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How EWA can add more color to your employee engagement strategy
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Kartikay Kashyap

March 29, 2025

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How EWA can add more color to your employee engagement strategy

69% of employees will stay longer with their employer if they have an EWA program – Explore this strategy for employee engagement

On-Demand Pay, Accrued Wage Access, Income Streaming, and Earned Wage Access (EWA); I am sure you must have also come across such terms in the past. But what do they mean, and why are they important to you?

For those new to EWA, it is a wage payment system where salaried employees can access some percentage of their income as and when required. Traditionally in India, companies follow a fixed interval of the pay cycle, where the employee receives their salary at the end of every month. But EWA allows employees to withdraw their earned or accrued compensation whenever they want at no or minimal interest rate.

Why has EWA gained importance?

A recent report by E&Y, which covered more than 3100 salaried employees in India, found that 81% of employees felt the need for an EWA plan in their organization. And why is that? The study reports that about 80% of people exhausted their salary before month’s end, and 73% faced unexpected expenses and could not meet them. It was reported that about 4 in 10 employees felt that EWA would make them confident about meeting their unexpected expenses. Post-COVID-19, people realized that unforeseen expenses could hit their lives badly.

Let’s try to understand the need for EWA with an example. Simran, a data analyst specialist, has been working away from her hometown in Bangalore. She lives in a rented house, and a large portion of her salary goes towards her house rent and EMI for her education loan. Within ten days of the new month, Simran ends up using her entire salary. If she needs extra cash, she is forced to borrow money from her friends, which annoys her. This could be one of the reasons why she would want to move to another company for an increment in her income. In such cases, an EWA program can be of use. It would allow Simran to withdraw some portion of her salary and meet immediate expenses.

The Indian ecosystem is pretty new to this system of paying wages to employees, but in the United States, EWA is quite popular among employers. Companies like Uber, McDonald’s, and Lyft have been running the EWA program for their employees.

How EWA creates a big difference in employee engagement strategy

Keep your workers satisfied

Lyft, one of the leading ride-hailing platforms in the United States, implemented the Earned Wages program for its drivers, where they can access their wages or pay straight after their ride is completed. This instant gratification feature helps the company keep its riding fleet satisfied. The Lyft drivers can access their ride wage instantly after the ride ends. Then, the money gets transferred to their Lyft Debit Card at no additional cost.

A great tool to attract talent

Companies always seek good talent. The quality of people in an organization can give an edge to a company. We are aware that today’s talent market is competitive. Companies are trying their best to attract the best of talent. For instance, remote working and a flexible working environment are being provided by many firms to get hold of great talent. As per a recent study, 59% of respondents said that EWA could be a deciding factor for them while considering their next job.

Retaining talent will get easier

Benefits such as financial stability and flexibility create a stickiness element for employees. A survey that covered employees in the United States says that 69% of employers will stay longer with their employer if they have an EWA program. In some sectors, such as technology and IT services, attrition is a big challenge for companies. EWA can be that differentiating factor that can retain key talent.

Improves integrity and absenteeism in workers

Caspers & Co., which owns about 61 McDonald’s stores in the United States, agrees that employee absenteeism is reduced after implementing the EWA program, and they could better serve their customers. The company agrees that implementing EWA was a defining factor in that. Moreover, better financial stability and wellness with daily wage access reduced internal thefts within the organization. Better control over their finances helped workers in the store manage their expenses far better.

Makes your workers feel valued and recognized

Being rewarded fairly and recognized for hard work keeps your employees happy. This, in turn, benefits your business in the long term. Uber Freight, one of the biggest players in the transportation and logistics industry in the United States, has implemented the EWA program for its truck drivers. As per the American Trucking Association, the US trucking industry is responsible for transporting 70% of goods in the country. In 2020, the e-commerce industry boomed. This increased the pressure on truck drivers during COVID-19 to ship products around the country. The EWA program reduced the waiting time for receiving payment for deliveries by 99.7% for drivers. This in itself was motivating for drivers.

There are some real-time examples in companies like Uber, Lyft, and Mcdonald’s who are benefited from the EWA program. In addition, the gig economy and employees working on a contractual basis can benefit from the EWA program, and it improves the overall employer brand of the organization too.