Module 5

The On-Demand Pay Scorecard

How will you measure the success of your on-demand pay program? The 6 steps in this module provide some guidance.

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If you’re looking to implement an on-demand pay solution, you probably have a good idea what goals you hope it will achieve — both for your employees and for your company.

In this module, you’ll learn about six steps you can take to help you measure the success of the program.

Step 1: Decide on Your Goals

Prior to launching an on-demand pay program, define what you’re implementing the solution to solve for and what you want to accomplish. These program KPIs should be established well before program launch. Most employers who offer on-demand pay want to see a boost in employee recruiting, retention and employee financial well-being that leads to increases in productivity and engagement.

Action item: There are a number of key elements that you need to evaluate in terms of the on-demand pay user experience, including:

Step 2: Measure Your Adoption and Enrollment Rate

For an on-demand pay benefit to have the best chance of success, it’s important to achieve high adoption rates. Many organizations improve adoption rates by sending frequent reminders, arranging training sessions and tracking individuals who have been reluctant to hop on board.

Action item: Your on-demand pay benefit provider may track enrollment for you, but it’s good to keep your own internal numbers. A “healthy” enrollment rate is generally considered to be 30% of your eligible workforce and above

Step 3: Compare Benefit Data With Other Internal Metrics

The success of offering an on-demand pay benefit requires more than just a high adoption rate. Measuring how often employees access the benefit is equally important. Determine how frequently employees log in to their on-demand pay account or withdraw funds. How does the frequency compare to other voluntary, company-sponsored benefits? Which are used most often?

Action item: Find a provider that makes it easy to track usage trend reports. Compare these figures to your other internal benefits when possible.

Step 4: Evaluate the Benefit ROI

Remember setting a goal in Step 1? It’s time to see if your on-demand pay benefit helped to achieve the goal. This is also the time to observe ancillary changes. Has the recruiting process become smoother? Is the workforce more engaged? ROI may be quantitative or qualitative.

Measure changes across these different areas to determine if on-demand pay has had a positive effect on ROI:


  • Employee productivity
  • Employee absenteeism
  • Customer experience (NPS), sometimes called OSAT/CSAT for retailers
  • Cash shrinkage

Human Resources:

  • Team member satisfaction (eNPS)
  • Average annual company turnover


  • Time to hire (From application to first day worked)
  • Average number of applicants per posting
  • Recruitment costs per new hire


  • Reduction in paper checks
  • Increase in timecard compliance

Program Maintenance:

  • Number of hours required to support employee program questions
  • Average time spent making payroll deduction corrections
  • Money spent on creating communications material to support program adoption

Action item: The easiest way to track a return is through control groups or comparisons pre- and post-launch of your on-demand pay program. For example, if your on-demand pay benefit is optional, measure the turnover rate of those who enrolled in the on-demand pay benefit vs. those who did not enroll.

Step 5: Get First-Hand Feedback

Measuring employee experience as a result of offering on-demand pay will help you understand if and how the benefit is helping your workers. Does the on-demand pay provider you’re considering measure employee satisfaction? You can also conduct your own internal eNPS and Pulse surveys to gather anonymous feedback that will help you gauge employee satisfaction. In this case, deploying a survey is an excellent way to see if employees are happier because of access to their pay on-demand.

When creating these surveys ask specific questions like:

  • What do you use the benefit for?
  • Has the on-demand pay benefit reduced stress or improved financial well-being?
  • What changes would you make to the benefit?
  • What has your customer support experience been like?

Action item: Send your employees an eNPS or Pulse survey to see what they think about the on-demand pay benefit. Measure customer satisfaction to monitor improvements you might see with increased employee engagement resulting from your on-demand pay solution.

Step 6: Learn From Your Findings

The data you gather in the previous steps should help detail how well your employees have received the on-demand pay benefit. As your business changes and grows, it’s important to continue to review benefits and suppliers. What works today may need adjustments in the future.

On-demand pay isn’t a “set it and forget it benefit.” In order for it to truly make a difference in terms of employee financial well-being and your bottom line, it needs to be continually nurtured among employees and evaluated in terms of the tangible ROI benefits it is providing.

Action item: Review your on-demand pay benefit program annually. Part of your review should include research on the current marketplace and new benefit solutions that could further enhance your employee experience.

Sample RFP Questions

When considering partnering with an on-demand pay provider, it’s critical to holistically evaluate each solution you’re considering in order to make the most educated selection. Thoroughly assessing the product experience for employees and employers, as well as security, privacy and compliance for each solution will help you choose the best solution for your company.

Questions to consider asking based on the teachings in this module are:

  • Does your organization provide customer support? If so, what are the defining success metrics?
  • Does your organization help to establish success metrics prior to program launch? If so, how do you work with your partners to establish these?
  • How frequently do you review the state of the partnership? Describe the items covered in the business review.
  • Does your organization provide dedicated account support? If so, how many accounts are they responsible for managing?

Receive the Sample On-Demand Pay RFP