[UK] Asda introduces early wage access and financial wellbeing tools

In the UK, supermarket giant Asda has introduced new financial wellbeing policies that will allow employees to access part of their wages early and monitor their earnings throughout the month, HR magazine reports.

Under the scheme, 140,000 staff members will be able to access 50 per cent of their salary before payday via the financial wellbeing app Wagestream.  

The service will reportedly be free of charge the first time employees access the early payment. A £1.50 fee will then be charged every subsequent time the payment is accessed in the same pay cycle. 

Employees can also use the Wagestream app to automatically put money aside in a 'rainy-day pot' and access financial wellbeing tools such as a benefits entitlement calculator.  

Hayley Tatum - chief people officer at Asda - said these measures were in place to help employees through today’s challenging economic landscape.

Speaking to HR magazine, Ms Tatum said, “We understand that from time to time our colleagues may need a bit more financial help, something which has been made worse by the current cost of living crisis. 

“We are always looking at ways we can help, and giving our colleagues flexible access to their pay, alongside a range of support and guidance through the Wagestream app, could prove vital in giving them financial peace of mind as well as their mental wellbeing.” 

Steve Herbert - wellbeing and benefits director at insurance advisory Partners& - told HR Magazine that the system formalises non-digital wage advances that are already in use. 

He said, “The difference though is that previously there was a degree of human interface in the process.  Employees would have to request the advance from the HR team, and this interaction would allow the employer at least some involvement in deciding whether that request was likely to be beneficial or detrimental to the employee asking for it.   

“Possible reasons for concern could be that a series of advances might leave the employee without adequate funds at the next pay date, or a perceived problem with gambling or substance addiction.” 

Mr Herbert reportedly recommended HR teams use similar systems to put checks and balances in place. 

 “Whilst these facilities are useful, it would perhaps be sensible for employers to limit the frequency of use. Alternatively putting in place a protocol to refer to the HR team if the facility is being used too frequently by any individual employee would at least mitigate some potential areas of concern,” he said. 

Source: HR magazine

(Quotes via original reporting)

In the UK, supermarket giant Asda has introduced new financial wellbeing policies that will allow employees to access part of their wages early and monitor their earnings throughout the month, HR magazine reports.

Under the scheme, 140,000 staff members will be able to access 50 per cent of their salary before payday via the financial wellbeing app Wagestream.  

The service will reportedly be free of charge the first time employees access the early payment. A £1.50 fee will then be charged every subsequent time the payment is accessed in the same pay cycle. 

Employees can also use the Wagestream app to automatically put money aside in a 'rainy-day pot' and access financial wellbeing tools such as a benefits entitlement calculator.  

Hayley Tatum - chief people officer at Asda - said these measures were in place to help employees through today’s challenging economic landscape.

Speaking to HR magazine, Ms Tatum said, “We understand that from time to time our colleagues may need a bit more financial help, something which has been made worse by the current cost of living crisis. 

“We are always looking at ways we can help, and giving our colleagues flexible access to their pay, alongside a range of support and guidance through the Wagestream app, could prove vital in giving them financial peace of mind as well as their mental wellbeing.” 

Steve Herbert - wellbeing and benefits director at insurance advisory Partners& - told HR Magazine that the system formalises non-digital wage advances that are already in use. 

He said, “The difference though is that previously there was a degree of human interface in the process.  Employees would have to request the advance from the HR team, and this interaction would allow the employer at least some involvement in deciding whether that request was likely to be beneficial or detrimental to the employee asking for it.   

“Possible reasons for concern could be that a series of advances might leave the employee without adequate funds at the next pay date, or a perceived problem with gambling or substance addiction.” 

Mr Herbert reportedly recommended HR teams use similar systems to put checks and balances in place. 

 “Whilst these facilities are useful, it would perhaps be sensible for employers to limit the frequency of use. Alternatively putting in place a protocol to refer to the HR team if the facility is being used too frequently by any individual employee would at least mitigate some potential areas of concern,” he said. 

Source: HR magazine

(Quotes via original reporting)