How to Implement Earned Wage Access in Your Organisation: Your Complete Guide

Finding the right EWA partner, integrating with payroll and rolling out EWA to empower employees – this is how to implement EWA in your organisation in South Africa

How to Implement Earned Wage Access in Your Organisation: Your Complete Guide

Looking to roll out Earned Wage Access (EWA) for your employees in South Africa?

Fantastic! We’ve shown in the past how financial stress impacts productivity and how EWA (also known as on-demand pay) has been proven to reduce that pressure and help employees get a better handle on their finances – see the complete guide to earned wage access here.

But how do you go about rolling it out without hassle and disruptions?

1. How to Choose the Best EWA Partner: What You Need to Know

The first step on your EWA journey is finding a provider that fits your company’s needs. But with so many options out there, how do you make the right call?

Key things to look for:

• Easy Integration: You want a provider that can slot right into your existing payroll and HR systems without any headaches. Jem HR, for example, makes setup a breeze with a straightforward integration process: Your payroll team simply sends a monthly payroll data extract of employee information (names, bank details, net salary, and phone numbers) and Jem takes care of everything else.
• Affordability all-round: It’s crucial to opt for a provider that makes the service affordable for both you as the employer and your employees. For example, at Jem HR, the EWA service is at no cost to you as the employer (allowing you to offer it as a benefit) while employees only pay a small 3.5% fee similar to an ATM charge, on accessed amounts – get all your EWA questions answered here.
• Support and Security: You want a provider that offers solid support and top-notch data security. Jem HR’s platform, which is monitored by Drata and hosted on Google Cloud Services, ensures your employees’ data is safe and sound.

Learn from success stories such as a financial services company Mukuru that cut down HR time spent on loan processing by a whopping 96% after bringing in Jem’s EWA. And at Lasec Group, employees collectively saved around R45,000 a year in loan interest thanks to Jem’s solution.

2. Integrating EWA into Payroll and HR: A Smooth Ride

A common concern is how exactly EWA will fit into your existing payroll and HR setups. The good news? With the right provider, it’s a piece of cake.

Here’s how EWA with Jem works:

• Data Extract and Profile Setup: Your payroll team simply provides Jem HR with a monthly data extract, including employee details like names, bank information, and net salary.
• Reconciliation and Deduction: At the end of each pay cycle, Jem HR sends over a reconciliation sheet that can be easily imported into your payroll system, making deductions smooth and stress-free.
• Security Measures: Jem HR takes care of all the security stuff with end-to-end encryption and full POPIA compliance, so you don’t have to worry about data breaches.

3. Rolling Out EWA: Best Practices for Employee Adoption and Financial Empowerment

Bringing EWA to your team is about more than just adding a new perk – it’s a prime opportunity to give your employees the financial tools they need to thrive. That’s why Jem leads with free educational tools.

Put Financial Education Front and Center: One of the best ways to ensure a successful EWA rollout is to pair it with solid financial education. Alongside our earned wage access service, Jem HR includes free financial literacy modules on topics like budgeting, debt management, and savings in four languages that employees can access as often as they need to, simply and easily via WhatsApp.

We believe this not only helps employees handle their immediate financial needs but also sets them up for long-term success.

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4. Overcoming Challenges: Tips for a Smooth Implementation

There’s a common misconception that EWA might encourage financial irresponsibility. However, studies have shown that when employees are given access to their wages early, along with financial education, they tend to make more informed and responsible decisions.

Jem HR allows you to set limits, like capping withdrawals at 25% of already earned wages, to ensure responsible use. Then Jem will handle full support to employees using the service, including processing requests and payments timeously, as well as keeping communication efficient and transparent through our simple and accessible WhatsApp interface.

If you have any concerns or questions, check out our EWA FAQs page.

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5. Case Studies: Real-World Success Stories

To really see the impact of EWA, check out these success stories from South African companies that have implemented Jem HR’s solution.

• See how Mukuru reduced absenteeism and slashed loan processing time by 96%, boosting both HR efficiency and employee satisfaction.
• Learn how Lasec Group used Jem EWA to help 400+ employees avoid loan sharks and high interest rates from payday lenders.
• See how Oryx saw a dramatic drop in absenteeism and better financial management among employees.

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Unlock the Benefit of Earned Wage Access for Your Employees

Ready to enhance your workforce’s productivity and well-being with Earned Wage Access Jem HR makes it easy to implement EWA in your organisation.