Earned Wage Access (EWA) is a can’t miss opportunity for payroll providers. Did you know that 82% of employers are interested in offering this flexible benefit to their employees?
As a payroll provider, this service can help your client stay competitive as job candidates hold out for the benefits they really want from their employers.
Today’s workforce is a dramatically different scene than it was just three years ago. Job candidates have more freedom to choose the best opportunities, putting more pressure on employers recruiting and hiring efforts to adapt.
As a payroll provider, your services must directly support your clients’ needs. This means staying on top of hiring and payroll trends and offering solutions that are relevant to the needs of the workforce.
In 2022, payroll relevance means:
- Flexibility in Pay
- Employers Who Care
- Earned Wage Access (EWA)
It’s a misconception that only low-wage earners or a small population of individuals with poor creditworthiness need payroll flexibility. As of June 2022, households earning between $100,000 and $150,000 became the largest demographic of people living paycheck-to-paycheck.
Whether you’re managing payroll for entry-level retail workers or enterprise-level software technicians, everyone needs money. Wage access isn’t a poverty problem. It’s a workforce problem and EWA offers a convenient, easy-to-implement solution for payroll providers and their clients.
From cost savings for clients to a strong competitive position, payroll providers can use benefits like earned wage access to attract more business.
Everybody loves efficiency. Unfortunately, payroll cycles aren’t well-known for their efficiency. In fact, more than one-third (38%) of US companies are still processing payroll by hand. And even more, employers are spending needlessly on payroll labor to tackle data entry and reconciliation activities.
These efficiency-zapping tasks have driven many to outsource to payroll providers. According to a global payroll survey conducted by Deloitte, 73% of employers are outsourcing at least one aspect of payroll for cost savings.
Payroll providers can use services like EWA to dial up that savings with automation and gain a competitive advantage, making them the clear choice for payroll services.
Employers are outsourcing payroll, the only question is who they are choosing as a payroll provider. With increasing pressure from job candidates to offer fresh incentives, providers who can match employee needs with cost-effective, low-administrative solutions stand to win the most.
Here’s what we know–a younger workforce wants early wage access. Currently, about half (50%) of employers are offering this benefit to workers with up to 82% of the remaining half considering making the change.
Here’s what is holding them back:
- Compliance Concerns
- Cost of Implementation
- Clarity on Fee Structures
As a payroll provider, offering EWA is a good way to attract potential clients. You can alleviate their compliance concerns while offering a cost-effective, hassle-free option to get started. It’s the cherry-on-top that will set you apart from the competition, enabling your clients to improve their recruitment and retention efforts while simultaneously solving their payroll problem.
Employers looking to outsource payroll are focused on two things: cost and ease of implementation. Earned wage access is a benefit that caters to both, offering a simple startup that helps your client keep their costs manageable.
As a payroll provider, you can offer EWA as a service that benefits your client and their employees without driving up your costs–ensuring that the outsourcing arrangement remains financially viable for both parties.
While most of the workforce is interested in access to early wages, employers may be hesitant. It’s new and it’s different. Employers have been providing payroll via check and more recently via direct deposit for decades.
Some may be wondering, why fix what’s not broken?
The truth is, for a younger and often tech-enabled workforce, payroll is broken. But more importantly, it’s about facilitating convenience.
Most of these employees can find a way to access a direct deposit or cash a paper check, but it can a chore–and even a burden.
If offered a choice, many employees are choosing flexible pay and early access as top priorities when accepting job offers. So, payroll providers that offer their clients EWA are really offering their clients a better chance at filling vacancies.
Plus, the same program used for EWA can facilitate other perks like:
- Pay Bonuses
- Health Savings Benefits
- Benefit Days
Reloadable cards are an attractive way to save employers time and money while keeping their workforce motivated and engaged. All of these retention incentives save employers money by keeping top talent.
In one case study where Towne Nursing agency implemented same-day pay benefits, the results showed time, money, and retention savings. The results showed the following improvements:
- Time management: Implementing Juice Financial cards for same-day pay access saved over 80 hours in administrative overhead a month.
- Check cashing services: The reloadable pay cards saved Town Nursing more than $277,000 in fees per year associated with printing and issuing paper checks.
- Workforce Productivity: The company found that incorporating same-day pay resulted in more than 1,500 employees finding increased engagement and boosting national retention.
The overall results found that the reloadable debit cards saved the company overhead costs associated with manually processing payroll and issuing checks. It also had a favorable outcome for employee satisfaction and retention.
Activities surrounding payroll can be tedious, time-consuming, and cost an employer money. Cost-savings are why employers turn to payroll providers in the first place. With added benefits like EWA, you can sweeten the pot and offer your clients a little more bang for their buck.
If you’re ready to try EWA, reloadable cards may be a quick and cost-effective way to keep employees happy while streamlining payroll services. Juice’s proven Pay Today solution is trusted by payroll providers all over the US to enable Earned Wage Access for their clients. Get in touch with us today to learn more!