The labour market is undergoing rapid changes and you can no longer lure employees just on cafeteria points. Not only with the younger generation, the concept of earned wage access is gaining popularity. But what does it actually mean, why is this trend spreading not only in our country but also across Europe and Western countries, and why should you consider including it in your company's benefits offer? Let's take a closer look.
What is earned wage access anyway ? Simply put, it's access to the money you earn at any time of the month, regardless of the payday. Each employee can decide how much and how often they want to be paid for their work. This gives employees the flexibility to manage their finances, deal with unexpected expenses and better plan their budget. In practice, the amount of money withdrawn is often limited to avoid over-spending. A maximum of half of the monthly salary is made available to Advanto users.
Where did the trend for flexible pay come from?
Although access to earned money is now via a smartphone or web browser, more frequent payouts are more of a return to our roots than a new invention. For example, Bata's companies used to pay cash on a weekly basis. But then came the age of bank accounts and more frequent payouts almost disappeared, except perhaps for payroll advances, but more on that next time.
Earned wage access is not just a local phenomenon. Although this trend was introduced in the Czech market by Martin Fortelný and Jan Kölbl under the name Advanto, the service known as EWA (Earned Wage Access) is also popular in many other European countries and Western economies. Companies in the US, UK and other developed countries already routinely offer this option and have received positive feedback from both employees and HR experts.
Meeting the needs of all generations
It might seem that the desire for flexibility in every way is a topic only for the younger generation. However, Advanto data shows that earned wage access has also found popularity with older employees, regardless of region, gender or profession. It doesn't matter so much how old you are, but what your approach to finance is, what financial situation you are in and how you can or want to deal with it. After all, access to a paycheck before the payday is not just a lifestyle, but more importantly a tool to pay for unexpected expenses. Due to significant price increases in recent periods, common expenses such as groceries, rent and utilities have been the most common reason for withdrawing money outside of the normal payday.
Be a sexy employer
If you need to add talented employees to your work teams, you need to offer them something extra. Sports cards or cafeterias are already taken for granted by most people. You can attract up to 30% more candidates with Advanto's responsible benefits. In addition, employees are more motivated and more efficient. Advanto's data confirms the reduction in turnover after the introduction of the benefit. This is mainly due to the clear mobile app, where employees can track hours worked and, most importantly, the balance available for withdrawal.
Did you know that 70% of people rely on help from their employer when they are in financial difficulty? Lend a helping hand and become an attractive employer that understands the needs of its employees and isn't afraid to innovate. Show them that you care about the well-being of your employees and are ready to provide benefits that make their lives truly easier. Offer Payday Anytime and earn their trust and loyalty. Be the one who moves with the times and provides the best for your team.
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