How Organization’s Suppliers Benefit When Employees Utilize Earned Wage Access
No organization can do it alone — all organizations collaborate with suppliers and strategic partners necessary to reach their business objectives. Manufacturing organizations rely on machinery distributors, raw material providers, and employees to produce and sell their products. Healthcare organizations rely on medical research and protocols, machinery, pharmaceuticals, and employees to deliver healthcare services to the community. Professional services firms rely on innovation, technology, and employees to deliver value to their clients. Most organizations are dependent on their unique supply chain to deliver on their business model.
So, what role do employees have on the supply chain, and can small improvements in the employee’s productivity and job satisfaction make a difference? Absolutely.
According to the Business Roundtable’s new purpose of the corporation (stakeholder capitalism), this is one of the tenets for enterprises: “dealing fairly and ethically with our suppliers.” They believe that it is important for organization to be “dedicated to serving as good partners to the other companies, large and small” to support organizations to meet their missions. How can small changes in employee engagement and performance facilitate this important goal?
According to Deloitte research, organizations that have effective supply chain management outperform those that don’t. Characteristics that describe effective supply chains include:
- Embracing innovation: “Business model innovations focused on improving networks, processes, services or channels can have a much greater and more sustainable impact.” Employees who are not distracted by pay worries are more innovative!
- Being data-driven allows the ability to continuously improve productivity — handling materials faster, optimizing floor space and responding to employee needs. Employees who are not consumed by financial concerns are better able to focus on their work.
- Embody transparency: Supply chain, nor any function/process within the organization is not siloed off in their own world. Everything is connected to everything else, and the more this is acknowledged, the more efficient processes become. Employees who are not concerned about the timing of their next paycheck are better able to pay attention to others and understand how small changes can impact outcomes.
- Prepared for the unexpected: Adaptability is the key word to corporate survival today (as we’ve learned from Covid-19). Planning and mindfulness are keys to success.Employees who are not fearful about their financial situation are more aware and can respond with more agility to unexpected events.
- Empowering employees: Engaged and loyal employees are the key to success in this critical process — people make the difference in ensuring supply chain effectiveness and efficiency. Employees who are confident in their ability to access their wages when they need them are far more engaged and productive at work. Employee performance drives supply chain success! Supply chain success drives organizational success — especially in achieving one of the five purposes of the corporation: dealing fairly and ethically with suppliers.
Employees are the best representative of your company — its culture, values, aspirations, business processes, integrity, and honesty. This allows companies to “serve as good partners to the other companies, large and small, that help meet [their] missions.”
The most effective way to reduce stress associated with wage delivery timing and enhance the positive performance of employees (innovation, transparency, agility) is to implement EWA in your organization. Then lean back and reap the benefits.