What exactly is Earned Wage Access?

Hiya!

It is a pleasant Friday, the kind every 9-5ver pray for. There is an additional holiday to the consistently short, always disappearing weekend, and we have 96 hours of maximum flenjo. It is Sallah, the big one; the one people kill ram although I am sure some goats and chickens might suffice this time around.

Why? Inflation of course!.Have you seen the cost of rams?

It's a long holiday but making calculations and doing x plus y about how the money will be spent might make the holiday longer? Why? Well, you want to have fun but you also know there is at least two weeks or ten working (or calendar) days before the next income comes in.

It is to douse tension and stress like this that Earned Wage Access (EWA) was found.

This history of EWA can be dated back to the Early 2010s (Post 2008 crisis) in the United States . Earned wage access programs began to reach the market in the 2010s, due to the receding number of Americans who had access to credit and traditional banking.

The process was integrated with the payroll to lay the foundation for a fairer and more inclusive era of personal finance.

In August 2016, Uber pioneered EWA in a partnership with Green Dot by allowing drivers to request their earnings after each drive in exchange for a small payment.

In July 2018, ADP, the largest payroll provider in America, began offering an EWA solution in their marketplac and adaptation has been continous since then with companies like Lyft coming onboard in 2019 liasing with Mastercard to execute this and lots more.

It didn't take long for Africa to join the train, and in very recent years we have seen some HR companies like PADE HCM offer this solution.

Why EWA, you may ask?

Because it is advantageous to both employees and employers.

For the Employees; Earned Wage Access:

1. Reduce Dependency on High-Interest Financial Options as they can access their pay before time at zero interest rate
2. Provides a good mental space and well-being that enhances productivity
3. Enhances financial wellness as they are not depedent on high-interest loan platform.

For the Employers: Earned Wage Access:

1. Help attract and retain talent; it can be sold as part of the benefits during recruitment (I know this might be debatable but I think it's a benefit)
2. Enhance productivity and employee engagement: When a staff isn't soused in money worries; they are able to focus on what needs to be get done and their mind is in the right space
3. Increased retention rate and consequentially- improved employer branding

Cons?

Well, there has been a lot of arguments about the scalability and sustainability of EWA; especially as it gives you access to your next salary before time.

But do the pros outweight the cons? You can decide that for yourself.

If you are a Nigerian employee, employer or HR Professional looking to explore the Earned Wage Access solution , stop by the link below to start your journey or send a dm to PaidHR (formerly Pade) , I'm sure they'd reply in a giffy.

You can also sign up for a demo via this link https://bit.ly/3KIlz4S

Do you think Earned Wage Access is a great solution? Would you love to access your monthly pay before time?

What other general thoughts do you have? Leave a comment below.

P:S- I am rolling out some exciting career-centric videos on my Youtube channel over the next couple weeks, click to subscribe.