What is daily pay?
Daily Pay is a technology solution that allows your employees to control when they get paid. Employees can choose to access their available funds in real-time, allowing greater financial flexibility to employees living paycheck-to-paycheck.
Before we dive too far in, let’s hit on a couple common concerns. No, you don’t have to change your payroll schedule—pay that is claimed by a caregiver before the regular bi-weekly payday is handled through a reliable third party service, so your staff’s involvement is minimal. And while it does require healthy cashflow, it’s typically not a significant drain financially overall because of its relatively minimal cost. We’ll talk about these more below.
What are the benefits of daily pay?
Provides daily access to available funds for employees living paycheck to paycheck.
1 in 4 caregivers is living below the poverty line. Caregivers are disproportionately likely to come from lower-income demographics, be single parents, and/or work multiple jobs. These individuals and families all too often must face the harsh reality of living paycheck to paycheck.
A program offering daily pay may seem unnecessary or “too much work” from the perspective of an agency owner, but this type of program could be a financial crutch for people in difficult financial circumstances.
Daily pay providers handle logistics – No changes made to your payroll process.
We know the thought of increasing weekly or biweekly payroll to daily payroll sounds like an absolute nightmare. We get it. Why would anyone do that to themselves? Fortunately, daily pay providers handle nearly 100% off all the maintenance and software provided making no change to your payroll process.
Regarding cost, most daily pay providers charge a transfer fee that can be paid by either the employee, the employer, or a subsidized cost from the employer to the employee. Some providers charge a monthly subscription fee – we’ll go more in depth in the ‘How to get started with daily pay’ section below.
Improve recruitment and retention.
On average, companies see 41% reduction in employee turnover with daily pay . Recruitment and retention are one of the number one issues home care agency owners are faced with year over year.
The industry-wide demand continues to increase for caregivers, but the supply seems limited and difficult to find let alone retain. Daily pay could be a missing piece of your “benefits offered” to earn a competitive advantage in both recruitment and retention.
Daily pay presents itself as an added benefit to bring employees on-board, but also as a motivator to get them to stick around. 73% of daily pay users say they are more motivated to come to work. Daily pay can improve productivity and engagement. spend three hours or more at work each week thinking about or dealing with personal financial issues. As an employer, you have the power to remove the cause of your employee’s financial stress and allow them to focus more at work.