Employee financial stress is not just a personal issue—it’s a silent killer of company performance. When employees face financial difficulties, their productivity drops, and overall performance is affected. Unfortunately, conventional payroll systems, which pay salaries once a month, often don’t provide the flexibility needed. Employees may need more money before the next payday, forcing them to seek risky loans.
Early Wage Access (EWA) from
Setlary offers a solution. It allows employees to access their wages at any time, reducing financial stress and increasing focus and productivity.Why stick with the limitations of conventional payroll when EWA provides a solution for calmer, more loyal, and committed employees?
EWA vs Conventional Payroll: Key Differences
1. Definition
EWA is an innovative solution that allows employees to access the wages they’ve already earned before payday. This means employees can withdraw their salary whenever needed, giving them full control over their personal finances, reducing financial stress, and significantly boosting job satisfaction.
Conventional payroll is a system that pays salaries on a set schedule, typically at the end of the month. While this system is simple, it lacks flexibility in today’s complex financial landscape.
Read More: Exploring Auto Daily Cash-Out Feature to Support Employee Financial Stability
2. Financial Flexibility
Salary payments are made on fixed dates, which can be problematic when employees face urgent needs before payday. This often forces them to wait, adding financial stress and affecting their focus at work.
Provides employees with the flexibility to access their wages anytime they need, reducing financial stress, giving them better control over their finances, and improving focus and productivity.
3. Impact on Company Cash Flow
Fixed payday schedules can disrupt the company’s cash flow, especially when unexpected expenses or urgent costs. This limits the company’s ability to manage funds efficiently.
EWA helps maintain cash flow stability as the company doesn’t need to allocate funds for salaries upfront. This effectively reduces payment burdens and keeps liquidity healthy, providing more flexibility in financial management.
Benefits of EWA for Employees and Companies
- 40% Reduction in Employee Turnover
Employees are more loyal and stay longer due to the financial flexibility offered by EWA. - 25% Increase in Employee Productivity
By reducing financial stress, employees can focus more, improving efficiency and performance. - 50% Reduction in Recruitment Costs
Lower turnover means reduced recruitment and training costs for new employees. - 70% Increase in Job Satisfaction
Employees feel more valued and secure, directly impacting higher job satisfaction. - 20% Reduction in Employee Absenteeism
EWA helps resolve financial issues that often lead to absenteeism, allowing employees to stay focused on their work. - 36% Reduction in Financial Stress
Financially stressed employees often look for additional jobs. With EWA, stress is reduced, and employees stay focused on their primary work. - Greater Savings Opportunity
With EWA, employees can save more, creating a stronger sense of financial security.
Why EWA Is a Better Financial Solution Compared to Traditional Payroll Systems
EWA eliminates the dependence on fixed payday schedules, giving companies more flexibility in financial management. By allowing employees greater control over their wages, Earned Wage Access helps them manage their personal finances better. As a result, productivity and employee retention increase, while companies maintain financial stability.
So, are you ready to upgrade your company’s payroll system and reap greater benefits?
