How Earned Wage Access Can Boost Employee Productivity

Human Capital Preservation through Earned Wage Access

What if there was a simple method to boost staff morale and retention? What if it also encourages employees' financial health? All of this may be accomplished with little effort on the part of the employer by implementing Earned Wage Access (EWA).

Based on research conducted by Visa, 84% of workers are looking to access small portions of their salary, and use the money to buy essential items such as gas and groceries, and pay utility bills. Our research on 150+ workers in manufacturing also confirms Visa’s research.

Data analyzed from Mitro’s userbase suggests that workers earning less than BDT 15,000? withdraw between BDT 1,500 and 3,000 per month, whereas those earning between BDT 15000 and 60000 withdraw between BDT 6000 and 10,000, indicative of the cash crunches faced buying groceries, children’s education, and small medical emergencies. Mitro’s dataset confirms improvements in absenteeism and retention based on the sample size in Comilla Export Processing Zone.

In the Western world, 50–60% of people live paycheck to paycheck, which is why blue- and gray-collar workers are paid weekly or biweekly due to the necessity for consistent income. In Bangladesh, employees get paid once every month, but they spend daily, thus running out of cash before payday.

With Mitro, employees can access their steady income whenever they need it before their real paycheck arrives. It's a creative, fresh approach to payroll that lets employees control how and when they get their deserved compensation.

Seeing employee effort and reward as soon as they finish their workday is a rewarding experience that makes the workplace much more engaging. An increase in staff morale also aids in employee retention and productivity.

Since 2017, Walmart, the largest employer in the United States, has provided its employees with EWA, or on-demand salary. The retail giant's analysis of the impact of earned wage access on its workers revealed an increase in worker retention, particularly among those who frequently accessed their earned pay and made use of the corporation's other financial wellness programs.?

Manufacturing companies in Bangladesh have anywhere between 3% and 7% labor turnover every month, so even a 1% increase in productivity directly affects the bottom line.

According to a 2020 PWC poll, 50% of employees say that financial concerns are the most stressful aspect of their lives, and 48% believe that these concerns influence them at work. While this may not immediately result in increased employee churn, it does result in decreased productivity and absenteeism. As a result, it's easy to see why an organization that cares about its employees' financial well-being would be regarded as the more alluring and sought-after employer.

At Mitro, we provide employees with a simple approach to taking control of their earned salary and reclaiming their financial freedom, thereby enhancing employee morale and retention. As there is no onboarding cost to the employer, this further adds to the compliance of the company and overall employee well-being.

Learn more about Earned Wage Access: https://mitro.io/