Wednesday, August 16, 2023
Earned Wage Access as an ESG Solution: How it Benefits Employers in Terms of Financial Inclusivity and Opportunities
As companies increasingly focus on environmental, social, and governance (ESG) considerations, often they focus on the environmental solutions. However, it’s important to find the right ESG initiatives for your company that will positively impact your business and your employees. One solution that is gaining popularity is Earned Wage Access (EWA), which allows employees to access a portion of their earned wages before payday.
EWA providers partner with employers to offer this service to their employees. By leveraging technology, EWA providers are able to provide a quick and easy way for employees to access and withdraw their wages without all the paperwork and request processes from HR.
So, how can EWA benefit employers in terms of financial inclusivity and opportunities?
Increased Financial Health and Wellness
Financial stress can be a major distraction for employees, impacting their productivity and overall well-being. EWA can help alleviate this stress by providing employees more control over their salary. By providing the option to withdraw their earned wages earlier, this can help employees better manage their finances and avoid costly fees associated with overdrafts and late payments.
Fair and Ethical Labour Practices
Having real time access and option to withdraw their salary instead of waiting for the end of the month is a right for your employees. Employees should be paid as soon as they have worked. By providing a valuable financial tool to employees, employers can demonstrate their commitment to supporting their workforce.
Enhanced Diversity and Inclusion
Be the bridge for your employees who may be unbanked or underbanked. By offering EWA, employers can promote financial inclusivity and provide opportunities for employees who might otherwise be excluded from traditional financial services. Paywatch is the only EWA provider that is backed by major financial institutions to provide the bridge for the underbanked for fair financial opportunities.
Positive Social Impact
By offering EWA, employers can contribute to the broader social goal of reducing income inequality and promoting economic mobility. EWA can help employees avoid high-interest predatory loans and other financial products that can trap them in a cycle of debt.
While EWA is a relatively new benefit, it is already being offered by several leading employers, including Lotus's, MUI Group, FFM Group and QSR Brands. As more companies recognize the benefits of EWA, it is likely to become a more common feature of employee benefit packages in Malaysia.
In conclusion, earned wage access is a valuable tool for promoting financial inclusivity and opportunities for employees. By partnering with EWA providers, employers can offer a benefit that can help improve employee financial wellness, retention, diversity, and inclusion, while also contributing to positive social impact. As companies continue to prioritize ESG considerations, EWA is a solution that is worth exploring.