3 myths keeping your organization from the value of on-demand pay

Getting paid soon after a shift or day’s work is no longer a future concept — it’s the present reality for millions of workers. The boundless workforce, where work is fluid, borderless, and always on, demands more flexibility from payroll than ever before. On-demand pay is meeting that need, transforming how people manage their finances and how employers support them. 

Yet despite growing adoption and clear employee demand, some organizations still hesitate to embrace it. This piece dives into three common myths about on-demand pay that may be keeping your organization from realizing its full value. 

What is on-demand pay?

In a traditional fixed pay cycle, employees’ cash flow depends on scheduled paydays — often out of sync with when expenses come due. When people can’t easily access money they’ve already earned, financial stress builds. 

On-demand pay changes that by giving employees access to their earned wages between pay periods — typically after a shift or day has ended — whenever they need them most. For many, that flexibility can mean the difference between stability and strain. 

To learn more, we surveyed nearly 1,900 users of Dayforce Wallet, the on-demand pay application in the Dayforce AI-powered people platform, about their use of on-demand pay. We found that seven in 10 users said they’d struggle to cover expenses without on-demand pay, and most use it for essentials like food, childcare, and bills. It’s a simple shift that delivers measurable impact for employees and peace of mind for employers. 

Benefits of on-demand pay

On-demand pay continues to prove its value in improving productivity and financial wellness. The 2025 Dayforce Wallet research shows that employees who can access their pay between pay periods experience less stress, make fewer costly trade-offs, and feel more engaged at work. 

Pay flexibility also helps organizations stand out in a competitive labor market. Nearly three in four users rank on-demand pay among their top five workplace benefits, and 64% say their company is a “good place to work” because of it. For employers, that translates into higher retention, stronger engagement, and a brand that attracts talent who value trust and transparency. 

Debunking common on-demand pay myths

Now that we've established the benefits of on-demand pay, it's time to address common misconceptions.

1. On-demand pay is costly and time-consuming to implement

The right provider can help you avoid long and costly implementations. With a native on-demand pay solution, the technology integrates directly into your existing payroll software. Even if your setup is complex, configuration can be completed in hours, not weeks. Fast delivery reduces project costs, making rollout less stressful and more affordable. 

2. On-demand pay will complicate the payroll process

Introducing on-demand pay doesn’t have to disrupt payroll. When built on a foundation of continuous calculation, on-demand pay can seamlessly extend your existing processes — no extra steps or cash flow changes required. 

A solution like Dayforce Wallet works as an extension to Dayforce Payroll, ensuring employees only access what they’ve truly earned to date in the pay period. Dayforce funds intracycle payments on behalf of customers, minimizing impact on payroll processing and funding. Taxes, deductions, and other required payments are automatically accounted for in real time, keeping payroll teams confident and in control. 

3. Employees will misuse on-demand pay

Many employers worry employees will overuse on-demand pay — but research shows the opposite. Most Dayforce Wallet users say they use it responsibly for essentials, and 86% report using it for necessities such as food, medicine, childcare, or paying bills on time. 

That access helps employees avoid costly financial alternatives. In fact, roughly seven in 10 users say that before accessing on-demand pay, they relied on payday loans or late payments to bridge financial gaps. Today, those same employees save an average of $224 per month by avoiding those high-cost stopgaps. 

Flexible pay doesn’t encourage misuse. It promotes financial stability and smarter money management. With the right provider and clear education, on-demand pay becomes one of the simplest, most impactful benefits an organization can offer. 

The perception gap leaders need to close 

The 2025 research also uncovered a revealing insight: while 54% of employees call on-demand pay essential, only 38% of people leaders agree. That 18-point gap suggests many leaders underestimate how deeply pay flexibility affects employee well-being and motivation. Recognizing that gap — and closing it — can help organizations strengthen trust, engagement, and retention. 

Rethinking payroll to make work life better 

With Dayforce Wallet, you can reimagine payroll and create a better experience for your people. Implementing a flexible pay solution doesn’t have to be complex. With the right partner, you can help your employees reduce financial stress, feel more in control, and stay motivated, all while maintaining payroll confidence and compliance. 

It’s one more way Dayforce helps you make work life better and empower your people to do the work they’re meant to do.