Early Paycheck Requests: Earned Wage Access Provides Early Paycheck Access

How Employers Can Support Early Paycheck Requests

Financial pressures like the cost of living, unexpected medical bills, or emergencies are pushing many employees to make early paycheck requests. Surveys show a growing percentage of workers experience financial stress, affecting their focus and productivity at work.

Addressing early paycheck requests is an opportunity for employers to support employee well-being and improve morale. According to PWC’s 2023 Employee Financial Wellness Survey, one in three full-time employees says that money worries have negatively impacted their productivity at work.^1</

Why Do Employees Make Early Paycheck Requests?

According to a 2023 survey by Payroll.org, 78% of Americans live paycheck to paycheck.^2</ Two top reasons why an employee may make an early paycheck request are:

• Unplanned costs: Emergencies like medical bills or car repairs can complicate anybody’s life in an instant.
• Paycheck timing: Employees who live paycheck to paycheck may experience paycheck timing mismatches, especially when essential bills like rent are due before payday. 

Understanding why employees make early paycheck requests can provide valuable insights into the financial challenges employees face and indicate an underlying trend that your company can help address.

What Are Your Options for an Early Paycheck Request as an Employer?

Case-by-Case Basis

In some cases, you can approve early paycheck requests for employees facing extreme emergencies like sudden medical bills.

Temporary Policies

Some companies implement temporary policies allowing early paycheck requests during certain times of the year, such as the holiday season when financial needs often increase.

Earned Wage Access Platforms

Today’s leading companies across all industries are working with earned wage access (EWA) providers to empower employees with access to a portion of their earned wages without waiting for payday. As a result, 95% of companies offering an EWA platform today believe it has a positive impact on employee retention.^3</

Is Earned Wage Access Right For Your Company?

It’s crucial to understand why your employees make early paycheck requests so you can create a platform that addresses their needs. If you discover that just a few employees are requesting early paychecks because of sudden events, then a case-by-case system may work well for you. 

If you realize your employees are making early paycheck requests to fill in the gap between paydays and buy things like groceries, gas, bills, and other essentials, an EWA platform may be your best option.

How To Find the Best EWA Platform for Your Company

• Browse providers: Research all the options available to you. One of the most important things to consider is finding a reputable provider that seamlessly integrates with your payroll system and prioritizes data security.
• Analyze policies: Decide on what EWA policies and limitations will suit your workforce the best. Some EWA platforms only allow employees to access up to 50% of their earned wages, which may not be enough to help reduce their financial stress.
• Check access: Not all EWA providers can operate in all fifty states and even fewer are available internationally. If your company has offices or employees in multiple states or countries, it’s best to find a provider that operates in all locations.
• Understand capabilities: The best EWA platforms today do far more than just give employees access to their earned pay before payday. Leading EWA platforms will give employees access to financial wellness tools like one-on-one counseling, savings tools, credit score monitoring, cash back rewards, paycards, remittance services, and more.

Make sure the platform you choose offers joint communication efforts. A top EWA provider will help onboard and educate employees, making it as easy as possible for your employees.

Conclusion

With rising costs and more American workers living paycheck to paycheck than ever before, employers have a duty to help their employees fill the gap between payday in a financially responsible way. 

Aside from sudden expenses like medical costs and emergencies, many employees request early paychecks just to pay for essentials like gas, groceries, and housing bills. 

An EWA platform may be the best way to address the needs of employees who are frequently requesting early paychecks. In the words of DailyPay user Brieanna B., “I love this app. This app has helped me so many times when I needed money right then and there. It’s getting an advance on my paycheck without having to be embarrassed to ask my boss for it and then to be told no or by letting people know that I am struggling and needing a little help. This is discrete and so beyond helpful. I definitely recommend this to anyone and everyone.

See if Dailypay’s EWA platform is right for your business.