Of the survey respondents whose organisations did offer EWA, nearly a quarter ( 23% ) took up the option.
The CIPP has collaborated with seven UK providers of EWA schemes, to create an ‘EWA Code of Practice’. The Code was produced in response to a recommendation by the Financial Conduct Authority (FCA) and sets a common standard for firms providing EWA products, and each provider must undergo a regular independent assurance assessment. Find out more here: https://ow.ly/2igm50T2Sye Other financial support Looking beyond EWA, the survey asked if respondents were seeing an increase in requests from staff concerning their wider financial wellbeing, e.g. not explicitly payroll-related questions, so those related to broader tax or signposting to financial guidance. Most ( 54% ) said no, while the remaining 46% said yes, indicating a divide in the workforce needing financial help beyond traditional support from payroll teams.
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. One respondent noted it “helps with financial issues that arise unexpectedly”, while another described it as “a fantastic safety net whereby unforeseen expenses can be covered with minimal stress” and explained “employees like the flexibility it provides them”. Other benefits cited were that it had stopped or reduced using conventional borrowing; gives people greater financial flexibility; reduces financial stress; improves the ability to pay bills on time; and increases the credit score of those using the option. One respondent said: “It’s absolutely game-changing for our lowest-paid staff who live payslip to payslip. This has caused them less stress and worry and also stopped them going to payday lenders and curating high-interest loan debt.” However, opinion was divided and not all feedback was positive. The drawbacks cited by respondents include the potential for over-reliance on early wages, administrative complexity and reduced money on the contractual pay date, as well as employees getting into a shortage of pay cycle. One respondent said: “I’m on the fence with this, despite the obvious benefits I have concerns that by letting employees have access to their pay, it encourages employees not to budget and promotes financial difficulties.” Another said: “We considered this, but we pay in the middle of the month so the most they could access would be 14 days’ pay if they took it the day before payday – doesn’t really work.”
Looking at save as you earn schemes, respondents were asked whether these were offered to help employees with their wider financial wellbeing.
As many as three-quarters (76% ) didn’t, while 15% have introduced a scheme within their organisation and 8% are looking at offering a scheme.
Interestingly, the Payslips Statistics Survey Report 2024 found that among survey participants, 44% believed payroll should assist with employee financial wellbeing, while 33% were unsure and 22% said no. Working arrangements In addition to working practices impacting people’s financial state, those surveyed for the Future of Payroll Report 2024 were also asked about initiatives that helped with employees’ general health and wellbeing. Since the pandemic, flexible, remote and hybrid working has become the norm, with a growing number of individuals seeking positions that offer them options outside the traditional nine-to-five day in the office.
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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