A new study has found that nine in ten employees prefer flexible compensation, or Earned Wage Access (EWA), to alternative methods.
The analysis was carried out by a group of financial charities, the social impact research firm 60 Decibels, and the charity-supported financial welfare service Wagestream. The study tracked the impact of the removal of locked and extended pay cycles by employers and the return to more flexible pay cycles over an 18-month period.
Following the return to a flexible remuneration method, 77% of those surveyed said their stress levels had been reduced, and 72% responded that their financial resilience had improved and they felt more in control. their money, 55% saying they feel their money. planning had improved.
In addition, 72% responded that their quality of life had improved, 88% said they were less dependent on access to emergency income and high cost credit such as payday loans in over time, and 39% said they used credit cards less frequently. Survey respondents gave the flexible compensation method a promoter score of 56, which surpasses global benchmarks for financial inclusion.
A majority of employers have since said they are now planning or implementing a financial well-being policy, with most choosing a weekly pay rate when given the choice.
Tom Adams, co-founder of 60 Decibels, said it’s inspiring to see ethical fintech companies like Wagestream take impact measurement seriously.
“In addressing deep-rooted social issues, it is essential that financial wellness service providers take the time to listen to users, study impact and put results into action, creating responsible services based on this learning. Being willing to share these results with their peers, customers and the entire industry is an important step in encouraging transparency and collaboration, which can only be a good thing for everyone. world, ”he said.