On-demand pay: The benefit that helps both employees and organizations

From hybrid work to the gig economy, so much of how we work has changed in recent years. But the way we get paid is one tradition that is undergoing rapid transformation. On-demand pay – also called earned wage access – allows employees to access their wages as soon as they have earned them. More than just a payroll trend, on-demand pay is quickly becoming an essential financial wellness tool within an employer’s corporate benefits offering.

On-demand pay has many benefits for both employees and organizations. We worked with SSRS on a study to explore how workers are using Dayforce Wallet, and how they feel about the value of the tool. The results show this low-effort implementation can unlock some major benefits for employers.

Employees value on-demand pay

In a recent survey of Dayforce Wallet users, we learned that respondents place a high value on the on-demand pay solution.¹ In fact, 65% of surveyed Dayforce Wallet users said that on-demand pay is an employer benefit that is very or extremely important to them. Simply put, on-demand pay is a benefit that employees notice and are eager to take advantage of.

Employees are putting on-demand pay in the same “essentials” bucket as other traditional benefits they rely on for their financial wellbeing. In fact, survey respondents said that on-demand pay is nearly as important to them as retirement/401(k) (83%) and life insurance (79%). Additionally, 77% of surveyed users consider Dayforce Wallet to be an important part of their financial strategy.

These findings should inspire employers to view on-demand pay as a table stakes part of their benefits portfolios. Employees are successfully using this benefit and opting in, which leads to positive financial outcomes for them.

On-demand pay helps support financial wellbeing and stability

Financial stability looks different from one person to the next, but it generally includes things like the ability to pay bills on time, save money for retirement, contribute to an investment portfolio, and build a better credit score. And on-demand pay supports these indicators of financial wellness and stability. Here are a few insights from our survey responses:

• Significantly, 84% of surveyed users say that Dayforce Wallet helps them pay most of their bills on time.
• Additionally, 67% of surveyed users say that Dayforce Wallet helps their ability to pay off some credit card debt.
• More than half (57%) of surveyed users say that Dayforce Wallet helps them put money into their savings monthly.
• When it comes to personal investing, 67% of surveyed users say that Dayforce Wallet helps their ability to invest their wages sooner.
• As for preserving savings, 61% of surveyed users say that Dayforce Wallet decreases the likelihood of them withdrawing money from their savings account to cover expenses. Additionally, 54% of surveyed users say that losing access to Dayforce Wallet would increase their likelihood of withdrawing money from their retirement account to cover their expenses.
• Furthermore, 90% of surveyed Dayforce Wallet users say that having access to money quickly when there is an emergency is considerably, very, or extremely important to them.

Given the wide-ranging positive financial impacts of early wage access, it’s easy to see why employees are eager to use this benefit. These statistics suggest the positive impact of flexible access to income, especially on long-term financial goals like saving and investing.

And organizations can experience the upsides of on-demand pay without the payroll admin burden. While different on-demand pay tools may vary in back-end setup, Dayforce Wallet is an extension of Dayforce Payroll. By leveraging our continuous calculation engine, Dayforce Wallet offers on-demand pay using accurate, real-time data from a single integration.

On-demand pay helps solve workforce management problems

Workforce planning, scheduling, and labor cost management are challenging for many employers. Whether it’s unfilled shifts, high turnover, or low morale, these issues are multifaceted and complex. The SSRS survey findings show that Dayforce Wallet can support organizations in solving these challenges.

Sixty-four percent of surveyed Dayforce Wallet users are more willing to take on extra shifts/work because of on-demand pay. This makes on-demand pay an incentive for employees to fill open shifts, because they have early access to their wages.

Ceridian’s 2023 Executive Survey of 2,020 global leaders found that the majority (88%) expect to see labor shortages in the next year, posing a significant threat to business continuity. Fifty-four percent of surveyed users say they’re less likely to leave their current employer because they offer on-demand pay, with 59% of users in the 18-29 age bracket sharing this sentiment.

Employee turnover can be difficult to manage, especially when people leave their jobs for any number of reasons. But knowing on-demand pay incentivizes people to stay is a crucial finding for employers looking to boost their retention numbers, especially among younger, Gen Z workers. If your organization is experiencing engagement and retention challenges, implementing a benefit like on-demand pay could help your people feel better supported and more loyal.

Whether you’re hiring gig or full-time employees, on-demand pay is a compelling recruitment and retention tool – and can positively impact your business outcomes in today’s boundless work world.

[1] This self-administered survey was conducted online by SSRS on behalf of Ceridian between September 6-11, 2023, among Dayforce Wallet users in the United States (n=2,007). Dayforce Wallet users were defined per client sample as active users who had recently registered or completed an account change. They are considered to be the most active and engaged Dayforce Wallet users.

Banking services provided by and the Dayforce Wallet Mastercard issued by GO2bank, Member FDIC, pursuant to a license from Mastercard International Incorporated. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

GO2bank also operates under the following registered trade names: Green Dot Bank, GoBank and Bonneville Bank. All of these registered trade names are used by, and refer to, a single FDIC-insured bank, Green Dot Bank. Deposits under any of these trade names are deposits with Green Dot Bank and are aggregated for deposit insurance coverage up to the allowable limits.

©2024 Green Dot Corporation. GO2bank is a trademark of Green Dot Corporation. All rights reserved. Green Dot Corporation NMLS #914924; Green Dot Bank NMLS #908739.