There are several challenges in convincing employers to implement earned wage access programs, including:
Cost: Employers may be hesitant to bear the cost of implementing and administering an earned wage access program, as well as any additional fees associated with the program. We recognized this and made it zero cost to the employer while still ensuring 100% coverage. Our model executes this program on behalf of the employers and is actually earned wage access and not short term credit.
Complexity: Employers may be concerned about the complexity of integrating an earned wage access program into their existing payroll and HR systems. We run this program independent of the existing infrastructure. We actually tools through our front end digitization that track things that your systems can't track.
Liability: Employers may be hesitant to take on additional liability for potential errors or fraud associated with an earned wage access program. Zero liability to the employers
Compliance: Employers may be concerned about compliance with laws and regulations related to wage advance programs. FINFI complies with all applicable laws
Impact on Cash Flow: Employers may be concerned about the impact that earned wage access programs may have on their own cash flow, as they may have to advance wages to employees before they have received payment from their own customers. Finfi provides employers up to 5 days after payday for repayment
Impact on employee behavior: Employers may be concerned that employees will use earned wage access too much and gave nothing left on payday. Average utilization by employees is around 20% of their net monthly pay. We actually fare better than monthly pay schedule because we ensure regular payout and come closest to daily payout but only up to 50% of daily eligible pay.
Trust: Employers may be concerned that employees may misuse or abuse the program, and may not trust employees to use the program responsibly. We counsel employees who breach 30% usage
Absconding employees: We have very advanced tools that are able to estimate the month end earnings based on attendance etc. If are tools go wrong we are happy to take the risk for overpayment
Thanks for reading. Contact us at care@myfinfi to roll this out for your employees