Do you wonder how your blue-collar employees manage their finances with limited means? Do you want to know if you can provide an early salary during emergencies?
The Covid-19 pandemic and the subsequent economic volatility affected gig workers the most. It’s no surprise that many dubious payday apps entered the market, affecting thousands of lives. However, you can step up and safeguard your employees. Several SMBs and emerging organizations have asked, ‘Can I offer an early salary for my employees?’
The answer is yes. Earned Wage Access (EWA) allows you to pay a share of the employee’s salary as an advance. The amount can be repaid by the employee. Or it will be deducted from their weekly/ monthly earnings. It’s a win-win situation for both parties. You will pay for the work they already provided, and the employee doesn’t have to take a high-interest emergency loan from lenders.
Of course, offering an early salary gives a few more advantages to you, the employer.
- Higher Retention Rate
- Gig workers tend to switch jobs regularly, as they need to earn enough to cover their expenses. This can affect your business, especially if a group of workers decide to leave at once. However, by offering earned wage access, you can retain them with your business. Your workers will know they can get an advance payment if necessary and don’t have to switch jobs unless for this reason.
- Employee Loyalty
Employee loyalty is as important as customer loyalty. A business cannot be successful if the employees don’t trust their employers. Offering early access to earned wages is a way to establish a good relationship with your workers and show them that you care about their well-being. Let your employees know they can rely on you during emergencies.
- Attract New Employees
Early salary access can be your selling point to attract worthy candidates to your business. Workers are likely to accept your job offer when you offer something different and useful. Since EWA promotes financial freedom, it will bring new employees to your business.
KarmaLife is a leading EWA partner in India, working with numerous businesses to ensure financial stability and freedom for their employees. Digital KYC, no onboarding time, multi-OS-friendliness, and automation are some highlights of using the platform to provide early wage access to employees. With a transparent fee structure and multilingual functionality, KarmaLife is making EWA a reality in India.