The ROI of EWA
What is earned wage access, and how does it work? How can earned wage access help my business?
Earned wage access (also called on‑demand pay) lets employees view and access a portion of their earned wages before their traditional payday.
Learn more about earned wage access and why Tapcheck is the premier solution to bring your employees greater financial peace-of-mind.
The ROI of Earned Wage Access
What is the return on investment for earned wage access (EWA)? That can feel a bit like a misnomer, since EWA programs are free to the employer and thus don't need heavy investment from the get-go.
However, that doesn't mean there's no return. The key to answering "what's my ROI" is driven primarily by reviewing the cost avoidance and savings that come from implementing an EWA provider. Let's take a look at some of the ROI-driving components of an EWA initiative.
1. Lower turnover costs. When employees are able to access their earned wages, they're more likely to stay with their employer and less likely to leave for another role. That helps businesses save on recruiting costs.
2. Faster hiring & improved acceptance rates. Studies have shown that the majority of workers in America want access to their wages as they earn them, rather than waiting two weeks for payday. Advertising on-demand pay helps shorten hiring cycles.
3. Better attendance & productivity. Providing your employees with instant access to pay helps them cover emergencies and make ends meet, reducing the likelihood of callouts and improving workload balancing across your team.
4. Reduced payroll admin burden. Give your team access to pay advances as they need them, without adding payroll complexities or requiring manual runs.
Calculate your turnover cost savings
Let's look at some of the common ROI levers businesses can expect to improve upon after adding EWA.
Want a custom scorecard to see how you can measure the ROI of a EWA program like Tapcheck? Click here.
Now, let's examine a few of these ROI levers in-depth.
How much does it cost to replace an employee?
The costs associated with turnover, like recruiting, training, and lost productivity can add up quickly, especially in industries with high churn like hospitality, healthcare, and restaurants. Each departure drains resources and creates ripple effects across operations.
Let's look at the average replacement costs by industry and see how much employers may save when retention improves with Tapcheck.
EWA reduces voluntary turnover by helping employees weather financial stress. Every percentage point of retention gained translates into thousands in avoided replacement costs, one of the clearest ways to show the ROI of earned wage access. Dive deeper into some of the success stories mentioned here.
Do employees expect earned wage access as a benefit?
Today’s workforce expects pay flexibility, especially younger employees. According to Harris Poll data, a whopping 83% of U.S. workers ages 18–44 believe they should have access to earned wages daily.
Similarly, ERE.net reports 61% of Gen Z workers say they want their employer to offer earned wage access. Together, these findings show that pay flexibility has shifted from a nice-to-have perk to a must-have benefit in the eyes of today’s workforce.
Research shows that 81% of workers would choose a job with on-demand pay over one without it, making EWA a powerful differentiator in competitive labor markets.
By signaling pay flexibility upfront, employers not only attract more candidates but also improve their chances of faster role acceptance. The recruiting advantages of offering EWA show up in measurable ways: roles filled faster during peak seasons, reduced offer declines by positioning EWA as a differentiator, and a gained a recruiting edge in competitive labor markets.
That means lower time-to-fill and lower cost-per-hire, two core drivers of HR ROI.
How does earned wage access improve employee retention?
Imagine you're an hourly-wage employee. Perhaps you work just the one job and generally earn enough to cover expenses in a standard month. But what happens when your car needs a new alternator and can't get you to work and back?
If you have savings to absorb the cost, or payday just hit, maybe you can weather the storm. Maybe you have an alternate mode of transportation like a public bus or bike. Maybe you have family you can lean on. Maybe, maybe, maybe.
The reality is millions of Americans don't have the cash on hand to absorb an emergency expense like that.
Not having instant access to pay means small expenses become big problems. But when employees do have on-demand access to pay, they can take control of small expenses like that without having to make drastic changes.
Can earned wage access boost productivity and focus at work?
APA’s Stress in America report shows that money is a top stressor for U.S. adults, especially for younger workers. That stress follows them to work in the form of distraction, disengagement, and exits.
When employees can handle bills responsibly with Tapcheck, they bring more focus and energy to the job. The ROI comes through improved productivity, better customer interactions, and higher manager satisfaction.
Earned wage access also helps the employers on the other side of the equation stay productive and avoid unnecessary work.
How? Traditional payroll advances, while helpful for employees, are costly to manage. They require HR involvement, manual calculations, and recovery on the next paycheck. With Tapcheck, employees can self-serve through the app while employers maintain full visibility into employee transfers. That means payroll teams can spend less time handling exceptions and more time keeping processes running smoothly.
The ROI here is time back to focus on strategic HR and payroll initiatives, not transactional requests.
How can employers measure the ROI of earned wage access?
To prove ROI, start by creating a simple scorecard for your business to keep track of improvements in core performance metrics.
Track these quarterly to show impact, then convert improvements into cost savings for leadership reporting.
Why Pay Flexibility Wins
Earned wage access isn’t a soft benefit. It’s a financial strategy. Employers who adopt Tapcheck see fewer exits, lower replacement costs, better attendance, and stronger hiring.
In competitive industries where every dollar and every shift matters, Tapcheck delivers measurable ROI. Pay flexibility has become a table-stakes requirement for employees and a smart investment for employers.
Frequently Asked Questions
Earned wage access is a financial benefit that allows employees to access a portion of their earned wages before payday.
Yes and no. A paycheck advance is often issued by the employer and may not be available for a few days or in the amounts needed. Earned wage access allows an employee to pull from their already-earned wages instantly through a mobile app without needing to request from their employer.
Earned wage access is an appropriate solution for any worker that wants greater flexibility around payday. That said, the most popular industries for earned wage access are those with an hourly workforce or ones that compete fiercely for talent and struggle with turnover.
Tapcheck is free for employers. For employees, transfer costs vary by speed and destination, but generally, earned wage access fees are consistent with small, ATM-style fees. Tapcheck also offers free transfer options to employees, such as transfers to a pay card or to specific gift cards.
Yes, Tapcheck is compliant with all guidelines and regulations regarding earned wage access. You can review our list of licenses here and our commitment to compliance here.
Maximum Benefit. Minimal Effort. Zero Cost.
Earned wage access should be beneficial for employers, as well as employees. We’ve designed our Tapcheck systems to integrate seamlessly with existing payroll services, which means HR departments don’t have to worry about increased work or responsibilities. Tapcheck makes on-demand pay simple.
No Cost for Businesses
Tapcheck is 100% free for businesses. Offer your employees increased financial flexibility with no cost to the bottom line.
Low Fees for Employees
Employees only pay a common fee per transaction, same as ATM fees, and cannot avoid paying interest rates that start a debt spiral like traditional payday lenders.
On-Demand Pay
Employees can access earnings before payday. Simply log into the app and transfer the available amount you need.
100% Online
Tapcheck integrates with any payroll system and gives employees the ability to access their earnings online via the Tapcheck website or from any smartphone with our app, which is available in both Google Play and the App Store.
Instant Transfers 24/7
Employees can transfer wages they’ve already earned whenever they need them and receive their requested funds within minutes.
No Credit Checks
Employees don’t have to worry about getting approved for accessing their earning with Tapcheck. Transfers are based on the money they’ve already earned.
Send a message
Have a question? Need help getting setup? Contact our support team.
Mobile app
Download the mobile app for on-demand pay. Now on iOS and Android.
