When an employee faces unexpected expenses and financial strain, it affects their personal and professional lives, wreaking havoc on the employee, their family, and in many cases, even their employer. This concern has become more prevalent since the pandemic; today, 50% of hourly employees report that they have no money put away for emergencies, and 80% have less than $500 saved up.
More and more organizations are taking steps to help employees prepare for and respond to unexpected expenses through Early Wage Access or EWA. Earned Wage Access, sometimes called Early Wage Access, gives employees access to a percentage of the wages they’ve earned on demand – without waiting for scheduled pay dates. ZayZoon is a leader in the EWA landscape.
EWA benefits are another way employers can align with recent trends in benefit offerings, which care for the whole person, including their mental health and financial well-being.
BENEFITS OF EWA
Extending EWA to employees offers a variety of benefits for an employer:
- it gives your employees access to their earned but unpaid wages before their standard payday, providing a safety net for unforeseen expenses
- it improves the financial well-being of employees, particularly those living from paycheck to paycheck
- it can reduce stress and improve the mental (and subsequently, physical) health of employees, which can reduce healthcare premiums
- it can make your benefits package more competitive, improving your ability to attract and retain employees
ZAYZOON: A PIONEER IN EWA
ZayZoon is a prominent player in the EWA landscape, offering innovative financial solutions to employers and employees through partners like ASAP Payroll. With a mission to improve financial wellness and empower individuals, ZayZoon has established itself as a leading provider of on-demand pay services. The company aims to bridge the gap between pay cycles, offering employees the flexibility to access their hard-earned wages whenever needed. By doing so, ZayZoon strives to alleviate financial stress, improve employee productivity, and foster a healthier work-life balance. By leveraging cutting-edge technology and a customer-centric approach, they have revolutionized how people access their earned wages, benefiting employees and employers alike.
EMPLOYER AND EMPLOYEE PERSPECTIVES
For employers, offering EWA can result in heightened employee satisfaction, increased productivity, and stronger loyalty. Additionally, benefits like EWA can help reduce absenteeism by providing employees with access to the money they need to cover transportation, childcare, and other needs. Offering EWA can make attracting and retaining top talent in your industry easier.
On the employee’s side, EWA reduces financial stress, provides a safety cushion, and circumvents the need for precarious and costly alternatives like payday loans. It can make it easier for employees to get to work, to balance their personal and professional lives, and to make ends meet.
THE GROWTH OF EWA
EWA was introduced ten years ago and reached 16% adoption among employers by 2019. In just two years – from 2019 to 2021, the adoption rate increased from 16% to 36%, indicating strong upward growth. While the retail and hospitality industries were first to adopt, the healthcare, manufacturing, and technology industries have quickly followed suit. Likewise, employee demand for access to their wages before payday has increased. Facilitating growth in recent years, EWA providers like ZayZoon have worked to partner with the largest payroll providers in the nation, making it easier for employers to implement these programs.
THE FUTURE OF EWA
A recent survey found that 68% of employers plan to offer EWA benefits in the next twelve months, indicating an ongoing upward trend in adopting this unique benefit. At ASAP Payroll, we expect to see these trends in EWA adoption in the next twelve months:
- More employers across all industries employing hourly workers will offer EWA
- as employees become accustomed to this benefit, they’ll begin to expect it from their existing and future employers, so whether you offer employees access to the wages they earned will begin to influence their decisions about where to apply, work, and ultimately stay long-term
- payroll providers who partner with an EWA provider will take the lead in market share as employers choose those who can bring them easy access to the most beneficial offerings
- the most competitive EWA providers will continue to seek out new payment platforms and technological improvements to make it as quick and easy as possible to access wages
EWA With ASAP Payroll and ZayZoon
Earned Wage Access, as offered by providers like ZayZoon, is an important tool for financial wellness. It benefits employers and employees alike, providing an innovative way for workers to alleviate financial stress and adding value for businesses via enhanced employee satisfaction and productivity. Organizations not offering EWA as a benefit will directly impact their recruitment and retention efforts.
As the necessity of EWA continues to surge, you must explore its potential benefits. By implementing EWA, employers can revolutionize their payroll systems, enhance employee benefits packages, and foster financial wellness within their teams. Ready to harness the power of EWA for your organization? Get in touch with ASAP Payroll today.
