In a digital world why do we wait so long to get paid for work we've already done?

Shockingly, 1 in 3 Australians can't access $500 in an emergency*. At the same time Aussie workers are owed billions in earned wages waiting to be "paid in arrears". Now employees can access their pay the moment they've earned it, without any inconvenience to employers.

Historically, payroll processing complexities forced us to accept intermittent paydays. This meant employees worked for weeks or even a month before seeing their earnings. However, technological advancements have slashed the time and cost of running payroll. Now we can determine the value of earned wages in near real-time at no extra cost.

Enter Earned Wage Access (EWA), a tool allowing employees to access a portion of their earned wages before their usual payday. Properly supported, this innovation enhances financial stability, reduces stress and boosts job satisfaction.

Distinguishing Earned Wage Access from Payday Loans

While both EWA and payday loans provide quick access to funds, they differ fundamentally in cost and impact on financial health. Payday loans are short-term, high-interest loans that often trap borrowers in a debt cycle. In contrast, EWA allows workers to access their own earned wages without incurring interest or high fees. This means workers use their own money, not borrowed funds, offering a more affordable solution for immediate financial needs. With the right tools, EWA fosters financial control and encourages responsible budgeting, spending, and saving.

EWA is becoming integral to employment worldwide. It's already a right in many countries including Germany, Italy, France, Portugal, and Belgium. In the UK, access to EWA is part of the payroll association’s Code of Conduct. A common sentiment when speaking to experts in these countries is, "It's their money! They should be able to access it."

As EWA embeds itself in our employment landscape, our obligation is to facilitate it efficiently and responsibly for everyone.

How EWA Outshines Debt

Reducing Reliance on Predatory Lending: With 1 in 3 Australians unable to access $500 in an emergency, unexpected incidents can force them into high-interest loans or credit cards. EWA allows immediate access to their own money, reducing financial stress and maintaining stability.

Reducing Stress, Increasing Control and Productivity: Living paycheque to paycheque, workers often resort to predatory lending, leading to a debt cycle. One in four people admit financial stress affects their enjoyment of life*. EWA provides a safer alternative, reducing financial stress and positively impacting mental health, job satisfaction, and productivity.

Enhancing Financial Planning and Budgeting: Regular access to earnings helps employees manage short-term financial needs affordably, leading to better financial decisions and avoiding overspending. Over time, this improves financial literacy and overall well-being.

Boosting Employee Retention and Satisfaction: In today’s competitive job market, offering EWA can set companies apart, making it an attractive benefit that enhances employee retention and satisfaction.

Earned Wage Access is a powerful tool. By providing access to funds to reduce reliance on predatory lending, enhancing financial planning, reducing stress, and boosting employee satisfaction, EWA can transform workers' financial well-being. Empowering employees with greater control over their finances, EWA fosters a healthier, more stable, and satisfied workforce. As more employers recognise its value, EWA is poised to become a popular benefit, helping workers navigate modern financial challenges.

* One in three Australians face uncertain financial future?