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 seems like a beneficial tool that can help workers bridge the gap between paydays and avoid turning to predatory payday loans or high-interest credit cards. It can be particularly appealing for those living paycheck to paycheck or facing unexpected expenses. However, the question remains – how useful is EWA in practice?

One of the key advantages of EWA is the financial flexibility it offers to employees. By accessing a portion of their earned wages early, workers have the opportunity to cover urgent bills, medical expenses, or other unexpected costs without having to resort to borrowing money or incurring high fees. For many individuals, this can provide a much-needed safety net and alleviate financial stress.

Additionally, EWA can also help promote financial wellness among employees. By giving workers more control over their earnings, they may be more likely to budget effectively, save money, and avoid falling into debt. This increased financial literacy can have long-term benefits for both employees and employers, leading to a more financially stable workforce.

Moreover, EWA can improve employee morale and satisfaction. Knowing that they have the option to access their wages early can alleviate some of the financial pressures that workers face, leading to increased productivity and engagement on the job. This can ultimately benefit businesses by reducing turnover rates and enhancing overall employee retention.

However, it’s important to consider the potential downsides of EWA as well. While it can provide immediate relief in times of financial need, accessing wages early may also perpetuate a cycle of financial dependency. Some critics argue that EWA may encourage irresponsible spending habits and discourage individuals from developing a long-term financial plan.

Furthermore, the fees associated with EWA can also be a cause for concern. While some EWA providers offer their services at no cost or with minimal charges, others may take advantage of vulnerable workers by imposing high fees or interest rates. Employers should carefully consider the terms and conditions of any EWA program to ensure that it is fair and transparent for their employees.

In conclusion, while Earned Wage Access can be a valuable resource for employees facing financial challenges, it is important to approach it with caution. Employers should carefully evaluate the benefits and drawbacks of EWA before implementing it in their workplace to ensure that it serves the best interests of their workers and promotes financial wellness in the long run. By fostering a culture of responsible financial management and offering support to employees in need, businesses can help their workforce thrive and succeed.

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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