• Financial stress is pervasive among employees, with 97% reporting stress and 80% concerned about inflation.
• Earned Wage Access (EWA) is an in-demand financial wellness benefit that gives employees access to pay accrued but has yet to be received.
• Complement your EWA employee benefit with additional financial wellness benefits such as budgeting tools, financial counseling, and access to discounts.

As inflation and the cost of living continue to rise, employees feel the squeeze. Financial stress affects almost all full-time workers; even those earning over $100,000 struggle to cover basic expenses. Across all demographics (age, gender, race, and income), 80% of employees are concerned about inflation, and nearly 97% of full-time employees report financial stress. The rising cost of living is causing additional stress, and financial hardship drives employees to look for new opportunities with employers that offer financial wellness benefits.

Financial Wellness Benefits Limit Stress and Turnover

Among the 29% of employees currently looking for a new job, 65% cite money as their primary reason. Businesses, especially small ones, often struggle to offer significant salary raises. Financial wellness benefits have emerged as a practical solution to help employees regain control of their finances and overall livelihood.

The Power of Earned Wage Access Programs

EWA is among the most in-demand benefit programs available. It allows employees to collect pay accrued but not yet paid out. EWA services help employees to pay for unexpected life events, such as a vehicle repair or medical bill, without incurring unnecessary credit card debt or having to approach an unsecured payday loan provider. Resorting to high-cost lending options like these will only result in employees spiraling into debt.

In today’s uncertain economic climate, where unexpected expenses can arise at any moment, EWA provides a streamlined means for employees to receive their earned wages promptly. 

• Some 56% of employees with a no- or low-cost service to access their accrued wages indicate that they’ve used the benefit.
• 66% of employees working for companies that didn’t offer EWA said they would be interested if their employer were to offer it.

Look for an accredited provider with reasonable fees and a secure platform that will prevent headaches for your payroll team. The system should be easy to connect with your existing payroll, allow for payroll deductions, and enable off-cycle payments. Additionally, it should allow employees to route their wages without setting up a new bank account and use their payroll card like a regular debit card.

A well-selected EWA provider will give employees safe and consistent access to their earned wages, helping them gain greater financial control to handle life’s unexpected financial challenges.

Financial Wellness Tools to Supplement EWA

While EWA provides employees with greater financial flexibility and control over their income, it is important to understand that it is not a comprehensive solution to financial stress. Other supplementary benefits, such as financial education and planning tools, can help employees achieve long-term financial security and stability.

1. Employee-Friendly Saving and Budgeting Tools

Saving and budgeting tools can assist employees in managing their budgets, monitoring their spending habits, and setting money aside to meet their financial obligations.  46% of employees consider financial applications and tools a vital component of their employee benefits package.

These tools typically categorize expenses, pay bills, and automatically transfer a fixed amount into their savings account. Many tools like these, both free and paid, exist in the marketplace. However, an employer-offered financial wellness benefit that couples budgeting and saving with EWA gives employees even more flexibility than a standalone app. Employees can use their unpaid wages to pay bills due before payday and view their entire financial picture in one place.

2. One-on-one Financial Counseling Services

Financial coaches are critical in promoting financial wellness by providing guidance and support in managing finances. These coaches are trained professionals who work with employees to understand their financial situation holistically. As part of this process, financial counselors will conduct a comprehensive assessment of an employee’s financial status, including their income and expenses, assets, and liabilities. They will also inquire about financial habits, behaviors, attitudes, and goals to develop a personalized plan that meets their unique needs.

Once a financial coach has a complete picture of the employee’s financial situation, they can help:

• Prioritize debts and create a budget and savings plan
• Assist employees in identifying areas where they can reduce expenses and increase their income to achieve their financial goals. 
• Provide guidance on improving credit scores, reducing debt, and developing a long-term financial plan for retirement.

Financial coaches can deliver services through various channels, including one-on-one coaching sessions, group workshops, or online resources. By working with a financial coach, employees can gain the knowledge, skills, and confidence to manage their finances effectively, leading to improved financial stability and peace of mind. 

3. Access to Discounts

One of the key benefits of partnering with a top-notch financial wellness benefits provider is gaining access to exclusive discounts and deals. These providers often have established relationships with local retailers and businesses that offer discounts on various products and services, such as movie tickets, car insurance, gas, and prescriptions. These discounts help employees maximize their savings and reduce their overall expenses.

Access to discounts through financial benefits services providers can be valuable for employees looking to stretch their paychecks further. Small savings can add up over time and significantly impact an employee’s financial health.

By offering employees access to discounts through their financial benefits services, employers can demonstrate their commitment to their employees’ financial well-being. This can increase job satisfaction, engagement, and loyalty among employees. 

Why Payactiv is the Financial Wellness Partner of Choice for Businesses of All Sizes

Employees’ financial well-being is critical to any successful business, particularly in today’s uncertain economic climate. Offering diversified financial benefits beyond earned wage access programs can significantly affect employee satisfaction, retention, and recruitment. 

While EWA is an essential component of a financial benefits package, it is not a comprehensive solution to financial stress. Supplementary benefits such as financial education and planning can help employees achieve long-term financial stability. By investing in financial wellness benefits, employers can empower employees to reach their financial goals and improve their overall financial health.

Payactiv’s financial wellness solution includes both EWA and holistic financial wellness tools built with the real-world needs of your employees in mind. Employees can get free one-on-one financial coaching, free budgeting tools, exclusive discounts, and the unique ability to set money aside automatically with the Payactiv Visa Card*. 

We integrate with all major payroll software, ensuring that transactions are seamless, secure, and fully auditable. Our technology and customer-centric approach make EWA simple for everyone. Learn more about Payactiv’s Service, or book your demo now.