Harvard Business Review Highlights PayActiv

An article in the November/December 2020 issue of the Harvard Business Review reveals some facts about PayActiv and our Earned Wage Access program that all HR personnel and employers should know about.

HBR correctly lays out the problem that millions of American workers grapple with on a daily basis: the misalignment between when bills are due (every day) and when workers are paid (once every two weeks). This cash flow misalignment forces workers to expensive forms of short-term credit such as payday loans, which vacuums up any possibility of saving money from week to week.

HBR then cites a landmark study by Todd Baker and Snigdha Kumar of the Harvard-Kennedy School, [1] that demonstrated PayActiv provided significant savings workers who used earned wage access.

The study also revealed that earned wage access helped employers reduce turnover by 19%. The HBR article extrapolated this to a turnover savings of $2,362 per retained employee. For large retailers, where turnover can represent as much as 60% of the workforce, these savings add up.

PayActiv thanks HBR for highlighting the critical benefits that earned wage access provides to both employers and their workers.


[1] Helping Low-Income Workers Stay Out of Debt, November–December 2020 Issue https://hbr.org/2020/11/helping-low-income-workers-stay-out-of-debt

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It's peace of mind.

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