The ability to retain talented employees has become increasingly challenging in today’s turbulent labor market, both domestically and globally. As job hopping rates continue to rise, many businesses are searching for innovative ways to address this issue.

 To address this issue, earned wage access solutions have emerged as potential tools to help businesses retain their valuable employees. As a result, this solution has gained traction among employees, gradually becoming more widely accepted and recognized. This article will serve as a guide through earned wage access, its definitions and benefits for businesses.


Illustration: Claire Pettifor

What is earned wage access?

Earned Wage Access is an innovative technology solution that empowers employees to achieve financial wellness, allowing them to access a portion of their monthly wages before payday. This solution is a step forward from the traditional payroll method where employees have to wait until the end of the month to receive their salary.

With earned wage access, employees have better control of their cash flow and can proactively deal with unexpected expenses such as medical emergencies, school fees, or home repairs without resorting to borrowing, withdrawing savings, or mortgaging. By avoiding these methods, employees can avoid the risks of falling into debt and the negative consequences of predatory lending practices.

Earned wage access is not…

…a loan. Earned wage access allows employees to access a portion of their earned wages before the regular payday, which is then deducted from their upcoming paycheck. This method ensures that there are no additional fees or interest rates, and the transferred amount can be directly deposited into the employee’s bank account without any hassle.

The rise of earned wage access

Although the concept of earned wage access is relatively new in Vietnam, it has garnered significant interest from businesses, with many startups adopting this model. This indicates that earned wage access is poised for continued growth in the future and will gain increasing recognition in the Vietnamese labor market.


Illustration: Ash Jin

What are the benefits of earned wage access?

As Earned Wage Access (EWA) is a novel concept, both workers and businesses initially have concerns about its transparency. To address this, Todd Baker and Snigdha Kumar, Harvard Kennedy University researchers, conducted a survey of over 6,700 respondents from six different companies to understand the impact of EWA. Based on the results, they concluded that EWA can reduce employee turnover rate by 19% in the first quarter and increase work efficiency by 52%.

Here are the benefits that businesses can observe when adopting EWA:

1. Talent attraction

In the US, over 90% of workers desire to work in a company with a flexible salary, as per a 2019 study by Visa. Therefore, businesses that choose EWA as an employee benefit, particularly in the emerging Vietnamese market, can stand out and attract more talent.

2. Lower turnover rate

According to Gallup research, every time an employee leaves, US businesses spend millions of dollars annually on recruitment costs. EWA enables companies to minimize this expense, making better use of their cash flow.



Illustration: Shilpa T A

3. Increase productivity

Employees who have financial worries often lose focus, leading to a decrease in work productivity and morale. By offering Earned Wage Access, businesses can reduce this risk and ensure stable sales.

4. Enable employees to achive financial wellbeing

Without timely access to their salary, in the time of need,employees may have to resort to loans from bank or payday lenders, which can be risky

  • 58% workers encounter financial difficulties between pay period
  • Only 14% of those who borrow from loan sharks can fully payback their debt
  • Average interest rate when borrowing from loansharks or payday lenders is 396%/year

To prevent the above, businesses can use Ekko Earned wage access solution, which helps employees ressolve their fiscal problems safely, protect them from debttrap and unnecessary risks.

Ekko team introducing Earned wage access solution to staff of Ecopark Group’s Operation Divisio

A promising horizon is unfolding. Eanred wage access not only serves as a means to atract and retain skilled professionals, but it also enhances the reputation of a business by enabling employees to achieve financial wellbeing. It’s not just abouts salary, but also empowering employees with the ability to be in control of the fruit of their hard work and devotion.