How earned wage access (EWA) improves employee wellness

Employee wellness isn’t a buzzy or hollow phrase without any meaning. An employee’s well-being at work greatly impacts whether they can perform their job or not. 

A person’s wellness is often determined by their emotional, physical, or psychological health—but those are influenced by financial well-being. Nearly 35% of respondents to ZayZoon’s employee financial wellness report indicated they are financially stressed about money daily. Of those respondents, nearly 75% said they were stressed about covering their basic necessities such as bills, groceries, or paying rent or a mortgage. Employee wellness is no longer limited to physical or emotional care. Employers are now tasked with including financial wellness, too: a staggering 81% of employee respondents said employers should invest in employee financial wellness, including financial literacy.

For holistic employee wellness, employers must offer financial incentives and benefits, such as earned wages access (EWA). With EWA, employees have early access to their earned wages and without the stress of loans and interest or asking a friend or family member for help. EWA helps employees untether shame around needing financial help. 

Ahead we’ll cover what employee wellness is and its benefits for your employees, as well as what EWA is and how it can leave a positive imprint on both employers and employees.

What is employee wellness? 

How an employee acts or performs at work is predicated on a few different factors, and they all ladder up to their overall wellness. 

Employee wellness is the physical, mental, and emotional health or well-being of a worker. External factors impacting employees' wellness may include a home-life balance, childcare needs, caretaker needs, physical health, or any stress-related issues, which can include finances. 

At work, employees may feel an increase or decrease in their well-being from factors like company management, culture, or whether or not they’re provided benefits and rewards. 

Often, the expectation in today’s workplace is that employers will help employees. In a recent report on workplace wellness and mental health conducted by Calm, 67% of respondents noted that employers should provide help for stress and mental health relief. Of those respondents, 63% said preventive care mattered. 

How employee wellness impacts employee engagement

Try as some companies might, it’s impossible to separate an employee from the person they are outside of work. For better or worse, they’re still one human being living and existing in this world. That means whatever is going on in your employee’s personal life may impact their professional life. 

For example, if a shift worker at a quick-service-restaurant (QSR) franchise is scheduled for a closing shift without enough time in-between their next shift—one requiring opening the store—they may not have enough sleep or time to engage with their personal life. That can impact their focus, morale, and overall productivity at their job. 

Employers can take measures to avoid such situations through better scheduling, but personal issues can get a bit trickier to handle. Workers may not discuss some of the complicated or difficult things they’re experiencing in their personal lives, including mental health and financially-related strains like needing to take out a loan or going into overdraft to pay an upcoming bill. That reality will still play out while an employee is at work, perhaps distracting from the task they have to do. 

What are the benefits of caring for employee wellness?

Employee relationships to their job and managers have changed considerably over time. Benefits, incentives, and general wellness practices adopted by businesses are crucial to attract and retain talent. In a report by EY, 60% of employer respondents said they’d need to provide unique and wide-ranging benefits to their employees to keep them happy.

If employees feel they are well-cared for by their employers, there are many benefits both will be able to notice including: 

1. Reduced stress levels: Stress is a major factor in any workplace, especially for a demanding job. By offering wellness benefits, employees will be better able to manage their stress and not have it affect their work.
2. Improved relationships at work: The relationships an employee has with other workers and management is crucial. Stress or distress can cause employees to be reactive and emotionally out of whack. Employee wellness benefits and incentives can provide necessary relief that improve relationships on the job (and with customers!)
3. Increased productivity: When an employee is distracted by something they’re going through, it’s hard to stay on task. Employees with a balanced work-life schedule, rest, and even financial help, are energized to do their work at a higher-performing level.
4. Improved attendance and engagement: Community and social engagement are essential dynamics of any workplace. Employees come to work beyond getting a paycheck—they may enjoy being part of a team, talking to folks, and working toward a common goal. Tending to and centering employee wellness can help businesses achieve a happier workplace culture where employees show up on time, regularly, and engage with their work and co-workers in a much more dedicated and positive way. 
   
   

How financial health impacts employee wellness

In ZayZoon’s employee financial wellness report, we found that over half of respondents were stressed about their financial situation—with 20% noting they were very stressed.

Money problems can affect everyone, and it can leave a person feeling isolated and alone. Finances are a big issue for employees across all kinds of industries—with many living paycheck-to-paycheck. Worrying about covering necessities like rent or a mortgage, groceries, or childcare costs can slip out of the personal realm into the professional real quick. 

For example, an employee's focus may shift to figuring out how to pay an upcoming bill before payday by asking for a loan from a family or friend but feeling ashamed to do so, thus impacting their overall behavior and demeanor in the workplace. 

Employee wellness doesn’t refer only to benefits like health, dental, or a spending account not covered by traditional benefits. It can absolutely include financial health and wellness, too, including providing part of a paycheck up front through earned wage access (EWA) or financial education tools and resources. In a report by PwC, 73% of respondents said they would be more attracted to an employer who cares about their financial well-being than not.

Finances impact every part of a person’s comfort and security, as well as their work performance. In our financial wellness report, both employees and employers agreed: 36% of employee respondents noted that financial stressors affected how they worked, while 63% of employers echoed that it’s a struggle they face. Without employer-led programs or incentives, many people will turn to unstable and costly solutions for short-term gain with a longer-term impact that may affect their performance at work. 

What is earned wage access (EWA)? 

Financial benefits extend beyond investment and retirement opportunities. Earned wage access (EWA), which is often called on-demand pay, is a new payday evolution—allowing employees to get their wage in advance. Employees don’t need to wait for their pay schedule (biweekly, semi-monthly, or monthly) for a percentage of their pay that can be used to avoid financial strain like overdraft fees, payday loans with a high percentage, or adding more credit card debt.

EWA allows employees to access their own money ahead of payday. Some EWA providers, like ZayZoon, allow an employee to receive funds to their bank account within minutes.

Access to EWA can lead to improved overall employee wellness and see more engagement at work, help employers attract and retain high-performing employees, and see a boost in employee morale and confidence. Thirty-three percent of employee respondents in our report said their morale would positively benefit if employers invested in their financial wellness. 

What are the benefits of EWA and employee wellness for employees

Money problems can cause an employee to feel an abundance of shame, and can cause behavioral and work problems. We’ve long been taught not to openly discuss or hold space for anyone stressed about money, but the glaring reality of it isn’t going away. 

Offering employees EWA will have a profound and positive impact on their wellness. Consider the following reasons why: 

• Access to financial help: EWA is flexible and on-demand. An employee can access it at any point in their pay schedule before their payday.
• Less stress: 36% of financially stressed employees are likely to look for other work to fulfill their financial needs, which can add to their stress. With EWA, employees feel decrease in their stress and are less likely to hunt for other employment opportunities 
• Savings over time: Employees who use EWA are, on average, on track to save more than $700 a year.
  
  

What are the benefits of EWA and employee wellness for employers

EWA doesn’t just benefit employees. Employers who offer this as part of an employee wellness benefit overall can see an impact and improvement in their workforce, and the type of talent that comes through the door. 

• Business savings: ZayZoon conducted research on businesses offering loan programs and found that, by offering EWA instead, they could save $8,000 a year on that cost. 
• Turnover reduction: Financially stressed employees are much more likely to leave if they find an opportunity elsewhere that will help their situation, even a little bit. By offering EWA, employers can see a 29% decrease in employee turnover. 
• Absenteeism decreases: ZayZoon research found that 25% decrease in employee absenteeism when EWA was offered as a benefit.
  
  

EWA at ZayZoon

EWA at ZayZoon means giving employees financial flexibility and freedom. Not only does it help employees feel better about their personal situations, but access to EWA can be an immense benefit that attracts and keeps your best workers. For small businesses, this benefit can set you apart from the competition. 

EWA is an important  piece in the employee wellness puzzle. ZayZoon offers financial help in one click. ZayZoon also offers perks and financial education and resources so your employees can learn more about how to make the most of their money to live the life they want. Be the business your employee wants to be at. Get a free ZayZoon demo to see for yourself.