On-demand pay. Early wage access. Daily pay benefit. It goes by a lot of names, but basically it’s all about giving employees access to their earned pay before payday. With so many companies touting their unique solution to help the 78% of Americans who are living paycheck to paycheck, how do you know which one is the best one to help your employees pay their bills on time and avoid late fees, overdraft fees and predatory payday loans?
What does a good on-demand pay solution look like?
There are a number of characteristics that define the best program for your employees when you’re evaluating the various third-party providers of the daily pay benefit. These include:
- The ability for employees to designate where they want their earned pay transferred to, with the ability to have them sent to any bank account, paycard or prepaid debit card.
- No changes required to an employer’s existing payroll system, including the timing of funds and withholding of taxes.
- A flat ATM-like fee charged only when an employee actually requests a transfer, with none of the following:
- Monthly subscription fees
- Hidden fees
- “Built-in” incentives to use the product more
Is the solution payroll system agnostic?
Be sure to look for easy, seamless integration with your existing payroll and time and attendance system as well. DailyPay, for instance, works with well-know employers who are on many different payroll and time management systems, including:
- TOMS King, which owns and operates nearly 140 Burger King® restaurants in Illinois, Ohio, North Carolina, Pennsylvania and Virginia. TOMS King uses Ultimate Software’s Ultipro and has nearly half, or 48%, of its 3,000 employees on DailyPay.
“Cash flow is a big deal for employees who work in this business,” said Kimberly Ervin, executive vice president of human resources at TOMS King. “Turnover in this business is extremely high. “We’re hoping that [DailyPay] will help change that.” (Nation's Restaurant News, August 7, 2019)
- BrightSpring, one of the largest providers of home and community-based health services in the United States with 45,000 employees, uses ADP’s EV/5 payroll system and has 44% of its employee base on DailyPay.
“The problem sometimes for this workforce is the ability to access pay when they need it,” Rexanne Domico, president of home health care services and neuro rehabilitation at BrightSpring said. “We fully believe that the companies that are able to attract and retain caregivers are the companies that are going to see the growth in the coming months and years in the space. The ability to solve [for pay challenges] for this workforce is ... a huge answer to this problem.” (Home Health Care News, April 23, 2019)
- CommuniCare, one of the nation’s largest providers of post-acute care, including skilled nursing rehabilitation facilities, long-term care facilities, assisted living communities, independent rehabilitation facilities and long-term acute care hospitals, uses SmartLinx for payroll. CommuniCare has 43% of its 11,200 employees using DailyPay.
“This new combined offering means that employers like us will not be faced with changing our existing payroll process while extending the benefit of on-demand payment to our employees,” said Gregory Keller, VP of Human Resources at CommuniCare. (DailyPay Blog, October 11, 2018)
Choosing a solution that is software agnostic, like DailyPay, also facilitates the ability to change payroll providers and take the DailyPay benefit with you.
If you want to learn more about DailyPay and why it’s the best on-demand pay benefit provider for your organization, schedule a time to talk about how DailyPay can help your business.