Earned wage access is quickly becoming a go-to strategy for businesses that are looking to help with their employees' financial well-being. This should come as no surprise as more than half of Americans currently live paycheck to paycheck.
Let's put the growth of earned wage access into perspective by examining the numbers that back it up. Here are our most surprising stats that prove earned wage access is the next big thing in HR & payroll.
It's incredible to see how many people are now using earned wage access, and the growth in its popularity is equally impressive. According to the same report, only 18.6 million earned wage accesses were made, totaling $3.2 billion. In just two years, that number has tripled, and it's clear that employees who need it most benefit greatly from this service.
2. 77% of earned wage access users requested to receive funds instantly (Benefit News Research, 2021)
It's clear that earned wage access is incredibly important to employees who require their funds urgently. With the ability to access earned wages on the same day, employees can avoid the stress of not being able to pay bills or worse, not being able to put food on the table that night.
3. Half a million Walmart employees use earned wage access
If there’s no bigger indicator of how much earned wage access is being used by businesses, look no further than your local Walmart. Earned wage access has a positive impact on recruitment and retention, and this stat on the use of earned wage access at one of the large retailers in the U.S. only proves this. In fact, earned wage access amongst Walmart employees is the third most used benefit behind healthcare and 401(k).
4. Over $1.13 billion raised by startups offering EWA products in 2021 (Techcrunch, 2022)
What does this mean? Earned wage access is still in its early stages, but the potential is huge. And the fact that over a billion dollars has been raised in 2021 alone proves that potential. This means earned wage access is a growing solution and will not only grow in investment but will continue to be widely adopted by businesses everywhere.
5. 59% of users say access to their earned wage motivates them to go to work. (webincare, 2023)
When it boils down to it, the financial well-being of your employees is of the utmost importance. All the rest of the benefits from earned wage access are a direct result of your employees being in a good position with their finances. One of those benefits is an increase in employee productivity.
By giving them access to their daily earnings and cash when they need it most, they'll be able to focus on work without the added stress of financial worries. This means they'll be more productive and engaged.
Are You Seeing The Big Picture?
By now, I’m guessing you’re seeing how earned wage access is growing and is here to stay. The pandemic followed by high inflation changed the way we do things, and as a result, earned wage access has become a great strategy for helping employees navigate these difficult times.
As the market for earned wage access solutions continues to grow, it’s important to ensure you find the right solution for your business. If you need more information or just have a few questions, we are just a click away.
No Comments Yet
Let us know what you think