On-demand pay, also known as earned wage access, is no longer just a want but a need of employees across the country. Gone are when employees had to wait two weeks to receive the money they had already earned. On-demand pay gives employees immediate access to their earned but unpaid income between pay periods, effectively eliminating the traditional payday.
A recent Bank of America study revealed that 95% of employers, up from 81% in 2015, feel a sense of responsibility for their employees’ financial wellness. On the hard cost of financial stress, the 2021 Wellness Barometer Survey, CITE Research on behalf of BrightPlan, found that employers faced an estimated $4.7 billion loss per week as financially stressed employees are less productive and less engaged. Fortunately, on-demand pay is a one-of-a-kind financial wellness tool that boosts productivity and engagement.
Source: DailyPay
DailyPay, which recently received a special mention in TIME’s 2021 Best Inventions list, offers on-demand pay that is designed for the everyday working American. Recent research commissioned by DailyPay has shown that offering DailyPay can reduce turnover by up to 72%. Employees save an average of over $1,200 a year on late fees, overdraft fees and payday loan interest and fees.
DailyPay benefits employers and their employees:
Research commissioned by DailyPay shows that DailyPay’s on-demand pay benefit alleviates employees’ financial troubles and improves retention rates for employers:
- 95% of DailyPay userseither stop or significantly reduce their reliance on financially crippling methods such as payday loans
- 74% of DailyPay userssaid having access to their earned income has helped reduce their financial stress, making them more productive at work
- 73% of DailyPay usershave an improved opinion of their employers
- Employees stay at their jobs up to 73% longerin some industries when they have access to DailyPay.
- Companies offering DailyPay can fill open roles 53% faster than those who don’t offer it.
How on-demand pay with DailyPay works:
The process to implement on-demand pay by DailyPay is seamless and straightforward. The technology integrates effortlessly with existing HCM systems with no changes to any element of the payroll process:
- DailyPay allows the employer to set a maximum percentage of net earned income, up to 100%, that their employees can access.
- DailyPay connects with the employer’s timekeeping system to determine the employee’s gross earnings.
- Employees are given access to that percentage of funds as they earn it in their DailyPay Balance™.
- Employees can transfer money from their DailyPay Balance to a bank account, debit card or pay card of their choice for a small ATM-like fee.
- DailyPay prefunds all these transfers and takes on 100% of the risk, so there is no added work for the employer.
- Any pay not transferred early is automatically deposited into the employee’s primary bank account on payday.
“Through our technology, any employee can now see exactly what her accrued earnings are, and at a tap of a button have access to any part of those earnings 24/7/365. It’s not a payback. There’s not a loan. There’s just your money and we’re delivering that to you on demand,” said Jason Lee, CEO and founder of DailyPay.
Source: DailyPay
DailyPay’s proprietary algorithms and funding model has industry-leading compliance and security and connections into over 6,000 endpoints in the banking system. They are partnered with multiple HCM and payroll providers to ensure ease of implementation and successful partnerships.
See what DailyPay’s client partners are saying
DailyPay also offers an array of other benefits such as:
- SAVE — employees can transfer money from their pay balance for no fee whenever they want
- CYCLE — employers can disburse payments anytime, anywhere
- REWARD — employers can compliantly reward employees for a job well done
Click here to see how DailyPay boosts employees’ financial wellness while reducing turnover and increasing retention.
