The economic well-being of Indian employees has indeed been mentioned frequently, but little study has been done.
A new analysis titled “Earned Wage Access in India: The Final Frontier of Employee Wellbeing” takes a close look at the situation of Indian employees’ financial well-being.
About Earned Wage Access, and how does it work?
EWA is a financial feature that allows staff to access a part of their earnings at any point before payday, with the balance paid after the pay period. It allows them to better align their income and expenses and lessen their reliance on high-interest credit.
Unlike salary-based lending or payday loans, EWA does not need the employee to borrow money. It is at no cost to them and no cost to the company.
Some important findings-
- Approximately 81 percent of Indian employees have experienced financial difficulties between pay periods.
- As a result of their difficulty to obtain liquid cash during emergencies and to meet unanticipated expenses, about 72 percent of Indian employees have turned to alternative financing solutions.
- Approximately 81 percent of people who have faced financial troubles have expressed mental distress, health issues, and a drop in morale.
- Financial stress has been linked to up to 20% of employee turnover, according to employers. When stress is brought into the workplace, it leads to distraction, absenteeism, poor performance, and eventually employee attrition.
- Medical emergencies, house and family-related expenses, and loan repayments are the three top sources of financial deficits for salaried employees, which eventually translate into lower financial well-being, according to our research.
- Approximately 42% of Indian employees expect their companies to help them secure their financial future.
The report, which was based on a poll of 3,010 employees across India, examines employee and employer attitudes on EWA as well as the health of the workforce’s economic well-being.
Employees and businesses alike benefit from EWA’s ability to break free from the usual pay cycle. This strategy provides employees with real-time access to their earned money, allowing them to have ready liquidity at any time during the month.
Employees can withdraw a portion or all of their earned but unpaid compensation before payday for a small transaction charge, which does not interrupt the organization’s payroll process.
The desire for a higher quality of life and the impact of the Covid-19 pandemic are causing a fundamental shift in how employees think about and handle their money.
The ultimate frontier of employee wellbeing’ elaborates on the peculiar economic scenario in which Indian workers find themselves.
Employers have a key role in encouraging people to be financially responsible and disciplined. In the long run, EWA can help employees gain financial empowerment and improve their overall financial well-being.
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