Are you looking to add Earned Wage Access to your arsenal of tools? Maybe for your business or personal use only, whatever it is – it’s always a good idea to know more about the most important Earned Wage Access statistics of 2024.
My team and I scanned the entire web and collected all the most useful Earned Wage Access stats on this page. You don’t need to check any other resource on the web for any Earned Wage Access statistics. All are here only 🙂
How much of an impact will Earned Wage Access have on your day-to-day? or the day-to-day of your business? Should you invest in Earned Wage Access? We will answer all your Earned Wage Access related questions here.
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On this page, you’ll learn about the following:
Best Earned Wage Access Statistics
☰ Use “CTRL+F” to quickly find statistics. There are total 78 Earned Wage Access Statistics on this page 🙂Earned Wage Access Usage Statistics
- “During the first few weeks of the outbreak, we witnessed a 400% spike in DailyPay usage as people were stocking up on necessary provisions. [0]
Earned Wage Access Market Statistics
- At a time when the job market is going through increasing uncertainty, most HR executives said they are focused on retaining their existing workers, with 77% of respondents saying that reducing staff turnover was a critical priority or an important priority. [0]
Earned Wage Access Latest Statistics
- According to BankRate, only 37% of Americans can cover an expected $500 expense, highlighting that the majority of U.S. workers are essentially living paycheck to paycheck. [1]
- From academic studies of our product, before it, companies would give 1,000 job offers to hourly workers and maybe 200 will accept — with our service that grows by 80 to 90%. [1]
- Additionally, we improved retention by 20%, in some cases all the way to 35 to 40%. [1]
- We immediately ran a survey, and the survey said that 82% of people were worried about loss of income — very few were worried about the pandemic itself. [1]
- About 25% of payroll professionals said in recent surveys that ondemand pay is a must have solution for improving the employee experience, which is a top priority in 2020. [2]
- Currently, earned wage access is offered by just 5% of large U.S. companies with a majority of hourly paid workers, according to the Society for Human Resource Management. [2]
- However, that figure is expected to jump to 20% by 2024. [2]
- A Federal Reserve study found that over 40% of adults would not be able to cover an emergency expense of $400 if one arose. [2]
- 50%, on average, reduction in turnover 49% average increase in employee productivity Ability to fill open positions in less than half the time (52% faster). [2]
- Applicants are 13% more likely to apply for a lowerpaying job with on. [2]
- Offering an on demand pay benefit solution to employees also increases employee engagement, with 73% of employees stating that their opinion of their employer had improved as a result. [2]
- At a time when 78% of all American workers are living paycheck to paycheck, the ability for an employee to access their earned income when they need it, before payday, is essential. [2]
- In addition 85% of users say access to their earned wages makes them more able to budget and pay large monthly bills like rent, utilities, car payment, etc. [2]
- 78% of users say access to their earned wages helps them pay their bills on time and avoid late or overdraft fees. [2]
- 74% of users say access to their earned wages has helped reduce their financial stress 70% of users say access to their earned wages has helped them avoid taking out a payday loan. [2]
- 59% of users say access to their earned wages motivates them to go to work. [2]
- 51% of users say access to their earned wages has helped improve their financial health 50% of users say access to their earned wages has helped them be more disciplined about spending. [2]
- 46% of users say access to their earned wages has helped them save more. [2]
- Most notable and relevant today, nearly half (46%). [2]
- Findings included Workers choose to replicate weekly pay, accessing pay 1 3 times / mth Use of EWA is consistent, primarily for bills (33%) and groceries (21%). [3]
- Stress decreases, for 77% of those using EWA Financial confidence improves, with 72% feeling more in control. [3]
- Findings on the wider social impact of EWA included Quality of life increases for 72%, outperforming global benchmarks on financial inclusion. [3]
- Debt cycles recede users rely less on emergency income access over time Reliance on high cost credit decreases 88% for payday loans; 39% for credit cards. [3]
- Workers prefer it 89% say EWA is better than any alternative Big Society Capital is the UK’s leading social impact investor and a contributor to the report. [3]
- 69% of American adults have little to no savings and are living paycheck to paycheck. [4]
- US Federal Reserve 47% of Americans would not be able to afford an unexpected $400 expense. [4]
- Federal Reserve Bank 75% wouldn’t be able to afford an unexpected $1,000 expense. [4]
- American Banking Association 59% of the U.S. workforce are hourly and work ondemand and demand on. [4]
- Applicants are willing to take on average a 13% reduction in pay if they got paid daily. [4]
- Early Access to earned wages decreases turnover by 40% and increases recruitment by 30%. [4]
- Before COVID 19, 44% of U.S. workers had less than $500 saved for unexpected expenses.² Increased financial pressure due to paycheck uncertainty or even layoffs and furloughs have put hourly talent in an even tighter situation today. [0]
- It found that 90% respondents confirmed that having access to their service during the pandemic reduced their financial stress. [0]
- Further, 56% of surveyed DailyPay users said that they were motivated to pick up more shifts due to having access to their service⁵. [0]
- The next two potential reasons for offering EWA included promoting financial wellness and reducing finance related stress (19%), and retaining existing employees (17%). [0]
- Some EWA providers charge a fee for the advance, which can effectively charge users an APR of over 365% for their advances. [5]
- earned wage access is offered by just 5% of large U.S. companies with a majority of hourly paid workers, according to the Society for Human Resource Management. [6]
- However, that figure is expected to jump to 20% by 2024. [6]
- For example, the CFPB has said that if a provider is in fact requiring an employee pay back and that payback is done through a payroll deduction, it’s limited to 60% of the actual pay. [7]
- Literally every week they’d have to have reporting, compliance, and auditing to ensure they’ve limited themselves to 60% because if they don’t, the vendor per this order is not going to be compliant with safe harbor,” said Lee. [7]
- “the most important benefit in a postCOVID 19 world,” citing PwC’s 2019 Employee Financial Wellness Survey which found that “47% of employees are stressed with their financial situation.”. [8]
- PwC’s 2018 Special Report Financial stress and the bottom line revealed that 50% of employees feel stressed about their personal finances, and half of those surveyed reported spending three or more hours per week dealing with personal finances. [8]
- Another 12% said they’d missed work more than once to deal with money problems. [8]
- It’s important to note that in the PwC survey, the 50% of employees who were stressed about finances said it was mostly because they couldn’t cover emergency expenses. [8]
- Offering Even’s employer sponsored EWA solution has helped companies make great strides in this area 69% of employees surveyed said that having Even as a benefit has caused their perception of their employer to improve. [8]
- 53% of respondents said that they would recommend Even’s employer offered earned wage access product to their colleagues. [8]
- 70% of employees said that using Even has had a “broad positive” effect on their overall financial health. [8]
- Currently 74% of American workers live paycheck to paycheck ; even households making $100k or $150k per year struggle to make ends meet. [8]
- The Federal Reserve has reported that 40% of Americans couldn’t come up with $400 in an emergency. [8]
- And overdraft fees have gone up by 56% in the last two decades, from $21.57 in 1998 to $33.36 in 2019. [8]
- 75% of Even members say using Even has had a positive impact on their financial health. [8]
- But according to the latest figures presented by the American Payroll Association , anywhere between 50 percent to 80 percent of Americans earn just enough to cover their monthly expenses. [9]
- Surveys and studies have confirmed that when workers are stressed about money (which over 50% of Americans are). [9]
- Benefits of EWA for Employees 40% of Americans can’t pay for a $400 unexpected emergency. [9]
- In fact, it is estimated that by 2024, nearly a quarter of all U.S. businesses that pay the bulk of their staff an hourly rate will offer some type of employee financial wellness plan. [9]
- As the chart shows, workers age 25 and over who have less education than a high school diploma had the highest unemployment rate and lowest median weekly earnings in 2019 among those at all education levels. [10]
- Imagine a firm with 1,000 employees with an average salary of $75,000 and a turnover rate of 10%. [11]
- 2d 571, 577 ; Capela v. J.G.Wentworth, LLC, 2009 WL 3128003, at *10. [12]
- While the CFPB called the fee “nominal,” if the transaction was a credit transaction, then a $5 fee for a two week period on a $100 wage advance, would yield a triple digit annual percentage rate. [13]
- that’s 1/3 of a typical payday loan, but 3 times as much as the 36% APR maximum cap often urged by consumer advocates. [13]
- In 2020, 73.3 million workers age 16 and older in the United States were paid at hourly rates, representing 55.5 percent of all wage and salary workers. [14]
- Together, these 1.1 million workers with wages at or below the federal minimum made up 1.5 percent of all hourly paid workers. [14]
- The percentage of hourly paid workers earning the prevailing federal minimum wage or less declined from 1.9 percent in 2019 to 1.5 percent in 2020. [14]
- This remains well below the percentage of 13.4 recorded in 1979, when data were first collected on a regular basis. [14]
- Although workers under age 25 represented just under one fifth of hourly paid workers, they made up 48 percent of those paid the federal minimum wage or less. [14]
- Among employed teenagers paid by the hour, about 5 percent earned the minimum wage or less, compared with 1 percent of workers age 25 and older. [14]
- Among workers who were paid hourly rates in 2020, 2 percent of women and 1 percent of men had wages at or below the prevailing federal minimum. [14]
- About 2 percent of Black workers earned the federal minimum wage or less. [14]
- Among White, Asian, and Hispanic workers, the percentage was about 1 percent. [14]
- Among workers paid an hourly wage, those who were never married were more likely than married workers to earn the federal minimum wage or less. [14]
- About 4 percent of parttime workers were paid the federal minimum wage or less, compared with about 1 percent of full. [14]
- Among major occupational groups, service occupations had the highest percentage of hourly paid workers earning at or below the federal minimum wage, at about 5 percent. [14]
- As has historically been the case, the industry with the highest percentage of workers earning hourly wages at or below the federal minimum wage in 2020 was leisure and hospitality. [14]
- The states with the highest percentages of hourly paid workers earning at or below the federal minimum wage were in the South about 4 percent for South Carolina and about 3 percent for Alabama, Louisiana, Mississippi, and Virginia. [14]
- Compared with recent years, a relatively large number of states had less than 1 percent of hourly paid workers earning at or below the federal minimum wage California, Colorado, Hawaii, Minnesota, Montana, Nebraska, Nevada, Oregon, Vermont, and Washington. [14]
- There is about a 90 percent chance, or level of confidence, that an estimate based on a sample will differ by no more than 1.6 standard errors from the true population value because of sampling error. [14]
- BLS analyses are generally conducted at the 90 percent level of confidence. [14]
I know you want to use Earned Wage Access Software, thus we made this list of best Earned Wage Access Software. We also wrote about how to learn Earned Wage Access Software and how to install Earned Wage Access Software. Recently we wrote how to uninstall Earned Wage Access Software for newbie users. Don’t forgot to check latest Earned Wage Access statistics of 2024.
Reference
- hrdive – https://www.hrdive.com/spons/new-study-reveals-strong-opportunity-for-earned-wage-access/584917/.
- forbes – https://www.forbes.com/sites/christophermarquis/2021/02/05/how-earned-wage-access-can-upend-predatory-lending-and-build-employee-financial-wellness/.
- dailypay – https://www.dailypay.com/resource-center/blog/what-is-earned-wage-access/.
- businesswire – https://www.businesswire.com/news/home/20210607005364/en/9-in-10-Want-Flexible-Pay-Impact-of-Earned-Wage-Access-Revealed-in-New-Study-From-Wagestream-60-Decibels.
- proliant – https://blog.proliant.com/the-next-big-thing-in-payroll-early-access-to-earned-wages.
- wikipedia – https://en.wikipedia.org/wiki/Earned_wage_access.
- benefitnews – https://www.benefitnews.com/news/earned-wage-access-is-just-one-weapon-in-the-fight-for-financial-wellness.
- paymentsjournal – https://www.paymentsjournal.com/breaking-down-the-cfpbs-earned-wage-access-ewa-announcements/.
- even – https://www.even.com/blog/what-is-earned-wage-access.
- payactiv – https://www.payactiv.com/blog/what-is-earned-wage-access-and-how-does-it-benefit-your-business/.
- bls – https://www.bls.gov/careeroutlook/2020/data-on-display/education-pays.htm.
- paymentsjournal – https://www.paymentsjournal.com/earned-wage-access-tackles-labor-challenges-associated-with-employee-turnover-and-faster-hiring/.
- mondaq – https://www.mondaq.com/unitedstates/financial-services/1018280/is-it-credit-cfpb-issues-advisory-opinion-on-earned-wage-access-programs.
- hudsoncook – https://www.hudsoncook.com/article/earned-wage-access-now-with-fees-a-low-cost-credit-alternative-or-state-regulatory-minefield/.
- bls – https://www.bls.gov/opub/reports/minimum-wage/2020/home.htm.
How Useful is Earned Wage Access
At its core, EWA is a service that allows employees to access a portion of their earned wages before the conventional payday. This can be a lifeline for those living paycheck to paycheck, providing an immediate cushion in case of emergencies or unexpected expenses. It can also help individuals avoid high-interest payday loans or overdraft fees, giving them more control over their finances.
However, while EWA can be a useful tool in certain situations, its widespread adoption raises some concerns. Critics argue that the service could enable poor budgeting habits as employees become reliant on accessing their wages early. It may also create a culture of instant gratification, encouraging individuals to spend beyond their means rather than building up savings for the future.
Moreover, the fees associated with EWA services can add up over time, potentially eroding the financial stability that it aims to promote. These fees, which can range from a small flat rate to a percentage of the advance, may disproportionately impact low-income workers who can least afford to pay them. In some cases, employees may end up worse off financially after using EWA services due to these fees.
Another concern is the potential for exploitation by employers. Some companies have implemented EWA programs as a way to attract and retain employees, but this can also result in pressure on workers to constantly access their wages early. In extreme cases, employers could use EWA as a form of control over employees’ finances, further exacerbating income inequality.
On a broader scale, the proliferation of EWA services could have wider societal implications. Over-reliance on EWA could weaken the traditional concept of payday and disrupt budgeting practices, potentially leading to greater financial insecurity in the long run. It could also exacerbate income inequality, as those with higher incomes may be able to access their wages early more frequently, while lower-income workers may face greater barriers to doing so.
In conclusion, while Earned Wage Access can be a useful tool for some individuals in certain situations, it is not a one-size-fits-all solution to financial challenges. Its utility must be carefully weighed against potential negative consequences, and robust regulatory measures should be put in place to prevent abuse and protect vulnerable workers. Ultimately, a holistic approach to financial wellness that includes education, budgeting tools, and savings incentives may be more effective in promoting long-term financial stability and security for all individuals.