On-demand wages, also known as in-work wage access, are no longer just a want but a need for workers across the country. Gone are the days when employees had to wait two weeks for the money they had already earned. On-demand pay gives employees instant access to their earned but unpaid income between pay periods, effectively eliminating the traditional payday.
A recent Bank of America study found that 95% of employers feel responsible for the financial well-being of their employees, up from 81% in 2015. On the harsh costs of financial stress, CITE Research’s 2021 Wellness Barometer survey, commissioned by BrightPlan, found that employers face an estimated $4.7 billion in loss each week as financially stressed employees become less productive and less engaged are. Luckily, on-demand pay is a unique financial wellness tool that increases productivity and engagement.
DailyPay, which recently received a special mention in TIME’s Best Inventions of 2021 list, offers on-demand payment designed for the everyday working American. Recent research commissioned by DailyPay has shown that DailyPay’s offer can reduce sales by up to 72%. Employees save an average of over $1,200 per year in late fees, overdraft fees, and payday loan interest and fees.
Employers and their employees benefit from DailyPay:
A study commissioned by DailyPay shows that DailyPay’s pay-as-you-go scheme alleviates employees’ financial woes and improves retention rates for employers:
- 95% of DailyPay users either quit or significantly reduce their reliance on financially crippling methods like payday loans
- 74% of DailyPay users said that having access to their earned income has helped reduce their financial stress and made them more productive at work
- 73% of DailyPay usershave a better opinion of their employers
- Employees stay at work up to 73% longer in some industries when they have access to DailyPay.
- Companies that offer DailyPay can fill vacancies 53% faster than companies that don’t offer DailyPay.
How on-demand payment works with DailyPay:
The process of implementing DailyPay’s on-demand payment is seamless and straightforward. The technology easily integrates with existing HCM systems without changing any element of the payroll process:
- DailyPay allows employers to set a maximum percentage of net income that their employees can access, up to 100%.
- DailyPay connects to the employer’s time tracking system to determine the employee’s gross earnings.
- Employees get access to this percentage of funds when they earn it in their DailyPay Balance™.
- Employees can transfer money from their DailyPay balance to a bank account, debit card or payment card of their choice for a small ATM-like fee.
- DailyPay pre-funds all these transfers and takes on 100% of the risk, so there is no extra work for the employer.
- Any compensation not paid early will be automatically deposited into the employee’s primary bank account on payday.
“Through our technology, every employee can now see exactly what their accumulated income is and access any portion of that income 24/7 with the push of a button. It’s not a refund. There is no loan. It’s just your money and we’ll deliver it to you on demand,” said Jason Lee, CEO and Founder of DailyPay.
DailyPay’s proprietary algorithms and funding model provide industry-leading compliance and security, connecting to over 6,000 endpoints in the banking ecosystem. They work with multiple HCM and payroll providers to ensure easy implementation and successful partnerships.
See what DailyPay’s customer partners are saying
“Since implementing DailyPay, company-wide turnover rates have dropped from 68% to 72% to 58.5%, in part because employees want to stay and continue having access to pay-on-demand. We’ve also seen a strong increase in our job applications, some as much as 34.7%,” said Cindy Eisenmenger, vice president of cash payments at BrightSpring Health Services. The Company provides pharmacy, home health, hospice, neurorehabilitation, behavioral health, family and youth, and human resource development services.
DailyPay also offers a number of other benefits such as:
- SAVE – Employees can transfer money from their payroll whenever they want, free of charge
- CYCLE — Employers can make payments anytime, anywhere
- REWARD – Employers can compliantly reward employees for a job well done
Click here to see how DailyPay promotes employee financial well-being while reducing turnover and increasing employee retention.