Earned wage access benefits are critical for financial well-being

Employees' paychecks aren't going as far as they used to, and they need their employers to help them bridge the gap. 

Fifty-nine percent of employees pre-plan which of their bills will get paid first while waiting for their paycheck, according to a survey from Talker Research on behalf of earned wage access platform EarnIn. Of those making less than $75,000  annually, 51% say their paychecks are pre-spent before they even reach their bank account — which is proving to be entirely unsustainable. 

"There's a lot of conversations about whether workers are being paid enough or not," says Ram Palaniappan,  CEO of EarnIn. "[But] not enough people are talking about the importance of when employees are paid, because that could make the largest difference."

Read more: 80% of Americans are stressed about daily expenses. Benefits can help

Currently, the most popular pay cycle is the bi-monthly schedule. Yet since employees' bills don't all have the same due dates, there's inconsistencies in how employees go about their payments and whether or not certain payments are made. 

Struggling to make ends meet

For example, 55% of employees said they have somewhere between one and four overdue bills during any given month, according to Talker. However, 56% of employees will pay large bills, such as rent or mortgage payments, before their overdue bills. Fifty-one percent said the same about necessities, such as food and medications, and 51% about smaller bills like electricity or water. In fact, only 20% of Americans either don't run out of money or need to live on a tight budget in the days leading up to getting their paycheck.

"Organizations are holding back employees' money," Palanippan says. "They've already put in the work. They've earned it. Now they're just waiting because we have an outdated payroll system."

Employees' current financial instability is also affecting their future, as the survey found the average respondent puts 64% of their funds toward immediate needs, rather than wants and fun-money, or into their savings. 

Read more: Benefit managers are prioritizing financial wellness support in 2025

Providing employees with solutions

While employees will need support in changing their saving and spending habits, having access to funds early can be beneficial, too. EarnIn, which doesn't require organizations to do a payroll integration, has two options for employees. The first is a standard earned wage access service that allows employees to get access to the money they've already earned in a paycheck period. The platform also recently launched a second product called Early Pay, which gives employees access to their paychecks up to two days early.

"The way we receive and use money is completely digital, so why does it have a two week shipping time?" Palanippan says. "It's important to look at the timing issue as something that can be fixed with employee benefits."

And while the lift is relatively small for employers, the support it provides employees is immense. When asked how much of an impact getting their paycheck up to two days early would make, 34% said they would be able to pay bills on time, while 29% said they'd feel less stressed about finances overall. Almost one in five would be able to pay rent on time or even put more money into savings.

"If [employees] have less financial stress, they're more focused, with fewer workplace accidents, better attendance and less absenteeism," Palanippan says. "When employees are happier, they're less likely to churn and they're more excited to come to work."