Earned Wage Access Statistics


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Earned Wage Access Statistics 2023: Facts about Earned Wage Access outlines the context of what’s happening in the tech world.

LLCBuddy editorial team did hours of research, collected all important statistics on Earned Wage Access, and shared those on this page. Our editorial team proofread these to make the data as accurate as possible. We believe you don’t need to check any other resources on the web for the same. You should get everything here only 🙂

Are you planning to form an LLC? Maybe for educational purposes, business research, or personal curiosity, whatever the reason is – it’s always a good idea to gather more information about tech topics like this.

How much of an impact will Earned Wage Access Statistics have on your day-to-day? or the day-to-day of your LLC Business? How much does it matter directly or indirectly? You should get answers to all your questions here.

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Top Earned Wage Access Statistics 2023

☰ Use “CTRL+F” to quickly find statistics. There are total 34 Earned Wage Access Statistics on this page 🙂

Earned Wage Access “Latest” Statistics

  • An estimated 32% of employees had a budget in 2019, a staggering figure given the importance of saving for short- and long-term expenses.[1]
  • Just over 28% of employees currently earning $50,000 to $99,999 a year live paycheck-to-paycheck, and 70% of them are in debt.[1]
  • 48% of US workers report that their financial issues are a source of distraction at work, it is obvious that EWA is crucial for luring in and keeping a motivated and effective staff.[1]
  • Roughly 80% of American workers were living paycheck to paycheck.[1]
  • Regarding the recruiting drive, 74% of participants indicated they would rather work for a company that provides financial planning, budgeting, and savings tools than one that does not.[1]
  • According to a recent survey that was conducted involving more than 3,000 American workers, 10% of businesses give perks for accessing earned money outside of pay periods.[2]
  • 77% of EWA users report less stress, and 72% of those with improved financial confidence felt more in control.[3]
  • An overwhelming majority of consumers (91%) said they understand how the EWA service works and understand the associated fees (89%).[4]
  • Eight in 10 reported feeling less stressed about their financial situation (82%), having higher self-esteem (81%) and an improvement in their mental health (77%).[4]
  • 60% of respondents said that their company does not provide them with tools to help them better manage their money.[4]
  • The majority of responders, or 88%, think that their ability to receive their salaries when they were paid throughout the pandemic was crucial to their financial security.[4]
  • More than 60% of working Americans believe that all businesses should provide their workers with quick access to their daily earned income, according to a recent national research study that examined the effects of same.[5]
  • Almost 70% of those surveyed indicated they would suggest the company to friends, family, or other job seekers.[5]
  • Millennial and Generation Z employees, however, expressed a greater interest in applying for a job that pays them on the same day that they work (84% and 87%, respectively).[5]
  • 60% of working Americans, according to recent study that examined the effects of same day pay, want their companies to provide them direct access to daily salaries.[5]
  • According to survey findings, from 2018 to 2022, 12% more Americans would worry everyday about getting by until their next paycheck.[5]
  • 54% of Americans will be anxious about stretching their income to the next payment in 2022 compared to 29% in 2018.[5]
  • According to the poll, 79% of all employed Americans—a 30% increase from the 2018 study—would be more inclined to seek for a job if it paid them on the same day they worked.[5]
  • Access to earned income, according to 51% of users, has improved their financial situation 50% of users said it has made them more frugal with their expenditures.[6]
  • 70% of consumers claim that having access to their earned money has prevented them from getting a payday loan.[6]
  • Access to earned income, according to 78% of customers, enables them to make their payments on time and prevent late or overdraft penalties.[6]
  • Over 40% of Americans, according to a Federal Reserve survey, could not afford a $400 emergency bill.[6]
  • An employee must be able to access their earned money when they need it before payday given that 78% of all American employees now live paycheck to paycheck.[6]
  • According to the Society for Human Resource Management, just 5% of big US corporations now give earned pay access to their workforces, the bulk of whom are paid hourly.[6]
  • 85% of customers said that having access to their earned income improves their ability to budget and pay significant monthly expenses like rent, utilities, vehicle payments, etc.[6]
  • The stress of having to pay monthly medical expenditures is most noteworthy and relevant now, accounting for almost half of respondents (46%).[6]
  • Employee engagement is increased by providing an on demand pay benefit option, and 73% of workers say their perception of their company has improved as a consequence.[6]
  • More than 78% of Americans live paycheck to paycheck, which puts greater pressure on them to come up with strategies for getting by in between pay periods.[7]
  • Only 37% of Americans, according to Bank Rate, can afford a $500 projected bill, demonstrating that the majority of us employees virtually live paycheck to paycheck.[8]
  • Most HR executives stated they are focusing on keeping their current employees since 77% of respondents said lowering staff turnover was a key priority or an important priority at a time when the employment market is experiencing growing uncertainty.[9]
  • 44% of US employees had less than $500 in emergency savings prior to COVID-19.[9]
  • According to a poll of DailyPay customers, 56% of them claimed that having access to their service encouraged them to take on additional shifts.[9]
  • 90% of respondents agreed that having access to their service throughout the epidemic lessened their financial burden, according to the study.[9]
  • The two reasons for providing EWA were to retain current workers (17%) and promote financial health and lessen stress connected to finances (19%).[9]

Also Read

How Useful is Earned Wage Access

On the surface, EWA appears to be a convenient and effective way for employees to access their earned but unpaid wages. It provides workers with the flexibility to cover unexpected expenses or emergencies without having to turn to costly alternatives like payday loans or credit cards. For many employees living paycheck to paycheck, EWA can also help to bridge the gap between paydays and alleviate financial stress.

However, some critics argue that EWA can potentially lead to increased financial instability for workers in the long run. By accessing their wages early, employees may be more likely to overspend and struggle to make ends meet later in the pay period. This could create a cycle of dependency on early wage access and hinder employees’ ability to effectively budget and manage their finances.

Another concern is the potential for abuse or misuse of EWA by employers or third-party providers. Some companies may pressure employees to use EWA as a substitute for fair and timely compensation, leading to exploitation and increased financial insecurity among workers. Additionally, excessive fees and hidden costs associated with EWA services could further erode employees’ financial well-being and result in a net loss of income for workers.

Proponents of EWA argue that it can be a valuable tool for promoting financial wellness and reducing the reliance on high-interest credit options. By providing employees with more control over their finances and empowering them to access their earned wages on demand, EWA can offer a practical solution for addressing short-term financial challenges and promoting financial literacy among workers. When implemented ethically and responsibly, EWA has the potential to benefit both employees and employers alike.

Ultimately, the usefulness of EWA depends on various factors, including the individual circumstances of employees, the policies and practices of their employers, and the regulatory framework governing early wage access. While EWA can offer a valuable financial lifeline for some workers, it is not a one-size-fits-all solution and may not be suitable for everyone. Employers and policymakers should carefully consider the potential risks and benefits of EWA before implementing or endorsing this financial tool to ensure that it is used responsibly and in the best interests of workers.

In conclusion, Earned Wage Access has the potential to be a useful tool for promoting financial well-being and flexibility for employees. However, its effectiveness and impact on workers’ financial stability will ultimately depend on how it is implemented and regulated. By carefully considering the pros and cons of EWA and addressing concerns about its potential misuse, employers and policymakers can ensure that this financial tool is used responsibly to benefit employees and promote financial wellness in the workplace.

Reference

  1. recruitingdaily – https://recruitingdaily.com/why-earned-wage-access-is-the-best-recruiting-tool-you-are-not-using/
  2. benefitspro – https://www.benefitspro.com/2022/05/11/earned-wage-access-is-only-one-piece-of-the-financial-wellbeing-puzzle/
  3. businesswire – https://www.businesswire.com/news/home/20210607005364/en/9-in-10-Want-Flexible-Pay-Impact-of-Earned-Wage-Access-Revealed-in-New-Study-From-Wagestream-60-Decibels
  4. businesswire – https://www.businesswire.com/news/home/20210930005702/en/New-Study-Earned-Wage-Access-Puts-Consumers-in-Control-of-Finances-and-Life
  5. cpapracticeadvisor – https://www.cpapracticeadvisor.com/2022/07/25/on-demand-pay-60-percent-of-u-s-workers-want-daily-access-to-earned-wages/62310/
  6. dailypay – https://www.dailypay.com/resource-center/blog/what-is-earned-wage-access/
  7. fisherphillips – https://www.fisherphillips.com/news-insights/earned-wage-access-tips-for-employers-seeking-to-attract-retain-talent.html
  8. forbes – https://www.forbes.com/sites/christophermarquis/2021/02/05/how-earned-wage-access-can-upend-predatory-lending-and-build-employee-financial-wellness/
  9. hrdive – https://www.hrdive.com/spons/new-study-reveals-strong-opportunity-for-earned-wage-access/584917/

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