What is Earned Wage Access?

Future Systems is now offering the benefits of ZayZoon to every payroll client. ZayZoon is a powerful partner that provides financial education resources to your employees along with an increasingly popular pay structure that empowers individuals to get the money they’ve earned when they need it most.

As an alternative to weekly, bi-weekly and monthly pay structures, Future Systems clients can now offer their employees Earned Wage Access (EWA). 

What is Earned Wage Access? 

EWA gives employees access to the wages they’ve already earned, rather than having to wait for a scheduled payday. Importantly, this isn’t an employer loan and it isn’t a paycheck advance. Instead, EWA gives employees the flexibility to access earned money when they want it. 

How Do Employees Benefit from EWA?

As many as 78% of Americans live paycheck-to-paycheck. And that includes people making six figures annually, not just hourly workers.

Financial stress can lead to mental health difficulties and even impact an employee’s physical health. This can quickly become a harmful cycle that increases absenteeism, diminishes morale, and lowers overall productivity. 

Empowering employees with EWA can reduce financial stress by giving them the tools to navigate life’s unexpected turns. 

Example cases

Imagine Lee, a restaurant server whose car just broke down. Lee can’t work without a car, but this unbudgeted expense for repairs could lead to a late or missed rent payment, or result in overdraft fees, compounding the financial stress. With employee-earned wage access, Lee can use the money due to them and stay financially on track. 

Or imagine Terry, suddenly faced with an expensive surgery and required to pay the entirety of their deductible in one fell swoop. Delaying the procedure could lead to disastrous health outcomes, or Terry could be forced to put necessary living expenses like groceries on a high-interest credit card. Another option could be to secure a payday loan, another high-interest high-fee service that preys on those already in difficult situations. EWA allows Terry to get treatment immediately, and to use the money that’s already been earned without going further into debt. 

Beyond responding to emergencies, EWA can proactively improve an employee’s financial health. Consider Pat, who wants to buy a house. Using EWA, Pat can actively withdraw portions of a regularly scheduled paycheck and move those funds into a savings account. 

What all of these scenarios have in common, is putting power into the hands of employees. 

How Do Employers Benefit from EWA?

Employees are increasingly in favor of EWA, with 75% of Millenials indicating it would influence their decision to take a job. Earned wage access makes it easier for employers to attract talent. Since employers take on no risk with EWA – the wages have already been earned – it’s a valuable win-win scenario. 

EWA can also improve employee retention. 34% of employees indicate they would be more committed and stay at a position longer if they were offered enhanced benefits. The option has been around since at least the early 2010’s but has only recently started to become a common workplace benefit. 

Not only is Future Systems’ integration with ZayZoon offered at no cost to employers, with no financial risk, but there is also the potential for amazing savings from attraction and retention improvements, along with increased earnings from a satisfied and productive workforce. 

Offering EWA really is as easy as flicking a switch, so sign up to make your employees happier with no extra work.