According to a recent survey over 2,000 British people, one in four people are skipping meals over their rising cost of living worries. With inflation at record highs, and increasing financial pressure on ‘lower income’ workers, employers are urged to scrap outdated payday cycles which exacerbate stress.
Steve Tonks, SVP EMEA at WorkForce Software, says that lunar pay cycles can add to the issues employees are facing. Earned Wage Access (EWA) is a simple yet highly effective solution.
“Forty-eight per cent of the UK population frequently feel monetary stress, with financial anxiety being a leading cause of poor mental health for three fifths (60%) of employees – with the rising cost of living soaring it is no surprise that the fear of food poverty is growing,” Tonks says.
For these employees, lunar pay cycles can create up to eight weeks of elapsed time between when hours were worked and when payment is received. Many workers are forced into high-interest payday loans to make it through the month.
EWA can improve the employee experience, while helping workers to better manage their finances both in the short and long term.
“Employers have a responsibility to help break outdated pay cycles, now more than ever. But, EWA shouldn’t just be a ‘nice-to-have’ during times of economic upheaval,” Tonks says. “Instead, it should be viewed as a long-term CSR goal for organisations, supported by ongoing education and advice on money management.”