Financial challenges faced by employees in today’s world can significantly impact their overall well-being and productivity. Living paycheck to paycheck and struggling to cover unexpected expenses can cause stress and anxiety, making it challenging for employees to focus on their work. As a solution to these problems, employers are turning to Earned Wage Access (EWA) to help their employees gain financial stability and promote employee loyalty.
Recent surveys indicate that 72% of Americans would experience financial difficulty if their paychecks were delayed for a week, according to results from the 2022 “Getting Paid In America” survey conducted by the American Payroll Association (APA). This is a 9% increase from the survey they conducted back in 2021, highlighting a significant need for financial solutions such as EWA.
EWA allows employees to access a portion of their earned wages before payday, helping them avoid costly payday loans and overdraft fees. This concept has gained popularity in recent years as a response to the financial struggles faced by many workers. The COVID-19 pandemic further accelerated its adoption.
Employers can benefit from offering EWA services in several ways.
- Addressing financial stress: EWA meets the financial needs of employees, providing them with the resources they need to meet their financial obligations and alleviate the stress of living paycheck to paycheck. This, in turn, can improve employee satisfaction and morale, leading to increased loyalty and retention.
- Providing financial flexibility: EWA allows employees to access their earned wages when they need them, which can help them manage unexpected expenses, avoid high-cost loans or credit cards, and avoid late fees or overdraft charges. This can provide employees with greater financial flexibility and reduce their reliance on debt.
- Demonstrating care for employees: By offering EWA, employers can demonstrate that they care about the financial and overall well-being of their employees. This can help build trust and loyalty among employees, who may feel that their employer values them as individuals and is invested in their financial success.
- Encouraging financial responsibility: EWA services can also be used to encourage financial responsibility among employees by providing them with access to their earned wages in a responsible and sustainable way. This can lead to increased loyalty and trust among employees.
Atomic’s EmployerLink solution provides the robust infrastructure for EWA solutions, allowing other technology companies to implement a fully automated, secure, and scalable EWA program quickly and easily. With employer permissioned access into payroll and Human Resource Information Systems (HRIS), Atomic’s SDK simplifies integrations with payroll and time and attendance systems, enabling EWA providers to onboard businesses in days, instead of weeks or months.
One down-side of employer-sponsored EWA programs has been churning satisfied, loyal customers due to the customer leaving their position at a supported employer. Atomic’s UserLink solution for EWA solves this pain point by providing the customer with a an option to connect their time and attendance and payroll data from their new employer directly. This unique combination of employer and user permissioned payroll access allows EWA providers to maintain relationships directly with consumers, even when they switch jobs.
The EmployerLink EWA solution eliminates the need to build integrations with each payroll provider, providing instant access to Atomic’s entire network of connections. By utilizing Atomic’s SDK, EWA providers can focus on what matters, reducing time to market, enhancing data security, and providing a developer-friendly interface. A convenient interface makes it easy for employers to connect their HRIS and time and attendance systems without having to set up complicated software infrastructure and involve IT teams.
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