February 28, 2023

The Business Case for Earned Wage Access

By Ryan Ashton

Happy workers

By Ryan Ashton


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Happy workers

Over the past few weeks, we’ve created a series of blog posts that touch on various consideration points for organizations as they evaluate their earned wage access implementations for 2023. You can read the first three posts here: Part 1 | Part 2 | Part 3.

But likely the most important question you’d be asking yourself is ‘why’? Why even consider earned wage access, or on-demand pay?

What’s the business value?

What’s in it for my organization or my employees?

There’s a reason that the number of organizations in the US offering earned wage access to their employees is expected to increase four-fold in 2023 – it’s because it offers real-world business value. From improvements in HR metrics – like reduced turnover and absenteeism – to increased employee engagement, there are a host of benefits that on-demand pay can deliver.

Let’s explore:

Organizational Benefits

Reduced Turnover
Offering employees access to pay the same day they work is proven to keep them around longer. At Instant, our clients have seen 27% reduction in turnover after implementing earned wage access – that can translate to millions of dollars in savings for an organization.

Increased Retention
Not only do employees leave organizations offering earned wage access less often, they also stay longer. In a data analysis we conducted of over 25,000 employees using Instant, we discovered that they were staying at their employer 2-3 times longer than those not using it.

Cost Savings
There are also specific hard costs that on-demand pay can reduce. In a recent case study we conducted with our long-time client Ultra Steak, they moved over $100,000 weekly from cash payments to electronic tips disbursements to staff, and they also reduced the costs associated with weekly cash pickups by 50%.

It helps employees too
Let’s not lose sight of the value to employees here either.

A large majority of employees – 89% of them – say that they feel more motivated and productive when they have access to their pay before payday. 74% of employees also say they have fewer unplanned absences, simply because they have less stress in worrying about their finances, or if they’ll have enough money to last them to payday.1

And according to the Wages & Wellbeing Study that we conducted in 2022, 62% of working Americans would feel more valued as an employee if their employer provided immediate access to their earned pay after every day’s work.

And lastly, let’s not forget the broader financial impact that on-demand pay can have. The programs offered by Instant – which don’t charge fees to employees to get their pay the same day they work – helps employees avoid those predatory check cashing and payday lenders that can push people further into debt.

Overall, there’s a ton of real-world, measurable value that earned wage access can offer, when done right.

If you need a more comprehensive look at the earned wage access buying process, we’ve developed this 2023 Earned Wage Access Buyers Guide to help make the decision-making process a little easier.

You can download it here, or visit our website at instant.co to learn more about Instant’s comprehensive suite of fee-free on-demand pay solutions.

1 “Is Earned Wage Access the Way of the Future? 5 Tips for Employers Seeking To Attract and Retain Talent Through On-Demand Pay.” Fisher Phillips, March 30, 2022, www.fisherphillips.com/news-insights/earned-wage-access-tips-for-employersseeking-to-attract-retain-talent.html.

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