The labor market is always competitive for industries managing distributed workforces, but cleaning and security companies face an additional challenge: they are competing against myriad other companies for employees from indirect competitors — industries like warehousing, delivery services and even retail — that offer incentives like hiring bonuses because they are not facing the same thinness in profit margins. 

Unlike some of these industries that can absorb higher labor costs through pricing flexibility, cleaning and security companies often work under fixed-price contracts with limited ability to pass through increased expenses. Some contracts operate on annual renewals, with pricing established months or even multiple years in advance.

This reality forces companies in these spaces to find creative ways to enhance their employee proposition without endangering those already thin margins. One approach differentiating — and quickly becoming table stakes — in the space is earned wage access (EWA).

How EWA addresses the competitive gap

Financial flexibility can matter just as much as absolute wage levels, particularly for workers managing irregular expenses or variable income patterns. EWA (also known in some markets as flexible pay or on-demand pay) allows workers to access portions of their earned wages before payday, providing practical advantages for employees living paycheck-to-paycheck or where daily financial needs outpace bi-weekly payment schedules.

For example, a cleaner is three days into a regular pay cycle when they are faced with an unexpected car repair bill. Because they have worked three days, they can access those earned wages immediately rather than waiting for payday or resorting to high-interest cash advance loans to cover the bill. This capability addresses real employee needs without requiring ongoing budget commitments from employers.

Traditional employee benefits like health insurance or hourly wage increases can be expensive and complex to implement, especially if contract growth cannot commensurately recoup these increased costs. EWA stands apart as a benefit that provides genuine value without the traditional cost barriers that limit benefit expansion in low-margin industries.

The reality without EWA

Without access to earned wages as a benefit, employees facing unexpected expenses often resort to costly financial products that can create deeper financial issues. Payday loans carry high interest rates, trapping employees in a cycle of debt. Bank overdraft fees typically cost US$35-40 per occurrence, meaning a single miscalculated expense can trigger a ripple effect of continuous fees and catch-up scenarios. Late rent payments incur penalties, with some utility companies and credit card issuers imposing their own fees that compound financial pressure.

These costs disproportionately affect the hourly workforce that facility management companies depend on, creating a continuous environment where employee job performance, attendance and engagement are affected — all contributors to the already high churn rates in the industry’s labor pool.

Debunking the myth of added admin

One of the biggest resisters to adopting EWA platforms is the misconception that it will add administrative burden to already-busy back-office teams. This concern is valid — for good reason, nobody wants to disrupt payroll.

However, EWA does not impact existing payroll processes. Instead, EWA platforms integrate with existing payroll and time-tracking systems, allowing workers to access a portion of their earned wages before the standard pay cycle. For employers, the service typically operates at no direct cost, with employees paying minimal fees for instant access compared to the high interest rates associated with typical cash advance programs.

When employees request wage access, the EWA provider funds the transfer and automatically reconciles during the next regular payroll cycle. Payroll staff continue their normal processes while employees interact directly with the EWA platform for all transactions and support.

For companies using workforce management systems, integration becomes even more transparent. Platforms connect directly with time-tracking systems, requiring no additional data entry or process modifications. The technology handles employee onboarding, transaction processing and customer service, eliminating the administrative burden that many companies are wary of.

FMJ Extra Earned Wage AccessReal-world results: Lessons from a global security leader

GardaWorld, one of the largest privately owned global security companies, demonstrates how EWA addresses industry-wide challenges.

"We began to see trends in competitors beyond the security industry who were paying their employees more frequently," explained Matthew Wilson from GardaWorld. "With the labor pool continuing to tighten, we knew we needed to look at ways of giving our own employees faster access to their wages."

Initially, the company considered switching to weekly payroll but recognized this would create operational disruption and negatively impact cash flow. Instead, they implemented EWA and achieved remarkable results.

Within six months, GardaWorld saw 54 percent adoption rates among their workforce. Over the following year, they enabled more than US$100 million in early wage access for employees, with individual usage averaging $118 per employee — amounts typically covering basic needs like transportation.

"The integration gives us a way to provide a real benefit to our employees whose needs may outpace a regular payroll cycle," Wilson said. "Early access to earned wages helps ensure they're able to get to their shift. We're then able to keep our contracts fully covered and our clients satisfied. From every angle, it's a win."

 

From benefit differentiator to table stakes

Market research indicates that 53 percent of workers now consider EWA critical or very important to future job decisions, with percentages growing among younger workers who expect financial flexibility as standard. This mirrors the evolution of other workplace benefits — what begins as a competitive differentiator eventually becomes a basic expectation.

The tipping point is approaching rapidly. As more industries implement EWA to retain talent and attract applicants, it is becoming a "need-to-have" rather than a "nice-to-have" for staying competitive, especially as employee retention is proven to improve after implementing EWA.

While reduced turnover provides the most obvious financial benefit, EWA's impact extends throughout operations in ways that strengthen the entire business model. Workforce stability improves service consistency, strengthens client relationships and enables contractors to pursue larger accounts that require experienced, reliable personnel.

Client retention can also become easier when service delivery remains stable. Because repeat business represents the most significant revenue source for contractors, EWA supports this model by reducing workforce disruptions that lead to service inconsistencies and client dissatisfaction.

Strategic timing for implementation

The business decision around EWA should consider both immediate needs and competitive positioning. Companies currently facing high turnover or recruitment challenges often see rapid benefits from improved workforce stability. However, even contractors with stable workforces should consider EWA as a defensive measure against competitive pressures.

The timing advantage favors early adopters. Contractors implementing EWA while competitors hesitate can capture recruitment benefits and workforce improvements before these advantages become commoditized.

The cleaning and security industries have operated with high turnover as an accepted cost of doing business for decades. EWA provides a practical tool for addressing this challenge without requiring fundamental changes to business models or significant budget increases.