EWA, or earned wage access, is already taking the employment landscape by storm. For decades, employees had two sub-par options if they needed money between paychecks. First, they could take on a predatory “payday loan,” with insane interest rates and terms that heavily favored the lender. In most cases, these loans left employees with the same financial burden they faced before the loan, just coming from a different source.

The second option was to speak to their company’s HR department and ask for a payday advance—although employees in many organizations (especially large corporations) may not have had this option at all. If they did, the best-case scenario left them in an uncomfortable situation, having to divulge personal information about their finances in the hopes that they’d get one-time support. In the worst-case scenario, just making the request tarnished relationships with employers and pay advance requests were denied.

EWA is the perfect solution. Employers partner with Keeper to offer access to EVV timekeeping data, sharing information about completed shifts (and improving EVV compliance at the same time!). Then, Keeper offers employees immediate access to wages they’ve already earned (from completed shifts) but haven’t yet been paid (between paychecks).

Because of the amazing benefits, employees are already starting to prioritize employers that offer EWA in their job searches. (A 2019 Visa report found that 95% of employees want to work for an employer that provides EWA, and 79% would be willing to switch to an employer that offers EWA. It’s a big deal!) With that in mind, here are four reasons EWA is about to become a standard perk.

• Employees can cover unexpected bills and higher-than-average expenses.

There are a number of reasons employees might face financial pressure between paychecks: car and home repairs, vet and medical bills, holiday spending, travel, and any number of other situations that require more funds after payday. In these scenarios, EWA bridges the gap and prevents the need for a loan.

• It feels good to have access to money you’ve already worked for. 

Even without extenuating financial circumstances, many employees find that it’s just nice to have access to money they’ve already technically earned. There’s something to be said for offering instant gratification when we’re used to having to wait until payday for the feel-good rush of a cash boost.

• EWA helps differentiate between employers with similar perks otherwise.

In many industries, employers have a hard time standing out from the crowd and differentiating themselves from other employers with similar employment terms and perks. EWA is the perfect way to get candidates’ attention and offer something your competitors don’t.

• Employees stay longer in organizations that offer EWA.

Last but not least, employers are getting on board with the trend because they reap the rewards, too. Employees simply stay longer in organizations that offer EWA, with many Keeper partners reporting 25% increases in employee retention. Hiring replacement workers is expensive and time-consuming, so you can’t put a price tag on this benefit.

Final Thoughts 

If you don’t already offer EWA for your employees, get ready to change your mind. Get on board now if you want to stay ahead of the curve and truly anticipate employee needs, or sit back and watch as EWA becomes the next industry standard. You can’t say we didn’t warn you!