Earned Wage Access: Improving Employee Engagement and Retention

Financial stress is a big issue for many workers in the Philippines. According to Sprout’s State of Financial Wellness 2024 report, 91.8% of Filipinos are experiencing financial stress and anxiety, highlighting the urgent need for solutions.

To address this, Earned Wage Access (EWA) is emerging as a transformative tool that can provide immediate financial relief. It allows employees to access a portion of their earned wages before payday.

Understanding and implementing EWA can greatly enhance employee engagement, retention, and overall job satisfaction.

This blog will explore its benefits and how it works.

Earned Wage Access (EWA) is a financial service that allows employees to access a portion of their earned wages before their scheduled payday. For instance, if an employee has worked for 10 days out of a 14-day pay period, they can get part of their earnings right away instead of waiting until the official payday.

The process is made easy by fintech solutions that connect with payroll systems, allowing employees to access their earned wages instantly and securely. This technology ensures that both employers and employees can benefit from EWA without disrupting established payroll processes.

In Western countries, EWA has seen high adoption rates among companies, including Walmart, McDonald’s, and Uber, which have implemented these programs.

Companies are boosting talent attraction and employee goodwill by offering immediate access to earned wages. A 2020 KPMG survey shows 79% of workers would switch jobs for employers with this benefit, highlighting EWA’s growing role in employee attraction and retention.

EWA delivers a host of benefits for both employers and employees. With instant access to earned wages, it’s a win-win solution that eases financial stress, allowing employees to stay focused and be fully present at work, free from personal worries that may hinder them from performing to their full potential.

1. Improved Employee Productivity: EWA reduces financial stress, enabling employees in BPO, manufacturing, financial services, healthcare, tech startups, and construction to stay focused and productive.
2. Enhanced Employee Retention: EWA promotes financial stability, boosting job satisfaction and reducing turnover in sectors like BPO, manufacturing, and construction.
3. Attraction of Top Talent: Offering EWA gives companies in tech startups, healthcare, and financial services a competitive edge by showing a commitment to employees’ financial well-being.

1. Financial stability: Immediate access to earned wages helps manage unexpected expenses and avoid high-interest loans.
2. Reduced financial stress: The psychological benefits of financial security extend beyond the workplace, improving overall well-being.
3. Increased job satisfaction: EWA contributes to a positive work environment and improved work-life integration.

To enhance your workplace and foster higher engagement and retention among your employees, try incorporating an EWA like  Sprout Solutions’ ReadyWage. This is a new financial wellness tool that simplifies and enhances access to earned wages for employees while offering significant benefits to employers.

ReadyWage integrates smoothly with existing Sprout HR and Payroll systems, requiring minimal administrative work from employers and ensuring seamless functionality. This product is exclusively available to those utilizing the Sprout HR and Payroll systems.

This seamless integration ensures that employers can offer this benefit without any extra costs or liability, making the process straightforward and efficient. Employees can instantly access their earned wages within minutes through Sprout HR.

• Instant In-App Access: Access earned wages within minutes via the Sprout HR platform (available on web and mobile)
• Unlimited Withdrawals: Withdraw earnings as needed without restrictions
• Cycle Reset: Withdrawable amounts are reset every pay cycle
• Zero Interest Fees: Interest-free access to earned wages
• Instant Wage Access: Immediate access to wages reduces reliance on high-interest loans
• Transparent Transactions: Clear deductions on payslips for easy tracking

• Minimal Admin Work: Integrates with Sprout HR and Payroll systems, requiring minimal effort
• Security and Compliance: Ensures secure transactions and regulatory compliance
• Finances Dashboard: Gain insight into employee transactions, trends, and behaviors
• No Company Liability: Automates processes to reduce human error and limit the risk of compliance violations
• No Additional Cost: Foster financial wellness among employees at no cost

ReadyWage creates a positive impact for both employees and employers. Employees benefit from improved financial stability and reduced stress, which in turn enhances their job satisfaction.

For employers, this translates to higher productivity, better retention rates, and a stronger employer brand, as it shows a commitment to supporting their workforce’s financial health and well-being.

Take the first step toward a healthier, more productive workforce by exploring EWA with ReadyWage through Sprout Finances.

Learn more about how Sprout Finances and ReadyWage can benefit your company and employees. Book a meeting today.