Gen Z drives demand for earned wage access in the modern workplace

As Generation Z enters the workforce in increasing numbers, their influence on workplace expectations is undeniable.

These digital natives are transforming traditional employment paradigms, and businesses that fail to adjust risk losing vital talent to competitors.

With financial wellness and flexibility at the forefront of their priorities, earned wage access (EWA) is emerging as a strategic advantage for employers looking to attract and retain this agile workforce.

Insights from industry experts highlighted that Gen Z workers are unlike any generation before them.

This cohort, which now makes up the fastest-growing section of the global workforce, seeks immediate solutions and support reflective of their experiences in an on-demand economy.

A significant majority expresses a desire for the option to access a portion of their earned wages daily, a shift that aligns with their expectation for workplace tools to mirror the convenience of consumer applications.

With nearly half of Gen Z reporting feelings of financial insecurity and more than half living pay cheque to pay cheque, it is no wonder that they prioritise work-life balance and financial wellness benefits over other job perks.

Research suggests that over three-quarters of Gen Z employees rank work-life balance as a critical factor in their employment decision-making, while a notable percentage would consider leaving their current positions for opportunities that offer enhanced mental health and wellness support.

"Gen Z workers have grown up in an on-demand world, and they expect their employment experience to reflect that reality," stated Denise Neethling, Head of Marketing at Paymenow, a South African EWA provider.

"Employers who offer flexible access to earned wages are sending a clear signal that they understand and respect the financial pressures their workforce faces. This translates directly into improved engagement, reduced stress, and stronger retention."

Research from impact measurement specialists 60 Decibels reinforces the business case for EWA.

Their 2025 Impact Performance Report revealed compelling results from hundreds of Paymenow users across South Africa.

An impressive 94% reported an enhanced quality of life, with 59% citing significant improvements.

Additionally, nearly nine in ten users experienced reduced financial stress, and 90% felt more in control of their finances since utilizing EWA services.

These findings serve to alleviate the financial anxieties that disproportionately impact younger workers.

A standout feature of the EWA model is its incorporation of financial education. Users who engaged with these resources rated them highly, with 59% giving them a perfect score for usefulness.

Participants reported boosted awareness about savings and spending discipline, and many received financial education for the first time.

This dual approach—providing immediate wage access alongside long-term financial capability building—demonstrates a powerful employee value proposition.

The demographics of Paymenow users further illuminate the service’s effectiveness: 60% are female, and over half belong to the bottom 60% of the wealth distribution. Importantly, more than 60% of users indicated their Paymenow withdrawals were allocated toward work-related expenses, followed closely by essentials like food, emergencies, and utilities.

A staggering 95% of users affirmed that they struggled to find viable alternatives to Paymenow, underscoring its unique positioning in meeting immediate financial needs.

User satisfaction with Paymenow has reached unprecedented heights, with the company's Net Promoter Score soaring to 77—its highest in five years.

Convenience, quick accessibility, and low costs have emerged as key drivers of this satisfaction, reflecting alignment with the digital-first, on-demand expectations that characterise Gen Z’s approach to financial services.

As the quest for talent intensifies in a demanding labour market, financial wellness benefits like EWA are becoming indispensable elements of competitive employee value propositions.

The evolving expectations of Gen Z herald a new era for work, and employers who embrace flexible wage access are positioning themselves strategically to connect with and cultivate the next generation of business leaders.

BUSINESS REPORT