We have all been conditioned to accept being paid every two weeks or more. While many Americans faced financial hardship during the pandemic, companies kept their wages and collected interest on them. By waiting weeks for workers to be paid, the company earns interest on your money. It does not seem very fair. There has to be a better system.
In reviewing this question, I spoke with Jeanniey Walden, Director of Innovation and Marketing at DailyPay. Walden says the two-week payroll cycle is based on an archaic financial system that’s around 70 years old. With all of our technology, it’s irrational that we continue to do what we’ve been doing for decades. His company, DailyPay, set out to imagine a better and fairer way to pay people.
Employers now have the software prowess to give their employees the financial well-being they deserve and can change the way pay periods work. It is not a cash advance, nor is there any catch-up. DailyPay is precisely what their name suggests: a worker can track their accumulated salary and access it whenever they want. The future of work is largely tech-driven, and people can now access their hard-earned money immediately without having to wait weeks or more.
His company is revolutionizing the way workers are paid, offering choices. Instead of desperately waiting for your paycheck, as the fees and interest on your credit cards rise, DailyPay has built the technology platform to get what’s owed to you when you want it or need it.
Walden points out that the average American worker saved less than $ 500 and that almost 80% survive paycheck to paycheck. About over 30% of workers run out of funds until payday. She notes that workers who feel their bosses are taking advantage of them by not paying or treating them well are going out the door in the “big resignation” movement.
Millions of working Americans are stuck in the vicious cycle of debt, dependent on expensive payday loans, overdraft fees, and exorbitant credit card interest rates. It’s more important than ever for businesses to offer unique benefits like pay-on-demand to stay competitive.
You can decide that you want your money paid every day, once a week, or however you like. The decision is yours. There is no catch. However, like most ATMs, you will be charged around $ 2.99 to receive your money earlier than the set pay schedule. The service also allows users to easily check their balances and transparently track earned wages so they know what’s going on.
Gig economy workers and shift workers can check their income status and withdraw cash if needed. If they want a little extra income with the holidays approaching, the person could work overtime. Workers may think they have earned enough and deserve a day or two off. DailyPay’s “SAVE” feature offers a way to help you improve your financial health. With SAVE, you can transfer the earned income to a savings account.
Walden says DailyPay is disrupting payments, benefits and the entire financial system. It’s also a fantastic way to improve employee engagement and retention. If you know where your money is and can withdraw your salary whenever you want, it makes it easy for you to stay in your business because you trust them and may not have that choice elsewhere. This on-demand system aligns the guts of management and workers.
Companies are struggling to find workers in this new period of “Great Resignation”. Companies are creatively thinking about ways to attract and retain staff. Big companies like Walmart, Amazon, and Target offer free tuition. Fast food chains like McDonald’s, Starbucks, and Chipotle are offering improved wages and sign-up bonuses.
A study has shown that 73% of DailyPay users have a better opinion of their employers and 74% of people say the app has helped reduce their financial stress. Less financial stress creates better interactions between coworkers and customers. Engaged employees are more loyal and productive.
It’s interesting that companies are starting to realize that they need to listen to their employees and provide them with what they need. If leadership is deaf, they will lose their best and brightest to competitors who treat their employees like adults, with respect and dignity. DailyPay represents this new generation of FinTech startups that are built on the premise of improving the working lives of employees and management.