Life doesn’t pause between paychecks, but for many workers, financial strain often does. Payday can feel like an eternity away when unexpected expenses arise. In my youth, I still vividly recall the anxiety of stretching funds until the next paycheck. Little has changed—except now, predatory lenders aggressively market themselves as quick fixes, often deepening financial woes instead of resolving them. These are wolves in sheep’s clothing, preying on workers’ cash flow challenges. Fortunately, there’s a better, ethical solution. Keep reading to learn how you can support your valued employees.
The Reality of Life Between Paychecks
For many workers, the days leading up to payday bring tough choices. Here’s what they often face:
- Unexpected Needs:
- Three days until payday, but the gas tank is empty, and funds are low.
- A broken washing machine that requires a $75 service visit.
- A child’s sudden illness means unplanned medical co-pay and prescriptions.
- Missed Opportunities:
- A concert is happening this weekend, but payday is next week.
- A chance for a date night, but cash is tight.
- Kids want to see a movie, but there’s no money for tickets.
These scenarios reflect a mix of needs and wants, both of which are real for your workers. Ignoring these challenges risks pushing employees toward predatory lenders or forcing them to dip into retirement savings—neither of which is a sustainable solution. Even banks, with their “overdraft protection” schemes, often fall into the predatory category. A $12 Netflix subscription or a $1.99 iTunes purchase can trigger $35 overdraft fees, stacking up quickly and plunging workers into a cycle of debt. There’s a better way to help.
Introducing EWA: A Game-Changing Employee Benefit
EWA is a company-sponsored, third-party benefit that allows employees to access their earned wages between pay periods through a user-friendly mobile app. For a small, one-time convenience fee—comparable to a typical ATM charge—employees can have funds instantly deposited into their checking account. If the employee can wait a day or two, they can receive their funds via an ACH transfer with no fee. This eliminates the risk of overdraft fees and predatory loans. For example, instead of paying $70 in overdraft fees for a series of small purchases, an employee could use EWA to cover expenses with a single low-cost transaction fee or free if they can wait a day or two for an ACH transfer.
When payday arrives, any advances, plus the associated fees, are automatically deducted from the employee’s direct deposit. Some services require no payroll integration, making it seamless for employees to gain early access to their earned wages if their employer doesn’t offer an EWA benefit.
Addressing Concerns About Financial Responsibility
Some argue that EWA might encourage poor financial habits. However, the reality is that life’s challenges—unexpected repairs, medical expenses, or even small joys like a family outing—happen regardless. Without EWA, employees may turn to high-interest lenders or deplete retirement savings, both of which carry far worse consequences. EWA offers a responsible, affordable alternative that empowers workers to manage their finances without punitive costs.
Benefits for Employers
EWA isn’t just a lifeline for employees—it’s a strategic advantage for employers. Companies offering EWA report:
- Reduced Turnover: Up to 13% lower, saving on hiring and training costs.
- Decreased Absenteeism: Up to 10% reduction, boosting productivity.
- Increased Applicants: Up to 60% more job applicants, making it easier to attract talent.
These outcomes translate to significant cost savings for employers—at no direct cost to the business.
Take Action Today
Supporting your hourly workers with EWA is a win-win: it alleviates financial stress for employees and strengthens your workforce. To learn more about implementing EWA, contact us at info@unruhenterprises.com.