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Early Wage Access for Cannabis Employees
Employees today are experiencing greater financial stress than ever before, often resulting in them turning to high-interest loans or facing bank...
It should come as no surprise to learn that many employees are living paycheck to paycheck—two in five, to be exact. 84% of employees are also worrying about finances while at work.
Employees today are struggling to make ends meet and often taking out high-interest loans or getting dinged with everything from bank fees to late fees. It’s taking a toll and impacting their ability to do their best work.
This is where Earned Wage Access (EWA) comes in. Earned Wage Access represents another lever your business can pull to remain competitive in today’s market and improve your employee’s financial wellness.
EWA gives your employees access to funds they've already earned but have not yet been paid due to the traditional pay cycle (e.g. bi-weekly or monthly).
With EWA, they’re free to access a percentage of the wages they’ve already earned whenever they want.
By allowing employees to access their wages early via earned wage access solutions, employers can help improve the financial health of their employees, among many other benefits.
EWA is also a great tool for all industries, which includes providing early wage access for cannabis employees and businesses.
EWA gives employees much-needed flexibility.
With early access to their earned wages before payday, employees can meet unexpected expenses without having to resort to predatory lenders.
With EWA, employees have the flexibility to handle unexpected expenses.
In fact, according to a recent report from ZayZoon, employees say they experience a 74% improvement in financial stress and a 78% increase in motivation to perform at work.
Employers who provide on-demand access to earned wages experience up to twice as many job applicants.
In another recent report, about 80% of employees would prefer to take a job with an employer that provides EWA over one that does not.
You want to take care of your employees by helping them be empowered at work and in their financial journey. And, when workers know you’ve got their back, they’ll give you their best.
When payday is any day, employees are happier, more productive, and likelier to stick around.
Businesses offering loan programs to employees report having saved up to $8,000/year by providing access to earned wages instead.
On the other hand, employers who offer access to earned wages report a 5% reduction in hiring costs.
The best part? These savings come at 0-cost to the employer.
Employees often look to their employer for help when they are struggling with their finances in the form of pay advances.
Often times employers or HR professionals have to process pay advances on their own, it can be very time-consuming and expensive to do.
Many employees also feel shame and embarrassment when asking for a pay advance as they have to disclose why they need an advance.
With EWA, employees can access their wages on-demand without notifying their employer. This way, employees can get the funds they need and get back to work without the added stress or embarrassment.
Paper checks are going the way of the dinosaur. And, for very good reason: paper checks are 10 times more expensive than making payments digitally. This is just one of the many benefits of paperless payroll.
One way savvy business pros are getting their workforce off paper checks is by offering EWA. It incentivizes the transition while giving employees the option to get paid whenever and however, they want.
This is an effective strategy to get the employees who do have a bank account to choose direct deposit to receive their paychecks.
The best part about providing early wage access through earned wage access solutions is that it costs the employer nothing!
However, there are fees for employees—$5 at most, to be exact.
There are however some completely free options available out there for employees to use:
Giving employees Earned Wage Access doesn't just promote better financial health—it can also make your business a better place to work. While EWA is still a relatively new benefit, market awareness is growing and employees are coming to expect it.
Our payroll software solution integrates seamlessly with our Earned Wage Access Solution from our partner, ZayZoon.
Curious to learn more about EWA or find out how to add ZayZoon as a benefit through PayNW? Contact us today to learn more about our EWA solution, or get started here.
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