Earned Wage Access in Canada. It's time.August 10, 2020 in
To read the previous post in our Canada series, highlighting the Canadian financial stress epidemic, click here.
What is Earned Wage Access?
Today, employees are pretty much paid the same way they have been for a century. They work, and then two weeks or a month later they receive payment for that time worked. In the interim, they have expenses that need to be managed and this scenario often creates a cash-flow shortfall. Earned Wage Access is the ability for an employee to access a portion of their pay cheque in advance of their regularly scheduled payday.
How does it work?
There are several different solutions and models out there for this type of solution.
The first and most obvious is to increase the frequency of payroll runs for the employer. Most employers can not do this because of technology limitations, resource limitations or the fact the employer has to manage their own cash flow.
Employers can provide cash advances themselves, but these are often a headache to manage and potentially impact cashflow and financial risk.
What's emerged over the past few years are technology providers providing a solution called Earned Wage Access to employees. ZayZoon is a pioneer in this space. Here's how it works:
- ZayZoon integrates to an employer Payroll/HRIS/Timekeeping solution via an API or automated SFTP exchange
- ZayZoon uses this data to determine what amount of earned wages an employee is able to access
- Employees self-enroll with ZayZoon (as a voluntary benefit) and then access funds to their bank card, bank account or pay card on an On-Demand basis
- Fees are either employer paid, employee paid or shared
- Wages On-Demand is a signficantly better alternative for employees to address short term cash crunches
A Made in Canada Option
At ZayZoon, we've been providing Wages On-Demand (that's our Earned Wage Access solution) in North America since 2014. Although we are based in Calgary, our focus has been south of the border. It's time to get back to our roots.
2020 has exacerbated the Canadian Financial Stress epidemic. As ZayZoon has spoken to more of our colleagues and clients north of the border, we've come to realize that Canadian employees need Wages On-Demand, and Canadian companies are finally ready to start exploring services like ours.
We are uniquely positioned to serve the Canadian market. Not only are we headquartered in Canada, we are the only EWA provider who has been operating in Canada. We have thousands of clients using our solution, including but not limited to Wendy's, Dominos, Americare and Holiday Inn Express. It's time for Canadian companies to start leading when it comes to employee financial health, and ZayZoon is proud to be a key innovator in this space.