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.
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.
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.
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?
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:
The customer experience (NPS), sometimes called OSAT/CSAT
- Human Resources
Team member satisfaction (eNPS)
Average annual company turnover
Time to hire (From application to the first day worked)
The 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
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.
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?
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