The True Cost of Servicing an On-Demand Pay Digital Wallet

Dayforce Wallet Ceredian

In the age of the coronavirus, companies are racing to digitize their operations at a scale that’s never been seen before. On the surface, digitization efforts clearly help to reduce human contact and slow the spread of COVID-19 (contactless payments, anyone?). But digitization also helps businesses save time and costs, an effort that is more important than ever given the blow that COVID-19 dealt to the economy.

One way companies can digitize payroll operations is through implementing a Pay Experience that empowers employees to access their earned/unpaid pay anytime and enables payroll teams to digitally disburse off-cycle payments and more. But to maximize the benefits of a Pay Experience, it’s critical to choose the right vendor. Some on-demand pay providers, for example, require your payroll team to take on additional workstreams. In order to make sure that your organization has a positive experience with on-demand pay, be sure to choose a provider with a recognized gold standard approach to service, flexibility and compliance.

One category of on-demand pay providers that you should carefully consider? Payroll companies’ digital wallet products like Ceridian Dayforce Wallet, Branch, Gusto and others. While it could be tempting to “bundle” your on-demand pay solution with your existing payroll provider, there are a number of issues that arise if you choose to partner with a company that is not 100% dedicated to on-demand pay.

With no support function, expect more questions from employees daily

When it comes to an employee’s pay, questions and concerns are inevitable. For companies without on-demand pay, such inquiries are likely to come around payday. But because on-demand pay makes an employee’s pay available anytime, questions and support can also spike anytime. And if you partner with your payroll provider to offer on-demand pay, your employees will come to your payroll team for help, just as they have always done.  

Alternatively, if you work with a third-party vendor who is fully dedicated to providing on-demand pay, that vendor will have a robust user support system in place. Without one, every week your payroll team can expect to service:

  • 78 new calls
  • 10 new emails
  • 10 new chats

for every 1,000 employees at your organization (assuming 100% adoption of the benefit).

Ceridian Dayforce Wallet and Branch On Demand Pay digital wallets

If your payroll team does not have the capacity (or willpower) to handle an influx of employee support inquiries, your organization may need to look into hiring additional team members. According to Glassdoor, the average call center representative’s annual salary is approximately $28,499. 

If your team isn’t interested in taking on additional workstreams or hiring more staff, choose an on-demand pay provider who handles employee support. DailyPay is proud to offer a dedicated team of call center representatives that includes: 55 dedicated Tier 1 Support agents (across 2 locations). This team handles all inbound communication across multiple channels: email, phone, chat. Additionally, we have 5 Tier 2 Support specialists (across 2 locations) who handle more complex user/client questions.

Employee restrictions lead to increased support tickets

One fundamental problem with payroll digital wallets is their lack of flexibility. In these offerings, employees are typically given a pay card or a prepaid card that they can use to access their earned/unpaid pay. While it’s usually free to transfer early pay on to these program cards, employees are then nickeled and dimed for moving the funds to a different destination account, using an out-of-network ATM, or when requiring a replacement card.

This lack of flexibility — and the frustration it can create — leads to disgruntled employees calling in for help. Alternatively, vendors like DailyPay who allow users to send funds to any destination account do not have to handle such issues. 

Employee education support

Rolling out an on-demand pay program is no easy feat. But if you work with the right on-demand pay provider, they should handle most of the heavy lifting for you. That’s exactly our approach at DailyPay. We’re committed to offering Total Excellence throughout the lifetime of our partnership — from implementation to kickoff and ongoing support. 

When you launch, we proactively disburse marketing materials to your workforce, which we are happy to customize for your company. You’ll also have a dedicated account manager throughout our partnership.

Payroll companies offering digital wallets typically provide a standard “toolkit” to roll out the benefit — not a customized approach. Because payroll companies’ bread and butter is payroll software — not on-demand pay — they are typically less involved in helping you with an “add-on” product.

In conclusion …
… if your organization is looking to implement a daily pay benefit, be sure to choose a provider whose model won’t create additional work for your payroll team or incur unexpected costs for your business. On-demand pay, when done right, should help your organization to save time and money — not add to them.