Future of Payroll: Earned Wage Access Impact

Earned Wage Access (EWA) is rapidly transforming the landscape of payroll solutions, becoming a highly valued perk that significantly contributes to the financial well-being of employees. Traditionally, employees facing unexpected financial emergencies had to wait for their next payday.

Now, EWA allows them to access an advance on their earned wages, empowering them to handle life's surprises with ease. Discover how Candoor's EWA partner, ZayZoon, can create a happier, more productive workforce.

What Is Earned Wage Access?

Imagine this: An employee encounters a sudden cash flow issue just days before their next payday. With Earned Wage Access, they can tap into their already-earned wages early. The amount they access is simply deducted from their next paycheck, with no hidden fees.

The ZayZoon system integrates seamlessly with your existing payroll operations, offering up to $200 per day. Whether it’s linking to a debit card, a checking account, or a prepaid Visa card, setup is straightforward and user-friendly. This integration not only enhances financial flexibility but also aligns with the future of payroll management.

Benefits of Earned Wage Access for Employees

Think back to those early career moments when a financial hiccup—like an unexpected car repair or a last-minute need for child care—could throw off your entire budget. These incidents used to lead to stressful scrambles and potentially expensive solutions like payday loans or credit card debt.

With EWA, employees can now access a portion of their earnings before payday, providing a lifeline without accruing interest or incurring penalties. ZayZoon offers this service with a maximum fee of $5, and we also have cost-free options available.

Key benefits include:

• Financial flexibility and stability
• Reduced financial stress and avoidance of predatory lending
• No required credit checks
• An alternative to high-interest loans
• Timely bill payments
• Immediate access to earned money
• Enhanced overall financial wellness
  
  

Advantages for Employers

Your financially distressed employees are costing your organization in terms of lost productivity and retention. The Occupational Health and Safety Administration (OSHA) estimates that the medical costs associated with stress total nearly $300 billion per year. Financially stressed-out employees are unproductive and unhappy.

ZayZoon payroll benefits for employers include:

• Improved employee morale and productivity
• Great perk for attracting and retaining employees
• No additional costs to the employer
• Improved employer brand
• Happier, healthier workers
  
  

Success Stories

Surveys have found that approximately half of hourly employees in the US have no emergency savings, and around 80 percent of workers have less than $500 on hand for an emergency. The American Psychological Association (APA) notes that money continues to be the number one cause of stress in people's lives.

Additional research has found that 3 out of 4 millennial employees say that an offer of earned wage access will influence their acceptance of a job offer. Organizations that have adopted earned wage access for their employees have found that their retention rate can increase by as much as 63 percent.

Future Trends in Payroll

The payroll landscape is evolving, with more companies recognizing the need for flexible, employee-centric solutions. EWA is at the forefront of this trend, increasingly considered a necessary employment benefit for attracting and retaining top talent..

If you're not yet offering Earned Wage Access, now is the time to consider how this tool could benefit your organization. Integrating ZayZoon can revolutionize the financial health of your employees, leading to a happier, more focused workforce.

Learn more about integrating ZayZoon with your payroll system — Contact Candoor today!