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Earned Wage Access?

Hi all! Has any of you come across / considered an employee benefits called Earned Wage Access?

I know of some employees who have requested to be paid in advance of payday to cover emergencies - and this has come up a few more times due to COVID. We would do ad-hoc payments to accommodate these, but it adds quite a bit of admin work for the company to process these deductions and make sure they are done/reconciled correctly. With an Earned Wage Access solution, this will be done automatically and allows our staff to get access to a portion of their wages at any point in the month.

Have any of you considered this solution as well, as a benefit to your staff?

If this is a common question then it’s probably a sign that employees are finding it difficult to manage the monthly pay cycle. Maybe consider paying fortnightly instead of monthly and also set up some financial management courses on site that your employees can attend to assist them to budget and get the most out of their money.

Thanks @Satrina, we actually already pay fortnightly - and unfortunately we can’t afford to change this to weekly (both from a cost and effort perspective). I think I will launch a quick survey in the organisation to see if this is a solution they would find helpful.

Great idea re. setting up some financial management courses - have you ever done it before? if so, how was the participation rate and feedback?

Ah, apologies. When you said any time in the month I thought that must have been your pay cycle. Yes, fortnight is frequent enough from an administrative perspective. I’ve had good attendance rates from finance sessions but you do need to really promote them, give people notice, ensure managers can release people and allow them to attend during work time. Consulting with managers on the timing mat be important. You may also need to tighten up when you allow out-of-cycle payments as it really should be for emergencies only so maybe review your policy on this and place some boundaries around it.

That’s okay! Yes completely agree re. having the right policies/boundaries in place. Our survey turned out fairly positive - so we contacted a couple of providers and we liked https://www.paytime.com.au/ the most. They have financial management / mental health resources as part of the app too, which is great as we don’t want this offering to drive irresponsible spending.

We are also thinking of joining that with a more formally-run financial management courses. @Satrina did you contract a specific provider/campaign for yours?

We organised sessions through our employee assistance program provider and also our default superannuation fund.

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