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

Proponents of Earned Wage Access argue that it provides a lifeline to employees who are struggling to make ends meet between paychecks. By giving workers the opportunity to access their wages on-demand, EWA can help alleviate financial stress and prevent them from turning to high-interest payday loans or credit cards in times of need. This can ultimately improve employee retention and productivity, as financial stress can have a significant impact on one’s overall well-being and job performance.

Moreover, Earned Wage Access is often lauded for its ability to empower employees and give them greater control over their finances. Instead of having to wait until payday to access their hard-earned money, workers can manage their cash flow more effectively and respond to unexpected expenses or emergencies in a timely manner. This can foster a sense of financial security and independence among employees, leading to greater job satisfaction and loyalty.

On the other hand, skeptics of Earned Wage Access raise concerns about its potential drawbacks and unintended consequences. Some argue that EWA could promote a culture of instant gratification and impulse spending, as employees may be tempted to access their wages before they truly need them. This could lead to financial instability in the long run, as employees may rely on EWA as a crutch rather than developing sound budgeting habits and saving strategies.

Additionally, the use of Earned Wage Access may raise ethical considerations regarding fair compensation and labor practices. While EWA may provide immediate relief for cash-strapped employees, it does not address the underlying issues of low wages and financial insecurity that many workers face. By offering EWA as a band-aid solution, employers may inadvertently perpetuate a cycle of financial dependency and inequality within their workforce.

In light of these considerations, it is important for employers to carefully evaluate the usefulness of Earned Wage Access within their organizations. While EWA can certainly offer a temporary financial respite for employees in need, it should not be viewed as a substitute for fair wages, financial education, and holistic wellness programs. Employers should approach EWA as a tool to support their employees’ financial well-being, rather than as a quick-fix solution to deeper systemic issues.

Ultimately, the usefulness of Earned Wage Access is contingent upon how employers integrate it into their overall compensation and benefits packages. When used thoughtfully and strategically, EWA can be a valuable resource that empowers employees and promotes financial stability. However, it is crucial for employers to consider the potential implications and limitations of EWA in order to ensure that it serves its intended purpose effectively and ethically.

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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