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How Earned Wage Access Can Help You Become an Employer of Choice

As businesses strive to rise above the competition in today’s candidate-favored job market, many aren’t aware of a recent innovation that can help them stand out as an employer of choice — namely, earned wage access.

What is earned wage access? Simply put, it’s an exciting new benefit, rapidly growing in popularity, which allows employees to receive instant access to wages they’ve already earned, rather than wait two weeks for their paycheck. In other words, a worker may clock out at noon and use that morning’s wages to pay for lunch, if they so choose.

But what earned wage access, or wage advance, really comes in handy for is emergency bills and expenses — the kind that arise unexpectedly and can mire even the most fiscally responsible individuals in debt. Studies reveal that many hourly workers run into this situation, which often leads them to turn to predatory payday lenders who charge exorbitant fees for loans. And the cycle of debt continues.

This is where employers have an opportunity to step up and make a real difference. By providing employees with an earned wage access option — ideally via a convenient app — companies can show that they care about the financial health of their workforce.

A wage advance program shouldn’t exist in a vacuum, however; it should be part of a larger initiative to make a range of financial tools and education available to staff. Group workshops and one-on-one coaching sessions focused on topics like banking, saving, and investment can have a huge positive impact on the lives of individuals and their families — especially among the financially vulnerable population of hourly workers.

One more key point to keep in mind about earned wage access: It should be free, to both employer and employees. A third-party provider can ensure that this is the case, implementing the service, syncing it with your existing workforce management and payroll systems, and handling all transactions on their end. Any funds advanced to staff are then deducted from their biweekly paycheck. It’s a no-cost, painless process.

In our current labor market, it’s essential that companies find ways to set themselves apart and attract the very best people. And it’s no longer enough to merely offer catchy slogans and fun perks. Savvy candidates are looking for organizations that will prioritize their needs and that are worthy of their hard work and loyalty.

Introducing earned wage access sends a powerful signal to prospective hires that you’re concerned about reducing their money-related anxiety and improving their financial well-being. Not only that, but you’re taking active, innovative steps to address the problem.

This is how you build a reputation as an employer of choice — a place where people want to come work. And the candidates you’re seeking are sure to take notice.

Want to know what kind of employer you are? Take our survey and find out!

WorkSync offers leading workforce management solutions for your organization. Learn more and request a demo today at WorkSync.com.

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