What to Know When Researching On-Demand Pay Providers
When managing employee financial wellbeing, businesses are increasingly turning to On-Demand Pay (ODP) solutions. These services, also referred to as Earned Wage Access (EWA), allow employees to access a portion of their earned wages before their standard payday. For employees, it means financial flexibility. For employers, it’s a tool to attract, retain, and engage top-tier talent.
However, not all On-Demand Pay providers are created equal. Selecting the right provider for you requires more than just comparing fees. It’s about understanding the nuances of what they offer, how they align with ethical standards, and what level of service you can expect.
What is On-Demand Pay?
On-Demand Pay gives employees access to the wages they’ve already earned, rather than making them wait for a traditional payday. For example, if an employee earns £100 over the course of three days in a pay period, they could access a portion of that money, instead of waiting for payday weeks later.
This model is designed as a financially healthy alternative to predatory payday loans and high-interest debt options. By giving employees timely access to their earnings, On-Demand Pay providers help reduce financial stress, boost productivity, and improve employee satisfaction.
How Do On-Demand Pay Providers Differ?
Not all On-Demand Pay providers are equal, and choosing the right one can directly impact both your employees' experience and your business outcomes. Below are the key areas to consider when evaluating providers.
1. Earned Wage Access Code of Practice
One of the most important attributes to look at is whether a provider adheres to industry standards. The Earned Wage Access Code of Practice is a vital certification to consider. Providers certified under this code have been rigorously assessed for delivering high-quality and ethical services.
Why does this matter? The Earned Wage Access Code of Practice ensures that providers prioritise employee financial health and employer transparency, giving you peace of mind in your choice. When researching options, it’s recommended to shortlist providers who meet this standard as it’s a strong indicator of operational excellence.
2. Full Product Offerings
Some On-Demand Pay providers deliver more than just early wage access. They integrate additional services into their solutions, such as debt or credit products, savings tools, and budgeting resources. While these added features may sound appealing, it’s crucial to assess whether they align with your goals.
Why This Matters
Fight Confusion: On-Demand Pay is designed as an alternative to debt. Including debt and credit products within the same ecosystem or platform could lead to confusion for employees, potentially undermining the service's purpose.
Enhanced Financial Wellbeing: Look for providers offering features like Payroll Savings or Budgeting tools. These empower employees to better manage their finances for long-term stability.
By carefully considering the provider's entire product offering, you can ensure the solution genuinely supports the financial wellbeing of your workforce.
3. Integration Offerings
Seamless integration with your existing systems is essential for a smooth rollout. Leading On-Demand Pay providers, such as Level, offer pre-existing integrations with popular HR software and workforce management systems. This simplifies the implementation process, saving both time and resources.
What to Look For
Automation: Providers with strong integration capabilities often automate critical processes, such as wage calculations and withdrawals. This reduces the administrative burden.
Scalability: If your workforce grows, an integrated system will easily adapt to match your scaling needs.
Ease of Set-Up: Ensure that the provider offers clear technical guidance and support to get the system up and running efficiently.
With seamless integration, you’ll not only provide employees access to their wages but also maintain operational efficiency within your organisation.
4. Customer Service
Support matters. Choosing an On-Demand Pay provider isn’t just about service features; it’s equally about the level of support you’ll receive throughout your experience.
Dedicated Support
Some providers, such as Level, assign a dedicated customer success manager to guide you. They ensure the system meets your needs during implementation and provide ongoing assistance throughout your partnership.
Questions to ask providers about service quality include:
Is there a dedicated point of contact for queries?
Does the support team offer live assistance or is it strictly email-based?
Are there resources or training materials for employees?
The right provider will act as a partner invested in your success, not just as a vendor offering a product.
Why Choosing the Right On-Demand Pay Provider Matters
On-Demand Pay has far-reaching benefits for employee wellbeing and company success. Selecting the right provider goes beyond ticking boxes; it’s about ensuring quality service, seamless integration, and long-term value for both your team and your organisation.
At the heart of your decision must be a steadfast commitment to fostering financial stability among your employees. Providers certified by ethical standards like the Earned Wage Access Code of Practice, that offer tailored support, and prioritize wellbeing-focused tools are a step in the right direction to achieving this goal.
Take the Next Step to Revolutionise Financial Wellbeing
Looking to implement On-Demand Pay for your team? Start by exploring providers that align with your organisational values and operational needs. Research their certifications, offerings, technology, and service to ensure you’re making an informed choice.
By partnering with a trusted provider like Level, you’ll not only empower your employees but also bring meaningful change to your business.