By Ryan Ashton
In today’s workforce, financial flexibility is increasingly recognized as essential. Employees are seeking tools that help them manage financial stress while improving overall well-being. In this fifth and final article breaking down our 2024 Wages & Wellbeing study, we highlight how employees view EWA and its impact on their financial and mental health.
Key Findings
- 80% of employees feel more comfortable using EWA when offered directly by their employer, highlighting the importance of employer-led wage access solutions.
- 51% of workers reported decreased financial stress and anxiety when they had access to same-day pay, improving both their financial and mental well-being.
- 65% of employees expect EWA at their next job, underscoring the growing demand for same-day pay as a standard benefit.
Trust in Employer-Led EWA Solutions
According to the study, 80% of American workers feel more comfortable using EWA when it is offered directly through their employer. This finding points to a crucial opportunity for businesses to enhance employee trust and satisfaction by offering an integrated EWA solution. Employees clearly prefer to receive access to their earned wages through a trusted source—one that can seamlessly incorporate same-day pay into their existing processes via their employer directly.
Moreover, the study found that 61% of workers with EWA access use it frequently, showing that demand for immediate access to wages is high. Workers are using these funds to cover essential expenses, such as bills and daily living costs, helping them avoid late fees and high-interest loans.
Mental and Financial Health Benefits of EWA
The ability to access earned wages on demand has clear financial and mental health benefits. Over half of the workers surveyed (51%) reported a reduction in financial stress when they could access their wages on the same day they worked. Additionally, 44% said EWA helps them avoid late fees or debt, and 41% stated it improves their ability to plan for monthly bills. By reducing financial pressure, EWA empowers workers to manage their personal finances more effectively.
This financial relief also translates to increased job satisfaction. Employees who feel more secure in their finances tend to be more motivated and engaged at work, resulting in improved workplace morale and performance.
Dispelling Usage Myths
Despite myths that persist within the industry, employees who access same-day pay use the funds to address daily living expenses, purchasing essential items like groceries, gas and similar.
Additionally, employees view access to same-day pay as a lever to improve their financial wellbeing: 82% of American workers say having immediate access to their same-day pay would significantly improve their ability to save money.
The Growing Demand for Same-Day Pay
As expectations for financial flexibility rise, 65% of employees now expect EWA at their next job, according to the study. The demand for same-day pay is driven by workers’ need for immediate financial solutions, with 71% indicating they would use EWA to pay bills on time and 60% using it for essential living expenses.
For employers, this presents an opportunity to stay competitive in a tightening labor market by offering EWA as a core benefit. Employees are actively seeking jobs that provide this flexibility, and companies that offer EWA can improve recruitment, retention, and employee satisfaction.
Conclusion: EWA as a Tool for Employee Well-being
The 2024 Wages & Wellbeing study demonstrates that employees want and need EWA to manage their financial health. For businesses, offering EWA can lead to a more engaged and financially secure workforce, reducing stress and increasing overall job satisfaction. As the demand for flexible pay options grows, integrating EWA into benefits packages is proving to be a win-win for both employees and employers.
By providing immediate access to earned wages, employers can help workers manage their short-term financial obligations while fostering long-term loyalty and engagement.
Read the full Wages & Wellbeing study here, or get in touch with us to learn more by visiting instant.co/demo.
