Jason Lee, CEO
40 percent of Americans cannot afford an unplanned $400 expense, reveals a surprising statistic from the Federal Reserve. In fact, the average American incurs thousands of dollars in overdraft and late fees per year simply because they are waiting for their payday. Employees’ stress from counting the days until their (bi)weekly paycheck is the last thing a company wants, as it negatively impacts employee retention and workforce productivity.
An all-time low unemployment rate combined with anemic wage growth becomes a millstone around the neck for companies trying to attract and retain workers, especially skilled labor. “It’s time for senior executives and HR teams struggling with recruitment in a tight labor market, to look for a daily pay option or risk getting left behind,” says Jason Lee, CEO of DailyPay. With the employees’ need for financial security reigning supreme, New York-based DailyPay created the daily pay benefit—one of the most potent and impactful employee benefits to allay some of those tensions. “A DailyPay benefit is a lifeline that employees can use to address their complicated financial challenges,” states Lee.
As an employee benefit, the DailyPay platform is just like an ATM that provides employees with an instant access to their earned wages. It is a technology-oriented solution that lets employees control when they get paid. A win-win solution, DailyPay not only allows employees to save thousands in late fees a year but also helps companies improve their bottom line profits due to the reduced turnover among DailyPay users. Through DailyPay’s patent-pending technology, companies can empower their employees to meet financial goals and pay bills on time.
A SOCII compliant platform, DailyPay secures consumer information, provides advance funding, and assumes additional payment risks of the representative company. With minimum time and financial resources required to get the program up and running, DailyPay’s partnership success team does all of the heavy lifting.
Employers need not pay for anything to offer this benefit. As everything is automated through the DailyPay API, no modification occurs in the company’s existing processes.
The DailyPay team works with partner companies and their employees to determine the best structuring solutions for their partners to implement the most comprehensive, flexible, and compliant solution. “It is the only compliant solution in all 50 states, accessible to every single employee, without exception,” affirms Jason.
DailyPay also works closely with payroll providers to seamlessly integrate with any number of payroll solutions. As a preferred provider, DailyPay is able to provide the best results with the simplest onboarding process.
A DailyPay benefit is a lifeline
that employees can use to
address their complicated
On the success front, DailyPay’s partners have reported a reduced employee turnover of 41 percent and open positions filled 52 percent quicker, which implies tremendous cost savings.
One of their partner companies—Christian Horizons, a senior living care facility in the U.S.—was facing the problem of not being able to take care of the aging population with a prolonged scarcity of caregivers. With DailyPay, they employed a biweekly vs. weekly pay schedule, wanting to stay competitive even though their costs would double. After just four months of offering DailyPay to all workers, their turnover rate dwindled by more than seven percent and continues to decrease. “Employees are likely to stay longer and not quit if you provide them a way to access their earned wages on their schedule,” says Jason.
Another notable mention—Kellermeyer Bergensons Services, facility services company—was able to onboard approximately 4,000 new employees and grow their location base by almost 30 percent. Pleased with the success they’ve had on the recruiting and retention front, today, Kellermeyer Bergensons Services is an integral part of DailyPay’s growth as they scale together.
With financial security as the driving factor to impact the workforce, DailyPay is looking forward to continuing to provide solutions that deepen the relationship between the employee and employer.