Rising Costs Are Squeezing Your Employees: Here’s How You Can Help

Shoes that cost $48 last year are now closer to $67. A gallon of milk is up nearly 20%, and monthly utility bills have climbed 10–15% in many states (Yale Budget Lab Report).

For employees already stretched thin, these spikes aren’t just inconvenient—they’re destabilizing. The pressure shows up everywhere: at the checkout line, in grocery aisles, and on household bills.

This isn’t just inflation, it’s the fastest tariff-driven price surge since 1935. According to the Yale Budget Lab report, tariffs announced in 2025 will push the average household’s costs up $2,400 this year. For low-income workers, the hit is $1,300, which is more than a full paycheck. Tariffs aren’t the only driver of higher prices, but they are adding fuel to an already painful fire.

And when employees can’t absorb those shocks, the stress doesn’t stay at home. It comes with them to work.

The Business Problem

When costs rise faster than wages, employees are forced into three bad options:

• Borrow at credit card rates over 20%
• Delay bills and rack up late fees
• Risk service shut-offs and go without essentials

Each one drains energy and loyalty. The result for employers: higher absenteeism, lower productivity, and rising turnover.

The Yale report projects U.S. payroll employment will be 497,000 lower by year-end. In a shrinking labor pool, keeping your best people is about to get harder than ever.

The Timing Gap

Here’s the core challenge: over 60% of pay cycles are bi-weekly or bi-monthly. And 10% are even longer, as monthly pay cycles. But in today’s economy, a two-week wait can be the difference between paying a bill on time and paying a penalty.

This timing gap is significant. Employees lose an average of $300 every month to avoidable fees, penalties, and high-interest credit just to bridge the wait between paychecks. For many, it’s the breaking point before they leave for an employer who offers more flexibility.

The Proven Solution: Payactiv EWA

Earned Wage Access (EWA)¹ from Payactiv closes that gap:

• No debt, no interest, just access to wages already earned
• Immediate relief for bills, essentials, and emergencies
• No disruption to payroll or employer control

And it works. Companies offering Payactiv see:

• Up to 36% lower turnover* among frontline workers
• 70% of employees report higher satisfaction and engagement with their employer
• On average, a 30% boost in retention** after implementation

Why Now

Prices for everyday essentials are rising faster than paychecks can keep up. Tariffs are only adding pressure, amplifying a cost-of-living for workers across the country.

You can’t control inflation or trade policy. But you can reduce the strain your employees feel, and in doing so, protect your business from unnecessary turnover.

Helping your employees bridge the gap between what they’ve earned and when they can access it is a simple, practical step that builds resilience on both sides.

*Payactiv internal client data, October 2025 (sample: 1,000 clients)
**Payactiv internal client data, September 2025 (sample: 1,000 clients)

 ¹Earned Wage Access requires employer participation. Employees can only access a portion of the wages they have earned to date.

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