Earned Wage Access: What Every Small Business Owner Needs to Know - Mission to Grow: A Small Business Guide to Cash, Compliance, and the War for Talent - Episode #125
How can employers leverage the benefits of offering earned wage access to not only enhance recruitment and retention but also to significantly improve employee productivity and engagement? In this episode, we delve into the transformative shift from traditional payday loans to on-demand pay models. We explore how digital advancements have led to new, cost-effective solutions that empower employees to access their earned wages without stigma or significant fees. This shift is facilitated by innovative banking models leveraging merchant fees to create a seamless and free experience for employees. We also discuss the profound benefits for employers, such as improved recruitment, retention, and productivity, driven by offering financial wellness tools.
Takeaways:
- Evolution from Payday Loans to Digital Earned Wage Access: Employees once reliant on high-interest payday loans now benefit from digital earned wage access with low fees and reduced friction.
- Merchant-Funded Access: The innovative model relies on merchant fees from debit card transactions, allowing services to be offered at no cost to both employees and employers.
- Employer-Centric Benefits: Companies that offer earned wage access see stronger recruitment appeal and improved retention, as employees value immediate access to their earnings.
- Financial Well-Being and Productivity: Enhanced financial wellness reduces stress, giving employees more focus at work and improving overall productivity.
- Reduced Absenteeism: Access to earned wages helps employees manage unexpected expenses promptly, leading to fewer absences.
- Increased Employee Engagement: When financial worries are minimized, employees show greater involvement and commitment to their work.
- Support for Lower-Income Workers: This model particularly benefits those in lower-income brackets who are most affected by financial instability.
Quote of the Show:
- "I think the key thing with earned wage access versus historical products that were paycheck advances or payday loans is the lending is done only against wages that are earned, not against the paycheck overall." - Shirish Lal
Links:
- Website: https://gritfinancial.org/
- LinkedIn: https://www.linkedin.com/in/shirishlal/
Ways to Tune In:
- Spotify: https://open.spotify.com/show/2XThTdn7YC1lkAm0PgZUkj
- Apple Podcasts: https://podcasts.apple.com/us/podcast/mission-to-grow-a-small-business-guide-to-cash-compliance-and-the-war-for-talent/id1725890976
- Amazon Music: https://music.amazon.com/podcasts/328dddd0-3c4f-4b07-a0d3-13bdcb418486/mission-to-grow-a-small-business-guide-to-cash-compliance-and-the-war-for-talent?refMarker=null
- Audible: https://www.audible.com/pd/Mission-to-Grow-A-Small-Business-Guide-to-Cash-Compliance-and-the-War-for-Talent-Podcast/B0CS71KQFM?qid=1706208857&sr=1-1&ref_pageloadid=not_applicable&ref=a_search_c3_lProduct_1_1&pf_rd_p=83218cca-c308-412f-bfcf-90198b687a2f&pf_rd_r=A1ME8MBECSVZ6K4D7CNT&pageLoadId=QBtg12mqKsuZPLGY&creativeId=0d6f6720-f41c-457e-a42b-8c8dceb62f2c
- Podchaser: https://www.podchaser.com/podcasts/mission-to-grow-a-small-busine-5591006
- Transistor: https://missiontogrow.asuresoftware.com/
- YouTube: https://www.youtube.com/@AsureSoftware
Creators and Guests
Host
Mike Vannoy
Mike is a digital-first marketing executive with 25 years dedicated to helping HR companies thrive. As a board member of an AI software company and Chief Marketing Officer at Asure, he's been at the forefront of AI, HR compliance trends, and the changing demographics that shape today's marketplace. Under his leadership at Sales Engine Media, the company predominantly focused on the payroll, HR, and benefits industries, earning multiple spots on the Inc5000 list. Actively involved in multiple small businesses, Mike is a lifelong entrepreneur adept at navigating the changing workforce dynamics. He has held multiple executive roles at industry-leading HR firms, showcasing his expertise and leadership in the sector.
