See the devastating impact of financial stress on productivity, employee health and engagement – and how Earned Wage Access is proven to help HR and CFOs reverse the trend in their company today
Are your teams struggling to increase or even maintain the required productivity levels?
It could be due to personal financial worries.
Here’s what you need to know about the devastating impact of employee financial stress on productivity – plus how Jem’s Earned Wage Access (EWA) employee benefit has been proven to help reverse the trend at numerous South African companies.
How Common is Financial Stress Among Employees?
Research by Visa on employee finances shows that 84% of employees worry about finances while at work, impacting their productivity, while 68% say it also affects their health.
And, according to the latest PwC employee Financial Wellness Survey, over 56% of employees globally say financial worries affect their sleep, impacting their physical health and stressing relationships.
Yet, it’s believed to be even worse in South Africa. Here, 76% of employees live paycheque to paycheque while up to 70% can’t pay all their bills on time. The average household spends as much as 62% of its monthly income to repay debt. These numbers begin to paint a bleak picture.
What’s more, recent international research by online bank SoFi found that, in general, HR leaders tend to overestimate employee financial wellness:
- 78% of HR leaders rate employee financial well-being as good or excellent- Less than half of employees agree. Most are quietly struggling.
The Impact of Financial Stress on Productivity & Employee Health
A landmark 2010 peer-reviewed World Applied Sciences study by an international team of scientists proved mathematically and statistically that financial stress leads to lower productivity and personal work-finance conflict.
In a 2017 study, Mercer estimated that, in a company with 10,000 employees, financial stress can cause distractions that lead to 1,922 hours of lost productivity per week – costing the company an estimated R533,000 over a 7-day period.
But the cost is not only financial. Employee distractedness also leads to:
- Lowered employee engagement- Increased churn and lower retention
- Poor physical and mental health
However, research by Visa found that Earned Wage Access can be an extremely effective tool that employers can use to address these concerns with remarkable efficiency.
How Earned Wage Access (EWA) Provides an Effective Solution
Earned Wage Access (EWA) offers a proactive approach to mitigating financial stress by allowing employees to access their earned wages before payday. Here’s how EWA provides an effective, sustainable solution:
1. Immediate Financial Relief
EWA enables employees to access a portion of their earned wages whenever they need it, offering immediate financial relief for unexpected expenses. This helps reduce the need for high-interest loans or payday advances, breaking the cycle of debt and financial stress.
See how Earned Wage Access works.
2. Improved Financial Stability
By providing access to already-earned wages, EWA helps employees manage their finances better and maintain financial stability. This reduces the financial anxiety that often leads to decreased productivity and poor mental, physical or emotional health.
3. Increased Employee Satisfaction
Offering EWA as a benefit demonstrates an employer’s commitment to their employees’ financial wellbeing. This leads to increased job satisfaction, higher employee engagement, and improved retention rates.
4. Enhanced Productivity
With reduced financial stress, employees can focus better on their tasks, leading to higher productivity levels. A financially secure workforce is more likely to be engaged, motivated, and productive.
How EWA Helped SA Companies Address Employee Financial Stress to Improve Productivity
Several South African companies have successfully implemented EWA through Jem HR, witnessing significant improvements in employee productivity and well-being.
Reduced Absenteeism & 100% Fewer Loan Requests at Mukuru
Mukuru, a leading financial services provider, integrated Jem EWA to help its employees manage financial stress. “Before we joined Jem, we used to process 80 staff loans a month and it was an admin nightmare,” says Leana Pretorious, senior payroll partner at Mukuru. “Now, we just send our employees to Jem when they are under financial stress. It has been such a pleasure and our employees absolutely love it.”
With EWA, employees can now access their wages early, reducing the need for loans. This has led to a 96% reduction in HR time spent on loan processing and a marked decrease in employee absenteeism.
See the change Jem EWA made for Mukuru.
Jem EWA Saves Lasec Group Employees R45k Per Year in Loan Interest
Lasec, a Southern African supplier of scientific & laboratory equipment, faced high volumes of employee loan requests. After implementing Jem EWA, they no longer receive any loan requests. Employees now avoid loan sharks, saving approximately R45,000 annually on loan interest.
“We’ve received really great feedback from our employees since we launched Earned Wage Access. It’s really helped them avoid loan sharks and get out of debt,” says Allistair Gardener, HR Manager at Lasec.
See the change Jem EWA made for Lasec Group.
Significant HR Savings & Improved Attendance at Oryx Group
The Oryx Group, a leader in cleaning and hygiene services, saw a drastic decrease in absenteeism and a significant reduction in staff loan processing time.
“We have definitely improved attendance drastically with the Earned Wage Access benefit,” says Malehloa Lesawane, head of HR at the Oryx Group, “and we’re seeing employees managing finances better, but also benefiting from the lower interest rates which put transport and grocery money back in their pockets.”
See the dramatic impact of Jem EWA at the Oryx Group.
Unlock the Benefit of Earned Wage Access for Your Employees
Ready to enhance your workforce’s productivity and well-being with Earned Wage Access?
Jem HR makes it easy to implement EWA in your organisation.
