In June 2022, nearly 6 in 10 workers say their paycheck is insufficient to support their household, and inflation reached a 40-year high of 9.1%. So, it is no surprise that workers in the United States are short on money before payday. This increase is 9% over the same period in 2021 and a 37% increase since 2018.
Financial stress in the home is often carried to work. It is linked to lowered productivity, increased exhaustion, and an increase in errors. When in a medical environment, these errors can be costly. Add in the pandemic, and financial stress can be compounded.
This same financial stress leads to work dissatisfaction, leading to increased turnover. Preventing excess turnover is crucial to keeping labor costs low and service quality high. It is estimated that it costs as much as two times an employee’s salary to replace an employee who has left.
Fortunately, Earned Wage Access (EWA) can help employees meet the challenges of inflation and help your organization retain employees. 60% of working Americans say they would be better able to plan for their financial future if they could immediately access their earned pay after every day’s work.
Earned wage access allows employees to access a portion of their earned but unpaid wages between paychecks to help them avoid late fees and expensive payday loan interest rates. Many retail, hospitality, and grocery stores already offer Earned Wage Access benefits, including Walmart, Kroger, Amazon, Hilton, Burger King, and many more.
This financial piece of mind creates a better employee experience. In addition, offering EWA increases the number of days on the job in many industries. For example, one survey states that long-term care facilities providing EWA have employees who stay on average 78 days longer than those who offer a traditional biweekly paycheck.
Less than 10% of companies currently offer EWA, making it a benefit separating you from your competitor for talent.
Time Equipment Company offers Pay on Demand, a win-win for the employer and employee. There is no cost for employers to provide Pay on Demand to their employees. It is implemented without changing current payroll processes, including the timing of funds or withholding taxes. It is free for an employee to request funds using Pay on Demand. In addition, funds are immediately available to employees because it is tied to our world-class time and attendance system. No waiting 24-48 hours to receive their funds. With inflation on the rise, giving employees access to funds they have already earned can be the difference
Pay on Demand offers all the elements businesses should look for in an Earned Wage Access solution at no cost to employees or employers. In addition, this solution delivers peace of mind by immediately giving employees access to a portion of their earned wages. For more information about Pay on Demand, contact Time Equipment Company at email@example.com or 800-997-8463.