|In 2023, employers have continued to focus on an increasingly holistic approach to workplace wellness. Employees are people, and when they are stressed about something in their personal lives, it can affect their performance at work – and ultimately a company’s bottom line. Because employees are not all the same, they will have different challenges at different times in their tenure. Rather than pushing solely for financial wellness, mental health or physical fitness, a holistic approach to benefits can address all of the above.
Specifically, in the financial benefits space, employees at all levels, and across industries, will continue to seek new options for access to their pay — a major topic of discussion at Payroll Congress 2023. As we move further into the year, we took a look back at what it was keeping payroll administrators up at night and areas of opportunities to combat these challenges. Here are our top three takeaways on the trends and predictions from the top of the year that continue to ring true:
Trend 1: Reducing employee turnover
In 2022, 50.6 million U.S. workers quit their jobs. When speaking to payroll administrators at Payroll Congress 2023, many of them pointed to transportation and housing difficulties, inability to attract a younger workforce and a lack of innovative technology, like earned wage access (EWA), as top factors hindering growth and driving turnover. Having a high turnover rate will undoubtedly impact your businesses ability to properly manage workloads. Furthermore, the average cost of replacing an hourly employee is $1,500.
While transportation and housing are not our areas of expertise, we’ve got you covered when it comes to introducing technology designed to revolutionize payroll operations. Solutions like EWA can help address other challenges like attracting a younger workforce. Afterall, 61% of young workers between the ages of 17 and 24 noted struggling at work due to the difficulty of making ends meet — shining a light on the need for payroll on demand to reduce turnover.
Trend 2: Implementing EWA in existing payroll operations
Though we noticed a significant shift in the demand from employers for on-demand pay, there continues to be questions around the perceived potential challenges of adopting and implementing EWA programs into existing payroll operations. As experts in responsible EWA, our team has answers to some of the biggest questions payroll administrators have about adoption:
What kind of state guidance is there around EWA? Guidance and regulations for how organizations can implement EWA vary from state to state. In fact, some EWA models are not even permitted in certain states. The most important thing to know is that Instant is compliant in all 50 states, but if you’re looking for additional info, this resource dives deeper into compliance and regulations across various states.
Is there a high cost to employees to use EWA? The fees attached to different EWA programs can vary — with some even being as predatory as a payday loan. Thankfully, Instant Financial pioneered the fee-free approach to EWA. That means your employees can easily access their hard-earned wages without any fees.
Is it true that implementing EWA into existing payroll processes can be difficult or hard to do? While EWA systems are sometimes perceived as difficult to implement or too complicated to understand, we’re here to dispel that rumor. With the right provider, EWA implementation can be completed in just four easy steps — bonus if the provider includes proper training, education and onboarding like Instant Financial does.
Trend 3: Gaining leadership buy-in of on-demand pay options
Before payroll administrators are able to implement EWA, they first need to get leadership buy-in — a sometimes difficult task, with varying levels of knowledge and concerns around implementation. However, the right provider can give you the information you need to get the C-suite on board. By dispelling the notion that implementation is a challenging process, companies can unlock the many benefits of this revolutionary financial benefit.
If you want to learn more about our full suite of employee pay solutions that would make you the hero of payroll operations, schedule a demo with our expert team today.