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Last updated: November 12, 2025
Track Your Results
While EWA’s potential impact is significant, tracking your company’s results is important to determine the return on investment (ROI). Start by measuring budget variances. This will help you identify improvement areas and highlight your efforts’ success. You can then use your ROI as a benchmark and improve it.
According to one survey, employees across every age group and income level showed interest in EWA. Millennials, in particular, viewed the service as a way to avoid overdraft fees and high credit card debt while saving for emergencies and other expenses. The COVID-19 pandemic also prompted more people to prioritize building savings and establishing financial safety nets. In addition, many people had to divert a portion of their paycheck into a savings account to cover their expenses. Setting up an EWA program can be relatively easy. Many providers integrate directly into workforce management software and require only that the business provide a source of employee data, such as time and attendance information.
Depending on the provider, they may charge the employer or an employee a flat fee per transaction. Branch, for example, offers a payroll deduction model that does not require moving direct deposit and is more cost-effective for employers. In addition to reducing turnover and related costs, EWA programs can increase workplace productivity. Studies show that employees under financial stress lose a month of productive work each year and are twice as likely to search for new employment opportunities. EWA programs allow them to access earned wages more quickly, easing their stress and allowing them to focus on the job at hand.
Reduce Your Expenses
EWA is a powerful tool for employers looking to attract and retain the best talent. Easing financial stress can help employees stay at work longer and reduce turnover costs associated with leaving the company. However, there are a few things to remember when implementing this new benefit. First, the quality of this type of service depends on how employers administer it. Employers typically work with a third-party EWA provider to assess whether an employee is eligible for an advance, distribute funds, monitor associated transactions, and reimburse the employer for any problems. These providers may also charge fees for the advance, which can be expensive and could push employees into unmanageable debt. Some providers may also advertise their products to get ahead financially, encouraging people to overspend and take out too many advances without considering their long-term financial situation. To avoid these pitfalls, choose an EWA provider that doesn’t charge interest or fees for employees and aligns its business model with helping users build healthy financial habits.
Maximize Your Efficiency
When your business’s employees feel like they’re being well-treated and valued, it drives productivity and employee satisfaction. One example is free on-demand pay, which can be a key factor in attracting and retaining talent. 81% of workers who have used EWA said they would choose a company that offers it over one that doesn’t.
Many businesses are now offering EWA as part of their employee benefits package, and implementing it is easy. It only requires that the business connect the EWA provider to a data source—usually time and attendance records—and then decide how funds flow for an earned wage advance. Some providers require employees to fund their advances using ACH deductions, while others, such as Branch, allow employers to provide the initial funding for the advance and then reimburse employees at the end of the payroll cycle without disrupting working capital or interrupting the employer’s regular payroll process.
Ultimately, the best ROI for an EWA
Maximize Your Revenue
The right software
Despite the benefits, many middle-market employers hesitate to implement EWA for their employees because they’re concerned about this new process’s
Joey Trebif is the pen name of Mark Fiebert, a former finance executive who hired and managed dozens of professionals during his 30-plus-year career. He now shares expert job search, resume, and career advice on CareerAlley.com.
