How Earned Wage Access Boosts Employee Retention and Reduces Turnover

Earned Wage Access: A Financial Wellness Benefit That Boosts Employee Retention

Employee retention is a critical concern for businesses in today’s competitive market. The cost of turnover, including recruitment, training, and lost productivity, can significantly affect a company’s bottom line. 

As companies look to well thought out employee retention strategies, they must offer competitive benefits to attract and retain top talent.

That’s why industry leaders are turning to earned wage access (EWA), which allows employees to access their earned wages before payday. This innovative financial wellness benefit not only boosts employee morale and financial wellness but also significantly improves employee retention.

How Earned Wage Access Can Improve Employment Retention

Research has shown a strong correlation between financial wellness benefits like EWA and improved employee retention rates. In fact, 95% of companies offering an EWA solution today believe it has a positive impact on employee retention.¹

Here’s How EWA impacts employee retention rates: 

Reduces Financial Stress

According to a 2023 report from PwC, 57% of employees say finances are the top cause of stress in their lives, and this stress can lead to distraction, absenteeism, and even job-hopping in search of higher pay. Many workers live paycheck to paycheck, meaning unexpected expenses such as car repairs, medical bills, or childcare costs can create financial crises. 

At the same time, according to a 2023 DailyPay User Survey, 60% of DailyPay users surveyed say that DailyPay helps reduce their financial stress.² By providing access to earned wages when needed, employers can help alleviate some of the burdens of financial stress, leading to more satisfied and loyal employees.

Increase Employee Satisfaction 

Offering EWA demonstrates that an employer cares about their employees’ financial well-being. This can foster a stronger sense of loyalty and commitment to the company. According to a 2023 study commissioned by DailyPay, 52% of DailyPay users say that DailyPay makes them feel like their employer cares about them.³

Why Earned Wage Access is Essential for Retention Strategies

Employers who invest in EWA are not just addressing financial stress but are also creating an environment where employees feel valued and supported. Implementing an earned wage access platform as part of a comprehensive financial wellness package can yield significant benefits for both employees and employers. By reducing financial stress and demonstrating a commitment to employee well-being, companies can boost retention rates and create a more engaged, loyal workforce.

As the job market continues to evolve, offering innovative benefits like EWA will become increasingly important for companies looking to attract and retain employees and can even be used to enhance recruitment. 

If you’re interested in learning more about the benefits of earned wage access from DailyPay, get started with a demo today.