Module 3

Implementing and Managing On-Demand Pay Solutions

Planning for an on-demand pay implementation involves 5 key considerations that are covered in this module.

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During the implementation stage in the on-demand pay process, you’ll most likely need to assemble a core team of planners and implementers that span HR (employee experience), payroll (process and compliance), IT (integration and implementation),
your HCM provider (integration, implementation and process) and your on-demand pay provider.

In this module, you will learn about these 5 key considerations when planning for an on-demand pay implementation:

  • Industry experience
  • Vendor partnerships
  • Testing strategy
  • Security
  • Training and support

Let’s take a closer look at each of these.

Industry Experience

It’s important to understand if your on-demand pay vendor has experience working with other clients in your industry. Each industry has its own set of unique considerations that must be evaluated and planned for, prior to beginning your integration.

Here are some examples of questions you may want to ask for three specific industries:

QSR and Restaurants

  • How are credit card and cash tips handled?
  • Can multiple pay rates (regular, OT, etc.) be reflected in an employee’s available balance?
  • Are employees able to access their tips through the solution for free?
  • Are reported hours required to be approved, or will the vendor accept unapproved hours?
  • Are employees able to work in multiple locations and access their pay from each location?

Health Care

  • How can your on-demand pay vendor help support your commitment to Electronic Visit Verification (EVV)?
  • Can multiple pay rates (regular, OT, etc.) be reflected in an employee’s pay balance?
  • How often is your on-demand pay provider able to update each employee’s pay balance? Daily, hourly, real-time? Given the 24-hour nature of health care, being able to update an employee’s pay balance in real-time can be a differentiator.

Staffing Industry

  • Are your employees’ hours entered on a daily basis or at the end of each week/period? If hours are entered at the end of the pay period, will your on-demand pay vendor be able to make funds available?
  • Are employees rarely terminated in your system? Is your on-demand pay vendor able to support this?
  • Can the vendor provide access to other common staffing expenses (e.g., mileage, per diem, etc.)

Payroll/HCM Vendor Partnerships

Payroll/HCM vendor partnerships will help to reduce your time to launch and the level of effort required during your on-demand pay implementation. If you’re able to work with an on-demand pay provider that has an established relationship with your payroll/HCM provider, you can trust that the heavy lifting will be handled by them, easing the support that’s required by your team.

Testing Strategy

When preparing for an on-demand pay integration, it is essential to understand the testing and validation process your on-demand pay vendor will deliver in partnership with your team. Your on-demand pay vendor must be able to meet the same standards you set for all of your third-party integrations. Some examples can include:

  • Unit Testing
  • User Acceptance Testing (UAT)
  • Data Validation

Security

In order to power your on-demand pay benefit, your vendor may be required to collect basic information about your employees. It is important to confirm that your vendor is only collecting information that is essential to the integration and operation of the solution … nothing beyond (e.g. SSN, birthdate).

Additionally, you will want to make sure that your employees’ information is being exchanged securely via sFTP and/or API. You should confirm that your vendor supports industry best practices such as PGP encryption and Single Sign-On (SSO), to ensure that the proper security measures are in place to ensure employee privacy. Proof of the highest levels of employee data privacy and protection should be a critical consideration in selecting an on-demand pay vendor.

Training and Support

On-demand pay may start with the implementation, but it is essential to consider the type and timing of training and ongoing support that your team will receive. In order to reap the greatest benefit from your on-demand pay program, your admin team, managers and employees must understand how it functions. Additionally, you may want to ask if your vendor has a “set it and forget it” approach or if they will be available to provide support to your admins and employees throughout your
partnership.

Key Takeaways

Planning for an on-demand pay implementation involves key considerations in terms of internal staffing requirements, working with both the vendor and your payroll/time and attendance systems vendors and testing strategy to determine if all is working as it should. Ensuring the highest security standards to protect employee data and privacy should also be carefully evaluated to protect employee information.

Consider these key project milestones that can be used in the development of your project plan as a starter set for project managers, based on a best practices approach.

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:

  • How do you ensure that employee data and privacy are protected?
  • What security standards do you have in place?
  • Can you provide a RACI chart that delineates responsibilities for both your company and our company for this program?
  • What does your standard implementation plan look like, including roles, resources, time provided by your organization, and what would be required from our organization?
  • How long does it typically take for a company our size?
  • Would any time be required by a third-party supplier?

Receive the Sample On-Demand Pay RFP