Should employees access a portion of their earned wages before payday?
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On-demand access to earned pay – a service that allows employees to access a portion of their earned wages before payday, has gained significant momentum amongst South African employers in the last few years. It is now being recognised as a critical solution to help employees build financial wellness and in so doing, enhance organiations' employee value propositions (EVPs). In South Africa, an environment in which 76% of South Africans run out of money before month-end, on-demand access to earned pay provides a viable solution to bridge the gap to payday, helping employees reduce their reliance on debt during this time and easing financial stress. An increasing number of senior HR executives are advocating for earned wage access as a cornerstone of their EVPs.
This is the opinion of Andisa Liba, newly appointed Chief People Officer at South African on-demand access to earned pay provider, Floatpays. She argues that “access to earned pay whenever employees need it, provides a viable solution to a South African challenge and a powerful means by which to encourage financial wellness in the workplace. The effects of financial stress on productivity and employee satisfaction cannot be underestimated. There is therefore a strong business case to be made for incorporating earned wage access into an EVP”.
This is the opinion of Andisa Liba, newly appointed Chief People Officer at South African on-demand access to earned pay provider, Floatpays. She argues that “access to earned pay whenever employees need it, provides a viable solution to a South African challenge and a powerful means by which to encourage financial wellness in the workplace. The effects of financial stress on productivity and employee satisfaction cannot be underestimated. There is therefore a strong business case to be made for incorporating earned wage access into an EVP”.
