The Rise of Earned Wage Access in Employment Benefits
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 hours ago
0mins
Source: CNBC
- Trend of Earned Wage Access: A report from the International Foundation of Employee Benefit Plans indicates that only 2.5% of employers offered earned wage access in 2024, despite major companies like Walmart, Amazon, and McDonald's implementing this benefit, highlighting its growing significance in employee compensation packages.
- Surge in Transactions: The Consumer Financial Protection Bureau estimates that transactions processed by earned wage access providers grew over 90% from 2021 to 2022, with more than 7 million workers accessing approximately $22 billion in wages, reflecting a strong demand for this service among employees.
- Increased Employee Satisfaction: Data from DailyPay shows that 90% of employees using earned wage access feel more positive about their employer, and 76% feel more in control of their financial goals, with absenteeism dropping by 25%, indicating a positive impact on employee retention.
- Rising Calls for Regulation: Consumer advocates are urging that earned wage access be regulated as a credit product, citing high fees and potential debt traps, emphasizing the need for stronger transparency and protective measures to prevent employees from falling into financial distress.
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Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise
44 Analyst Rating
41 Buy
3 Hold
0 Sell
Strong Buy
Current: 207.920
Low
175.00
Averages
280.01
High
325.00
Current: 207.920
Low
175.00
Averages
280.01
High
325.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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