The Silicon Review
In the digital world we live in, society is moving towards the idea of “giving people what they want.” Many activities like financial services, rides, bill payment, and movies, among others, can be done with mobile apps, and most of them are immediately available. So it is not surprising that employers are following suit by offering their employees on-demand pay to free them from the harms of a rigid pay schedule. On-demand pay stays true to its name and does exactly what it sounds like —a new way for employees to access their pay on demand to meet their financial needs. On-demand payments are generally made through third-party providers, often coordinated by the payroll provider. There are various companies in the payroll industry providing on-demand pay services, but one that stands out from the rest is DailyPay. The company was founded in 2015, and it is based in New York.
DailyPay is a recognized full service, gold standard on-demand pay provider that revolutionizes the payroll industry and empowers U.S. workers; all while helping companies save on time and cost. DailyPay’s unique payments ecosystem is designed to provide a seamless, digital pay experience to unleash every employee’s highest financial wellness potential. Through DailyPay, employees now have up to 100% access to their earned pay at any time prior to payday. Coupled with additional support systems, like free savings tools and domestic, dedicated call center support, DailyPay takes pride in delivering a robust pay experience to clients and their employees. In 2020, DailyPay introduced its one of a kind, all-encompassing PayExTM Platform, which provides a frictionless, digital, and rewarding experience at every stage of the employee journey. With products for both the employee and employer featured in the PayEx platform, DailyPay has seen the relationship between the two parties strengthen, driving documented productivity gains and cost reductions. Recent DailyPay surveys demonstrated that 56% of employees were more motivated to pick up shifts, and companies have seen an average reduction of 43% in turnover.
In conversation with Jason Lee, CEO and Founder of DailyPay
Q. Compliance is important for any organization. What are the measures you adopt to comply with regulations?
Compliance in financial services is especially critical. DailyPay has a best in class, dedicated compliance, and regulatory team that ensures product design, disclosures, and communication exceed all legal requirements, from the moment they are conceived to implementation and beyond. The compliance, regulatory and legal functions work hand in hand to cover all aspects of the organization. We also actively participate in all regulatory and legislative conversations affecting our business, constantly monitor for new developments, and actively engage with partners, clients, and stakeholders on compliance-related issues.
Q. Employees might fear they will be micromanaged non-stop if they elect to participate in an on-demand pay program. How can we prevent this?
At DailyPay, we understand that the on-demand pay program is only successful if employees use it and trust it. That’s why we’ve structured our offering to keep the employee experience in mind every step of the way. A few ways we do this is by:
How we do it
Our customized Dynamic Income Algorithm (DIA) allows DailyPay to create a personalized profile for each employee while minimizing the risk of overestimating their net pay. This profile accounts for the individual employee’s deductions, taxes, and garnishments. As an employee’s pay profile changes (e.g., there are changes to taxes, benefits deductions, or other withholdings), DIA will adjust the calculation for that employee so that DailyPay is calculating the appropriate “Available Balance” personalized to each employee.
Because this Available Balance gives employees the ability to track their funds as they earn them, they’re able to better plan and budget. We’ve also seen that this serves to motivate workers, ultimately increasing worker productivity and engagement. The results of this can range from reduced absenteeism to lower turnover, and even improved timeclock compliance. In fact, DailyPay improves timeclock compliance on average by 15% and up to 30%! Further, DailyPay increases employee engagement as they can view, access and save their accumulating earnings in real-time. When employees are more engaged at work, they are happier, healthier and more productive. Another exciting feature DailyPay has in the works is REWARD. REWARD is an incentives payments solution that allows managers on the ground to disburse compliant, on the spot payments for employees to recognize a job well done or incentivize workers to fill undesirable shifts.
Q. How do you streamline your services without compromising data security?
DailyPay is the gold standard when it comes to critically important organization considerations, such as compliance and data security. With DailyPay, you receive the safest, most proven and most secure product on the market, without compromising on streamlined and cutting-edge services. DailyPay’s scalable, reliable and secure infrastructure delivers the highest levels of security and compliance, so you can be confident that your employee’s personal information remains protected.
Q. Do you have any new services ready to be launched?
DailyPay prides itself on always innovating our award-winning, industry-leading product in our continued effort to optimize the pay experience for the hundreds of companies we partner with and their millions of employees. In January, DailyPay officially launched CYCLE, a feature that enables companies to immediately reduce or even eliminate paper checks and manage final pay distribution. CYCLE was designed to support increased financial flexibility for the American workforce, which has become increasingly important during the COVID-19 pandemic. CYCLE has multiple uses and benefits. It can provide bonuses, termination pay or to make other necessary off-cycle payments to employees. It also enables employees to receive their payments electronically (instead of waiting for a paper check to be processed, distributed and cashed).
Meet the leader behind the success of DailyPay
Jason Lee is the CEO and Founder of DailyPay, a financial tech company offering companies and millions of employees access to their earned pay prior to payday. Jason is a groundbreaking leader who had the vision to help regular American workers achieve financial stability after realizing that too many Americans struggle to make ends meet under the current payroll structure. In 2015, Lee translated his idea into reality by founding DailyPay. Within five years, Jason has grown the company to be an award-winning, full service on-demand platform that partners with best in class organizations across the nation. He is a thought leader in the finance and on-demand pay space and has been featured in industry leading publications such as Forbes and The New York Times. Additionally, he was recently named the Gold Winner for “Innovator of the Year” for the 2020 CEO World Awards.