With inflation on the rise and talks of a possible recession, American workers’ concerns about their finances are also increasing.
More than half of Americans are living paycheck to paycheck, and inflation is at its highest level in 40 years, so it shouldn’t come as a big surprise that 51% of workers in the United States are short on money before they get to payday, a major increase from 24% in 2018. And knowing how many people are short on money, it also makes sense that most Americans worry (often) about making their money last until payday.
The current level of financial insecurity in the U.S. is the reason more than 30% of American workers say they have gone to work while they were sick or skipped a meal to save money.
Earned wage access addresses employees’ financial worry
As businesses across industries juggle the competing demands of a labor shortage and the possibility of a recession, many hiring managers are looking for ways to recruit and retain the employees they so desperately need, while dealing with shrinking budgets. With 60% of working Americans saying they would be better able to plan for their financial future if they were able to immediately access their earned pay after every day’s work, it’s clear that implementing an earned wage access program can address financial worry by minimizing the adverse effects of economic challenges like rising gas prices, inflation, and supply chain disruptions.
When it comes to recruitment and retention, for businesses seeking a financially feasible way to set themselves apart from the competition, earned wage access (EWA) is a win-win for both current and potential employees.
In our recent study, Wages and Wellbeing – Analyzing the Impact of Same Day Pay, we found that 58% of working Americans said they left a job in the last two years that they would have stayed at longer if they were offered immediate access to a portion of their pay after every day’s work at no cost. A responsible earned wage access solution is one that does not charge employers or employees a fee to access funds, meaning businesses save money while allowing employees to access the financial freedom they are seeking.
As employee financial concerns increase in these turbulent economic times, companies will need to consider ways to address those concerns within the constraints of their own recession planning. Download our Wages & Wellbeing study to learn how implementing a responsible EWA platform can make a difference when recruiting and retaining employees in this climate.