This 2019 SHRM Annual Conference and Exposition interview is with DailyPay, a payroll innovation that allows employees access to their earnings instantly. Below is a quick Q&A with the company.
Who is DailyPay!? Tell us everything, just as you would someone approaching your booth and asking you this question at SHRM ‘19 in Las Vegas.
DailyPay is the pioneer in providing employees with instant access to earned wages across a wide range of industries. This is the biggest technological innovation and trend that the payroll industry has seen in the last 50 years!
DailyPay is like an ATM for employee earnings. We partner with employers to offer their employees the means to safely access their earned but unpaid wages whenever they need it, 24/7/365. We also partner with top human capital management and HR software solution providers to help them serve their clients’ employees.
Let us in on the magic. What’s the best part about working for DailyPay?
The best part of working for DailyPay is the positive impact that we are having on people's lives. Through our technology, and without disrupting payroll, we can offer employees control over the timing of their earned but unpaid wages. Now, for the first time, your employees have an alternative to late fees, overdraft charges and exorbitant payday loans when they have an emergency, or need to pay a bill, and payday hasn’t rolled around yet. And the result is a more engaged and longer-tenured workforce, which improves your bottom line.
It’s great to be part of a team who works hard every day to improve the lives of people who live paycheck to paycheck and who need a little help now and then. Giving them access to their earned wages just makes their lives a whole lot easier and helps them save more of their hard-earned money.
What are the biggest challenges companies face when integrating new tech? How do they overcome those challenges?
One of the biggest challenges that a company faces when integrating any new technology, including a daily pay benefit, is ensuring that it is compliant. Compliance is a huge concern today because there is an increasing number of legal requirements that specifically affect HR and benefits. Before committing to any new solution, companies really need to perform extensive due diligence to ensure that the technology complies with all applicable regulations.
Another challenge that companies face is having the right resources in place for implementing and maintaining new technology. Is additional headcount needed to ensure the technology’s ongoing operation and maintenance? What about the solution provider? Are they easily accessible if there are any issues?
At DailyPay, we purposely built our technology to overcome these challenges. DailyPay is the only daily pay benefit provider that is fully compliant with labor, wage and tax laws in all 50 states. And our partners aren’t required to make any changes to their regular payroll processes, including the timing of funds and withholding of taxes. As a result, our partners are pleased to experience minimal involvement with our solution on an ongoing basis.
Here are several partner testimonials that attest to DailyPay’s ease of integration:
“It was easy to get DailyPay and Infosync seamlessly connected. Having data exchanged between the two platforms makes our lives much easier and gives us new analytical insights.”
—Ann Sizemore, SPHR, Vice President of Human Resources, Captain D’s
“For less than the cost of an ATM fee, workers have nearly immediate access to funds instead of having to wait two weeks for money to come in. Even better, this doesn't impact our payroll process at all. We continue to cut checks, as usual, every two weeks, with the amounts adjusted if staff accessed their wages early.”
—Kym Cross, Director of HRIS & Data Analytics, G4S
“I must say that the greatest benefit for both my staff and me is the fact that DailyPay is extremely simple to use. Every aspect of the service is virtually self-explanatory, which means that we’re fielding very few questions.”
—Mike Beaubrun, Operations Manager, DialAmerica
What do you wish more HR professionals and recruiters knew about DailyPay?
The daily pay benefit is gaining momentum and becoming a mainstream benefit because of two major market forces:
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Today's workforce, comprised of MAGGIEs (Millennials and Gen Z who Get Instant Everything) and ERINs (Employees Requiring Income Now) are demanding it and coming to expect it.
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With the lowest unemployment rate in 50 years, it is increasingly difficult to attract and retain top talent. A daily pay benefit differentiates companies as “employers of choice” and helps with recruitment efforts; it has also been shown to increase retention and reduce turnover, leading to a healthier bottom line.
Additionally, human capital management and HR software providers are seeing the benefits of partnering with DailyPay to make it easier for them to offer this benefit to their clients’ employees. Payroll companies are not structured to be able to incur payment risk or to finance a daily pay benefit, which is why they look to DailyPay to provide that service.
In only six months, we have entered into partnerships with six leading payroll service providers, including ADP, Paycor, Ceridian and NetSpend, who realize the importance and value their current and future clients put on offering their employees control over the timing of their pay.
How does your technology impact job satisfaction and employee retention?
We recently conducted a survey of close to 500 DailyPay users. These responses confirm an increase in employee engagement as a result of their company offering DailyPay:
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40.7 percent of employees state that DailyPay motivates them to go to work
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40.1 percent of employees state that DailyPay motivates them to pick up more shifts or work longer hours
In another 2019 survey of 521 employees across multiple industries, 53 percent said that their opinion of their employer improved since implementing DailyPay.
In the current tight labor market, DailyPay is helping employers to attract 1.9x more candidates for open positions and they’ve seen a 41 percent reduction in turnover. Some feedback from our partners:
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“We've definitely seen an increase in retention rate, particularly with our part-time population.” Marisa Eddy, VP of HR, Sprinkles Bakery
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“There is a 61 percent reduction in turnover among the first week hires using DailyPay compared to non-DailyPay employees.” Jay Hammans, VP, DialAmerica
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“DailyPay gives us the platform to better retain and engage our best asset, our agents. Close to 50% of our hourly workforce are active users and it’s helped us to move the needle for retention at Etech.” Jim Lyoob, COO, Etech Global Services
For anyone who won’t be able to make it to the DailyPay booth in Las Vegas, what do you want them to know?
It’s crystal clear that the daily pay benefit is gaining momentum in the marketplace. MAGGIEs and ERINs are coming to expect it, and employers are coming to realize that it is a major competitive differentiator when it comes to attracting, engaging and retaining talent. It’s no longer a question of whether employers will come to implement a daily pay benefit, but rather when they will because having to offer this benefit is inevitable. You can learn more about this award-winning benefit at https://www.dailypay.com/
Brett Farmiloe is the Founder and CEO – and currently CHRO - of Terkel.io, a platform where business leaders can answer questions related to their expertise and get published in articles featuring their
insights. Brett is a #SHRM22Influencers and has also been a keynote speaker at several state SHRM conferences around the topic of employee engagement.
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