More than ever, it’s difficult for employers to retain talent – especially for businesses who employ frontline workers. The competitive nature of these industries combined with a shortage of labor and high turnover rates creates a constant struggle.
The research backs it up, too. According to the Harvard Business Review, employee retention is harder than ever. It now takes 18% longer to fill roles versus the pre-pandemic world.
Employers must think about how they’re approaching this challenge, or the problem will only get more difficult to solve. These days, business leaders must think wider than they used to. Beyond merely offering competitive wages, employees now seek a more comprehensive sense of well-being and support from their employers. Job satisfaction and a feeling of holistic well-being are now pivotal factors in employee retention. And in a labor market where employers are commonly overworking their employees, that’s risky. According to Gallup, when employees say that their organization has asked them to take on additional responsibilities, they are 55% more likely to watch for or actively seek a new job.
Similar to creating a total rewards program, one innovative approach businesses are taking is adding access to earned wages for employees. By allowing employees access to their earned wages, companies not only provide immediate financial relief but also invest in the long-term well-being and productivity of their workforce. For large employers, this translates into tangible benefits.
Defining the Concept of Access to Earned Wages
Before we go further, let’s explain exactly what it means to have access to earned wages. An earned wages access program is, in essence, a financial solution that empowers employees to access a portion of their earned wages before the traditional payday.
This innovative approach does not only provide immediate financial relief, but also helps foster a long-term investment in the well-being and productivity of the workforce. Access to earned wages provides financial flexibility for workers, something that’s extremely valuable for navigating the financial realities of everyday life. It helps employees take control of their finances by allowing them to address immediate financial needs.
Employees can better manage their budgets and reduce overall financial stress, leading to a happier and healthier life. It’s not a myth that happier employees are more productive workers. The research proves it. A better life for an employee means a better product for an employer.
The Benefits of Access to Earned Wages for Employers
Adopting and implementing EWA programs offers several advantages for both employees and employers. For employees, it fosters a greater peace of mind in the financial world. This naturally leads to an employee being more focused and dedicated to their work.
In fact, The New York Times reports that the competitive labor market across many industries has companies viewing competitive compensation and benefits as necessities. Put it another way: It’s now a requirement for businesses to think about the holistic well-being of their workforce.
Access to earned wages provides these benefits for employers.
- Enhanced Financial Wellness: Access to earned wages provides employees with flexibility, helping them navigate financial challenges with greater ease. Improved financial wellness often leads to reduced turnover rates, as employees are more likely to stay with employers who offer such support. Plus, employees who are less financially stressed result in lower absenteeism, more accurate work, and lower risk of workplace accidents.
- A Recruitment Angle: In a highly competitive job market, access to earned wages can serve as a powerful recruitment tool. It positions employers as forward-thinking and employee-centric, attracting fresh talent and encouraging them to stay.
- Supporting Financial and Digital Literacy: Access to earned wages also contributes to the financial literacy of the workforce. Financially literate employees are better equipped to manage their finances effectively, reducing the chances of economic hardships affecting their performance. Additionally, offering digital tools helps bridge the technology gap, ensuring that all employees are comfortable and proficient with modern financial solutions.
The Juice Solution: The Power of Earned Wage Advance
As a leader in the realm of FinTech, Juice has provided a solution for those looking for Earned Wage Access. The Juice platform offers the innovative Earned Wage Advance program, a tool that allows employees to access their earned wages whenever they need them. It’s not simply a payout solution, but instead a comprehensive approach to enhancing the overall employee experience.
With Juice’s Earned Wage Advance, employees can access their earnings on-demand through a reloadable pay card and digital account, which is easy to use and accessible through a user-friendly mobile app. This streamlined process ensures that employees can swiftly and efficiently manage their finances. It’s about providing employees with autonomy over their earnings, and in doing so, fostering a sense of financial well-being and confidence.
Tomorrow’s Opportunities, Embraced Today: The Future of Employee Well-Being
Technology is meant to improve lives, leading to a brighter and more prosperous future. Employers who embrace the advantages of new FinTech are positioning themselves as industry leaders – a way to stay ahead of the competition and trends. Further, it helps secure a stronger, more productive workforce.
The adoption of innovative solutions such as Juice’s Earned Wage Advance not only addresses immediate financial challenges but also shows workers that their employer is invested in their overall well-being and success. Easy access to earned wages might seem like a simple convenience, but it’s actually a strategic decision that shows your workforce that you’re embracing the future and thinking about how to take advantage of the opportunities of tomorrow.
Learn how Juice’s advanced FinTech can provide your business with an innovative way to approach the evolving expectations of employees.