As the ‘Great Resignation’ or ‘Great Reshuffle’ continues, the fight for talent remains as competitive as ever. We’ve previously discussed topics like attracting and retaining talent, employee engagement and workforce stabilization. Each contributes significantly to keeping your talent from seeking greener pastures. But there are also external tools that can aid in differentiating your business as an attractive place to work. One example is earned wage access.
Also known as same day pay or on-demand pay, earned wage access (EWA) is a service that provides your employees with the wages they’ve earned in real-time. In other words, they don’t have to wait until the traditional payday. EWA allows employees to access the money they earned immediately after their workday is complete. EWA can include wages for hourly and salaried employees as well as for tip payouts.
Landrum HR Solutions has partnered with EWA leader Instant Financial to help our clients gain an edge in the market for talent. Instant reports that businesses who have implemented EWA have seen a 30-percent increase in job applications, have improved employee retention by 20 percent and have experienced a 13-percent decrease in worker absenteeism.
That type of impact could provide a significant advantage for a company currently challenged to attract and retain workers.
For employers, EWA comes with the added benefits of security and convenience. With electronic tip payouts, for example, a business will have to schedule fewer cash deliveries and won’t have to hand out cash for earned tips at the end of a workday.
For employees, the perks of EWA are obvious. Having the freedom to access and control finances in real-time serves a practical purpose, but can also be invaluable for an employee’s peace of mind. Instant’s wage access is free to employees and includes nationwide ATM access as well as bank transfers.
Landrum HR Solutions clients currently have access to Instant Tips, which ensures safety, security and convenience for tipped employees through electronic payouts. Coming soon, Landrum HR Solutions will expand its EWA offerings with Instant for same day pay, which will allow clients to provide on-demand access to hourly and salaried employee wages.
Landrum HR Solutions clients interested in EWA can contact their HR Business Partner to setup a demonstration. Prospective clients are encouraged to contact us for more information.
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