In July 2018, DailyPay co-founder Rob Law shared 5 Myths About Instant Pay Technology with HR.com.
In that article Rob debunks many common misconceptions about instant payments, like, "instant payment is just like a payday loan" (it's not), "My employees are fine with weekly pay" (they're not), or "Access to instant payments encourages poor spending habits" (they don't).
We know this because we've spoken with thousands of clients over the years. Conversations about deploying and maintaining DailyPay are quite common, and we always work with our partners to ensure a smooth roll out for both the HR team and their employees, but also for the payroll department. Because, as Mollie Lombardi, Co-Founder, Principal Analyst, Aptitude Research Partners, points out in her article, "Why I'm Passionate About Payroll", "payroll is something that touches every employee, and therefore has the potential to shape culture and behavior."
So in this article, I address the sixth common myth that we encounter when helping a company introduce an instant pay benefit: that payroll will never agree to it.
[Spoiler Alert: they will.]
Will instant pay technology interrupt my payroll processing?
Payroll has several motivations to bring DailyPay into their organization, and the process is effortless. Consider the following:
DailyPay technology will not disrupt payroll and will not increase the risk of error
The simplicity of implementing DailyPay into your existing process means that nothing changes, including the timing of payroll funds. There is no change to your existing payroll or TMS system, and DailyPay can be implemented with a wide range of data connectivity integrations. This means there are no installations or technology interfaces that need to be “unwound” when you begin offering DailyPay.
Fact: DailyPay can work with any existing payroll system as long as it offers direct deposit.
DailyPay can be implemented at any time
Because of its ease of execution, DailyPay is a viable solution no matter what changes your payroll team may be going through. Take for instance DialAmerica, a contact center with 19 locations across the United States. DialAmerica signed on with DailyPay nine months before they switched payroll providers. They began piloting the program before switching payroll platforms, then fully rolling the benefit out once the new payroll process was in order. DialAmerica did not lose any productivity from their HR and payroll teams due to DailyPay during the transition.
Fact: DailyPay’s versatility, agility, and ease of use made for a practical benefit even in the midst of a payroll transition.
DailyPay is fully-compliant
Inherently, payroll and HR are hyper-vigilant when it comes to compliance issues. As such, we’re often asked about pay stubs and if there are any compliance and/or employee privacy implications that could occur if a pay stub does not match what actually gets deposited into an employee's accounts on payday.
Rest assured we have created our technology with compliance in mind, there are no compliance or privacy implications today or down the road.
Fact: DailyPay will always match what gets deposited into any employees accounts on payday.
DailyPay integrates with your existing process
Most frequently we’re asked about integration possibilities with:
- TMS/HRIS/payroll platforms
We work seamlessly with any time tracking system or payroll system (as long as it offers direct deposit). This means you don’t need to upload separate files when working with DailyPay. DailyPay only requires a simple data exchange of the standard data, like earnings, to get rolling.
Fact: Our onboarding/data transfer process is designed to minimize the resource and time commitment of our partners, both upfront and ongoing, and to avoid cumbersome and complicated integration.
DailyPay improves real-time adherence and timesheet management
Managing timecards is a notorious issue. When time is kept incorrectly, managers and payroll teams are inundated by additional work, and paycheck mistakes can occur.
The DailyPay solution actually improves real-time adherence and timesheet management. DailyPay incentivizes employees to track their time more accurately because they can access their wages each day, after their shift.
Fact: Employees are more inclined to clock out accurately so they can access their earned but unpaid wages.
DailyPay is a cost-effective benefit
All great things come at a price, right? Not so fast. DailyPay provides all of the funding and technology. It costs your company nothing to offer our service.
Fact: Your employees can now access their earned but unpaid wages on-demand.
DailyPay is a cinch to roll out. Once we have your signed agreement, our dedicated partnership success team will work with you on ensuring a customized rollout based on your needs. DailyPay provides all marketing materials, so your employees are educated and aware of the program, and feel confident enrolling.
Unrelenting market forces—unrelated to payroll—are conspiring to create major change in our industry. The result of this perfect storm is that employees want to control the timing of their pay. And employers will have to meet this demand.
Join DailyPay CEO and co-founder, Jason Lee, on Thursday, September 20th to discuss the market forces that have accelerated change in the payroll industry. Sign-Up Here