial for employers seeking to attract and retain top talent.
“As organisations continue to prioritise employee wellbeing and seek competitive advantages in talent retention, EWA is emerging as an essential component of modern compensation packages, offering a sustainable alternative to traditional credit while fostering a more engaged and financially secure workforce,” concludes Neethling.