The Shift Toward On-Demand Pay

Employers across various industries are rethinking the traditional payroll cycle. As financial stress continues to impact employees, leading US companies are turning to Earned Wage Access (EWA) as a competitive advantage, both to support their workforce and to differentiate themselves in a tightening labor market.

EWA, also known as on-demand pay, allows employees to access a portion of their already-earned wages before payday, helping them cover expenses, avoid high-interest loans, and maintain financial stability. What was once considered a “nice-to-have” benefit is now becoming a must-have offering for companies looking to attract and retain top talent.

Let’s break down why top employers are implementing EWA, and why your company should too.

Employees Expect Faster Access to Their Pay

Consumer behavior has evolved. Workers no longer wait weeks for their entertainment, transportation, or shopping needs—why should they wait for their pay? 83% of workers aged 18 to 44 prefer to access their wages at the end of each workday rather than waiting for a biweekly paycheck.

Industries that rely on hourly, frontline, and shift-based workers—such as retail, hospitality, and healthcare—have already started adopting EWA as a competitive advantage. Gig platforms like Uber and DoorDash have set the precedent by normalizing instant pay, making instant pay an expectation rather than a luxury.

Without EWA, your company risks falling behind as employees seek jobs that better align with their financial needs.

EWA Improves Employee Retention

High turnover is expensive. Employers can spend anywhere from $1,500 to $4,500 to hire and onboard a new employee, and financial stress is a major contributor to attrition.

Data shows that:

• Employees who use EWA stay employed longer. Rain’s employer partners report an average 13% increase in retention after implementing EWA.
• Companies offering EWA often see a 50% improvement in retention among users compared to non-users.
• Financially stressed employees are 2.3x more likely to look for a new job.

By providing EWA, you give employees a financial cushion, reducing the urgency to seek new employment due to short-term cash flow problems. The longer employees stay, the less you spend on recruiting and training replacements.

EWA Reduces Absenteeism and Boosts Productivity

Financial stress doesn’t just impact turnover—it also affects day-to-day performance.

• Employees experiencing financial stress are five times more likely to be distracted at work.
• Rain users work 17 more hours per month, on average, than non-users.

When workers struggle to afford gas, childcare, or daily expenses, they are more likely to call in sick or miss shifts. EWA provides a safety net that enables employees to show up and focus on their work, driving higher productivity and reliability.

Your Competitors Are Already Offering EWA

The adoption of EWA in the United States is accelerating, and companies that fail to provide it risk losing talent to competitors.

• 3 out of 10 large employers in frontline industries already offer EWA.
• 8 out of 10 plan to offer it soon.
• 85% of large employers say EWA is now an expectation, not just a perk.

If your industry peers are offering EWA and you’re not, you may be at a hiring disadvantage. Workers will choose employers that provide the financial flexibility they need.

Final Thoughts: Why Your Company Needs EWA Now

Earned Wage Access is no longer a nice-to-have option. It’s the future of payroll. The best employers have already made the shift, recognizing that financial wellness drives retention, productivity, and engagement.

By offering a payroll-integrated, zero-cost EWA solution like Rain, your company can: 

• Enhance employee satisfaction
• Reduce turnover and absenteeism
• Attract and retain top talent in competitive industries
• Provide financial relief without adding administrative burden

Don’t let outdated pay cycles hold your employees back. Now is the time to embrace EWA and give your employees the ability to spend and live freely.

Want to learn more about EWA? Schedule time with an expert today.