What is Earned Wage Access?
Earned Wage Access (EWA) is a financial benefit that gives hourly and salaried employees access to their accrued wages ahead of their traditionally scheduled payday. It’s offered as a voluntary perk by companies who are heavily invested in the wellbeing and satisfaction of their hard-working teams. As a more flexible, more desired pay disbursement solution, EWA is reshaping how the workforce engages with their earned income. A study by Ceridian revealed that 83% of U.S. workers between the ages of 18-44 believe they should have access to their earned wages at the end of each shift. Here, we break down common myths about EWA, also known as On-Demand Pay (ODP) or Instant Pay.
Myth #1
EWA is a payday loan.
A payday loan operates as a form of credit. Employees who opt for this type of loan are borrowing money and committing to repay it by their next payday. It’s a loan against their future income that often comes with high interest and fees. It can produce a cycle of debt, causing financial stress and impeding on long-term goals.
With EWA, employees can access the money they've already earned. It removes the need for borrowing or loans. This provides increased financial flexibility without incurring any associated financial risks.
Myth #2
EWA is a cash or pay advance.
A cash or pay advance gives employees access to anticipated but not yet earned wages. It involves receiving a portion of the salary in advance from the employer. However, there's a risk, as employees must commit to working to repay the advance. If the employee doesn't complete the agreed-upon work, they must repay the advance to the employer from their own funds, potentially causing financial strain.
In contrast, EWA provides access to wages that employees have already earned. Regardless of circumstances, the employee is financially entitled to the funds received without needing to repay their employer.
Myth #3
EWA disrupts paycheck distribution.
EWA is thought to disrupt traditional payroll systems, which operate on fixed schedules with full paychecks distributed at set intervals. This misconception stems from concerns about changing established payroll processes.
In reality, EWA works alongside payroll systems, addressing the rigidity that can leave employees vulnerable to cash flow issues between pay periods. EWA enhances paycheck distribution by providing flexibility without compromising payroll integrity. It empowers employees financially while maintaining traditional payroll structures.
FAQ
Rain is a market leader in Earned Wage Access (EWA) and the fastest growing provider in the category. Rain allows employees to access their wages prior to payday through the Rain App at no cost to the employer.
Responsibility & Transparency
Rain requires the least amount of data out of all US providers. Employers have the ability to set guardrails on employee transactions, preventing unsustainable habits and fees.
Program Reliability
Rain’s payroll adjustment model allows employers to maintain complete control over payroll and data with minimal operational involvement.
Best-In-Class Support
Rain requires the least amount of data out of all US providers. Employers have the ability to set guardrails on employee transactions, preventing unsustainable habits and fees.
There’s no impact on cash flow for employers when implementing Rain’s EWA program. We also provide complimentary white-glove support—from technical implementation to onboarding to post-launch—ensuring a positive experience every step of the way.
Employees can download the Rain App for free and access their funds in two ways:
- A free ACH transfer to an existing bank account (1-3 days)
- A small fee for an immediate push to a personal debit card
Rain offers a seamless onboarding experience that reflects the quality of our teams, processes, and expertise.
Average go-live is less than 45 days.
Rain is partnered and integrated with major payroll and timekeeping providers, ensuring the timeliest of launches.
Rain has a perfect NPS score of +100 in implementations.
Our team delivers on exceptional support, from technical implementation to launch strategy to hypercare.
Our average adoption rate is upwards of 25%+.
Rain puts real energy and dedicated resources into making sure employees are fully informed and equipped to use Rain.
Rain empowers employees with greater financial control and peace of mind. By providing on-demand access to earned wages through our user-friendly app, Rain eliminates the need for high-interest credit cards or predatory payday loans when facing unexpected expenses.
Rain offers a strategic advantage for employers committed to enhancing their workforce's financial wellbeing while gaining a competitive edge. Our metrics demonstrate that organizations using Rain experience increased retention, improved attendance, and boosted hiring results.
Rain does not disrupt existing payday routines; instead, it works seamlessly alongside your current payroll processes. Your regular pay periods and payday schedules remain unchanged, with Rain simply offering employees the flexibility to access a portion of their earned wages between paydays.
Rain is designed to minimize operational work for employers. Our system integrates seamlessly with your existing platforms, requiring minimal setup and maintenance. With automated data imports, secure wage access, and repayment, Rain operates efficiently in the background, allowing you to focus on core business operations.
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