New Report Reveals U.S. is Leading the Global Earned Wage Access Revolution

RALEIGH, N.C.--(BUSINESS WIRE)--A new report from Everest Group - commissioned by leading global employee pay provider, CloudPay - finds the U.S. has the largest number of Earned Wage Access (EWA) providers, but few providers are able to offer EWA on a global scale. It also reveals that programs such as EWA and financial wellness solutions have the greatest impact on a positive employee experience.

The report – Global Earned Wage Access (EWA): Strategic Benefits for Employers and Financial Well-being for Employees – reveals a combination of new demands in a flexible world of work, the need for quick access to funds amid financial concerns, and a desire for a consumerized experience.

According to Everest Group, despite this demand, there are only a handful of vendors offering EWA solutions, with even fewer providing a global approach. This indicates a reluctance to change what may be viewed as ‘unbroken’ processes in payroll or the lack of awareness of the availability of a global solution.

Failure to adopt new payroll approaches could be detrimental to hiring strategies. According to Everest Group, 75% of the global workforce are currently looking to change jobs, and 57% of respondents indicated that wellness programs including financial well-being have a direct impact on their employee experience. Given that 43% stated process improvement was a strong influencer, future talent attraction and retention strategies could be hindered without EWA solutions.

“The shift to more flexible payroll solutions has been gaining speed for some time, but it’s certainly accelerated in a post-Covid landscape where agile working options, combined with cost-of-living concerns, are rife,” said CloudPay CEO Paul Bartlett. “At CloudPay we’ve witnessed this evolution and have been adapting our global solutions as a result. It’s clear from the Everest report that we’re only on the cusp of the adoption of Earned Wage Access.”

While demand for EWA is expected to increase, there has long been a reluctance across payroll to change processes that seemingly work. Even though the fundamentals of paying employees are successfully being applied, that doesn’t mean a better approach isn’t feasible or even a necessity.

“As the war for talent rages on, businesses need to ensure they are giving their people what they need,” Bartlett said. “According to this latest insight from Everest, people want more control over when and how they access their pay. Those who don’t provide this will lose out on top talent.”

According to the Everest report, there are five key drivers of this global demand for payroll evolution:

• Generational shift in the workforce: Millennials and Gen Z will account for more than 65% of the workforce by 2025. While millennials are driven by purpose, Gen Z professionals desire flexibility and security, particularly financial security.
• The need for a modern pay experience: Younger working-age populations are digital natives. They demand fast and flexible payments and a seamless digital experience from their employers.
• New workforce models: The proportion of the temporary workforce, such as contingent workers, gig workers, and freelance consultants, has increased in the overall talent mix. Payroll operations that are hassle-free and more frequent than the bi-weekly or monthly cycle are better suited for this section of the workforce.
• Financial flexibility: EWA is increasingly being used by workers to help manage unexpected expenses, in addition to allowing them to align pay dates with their personal financial commitments.
• Sense of fairness: Today’s employees believe they deserve access to the wages that have already been earned. Enterprises that can offer this by redesigning the employee payroll experience will fare better in the war for talent.

This latest news follows recent data from CloudPay which revealed the number of employers signing up for “on-demand pay services” around the world has more than doubled since October, while the average amounts withdrawn have dropped. This is indicative of employees increasingly accessing money they’ve already earned as and when they need it to cover daily costs of living.

About CloudPay

CloudPay is the only provider that guides global companies with vision and care toward the comprehensive pay experience their employees deserve. CloudPay connects all employee pay processes – including payroll, payments, and on-demand pay – through a unified solution. CloudPay experts implement best practices, navigate change, optimize operations, and improve employee experiences. CloudPay is with you every step of the way because employee pay is what we do.