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Evaluating an On-Demand Pay Solution
This on-demand pay module provides information about four key areas in an RFP that you need to evaluate when considering an on-demand pay provider.
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At a Glance
When selecting an on-demand pay provider,evaluate various aspects of the experience for your company.
Consider the vendor’s experience when dealing with the regulatory environment.
Determine if the vendor has experience dealing with companies of your size and if they will meet your needs.
- Ensure the on-demand pay improves the overall employee experience.
- Evaluate the security and privacy standards and how they protect sensitive information.
The process of selecting an on-demand pay provider begins with a value alignment between your company and the vendor. You will want to ensure that the provider is dedicated to providing the best experience to your employees while partnering with your organization to achieve its goals.
This evaluation process is one that requires a tight collaboration across different departments in your organization, including HR, Operations, Payroll, Finance, and Legal teams. Bringing the teams together early to get buy-in and alignment on the evaluation criteria will help expedite and simplify the process later on.
While the full evaluation questionnaire can vary depending on your company’s objectives, the key areas of focus in evaluating a daily pay benefit generally fall into four categories.
In this module, you’ll learn about three key areas to focus on when evaluating an on-demand pay benefit:
- Employee experience
- Employer experience
- Security and privacy
Employee Experience
The product features should be thoughtfully designed for ease of use, giving your employees full flexibility to make the most of your program. Key questions to ask to ensure a positive employee experience include:
- Continuous coverage: Can employees use the benefit at any time, any place, and as often as they need to use it without restrictions?
- Immediate access: Can employees access and use the benefit on day one of their job, or as soon as they sign up for it?
- Instant transfers: Are transfer funds available in the user’s account immediately after their request or at a time of their choosing?
- Flexibility: Can employees choose to transfer up to 100% of their net income and can they send transfer funds to an account of their choice (bank account, pay card, debit card)?
- Employee support: Does the provider offer live employee phone support and other options (email, chat) for employees to resolve any issues they might have?
Employer Experience
Employer experience is equally as important to achieve success. Make sure that the on-demand pay solution isn’t adding burden to your payroll team. Ongoing support will minimize the need for additional resources after the product is launched. Key questions to ask to confirm a positive employer experience include:
- Compliance: Can the program ensure that there is no compliance risk to your company across all 50 states?
- Payroll processes: Can the program be implemented in harmony with existing systems, creating minimal disruption to your company’s payroll processes?
- Partner success: Is there a dedicated partner success team to ensure ongoing support and minimize resources required from your company during and after the program launch? If so, how do they measure success?
- Integration: Can the program seamlessly compliment your company’s existing benefits package, helping you to attract and retain talent?
Security and Privacy
What security features and protocols does each vendor use to secure employee personal and confidential information? As outlined in Module 1, consider key areas including:
- Data encryption
- Network security
- Access control
- Personnel management
- Constructive receipt
- State wage and hour laws
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 best choice. 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.
Receive the Sample On-Demand Pay RFP
