Technology has transformed the way people are paid and it has made, and will continue to make, a huge difference to their financial wellbeing.
Pay on-demand or Earned Wage Access (EWA) is one technological advancement that allows employees to access a percentage of the pay they have earned before their usual payday. Supporters of allowing staff to receive their wages in advance of their payday highlight benefits such as: putting individuals in control of their finances, providing financial education, protecting their right to privacy and offering a reasonable alternative to payday loans. However, critics argue the initiative does not address people’s poor financial state or stop bad spending habits. Some also believe it has the potential to adversely affect employees’ financial health.
DO YOU OFFER EARNED WAGE ACCESS (EWA) WITHIN YOUR ORGANISATION? 7% Yes
4% No, but plan to
89% No
When asking respondents if they offered EWA within their organisations, just 7% said they did and a further 4% said they were planning to.
The vast majority ( 89% ) said they didn’t offer EWA, suggesting companies either aren’t aware of it, aren’t in support of the schemes or didn’t have the technological capacity to provide it. However, the CIPP’s Payslips Statistics Survey Report 2024 found more payroll departments are making payments between paydays, more than doubling from 3% to nearly 8% this year. When asked if they provide interim or ad-hoc payments to employees between paydays, only one in three ( 33% ) didn’t.
WHERE EWA IS OFFERED, SOME OF THE BENEFITS LISTED BY THESE RESPONDENTS INCLUDED: IMPROVED FINANCIAL FLEXIBILITY AND REDUCED FINANCIAL STRESS BY ALLOWING EARLY ACCESS TO PAY IF NEEDED
In most cases percentages have been rounded to two decimal places for clarity and may not add up to 100%. Graphics may have been rounded to whole percentages.
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FUTURE OF PAYROLL REPORT 2024
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