Pay-on-demand, also known as earned wage access, is no longer just a want, but a need of employees across the country. Gone are the days when employees had to wait two weeks to receive the money they had already earned. Pay-as-you-go gives employees immediate access to their earned but unpaid income between pay periods, eliminating the traditional payday.
A recent Bank of America study found that 95% of employers, up from 81% in 2015, feel responsible for the financial well-being of their employees. When it comes to the harsh cost of financial stress, the Well-being Barometer Survey 2021, CITE Research on behalf of BrightPlan, found that employers faced an estimated loss of $4.7 billion per week because financially stressed employees were less productive and less engaged. Fortunately, pay-as-you-go is a one-of-a-kind financial wellness tool that boosts productivity and engagement.
Daily Pay, which recently received a special mention in TIME’s Top Inventions 2021 list, offers pay-as-you-go designed for America’s everyday work. Recent research commissioned by DailyPay has shown that DailyPay’s offer can reduce turnover by up to 72%. Employees save on average more than $1,200 per year on late fees, overdraft fees and interest and fees on payday loans.
DailyPay benefits employers and their employees:
A study commissioned by DailyPay shows that DailyPay’s pay-as-you-go benefit alleviates employee financial pain and improves employer retention rates:
- 95% of DailyPay usersstop or significantly reduce their reliance on financially crippling methods such as payday loans
- 74% of DailyPay userssaid having access to their earned income helped them reduce financial stress, which made them more productive at work
- 73% of DailyPay usershave a better opinion of their employers
- Employees remain at their posts until 73% longerin certain sectors when they have access to DailyPay.
- Companies offering DailyPay can fill vacancies 53% faster than those who don’t.
How payment on demand works with DailyPay:
The process of implementing payment on demand by DailyPay is transparent and simple. The technology integrates effortlessly with existing HCM systems without changing 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 to the employer’s timekeeping system to determine the employee’s gross earnings.
- Employees have access to this 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 payment card of their choice for a small fee similar to an ATM.
- DailyPay pre-funds all these transfers and assumes 100% of the risk, so there is no extra work for the employer.
- Any pay not pre-transferred is automatically deposited into the employee’s primary bank account on pay day.
“Thanks to our technology, any employee can now see exactly what their accrued earnings are and, at the push of a button, have access to any part of that earnings 24/7/365. It’s not a reward. There’s 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 and connections to over 6,000 banking system endpoints. They partner with multiple HCM and payroll vendors to ensure easy implementation and successful partnerships.
Find out what DailyPay partner customers are saying
DailyPay also offers a range of other benefits such as:
- SAVE — employees can transfer money from their payroll free of charge whenever they want
- CYCLE — employers can make payments anytime, anywhere
- REWARD — employers can consistently reward employees for a job well done
Click on here to see how DailyPay improves employee financial well-being while reducing turnover and increasing retention.