Measure the Success of On-Demand Pay
How will you measure the success of your on-demand pay program? The six steps in this module provide some guidance.
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At a Glance
You probably have a good idea of what goals you hope to achieve with your on-demand pay program — both for your employees and for your company. Here are a few tips to get started:
- Set realistic goals and KPIs based on current benefit adoption.
- Determine the ROI across your company and regularly modify ROI for the best results.
- Get first-hand feedback on the success of on-demand pay and build on these findings.
In this module, you’ll learn about six steps you can take to help you measure the success of the program.
Step 1: Decide Your Goals
Establish your program KPIs well before launch. For example, most employers who offer on-demand pay want to see a boost in employee recruiting, employee retention, and financial well-being which all lead 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 which we’ll cover in this module in the next steps.
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 user adoption rates within your company. Many organizations improve adoption rates through in-person and virtual training sessions and consistent outreach through multiple channels like email, direct mail, text message, and company communications.
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.
Step 3: Compare Benefit Data with Other Internal Metrics
Measuring how often employees access the benefit is equally important as a high adoption rate. 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? Usage data will give you an understanding of how and when your employees access the on-demand pay benefit.
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: Get First-Hand Feedback
Measuring the employee experience with on-demand pay will help you understand how the benefit is helping your employees. 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 gauge employee satisfaction. For example, a survey is an excellent way to see if employee happiness has increased from 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 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 5: 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 additional changes. Has the recruiting process become smoother? Is the workforce more engaged?
Measure changes across these different areas to determine if on-demand pay has had a positive effect on ROI:
- Operations
-
Employee productivity
Employee absenteeism
The customer experience (NPS), sometimes called OSAT/CSAT
Cash shrinkage
- Human Resources
-
Team member satisfaction (eNPS)
Average annual company turnover
- Recruitment
-
Time to hire (From application to the first day worked)
The average number of applicants per posting
Recruitment costs per new hire
- PAYROLL
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 before 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 didn’t enroll.
Step 6: Learn From Your Findings
The data you gather in the previous steps should help detail how well your on-demand pay program is performing. 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.
In order for it to truly make a difference in terms of employee financial well-being and your bottom line, you should continually nurture and evaluate your on-demand pay benefit to ensure it’s providing a ROI and tangible improvements.
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 option 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
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