George Gresham, CEO and President of Green Dot Corporation, discusses the financial struggles facing employed Americans despite positive economic indicators, such as low unemployment rates. Many workers are stressed about covering basic needs and expenses, resulting in decreased productivity in the workplace. This financial stress can lead to billions of dollars lost weekly for U.S. employers. With the economy post-pandemic, businesses can offer tools like Earned Wage Access (EWA) to support their employees’ short-term financial needs and reduce stress, potentially boosting productivity as well.
EWA allows employees to access a portion of their earned wages outside of the standard pay cycle, providing financial stability and job satisfaction. A survey of workers using EWA showed that it is a highly valued benefit that helps them pay bills on time, reduce credit card debt, and save money. Employees also reported a positive impact on their perception of their employer and gained more control over their finances. Employers can benefit from a less stressed workforce by offering EWA as a financial wellness benefit.
Financial stress at work is impacting employees’ productivity and long-term loyalty to their companies, with financially stressed workers being more likely to look for new jobs. Employers need to consider the changing economic environment and the needs of their workers to avoid losing talent and having a less productive workforce. As EWA becomes more popular, employers are recognizing the importance of providing better benefits to attract and retain top talent in a competitive job market.
Employers considering implementing EWA should ensure regulatory compliance, integrate the program with existing payroll systems, communicate transparently with employees about the benefit terms, maintain data security, and monitor usage to identify any potential issues. Employee benefits like EWA can drive higher engagement, productivity, and commitment to staying in a job. In today’s economy, on-demand access to earned income can benefit both employers and employees by boosting wellness and productivity and serving as a recruitment and retention tool for businesses.
Forbes Finance Council is an exclusive organization for executives in accounting, financial planning, and wealth management firms, providing a platform for industry professionals to share insights and expertise. George Gresham’s experience and expertise in finance and payments highlight the importance of addressing financial stress in the workplace and implementing tools like EWA to support employees’ financial needs and improve productivity.
