How to Choose a On-Demand Pay Provider That Aligns With Your Business Needs
On-Demand Pay, also known as Earned Wage Access (EWA), is rapidly becoming one of the UK’s most sought-after employee benefits. By allowing staff to access their earned wages before payday, it provides a powerful solution to short-term financial stress, improving employee wellbeing and retention.
As demand for this benefit grows, so does the number of providers. For businesses considering Earned Wage Access, various options can make the selection process feel overwhelming. How do you find a provider that not only delivers a great service but also aligns with your company’s values and operational needs?
Choosing the right partner is crucial. A well-chosen provider can enhance your employee value proposition, while the wrong one could introduce unforeseen risks for both your business and your staff. This guide will walk you through three essential considerations to help you select an on-demand pay provider that’s a perfect fit for your organisation.
Evaluate the full product suite
When you begin your search for an On-Demand Pay provider, you’ll quickly notice that many offer more than just Earned Wage Access. Their platforms often include a range of other financial wellness tools, from budgeting planners and savings features to educational content. While these additions can be valuable, it’s important to look closely at everything a provider offers, particularly when it comes to debt-based products.
Some providers bundle Earned Wage Access with credit products like loans or salary-linked advances that function as debt. This means that employees using the platform for On-Demand Pay might also be presented with options to borrow money. For some businesses, offering a comprehensive suite of financial tools, including credit, may align with their benefits strategy. They might see it as giving employees more choice to manage their finances.
However, many organisations are uncomfortable with facilitating employee debt. Introducing loans through a company-endorsed platform can create significant risks. It may inadvertently encourage borrowing habits that lead to long-term financial strain, undermining the very goal of improving employee financial well-being. This can also pose a reputational risk to your business if employees fall into a cycle of debt using a service you introduced.
Before committing, ask potential providers for a complete breakdown of all the products and services offered on their platform. Understand how these are presented to users. If you are not comfortable promoting debt-based products to your workforce, you should seek a provider that focuses purely on earned wage access and other non-debt financial wellness tools.
Check for Earned Wage Access Code of Practice membership
As On-Demand Pay gains popularity, ensuring it is delivered responsibly has become a priority. To set a high standard for the industry, leading providers collaborated with the Chartered Institute of Payroll Professionals (CIPP) to establish the Earned Wage Access Code of Practice. This code sets the benchmark for quality and ethical conduct among UK providers.
A provider’s membership in the Code of Practice is a clear indicator of their commitment to operating responsibly. Members must adhere to strict guidelines designed to protect both employers and their employees. These standards cover key areas such as:
Transparency: Providers must be completely transparent about any fees. Employees should know exactly what they are paying for, with no hidden charges.
Partnership with Employers: The code mandates that Earned Wage Access must be offered in partnership with an employer, ensuring the service integrates seamlessly and responsibly into a company’s payroll and HR processes.
Risk Mitigation: Members must have measures in place to prevent overuse and help users manage their finances responsibly. This includes setting sensible access limits and providing clear financial education.
Data Security: Adherence to the code guarantees that the provider meets stringent data protection and security standards, safeguarding sensitive employee information.
Choosing a provider that is a signatory to the Earned Wage Access Code of Practice gives you confidence that you are partnering with an organisation committed to the highest ethical standards. It minimises risks and ensures your employees receive a service that genuinely supports their financial health. Always ask a potential provider about their membership status.
Assess the quality of client support
Implementing any new system across an organisation requires a smooth transition and reliable ongoing support. On-Demand Pay is no exception. While the technology itself may be impressive, the human element of client support is what often determines the success of the partnership. Effective support ensures that any issues, whether for your HR team or your employees, are resolved quickly and efficiently.
When evaluating a provider, consider their support model from two perspectives: employer support and employee support.
Employer Support
From the initial setup to daily operations, your HR and payroll teams will need access to expert assistance. Find out what kind of support a provider offers. Do they provide a dedicated account manager who understands your business? A strong support system for your internal teams will make implementation smoother and reduce the administrative burden of managing the service.
Employee Support
Your employees are the end-users, and their experience is paramount. If they encounter an issue accessing their pay or have a question about the app, they need a direct and effective channel for help. Ask potential providers what support options are available to employees. A provider that invests in robust employee support demonstrates a commitment to a positive user experience, which will reflect well on your company.
Make the right choice for your business
Choosing an On-Demand Pay provider is a significant decision that will impact your employees' financial wellbeing and your company's reputation. By taking the time to thoroughly evaluate each potential partner, you can ensure you select a service that aligns with your values and meets the needs of your workforce.
Focus on finding a provider that offers the right mix of products, adheres to the industry’s code of practice, and delivers outstanding client support. By prioritising these key areas, you can confidently introduce a valuable benefit that empowers your employees and positions your organisation as a leading employer.