Enhancing HR Strategy with Earned Wage Access for Hourly Employees: A Legion WFM Perspective
January 24, 2024
by Matt Cromar
In our recent webcast titled “The Productivity Well-Being Feedback Loop”, we sat down with industry experts Daniel Eckert, recognized FinTech and digital retail pioneer, and Emily Trant, Head of Impact & Inclusion at Wagestream, to discuss how improving employee financial well-being drives improvements in operational metrics. Aside from the clear benefits to hourly workers, we identified three key organizational stakeholders that can benefit from implementing an Earned Wage Access (EWA) program. Payroll, HR, and Operations all have something to gain through EWA, and in this second of three posts, we break down some of the key learnings from our discussion, specifically around how HR teams can benefit.
In the evolving landscape of human resources, the implementation of Earned Wage Access (EWA) stands as a significant innovation, particularly for hourly employees. This blog examines how corporate human resources teams can leverage EWA, using Legion WFM’s capabilities, to enhance their HR strategies and support their workforce more effectively.
HR Benefits that Hourly Workers Want
HR teams always strive for new and creative ways to attract and retain talent. In this webcast excerpt, Emily and Daniel dive into some challenges and solutions that present themselves when work and pay are more tightly coupled in WFM software.
The Rise of EWA in Workforce Management
EWA is a progressive payroll practice that allows employees to access their earned wages before a scheduled payday. This approach is especially beneficial for hourly workers who often face financial challenges due to the rigid traditional pay cycles. Legion WFM integrates EWA into its workforce management platform, demonstrating a comprehensive understanding of modern employee needs.
Key Benefits of EWA for Human Resources
Human Resource teams can derive various benefits for their internal processes, along with improving the financial well-being of their team members:
- Improved Employee Engagement: Access to EWA boosts employee morale by addressing their financial wellness. Legion’s 2023 State of the Hourly Workforce survey showed that 41% of employees cited limited benefits as a difficult part of working an hourly job. Legion WFM’s integration of EWA demonstrates a commitment to employee satisfaction, a vital component of effective HR management.
- Enhanced Recruitment and Retention: Offering EWA can be a compelling benefit to attract new talent and retain existing staff. Legion WFM’s approach highlights EWA as a key differentiator in the competitive labor market, helping HR teams to stand out to prospective and current employees. Job postings that include the availability of EWA as a benefit are filled 27% faster.
- Streamlining HR Processes: Legion WFM’s EWA integration streamlines HR processes, simplifying the management of employee financial benefits and reducing administrative burdens. Legion Customer ALDO Group saw a 66% reduction in late clock-ins after adopting Legion InstantPay, which translates to less impact on payroll for exception handling.
- Compliance and Transparency: Implementing EWA through platforms like Legion WFM ensures adherence to labor laws and payroll regulations, maintaining transparency and compliance in HR operations. Legion InstantPay is closely tied with proven hours worked, which is consistent with proposed licensing legislation across several states for EWA providers.
Legion WFM: A Catalyst for HR Transformation
Legion WFM’s platform is more than a tool for workforce management; it’s a comprehensive solution that integrates EWA seamlessly. This integration empowers HR teams to offer a benefit that directly impacts the daily lives of hourly employees, reinforcing a culture of empathy and support.
Implementing EWA in HR Practices
Adopting EWA requires a strategic approach. HR teams should collaborate with payroll to integrate EWA into their existing systems, ensure clear communication with employees about this new benefit, and leverage the data and analytics provided by Legion WFM to optimize their workforce strategies continuously. Legion offers a fully integrated solution that is easy for companies to implement and convenient for employees.
Incorporating EWA for hourly employees is a forward-thinking step that can significantly enhance HR strategies. Legion WFM’s platform offers a practical and effective way to implement EWA, helping HR teams create a more engaged, satisfied, and productive workforce. Watch the entire webcast to learn how Payroll, HR, and Operations can all win together.