Tune in now to the Digital Asset Report with Vince Molinari to hear how DailyPay is disrupting the payroll industry by reimagining the way money moves between employer and employee.
It’s high time to celebrate the American workforce. While there are pockets of differentiation by industries, by and large, the average worker is making well-deserved gains. First, many have survived the existential threat of the pandemic, which unfortunately continues to affect where and how we work. But the American worker remains in the driver’s seat. In early August the government reported payrolls rose at the highest pace in a year. For hourly workers, companies like Kroger and Starbucks are offering signing bonuses and pay raises. Even in the hard-hit hospitality business, wages are up 6.6% over the past two years.
But if you’re an employer, these incentives may not be enough to stay competitive. While workers have a lot to celebrate right now, they’re restless. In fact, while you’re reading this, a new study shows that 65% of employees are looking for a new job.
Jason Lee, DailyPay Founder & CEO joins the Yahoo Finance Live panel with the latest on the on-demand pay platform.
In today’s startup spotlight, we’re taking a look at the intense battle that businesses are currently finding themselves in for talent. As a refresher, right now, we’re sitting on what is a record amount of job openings here in the US. When we look at that, in a very intense battle to fill those openings and entice workers. Employers are not just upping what their employees are paid, but how they are paid with flexible new services.
And one of those services, DailyPay, lets users tap paychecks in real time so they don’t have to wait for payday to roll around. The company just closed a $175 million series D funding round. And for more on that, happy to welcome into our starting spotlight segment here, DailyPay’s founder and CEO Jason Lee joins us right now. And Jason, congrats on the round. Good to be chatting with you here. You work with some big names– McDonald’s, Kroger, and some other ones out there. But what are you seeing in terms of those companies and others trying to use your services to attract new talent?
On April 23, 2021 we had a chance to tell CNBC’s The Exchange about how DailyPay disrupts the outdated pay cycle with a new financial system. DailyPay is a New York based technology company and we work with enterprises and Fortune 500 companies in really just about every industry you can name, from healthcare to restaurants to retail. The way it works is that employers leverage our technology to really offer their employees, I mean, truly a life-changing experience. It’s something that we call on-demand pay. Said simply, employees can now access any part of their pay instantly as they earn it without having to wait for a lump sum on a scheduled payday. Through our technology, any employee can now see exactly what her accrued earnings are, and at a tap of a button have access to any part of those earnings 24/7/365. It’s not a payback. There’s not a loan. There’s just your money and we’re delivering that to you on demand.
We see an entirely new financial system where pay is in fact realtime. The catch, however, Kelly, is it’s really hard to do. For my colleagues who work in the payroll industry, it’s very, very difficult to kind of get all the pieces to work together, whether it be the funding or the technology or the risk and compliance. So that’s what we do. We essentially offer the employee the ability to access daily pay without the employer having to run payroll daily. That’s really the concept behind DailyPay.
In a recent Bloomberg article “Walmart’s Early Pay Perk Is Popular, But Sometimes Has a Cost“, the author raised questions why a perk that was supposed to help employees feel less stressed while boosting retention, among other benefits, did not achieve either a company’s or its employees’ goals.
Research has shown that by changing their employees’ pay experience, companies can maximize efficiency by reducing turnover and decreasing employee absenteeism, while simultaneously increasing productivity and employee satisfaction. If implemented correctly, on-demand pay can save employers and employees millions of dollars every year.
But all on-demand pay platforms are not created equal, as Walmart experienced, and this article reveals the consequences of rolling out a program that lacks features that are critical to its success.
According to research conducted in 2021 by Mercator Advisory Group, the data from millions of employees across every vertical is showing us a very different picture.
Read the full analysis here
DailyPay added capabilities that will allow HCM technology, time management and payroll service providers to offer its on-demand pay services through their product suites. The launch of the product, called ExtendPX, moves DailyPay beyond its traditional offering by opening its services to a range of vendors.
The demand for on-demand pay (an employer-based benefit and payroll process also called earned wage access) has grown exponentially due to its proven ability to reduce turnover, promote worker productivity and boost hiring. Given the triple-digit growth in client demand for on-demand pay, HCM, payroll and TMS companies are quickly realizing the need to embrace this new market.
“Over the past five years, DailyPay has partnered with key HCM and TMS companies in powerful ways,” said Jason Lee, CEO and co-founder of DailyPay. “We have proven that by integrating our gold-standard offering into their platforms, more Americans can enjoy control and flexibility over their pay. After all, it’s their money, and they’ve earned it. This product expansion is just one of the critical steps we are making to move the entire PayExperience industry forward.”