Earned wage access (EWA), as the name implies, means giving access to wages earned—in this case, before they would typically be paid out on payday. In other words, it is a way to shorten the gap between the time an employee earns his or her money and the time it is actually in his or her possession.
There are many reasons employers are looking for ways to implement EWA:
- It can ease employee stress over waiting until payday. Even this simple act can help improve overall employee wellness levels. Having more control over finances can relieve a lot of problems.
- Employers can offer this so employees, especially those just starting, don’t have to wait so long for their next paycheck.
- It may keep some employees from utilizing more costly options like payday loans, helping them take better financial steps overall.
- It may be a way to keep employees from having to pay high fees (like late fees or overdraft fees) when unexpected expenses come up or when expense due dates don’t align well with pay dates. Continue reading here…
Source: HR Daily Advisor