These days, the payroll process has become an essential part of what we know as corporate culture. The way you pay your employees can impact many parts of your company. This can include both employee relationships and employee wages themselves.
One such method that’s gained notable traction in recent years is known as earned wage access.
In case you’ve not heard of it, we’re going to briefly explain what exactly earned wage access is. Then, we’ll highlight some of the ways in which it can benefit your business practices.
What is Earned Wage Access?
You might have heard of earned wage access before but under the term financial wellness.
If you’ve not heard of either, both earned wage access and financial wellness are a similar concept. They’re a way in which businesses can change the payroll process.
The major difference with earned wage access is that it lets employees access their wages whenever they want to.
The only general rule is that this can only occur after a shift has been completed. Beyond that, employees are able to claim their wages whenever they please.
This is obviously very different from the typical payroll process of paying employees weekly or monthly. It’s a system that has been designed to help ensure employees have greater control over receiving their wages.
But what benefits can this process have for you as a business owner?
Employee Payroll Leads to Employee Wellness and Productivity
The first major way this can impact your business is in how it directly contributes to the wellbeing of your employees.
There’s a reason why the term financial wellness is commonly associated with earned wage access. This is a system that has been designed to give your employee’s a greater feeling of agency over the money they’re entitled to.
This can then in turn positively impact the well-being of your employees overall. They will likely feel more positive regarding the money they’re earning. This will then in turn make them feel less of a strain in terms of financial obligations in everyday life.
This can help to build a stronger relationship between your business and your employees. The importance of a strong employer-employee relationship cannot be overstated.
It can help to build the productivity of your employees. It’ll also help them feel a greater sense of loyalty and worth to your brand and your business itself.
All of these feelings contribute towards a more successful business and an improved life for your employees.
Earned Wage Access Can Improve Both Retention and Recruitment
As aforementioned, earned wage access can help your employees feel a closer relationship with your business.
This will also impact the ability of your business to retain your current employees. As employees will feel a closer sense of connection to your business, they’ll be less likely to move elsewhere.
This is vital for a successful business, as it ensures you’re able to retain your most talented individuals for as long as possible. Not only will your employees remain loyal and productive, but they’ll also be contributing to the best of their ability.
Earned wage access also makes your business appear more attractive to people searching for employment. A greater sense of control over wages can make working for your company an attractive proposition.
This is beneficial if you’re looking for individuals with a great deal of expertise or experience. It means you have a stronger talent pool to draw from when hiring for new positions.
This can then in turn improve the performance of your business and its services overall.
This doesn’t just work for recruitment, it also helps to evidence the forward-thinking nature of your brand. Flexibility in payroll shows that your company cares about its workers, which is in itself important when running a business.
But this also extends to the public image of your company, showing it in a positive light thanks to the decision to adopt earned wage access.
Earned Wage Access Holistic Solutions Make Implementation Easy
A final benefit of earned wage access is that it’s easier than ever to install within your business today.
Adopting a financial wellness app can ensure that your company and your employees can access wages at any time. Not only does this put in place earned wage access as a system, but it also contributes additional holistic features.
The ability to access financial wellness from a mobile app makes it easily accessible for all your employees. All they need is a mobile phone with internet access, and they can download and use the app straight away.
This dodges any expensive implementation costs which are usually associated with new software.
App solutions for financial wellness can also help aid your employees in terms of their personal financial lifestyles. It can make it easier for your employees to save money, or set goals for their spending.
This ensures that they have tighter control over the wages they can claim. This has been proven to improve wellbeing overall, as it lessens the financial stresses of everyday life.
You’re then also able to use financial wellness app features as an employer. These can include setting reward programs for employees which can increase productivity.
Or, you could schedule surveys to gather data on what your employees think about your business at present. This is a great way to consider and introduce additional business changes.
Adopting earned wage access thereby allows you to totally transform the way you think about the payroll process.
Where Can I Find Out More About Earned Wage Access?
You should now know what exactly earned wage access is. You should also know the many benefits of earned wage access in 2021.
These can include the technological solutions available on the market today. Earned wage access can also improve the overall well-being and productivity of your employees.
To find out more about other business practices or money management, make sure to take a look through some of the previous posts on our website.