Reimagining Pay to Drive Success in the Post-COVID-19 Workplace

Webinar Series

Reimagining Pay to Drive Success in the Post-COVID-19 Workplace

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The workplace as we know it has changed forever. One of the key changes that has occurred is the way we work. Specifically, the idea of the workplace as we once knew it has been shattered. As we begin reopening, companies have the unique opportunity to re-evaluate their practices and to do things better. 

As HR teams are challenged to find new ways to operate smarter and more efficiently, they’ll look for innovative ways to implement sturdy, no-cost solutions that their employees will love.

Pay has traditionally been thought of merely as a transactional effort, but it actually can be a strategic lever. Every organization can take advantage of an improved pay experience to drive cost savings and efficiency, and increase productivity, while simultaneously helping employees feel financially secure and empowered, especially during this time. 

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Guest Speakers

Jeanniey Walden

CIMO

DailyPay

Cindy Eisenmenger

SVP Cash Disbursements

BrightSpring Health Services

In this webinar you will learn about…

  • Rehiring your workforce and doing it the right way
  • How to rebuild employee trust post-COVID
  • HR pain points during the pandemic
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Webinar Transcript – 62 minutes

David Rice (DR):

Hello everyone, and welcome today’s webinar titled Re-imagining Pay to Drive Success in the Post COVID-19 Workplace. My name is DR, I am the editor of the HR Exchange Network, and as always, your host for the day. Before we get started, I do just want to take care of a couple of housekeeping items. First, if you should have any technical issues, feel free to use the Q&A widget to submit any questions that you might have. I will do the best that I can to help you sort those out. That is the same widget that you’re going to be using to submit questions to our speakers, which will be taken at the end of today’s presentation. I encourage you to use that as well. As always, remember that [SHAM 00:00:42] credits are available for today’s session, details on that will go out after the webinar has concluded.

DR:

I think that is all the housekeeping items for now, so we’ll just get straight into it. COVID-19 has changed so much about the way work gets done, and the relationship workers around the world have with their employers. And with that in mind, I think this is a great opportunity for companies to rethink the way things have always been done. And one of those areas is at the core of people’s relationship with work, and that is pay. So to help us understand a little bit more of how we can rethink pay at post-COVID workplace, I’m joined by Jeanniey Walden. She’s the chief innovation and marketing officer for DailyPay, and Cindy Eisenmenger, she’s the senior vice president for cash disbursements at BrightSpring Health. Welcome, ladies.

Jeanniey Walden (JW):

Thank you so much-

JW:

… I’m so excited to be here.

Cindy Eisenmenger (CE):

Thank you.

JW:

Thank you. Great. Hi, I’m Jeanniey Walden, everybody, and I’m here from DailyPay, but I’m not the star of today’s conversation, Cindy is. I’m just here to add some context to a conversation with an incredible expert and a partner of ours that we’ve been working with for quite a while. So Cindy, thank you so much for taking the time to be here today and to share your ideas with us.

CE:

No, thank you. I appreciate the invitation and being able to discuss this product with more folks and spread the news.

JW:

Absolutely, absolutely. Great. We’re going to get started today and I will cover the agenda items that we have. As far as our agenda, hopefully you can all see that, is we’re going to talk about why pay experience is at the forefront of what we’re all calling the new normal. And I think many of you are probably getting used to whatever this new normal tends to be, even though it keeps changing every few minutes or every few weeks given the crazy twists and turns of COVID-19. We also are going to be talking about how employees are managing financial stress. And I think one thing to keep in mind throughout our conversation is, everybody on this call has an HR role in some capacity, so you’re very used to providing what’s great for your employees and looking at their financial wellness.

JW:

But what COVID has done for all of us is, it’s created a significant amount of additional financial stress. As I believe the number used to be 52% and now is 61% of all working Americans have been negatively impacted financially by COVID in some capacity, whether it’s a comprehensive layoff, whether it’s a temporary furlough, whether it’s a pay cut, or simply for a short-term furlough, even if it’s delay in unemployment checks. So I think something to keep in mind is that when you’re working with your employee, you’re working with the employee and their entire household, which could include parents, it could include college age students or even those right out of college, and it certainly probably includes some children in the household.

JW:

Then the third thing that we’re going to talk about is some great ideas that the experts like you have been doing to help create an employee experience that rebuilds trust in the workplace as we get back to that, especially in organizations where people have had to have been furloughed or laid off. And also look to reduce turnover as you’re bringing people back to work and dealing with the issue where up to 75% of your staff doesn’t return back from a furlough due to other health risk issues or they’ve had to find another job for other reasons. But Cindy, does that sound good to you?

CE:

Absolutely. Yes.

JW:

Alrighty. So then, I think we’re going to go ahead and get started with a poll question before we get into sharing some different insights and ideas. So Natalie, you want to run the poll question? Good. So we are going to look at, have you ever thought that pay could be an experience? I’ll give you guys about 20 seconds here and we’ll launch the results.

JW:

Great. I’ll give you guys about five more seconds.

JW:

Here we go.

JW:

Well, Cindy, check this out. Have you ever thought that pay could be an experience? 65% said yes. This is so exciting. This is the very first time that I’ve ever seen more than 30% say yes. So Cindy, you must’ve brought really all of the innovators to this conversation today. What do you think about this answer?

CE:

Wow. I was just thinking about, could pay be an experience? It absolutely can be an experience. I think that when we get into the more details of what DailyPay has to offer, everyone’s going to see this positive experience.

JW:

Yeah. It’s awesome. Before COVID, we were looking at all of the different areas from an employee standpoint that are experiential. And at DailyPay, we did this crazy test internally. We thought, you’ve got this new generation of workers, you’ve got millennials and you’ve got gen Z coming into the workforce and they grew up very differently. I am a gen X-er, so grew up differently then than I did, certainly. I’m a helicopter mom of a millennial and a gen Z, and it’s all about experiences for them. In fact, my 22-year-old said that she didn’t want a present for her birthday, she wanted an experiential trip that we could go on, we have to wait until COVID’s over for that.

JW:

But it’s fascinating in the workplace that everyone is looking to create the best experience, whether that’s workplace experience with safety, whether it’s financial wellness, whether it’s just community organizations. But at DailyPay, we did this crazy test, we took the funniest thing, the most boring thing in the world and said, “Can we create an experience out of this to test us to create experiences for our workers?” And we choose coffee, and we thought, “Okay, if you are a gen X-er or a baby boomer, any other generation than millennials and gen Z, with coffee, it’s pretty cut and dry. You get up, you have your coffee while you’re thinking about what you’re going to do for the day. And then the coffee goes in a cup to the car or in the sink or dishwasher, and you move on.”

JW:

But for this new generation of workforce of workers pre-COVID, coffee means so much more. It is truly an hour and a half experience. You wake up, you Slack, Yammer, Snapchat, Insta people to find out who’s got the best coffee. Then you order it online while you’re getting ready so you don’t have to wait in line. You add extra elements to it because it looks so pretty, so it’s worth an extra dollar or two. You walk right into the Starbucks for the piece, you pick it up, you sit down somewhere that you choose to be a very amazing place that you love, but you don’t drink your coffee yet. Even an hour after you started having your coffee experience, you actually take the most beautiful pictures of it because you spent so much time creating the cloud mocha cold frappuccino that you wanted to have.

JW:

And then you wait for other people on Instagram or Snapchat, or even on TikTok to respond to you, and you have a social coffee experience even individually. So if coffee can be an experience, one of the most boring things in the world, so can pay. And pay is the reason that we all come to work. So if you feel really good about the work you’re doing and you feel really good about the pay you’re getting, but it can have elements where it becomes an experiential part of your life and you can access it whenever you want to, imagine what it can do for productivity, for turnover, and ensure workplace satisfaction all together. So I’m excited to go to the next slide and share more about that.

JW:

So it’s been a crazy five months. For some of us in our industries that we work in, business has been booming. And Cindy, I’d love to get some perspective from you about what’s been happening over at BrightSpring. Some partners of ours like Kroger or Tractor Supply have really been ramping up and working on creating a powerful and safe experience for their employees. Other partners of ours, unfortunately some in the hospitality area and in restaurants have seen business declining until very recently. And now, it’s a very slow return to the new normal. But the up and downs have changed about almost everything we knew as a business operator and also as an employee.

JW:

At DailyPay, we created, and you see the link here at DailyPay Rehire Index, where we’ve been tracking eight different industries to look at the shifts in hiring both from a number of employees standpoint, as well as the average hours and not work, because we feel that it’s really important that we keep a track on what different industries are doing, how they’re experiencing the change due to COVID related issues, and more importantly, how they’re dealing with it. So what you’re looking at here is a spotlight on hospitality, hotels, and also healthcare. And you can see that there’s pretty consistent level of staffing until COVID hit and took people way down, lots of people were impacted by this negatively.

JW:

And then, started to come back up when the second wave of COVID hit, then we started to see a drop back down, and now thankfully, we’re seeing it build up again, very different than healthcare, which was somewhat stable until COVID and then we saw that huge need for essential workers and it dropped down. On the next slide, we take a look at two other industries that are seeing even different results. But Cindy, I’d love for you to talk a little bit about what you’ve been experiencing at BrightSpring from an industry perspective, how BrightSpring specifically has been impacted and how you feel compared to the rest of the companies in your industry that impact, is it the same? Is it worse? Is it better? And some of the things you’ve been doing to deal with that.

CE:

Thank you. Just to remind everyone, BrightSpring, we have five different lines of businesses, but we’re really a human services company. We’re a pharmacy industry, and we also do a lot of therapeutic and hospice and home care. So when you think about our world, we’re essential. And so for our business, we’ve had to really try to keep focus and engaged. It’s been a really scary time for our employees. Even though everything has been going on and governance has shut down states and those types of things, our business has not shut down. We still have to serve our clients because we are human serving humans. And with the home care, the hospice world, those things really, they don’t pay attention to a COVID pandemic.

CE:

However, it has increased some of our volumes for services and folks up. We’ve had to get used to the PPE world and those types of initiatives and make sure everyone’s doing the right thing to take care of our clients and take care of our homes and everyone that’s out in the community.

JW:

Oh, that’s really interesting. So have you found that other companies have been turning to for advice? Have you had to change a lot of the planning that you’ve done during the pandemic to adjust? Or has it been more internal business processes that you’ve had to work on just automating a lot of capabilities and features?

CE:

I think that the workforce itself is a little afraid and they’re scared because of the pandemic. And when you’re asking someone to go into someone’s home or a human in our lines of business, there becomes that awareness, afraid factor. Trying to keep employees engaged and trying to keep them still serving our clients, that’s been an issue for us. We’re not hiring as fast as we were wanting to hire. We’ve got a lot of open positions, but I think it’s just the pandemic in the world that people are really wanting to stay home and not wanting to get out and work because they’re afraid of the COVID virus.

JW:

Yeah, absolutely. I know. It’s hit us all differently. My hair dresser’s mother was in a nursing home, and unfortunately she did get COVID and passed away from it, so that changed my hairdresser and her family’s complete perspective on how they are dealing with the pandemic versus other families where they haven’t necessarily had personal tragedy. And then you’ve got my little old mom who’s in her 70s who has been doing nothing but sitting at home, taking her temperature three times a day, sure that she’s going to get COVID from doing nothing other than doing her temperature. But it’s very serious for so many people. And even a lot of the younger children that are out there today, especially, I’m in New Jersey, and we’re starting to see a lot of reports of kids, 15 to 19, they’re being affected with the virus.

JW:

So even parents are concerned about leaving the home as to what it might do to their family members, even if they’re really healthy. But I think COVID had just such a significant impact on everything that we do from a work, life perspective. We used to call it work, life balance, and I think we now call it work, life blend. When we are reflecting on the pandemic at DailyPay, we put together a video, it’s short, we’re going to show it here, just getting some clips from people that work at DailyPay and how their lives have changed a little bit. I’m going to play it because then after that, I do want to talk about some of the unexpected impacts that I think we are seeing and certainly get your perspective on that as well, Cindy. So let’s play the video.

[VIDEO]

Video:

We could have run when the world pressed pause, we decided to live and love life instead.

Video:

Hi, Nana.

Video:

Hi, Nana.

Video:

We’re on a bike ride.

Video:

Awesome.

Video:

We decided to create new ways to celebrate the ones we care about, and discovered new heroes to cheer on. We are strong, we are resilient. We don’t give up. So as we go back to work, we now have an opportunity to give what is essential to the essential worker. We get to choose to do it right, and we are resolved to do it all different, to live different, to work different.

Video:

Excited to start another week.

Video:

To pay different, because life doesn’t stop between paychecks. DailyPay, Pay Different.

JW:

Awesome. Thanks for sharing that video clip, team behind the scenes. What we really have been taking away a DailyPay since the pandemic is whether you are in an explosive hiring situation like grocery stores, delivery companies and even the home healthcare and healthcare industries are, or whether you’re in an industry that is more subdued and having to pull back right now, you’re employees are of critical importance to you. Everybody that we work with at DailyPay, we work with hundreds of companies, has been talking about the same types of trends, which is, “How do I maintain my employees trust even if there’s a temporary furlough? How do I attract and retain new employees if I’m in an essential worker scenario for health reasons?”

JW:

“How do I make them feel like they’ll be protected, they’ll be safe and appropriately reward them for the critical health that they’re doing? And what can I do in the long term that also is more efficient than the way that we’ve been doing things in the past from a company perspective, and either help save the company money to the bottom line or possibly have to save the company at the bottom line, because what we’re crunched in all these scenarios?” So I think from a business perspective, those are the things on the forefront of the HR experts and leaders minds that we’re hearing at DailyPay. Cindy, I’d love to ask you if those are the types of things that you’ve been thinking of throughout this crisis.

CE:

Yeah, it has been. And I’m going to just throw this out that at BrightSpring, we knew COVID was coming and we really did a lot of planning. I’m going to say we were ahead of this pandemic as much as anyone could be. But we included exactly, “How’s this going to affect our employees? Will our employees be able to get paid?” We knew that we could offer the DailyPay product and that folks, they could get their pay every day if they needed to or wanted to. If they come to work, we can pay them. Yes, it’s a pandemic, however, we can still pay the employees. And DailyPay was part of our solution for our employee satisfaction and to be able to offer that, that was part of our plan.

CE:

That was part of our COVID plan was, DailyPay was our partner, and we could bring our people to work, and if they needed groceries or whatever they needed, they knew that they could be paid that night for that.

JW:

That’s fantastic. And I’m so glad and grateful that we could be part of your plan and for a lot of companies pre-COVID that we’re working with us. We were a part of many people’s COVID plans during the crisis. We’ve seen many companies accelerating adoption to doing something because one of the biggest changes that’s happened over the last five months is family finances have just been thrown up in the air. And we’re very fortunate at DailyPay because with our millions of users, all of the employees, when they’re taking money out, they have an option to write why they’re taking money out. And we started to see some really interesting trends that shifted at the beginning of the pandemic to pandemic preparation. I’m looking for more PPP, whether it’s masks or hand sanitizer, until now, where it’s really they’re covering the costs of their roommates, half of the rent because the roommate lost their job.

JW:

So one of the biggest changes over the last five months was in a way that family finances, how stable they were. We did a research report with a company called Mercator in December of last year, and they came back and said that the number one reason causing financial stress is families and people are concerned that they will not have enough money if an unexpected medical expense arises. Now, here comes COVID, and for many families it shifted a lot. But out of all of this, there’s been so many companies that have stepped up and not only offer DailyPay, but also have offered a number of other creative solutions around the realm of pay to help create a positive experience, to reduce stress in the workplace, and to give people, employees a feeling that the company is there for them, that they care for them, that we’re all going to get through this together.

JW:

You’re looking at a number of logos of companies, including BrightSpring’s, who have really stepped up and gone above and beyond. And just some of those ways that they’ve done that are to offer certainly DailyPay, but some companies have offered zero-interest loans for short period of times to cover their family needs when somebody else in the household is applying for unemployment, but the benefits haven’t come through, or potentially a furloughed employee has applied for unemployment benefits and hasn’t gotten paid yet just because of the delays. Other companies have offered, many companies during furloughs have covered the full cost of medical insurance to make sure nobody needs to go on COBRA.

JW:

Other companies have provided different stipends and checks. I know at DailyPay ourselves, during the pandemic, we actually get a lunch stipend through Seamless, which is amazing, so that at least the employee can order lunch for free and still be taken care of by the organization without having to feel that financial crunch coming out of pocket. We’ve hired a personal trainer that does online workout classes three times a week. Her company name is Bell Fitness, and she puts on different classes and uses our Slack channel to give us healthy eating suggestions and work one on one with people so that people are also just not sitting around. And when we are quarantined in our homes, we can at least get some exercise and very positive movement.

JW:

That’s replaced the gym membership costs for a number of people at our company, and I know that of the other companies listed here, there’s been additional incredible benefits, including home office stipends and different meditation classes. And there’s a whole slew of things that are focused on both personal safety and financial wellness in the workplace. Can you tell me some of the stuff that BrightSpring has been doing for the employees to help them stay motivated through everything that’s been happening?

CE:

Well, you’ve got to remember, we’re very decentralized and we’re in either someone else’s home or in our homes, and we’re people, families serving families or people serving people. We have really tried to make sure that our employees are okay, that they’re not afraid to get out, they have everything that they need to do their job and do them adequately, and to make sure that our clients are okay as well. You were talking about the different things that DailyPay had been offering in the other companies. When you’re decentralized and you’re in our type of business, that’s a little tough to do. So really, the reassurance of them knowing that we’re here for them and if they need something, they can reach out to their managers or their supervisors.

CE:

There’s been things like lunches brought in and those types of things, but really to say that there’s been yoga classes or things like that, that really doesn’t happen in our world because you got to remember where a lot of home care and hospice, and we’re trying to keep the employees engaged in taking care of their clients.

JW:

Yeah, absolutely. Absolutely. And I think by you putting that almost over-communication in the marketplace to show your employees how much you care about their personal safety, and then also for the people whose homes that they’re entering, it is so critical. I know that one of our channel partners, a company called Viventium had all their children, so if you worked there and you had kids, pulled together and create just greeting cards to send to some of the hospices and some of the home health care facilities to just let people know that there is somebody out there to care for them. And another company that we work with actually had employees go to some of the home healthcare locations and tie balloons outside of the windows for people so that when they looked outside, they could at least get a little breath of fresh air.

JW:

So I think it’s fabulous to see all of the goodness and kindness that’s coming through at this time, because it’s so important to keep everyone’s spirits lifted. And it is such a very different way of looking at the world than we looked at it even five months ago. So as I mentioned, we’ve watched all of the data and we looked for all the trends, and on this next slide, what you’ll see is that at the beginning of COVID from a DailyPay perspective, for those of you who don’t know, DailyPay works with employers to allow their employees to have access to their pay as soon as they earn it so they can take it out when they earn it instead of having to wait for a company-scheduled pay day.

JW:

And in many cases, that allows employees the financial freedom to choose when they need money to put themselves in the best financial situation possible. And before the pandemic, I think a lot of companies chose to offer DailyPay in the on-demand, pay space to their employees because sometimes you need help in between one paycheck or another, there’s an unexpected expense, you get into a fender bender, your pet gets sick, your child gets sick, your car gets towed, you run short on gas just a day or two before payday. And what we started to see during the pandemic was something very different.

JW:

We started to see a tremendous number of employees, not employees who live paycheck to paycheck, but employees who make larger dollar amounts, some that even in the low six figures, starting to see DailyPay to almost stockpile. So we started to see them being very grateful to have early access to their pay, not a loan, they’ve already earned it, so that they could buy masks and hand sanitizers, especially for those essential workers. We have a girl that works for Leavers, where she runs a gas station and a grocery store that sent us a voice message saying, “Thank you so much for giving my employer DailyPay because I’m able to buy masks and hand sanitizers, not just to keep myself safe, but when people are getting gas, when nurses and doctors and other essential workers are having to fill up, if they’ve run low on supplies, I can give them something too, so I feel like I can give back, which is legit fabulous.”

JW:

So we saw that type of initiative in the beginning, people were stockpiling on toilet paper and Lysol wipes and water and treating it a little bit like it was Y2K and really going overboard. Some people were grateful, they needed the money to pick their children up from colleges or LA, or these things, get their kids home from some other locations. But then we started to see a shift after we were all in the hardcore quarantine, where people were focused on really maintaining the new lifestyle of doing everything remotely, unless you had to go to work. And because you had more family members at home and extended time periods at home, we started to see a significant shift of people who were really focused on increased costs around grocery, and interestingly enough, around their cell phone bills.

JW:

We started to see a lot of people running out of data on their data plans because they were streaming a lot more than they expected to, or they had three or four computer streaming as maybe two people in the household were working while you had some kids doing online school. So we saw the need and the shift change, and again, a very broad set of workers, up to 80% of the employees in a company, we’re starting to use DailyPay. And then we happily started to see a decline in the usage for COVID related expenses through the end of April. But I will tell you, beginning in May, we started to see an increase again, as I mentioned earlier, not to because they personally needed to buy more PPP or they themselves were impacted with COVID, but because another family member, a household member, could be a roommate or a spouse, a significant other, or even just an adult child was financially negatively impacted by COVID.

JW:

And the working person was needing to access their money a little earlier to help bridge the gap until the other person in a household could get back to a traditional contribution level and get back to managing things. So we found that very interesting and also a little bit shocking to ourselves, and it gave us a different perspective. Cindy, I don’t know if you’ve seen any types of trends in BrightSpring at all around the usage of DailyPay or just any conversations around employees or impact to household. This is just what we are seeing. I think some others are seeing this and others are just seeing business as usual.

CE:

I’m going to agree with all of that. In our world, with DailyPay, the majority of our employees are hourly employees and they truly just live paycheck to paycheck. So we’re seeing the same things that you are, it’s food, it’s rent, it’s gas. Our trends have mostly stayed the same before COVID to after COVID. And I found that enlightening that you are seeing the trends change a little bit, but the number one reason why our employees are using DailyPay is for food.

JW:

Interesting.

CE:

They know that they can work that day and that night be able to go get the money for that day that they had worked. And then they can go to the grocery and get their groceries, or whatever. And before DailyPay, they were going to a loan shop or whatever it was and paying those big fees to get the same amount of money, and then they would be in debt to that loan company. And now the DailyPay, they can discuss that automatically into their bank nightly or daily or ever how they want to do it. That’s been our biggest benefit is, our employees, back in the day, if you’d ever told me I’d have been paying someone daily, I would have argued with you that we would never pay anyone daily.

CE:

And now, we love DailyPay, and we use it as we onboard our new employees and we’re a fast-growing company, that’s a benefit that we offer our employees, is DailyPay. And we use those scenarios of gas, food, water, car repairs those are our main ones, but it’s just a good benefit. And yes, we are paying daily, and that’s unheard of in our industry.

JW:

Yeah, absolutely. Absolutely. And I love it. And I think behind the scenes, Cindy, tell everybody how much you had to change about your behind the scenes payroll process. It hasn’t been much, right?

CE:

We changed nothing.

JW:

Yeah, exactly. [crosstalk 00:33:06].

CE:

We process the way we do, there was no back office change, there is no timekeeping change, everything works the same. We process our payroll for folks that have elected to use DailyPay and have taken the advances, their pay goes to DailyPay, DailyPay takes up the portion that they’ve advanced and they send it on to the employee’s bank account. It’s a nonevent, our employees love it, and we love it from a processing standpoint.

JW:

Yeah, absolutely. And I think it’s great. When we created the DailyPay product, we’ve got five different products in the platform now that pay, which is some of what we’re talking about was intentionally designed to have absolutely no change in the payroll process. So when I took this job, I left Mercer, which is a huge HR consulting company. And I quizzed Jason, who’s our CEO for a long time because I said, “Okay, let me understand that.” It costs absolutely nothing for the employer, there’s no PEPM, they change nothing about the backend. They’re going to reduce turnover, their employees are going to be happier and they’re going to be more productive. Like, “Why isn’t it just everybody automatically gets this as a benefit?” But it’s pretty fascinating.

CE:

And there’s no upfront cash for the employer, you hang on to your cash, but you do have payroll. It’s a non-advanced, and it makes the employee satisfaction, just goes a long way with the employers, and it’s something that we can offer and help retain our employees because we can pay them daily.

JW:

Yeah. BrightSpring has seen some significant decreases in turnover using DailyPay. I’ve heard the numbers behind the scenes that you don’t need to share them, but because of that reduced turnover, you’re saving tons of money on a monthly basis because you don’t have to go out and recruit and onboard as much because of the reduction in turnover, right?

CE:

That is correct. And then also reduction of turnover, but then that leads to employee satisfaction, which leads to the care of our clients. We want our employees to be happy because then they’re going to take care of our clients, and that just makes for a good relationship all the way around.

JW:

Yeah. That’s fantastic. That’s fantastic. I see that we’ve started to get a few questions coming in about DailyPay and things that it offers, please do send lots of questions. They are going to save a good bit of time at the end to go over all of the questions. So please keep sending your questions in and I appreciate that we will answer them. But I do think we wanted to ask another polling question right now. So Nat, you want to run that poll question?

Natalie:

Yeah, absolutely. For our second and our final polling question is, how many of your HR priorities have shifted due to COVID-19? We have the options of all, most, some or none. You’ve got about 20 seconds.

JW:

We have some answers coming in, we’ll have to see if they were all as ahead of this curve as BrightSpring and Cindy team was. I’m going to go five more seconds. Here we go.

Natalie:

Jeanniey, that looks like most was the most answered with 47.7%.

JW:

Yeah. Wow. That’s really interesting and along the lines of what we were expecting. I think for many of us, our priorities have shifted, we are now focusing much more on our employees, taking care of our employees while also being good corporate citizens can be fiscally responsible or taken into consideration. And as we think about it and what’s coming up in the future, we put this little 8-Ball here, we call it the Magic 8-Ball, because I don’t think any of us know while it would be fantastic to be on this conversation today and say that it worked real to see that COVID is winding down, that a vaccine is out and that we’re all getting back to whatever this new normal is with all of the shifts in the virus and the trends now shifting to younger people.

JW:

I even saw in the news today, the first cat in the UK has been diagnosed with COVID-19, who knows what’s going to happen next. But one thing is for sure that the role that each of you as HR leaders and experts play in making sure that your employees feel like they are valued and trusted goes a long way, and focusing on doing something positive about their pay can make a huge, huge difference as you continue to hear from Cindy. So let’s talk about what matters most for every company to succeed in. And it is certainly your people.

JW:

Cindy, you said it eloquently, I love it, that your focus is so much about making your employees happy because that translates to better care was the people’s homes that they’re going into, and what the recipient of the care that your employees give them. I just think that that’s an incredible value to have and add so much to the meaning of going to work and definitely being an essential employer. At BrightSpring, you’ve done a phenomenal job of doing that through every aspect of the business that you’re doing and we really want to say thank you to you for that. And I’m sure all of your clients and your end users are very appreciative as well.

JW:

Unfortunately, it’s not so pretty in the rest of the world and some of us are having challenges. This recent headline from Airbnb was crazy. I think the reality is that for many companies, there’s a tougher road ahead, Airbnb was like a family until the layoffs started. And this speaks to how a very positive company and office culture can just be destroyed when business impacts create financial changes that don’t support all of the employees. And at DailyPay, we constantly are doing different round tables and conversations with HR leaders and experts to see what’s happening.

JW:

And one of the things that we heard was that, well, actually two things that we heard, one was, a manufacturing company had to put a safe word into their employees hands because of the increases in the areas they were in with domestic violence. And they actually got to the point where they gave all their employees a safe word, and if you emailed, texted or said the safe word on a conference call, then the company would know that they need to send somebody to your home to provide some domestic help and counseling during this time. And that’s just heartbreaking, but at the same time, great that companies are stepping up and being so perceptive about that.

JW:

Another change that we heard was happening in companies were, companies were starting to see that people inside the organization who were not furloughed or laid off didn’t want to come to work anymore because they knew the financial status or situation of other employees, and they actually started offering their roll up so that another employee of theirs could still keep their job because they knew how would the financial needs and necessities were, which posed a very interesting set of challenges for this organization as far as making decisions on who got to stay, who has to be furloughed, who is actually laid off.

JW:

So for all companies that are out there that are looking at how to make a difference, on this next slide, we have pulled together a number of resources, and I believe we’re sharing all of these slides and the top five priorities of what you can do. Cindy, from our side of DailyPay, based on what we’re hearing, we’re listing top five priorities are; over communicating with your teams, letting them know what’s happening, pending changes, successes that are happening, implementing contact lists and touch list. I’ve had a number of companies tell me they never thought that they could run their call centers remotely or process insurance claims remotely, but they found ways to do it using cell phone cameras in certain cases to get started when the embracing mistakes and really being very clear with your executive team and leadership team on elements that you think were going to work and weren’t working or changes and decisions that you made that you need to turn back, investing in technology.

JW:

And most importantly, protecting your people safety, health, and financial stability. So Cindy would do out anything else to our list, or do you have any other comments to add about what you’re seeing for your industry or BrightSpring specifically?

CE:

I would agree with these top five things as well. And really, I believe the number one is over communication because if we’re not communicating to the employees and what is the expectations, and you’ll have an order of PTE coming in, communication I believe really is the number one thing. And then protect the people. Absolutely. You’ve got to protect your people, and then I agree with all five of these actually.

JW:

Awesome, good. Well, I’m glad we’re clever folks in the right area on the next slide because I do want to leave a lot of time for questions and answers. As I mentioned, we do have some resources that we’ve identified that might be helpful to you if you’re just trying to stay ahead of the curve with some upcoming changes or ideas about what you could do or just really to understand what others are doing. So we’ve listed a few podcasts, webinars, blog posts, white papers, and certainly our workforce index if you want to see who’s hiring, who’s not hiring, how those trends are adjusting because I can tell you firsthand, it does impact the supply chain.

JW:

A couple of weeks ago, we went to buy our daughter a new bike and this little local bike store was saying he had almost no bikes left in inventory because before COVID, coincidentally he had opened up a second warehouse and stock it full, and post COVID, everybody was buying bikes so that they could at least get some exercise and get outside, but nobody could get new bikes in because many of them parts came from China and the supply chain delays have caused a number of bike companies to just not have inventory. And then a couple of later, our air conditioning broke in our house right in the middle of summer, and it took three weeks for a new part to be delivered because of supply chain.

JW:

As consumers and as employers, I think we’re starting to see that it might not be our exact business or the company that we work for that’s having an issue, but those supply chains that provide us with food and gas and different elements that you wouldn’t even think of are being impacted. So understanding the impacts for all industries is key, and looking at some of these resources and staying ahead of the curve with insights, I think is also key. So you’ll get these links, so we’ll be sharing them with you. I did say that we would save about 15 minutes for questions. So we’re going to go to our final slide before we get into the Q&A, which is really just a quote from one of our team members that I would love to share with you.

JW:

This is actually from an employee and she said, “I’m a single mother of two kids. So I’ve used DailyPay when I needed to buy groceries. It makes me feel relieved knowing that I can have my hands on money at the time I need it instead of stressing to make ends meet.” And I think what you see here is really Cindy, what you were talking about, which is, employees need to take care of themselves. They need to take care of their families, groceries and food is of the utmost importance. And we do hear all the time that whether you’re a single mother of two kids, or whether you’re part of a working family, that being able to have the flexibility to get your pay when you want it to purchase the things that your family needs is key.

JW:

And during COVID, we saw a lot of senior citizens taking money out or high risk people taking money out to shop on off hours for groceries when they felt a little more safer at the grocery store. So this is what we’re seeing from DailyPay. But so before I opened it up for questions, I don’t know, Cindy, do you have any last minute thoughts or comments about COVID and the impact that it’s had on your focus with employees, anything along those lines that we can take away, the words of wisdom?

CE:

Well, I think that really what we were hearing every day is we don’t really know what COVID is going to end up doing or looking well. We all watch the news and we’re all are seeing the reports come out. We really have to be cautious and we really have to make sure that we’re protecting ourselves and protecting other people. And that’s just coming from my personal iceberg, but in my business world is, we’re all about protecting our clients and making sure they’re staying safe in our homes and hospice and the care that we have, and it’s a learning education for everyone. And we have to be prepared because if you’re not prepared for this, it’s not going to be a good outcome.

CE:

And I honestly have to say BrightSpring was prepared and we still are, every day there’s something new that comes out, new challenges or new opportunities that we have to either plan for or get out and do something. But our relationship, and this is coming from me with DailyPay has been great. To able to offer that to our employees at the time of the pandemic and crisis has made things a lot easier for people to come to work and know that they can get their pay, and outside of the pandemic also. But I believe, as you, this is seeing a bit that we can offer during the pandemic has even gone further, and then they will be using DailyPay from now on because they believe in it and they know it’s there for them.

CE:

And it’s just as easy as an app on their phone to go out and see what hours they have worked that day and to be able to get that money instant or that night from their bank account.

JW:

Thanks, Cindy. That’s fantastic. And I do have to say, a number of people have texted me and said, you’ve got such an altruistic approach to what you’re doing personally and at BrightSpring, and it’s really refreshing to hear that passion come through. So I think that’s fabulous and we’re so thrilled to have you as a partner. I know some of the questions are actually about DailyPay, so I’m going to jump in and answer them, and if there’s some that makes sense for you to take as well, then we’ll do that. One of the first questions is, does DailyPay offer other resources like how to budget and plan financially to make smart choices so eventually people don’t have to live paycheck to paycheck.

JW:

And the answer is, yes. What I can tell you is DailyPay, one of the biggest benefits that I have heard from companies using DailyPay is that they’ve seen an increase in productivity because of transparency into how much you’ve earned. And what I mean by that is it costs the employer absolutely nothing, and it costs the employee absolutely nothing to log in and just look at this app on your phone like Cindy said that shows, “Hey, you’ve worked three days, and so far you’ve earned $214.10. You have 12 more days left until your next pay period.” So you as a person for the first time, in many cases for hourly employees can see, “All right, I’ve earned 214. I have this many days left until my paycheck.”

JW:

And on the bottom of the app, we have a budgeting tool. You can either use your own budgeting tool, Excel, or use our budgeting tool to say, “All right, by the time I get paid, I need this much money. I better not call off next Tuesday.” Or, “When overtime pops up, I’m going to accept that extra shifts because my daughter has a summer camp coming up and it’d be great if I could make an extra $50 so that I could put it down towards her summer camp.” We’ve heard from many pre-COVID retail stores that their productivity has increased almost 300% or 3X because employees are calling off less, they’re calling out sick less.

JW:

The DailyPay users tend to pick up more shifts and they tend to pick up extra shifts and overtime because they can actually see the transparency versus trying to figure it out in their head and not sure if this pay period they worked 12 hours or 20 hours and when the actual cutoff is. So I think that that’s one of the benefits and also one of the features that we have. We’ve got the pay feature which we’ve talked about. We have three ways to save inside the DailyPay app. So when you’re taking out money, say you needed to take $18.23 out to pay off, a credit card before the next billing cycle so that you can avoid the finance charges altogether.

JW:

When you take that money out, we actually have an immediate, we call it roundup saving where it says, “Would you like to… At the same time that you’re taking out $18, put two or $3 away in your savings vault.” So for those people who are not able to get started in savings, when they take out the money that they can set even two or $3 aside, it starts to get them in the habit of saving, so that next time they come back to the app, the entire $20 is no longer available to them yet they’re saving money. So it starts to move them in the right direction. We have the ability to save on demand and then we have the ability for automatic savings. So you can say, “Every pay period, take $50, put it into my savings account, so that during that pay period, that first $50 I’d make isn’t even available for me to spend.”

JW:

And interestingly, I don’t know if your team is using it at BrightSpring very frequently yet or not Cindy, but what we’ve seen across the board is we see that this decreases the amount of time that people are using the pay feature. So they actually come off of pay-to-pay cycles and they move more into savings. And I’m happy to talk about that. I see more questions come here. I don’t know, do you want to add anything to that, Cindy or should I just keep rolling with the question?

CE:

The only thing I would like to is, we do know that based on talking to our employees, that they do pick up extra shifts because they will have a bill or something that’s due the next two days or tomorrow, and so they’ll ask to work extra shifts so they can pull more money from DailyPay and be able to pay that bill. That is a very true statement that happens in our industry quite often.

JW:

Yes. Thank you. That’s great. There was another question, how does DailyPay work with payroll providers like ADP? So to Cindy’s point, where you change nothing on the backend, that’s one of our company goals, no change management at all, so your payroll team doesn’t change a thing. As an individual, HR contributor with one person in payroll, you too can be the power couple that launched this and become heroes without needing any other resources. We actually have integrated with most payroll providers and time management companies like ADP, Kronos, Eventium on the backend. So it is simply if you’re working with ADP already, you’ve pulled the switch and the data files that ADP sends to you, they become available to us so that we can keep track of how much pay is available for your employees.

JW:

And again, it’s seamless and it doesn’t cost anything, ADP does not charge for that either, I believe. There are a few independent payroll companies and time management systems that will sometimes charge a connection fee, but in most cases, once the API is installed, then it’s a win-win for everybody.

CE:

Absolutely. It’s not advanced. We are an ADP client.

JW:

Oh, there you go. Great. That’s awesome. That’s awesome. And another question was, how does DailyPay earn income if it’s totally free for the employer? The only way we earn income, we don’t charge for our savings products, we believe it’s your saving, it should be completely for free. We don’t charge for you to see the transparency and how much you’ve made or to use the budgeting tools that also should be free. The only time that we charge a fee is if the employee is taking money out. And there’s two ways you can do it with DailyPay, one is to get your money the next day, and the second is to get your money right now, literally in less than 60 seconds.

JW:

And we’ve timed. We’ve even had people at gas stations on empty, signing up to activate their DailyPay account at the gas station, paying for gas while they’re there. So we know it works. There’s a $1.99 fee, if an employee wants their money the next day, and it’s 2.99, if you want your money instantly. So it’s less than an ATM, there’s no additional fees hidden on a pay card of any kind. So if you are using ADP and wisely, there’s no incremental fees for any of those pieces, it’s just that flat fee when you use it. And I know that someone has posted a question in here saying, how frequently do people use it, and do they use it like an ATM? And the answer is no.

JW:

We have very rarely, if at all, ever seen somebody come in and take 50 or 40 or $100 out every week like an ATM, we actually see very odd dollar amounts, $18.26, $112.11, dollar amounts that are typically the amount of a bill or as Cindy said, typically the amount of the grocery store for groceries. So people are using this for a specific reason. Some use it helping them to get through to the next pay period, others use it to get ahead. Some people have used it to pay down credit cards early to avoid finance charges and to increase their credit score.

JW:

We had a couple of people have told us they’re trying to improve their score to buy a house or a car, and so they were using DailyPay not because they needed to, but because they could pay their accounts down before the next credit score report was posted and that would boost their credit score. So we’ve seen that as well. Let’s see. I know that we only have just a few more minutes here, so let me just roll through these questions. How does DailyPay manage payroll practices that have to be compliant with California? We are compliant. The way that DailyPay processes on the backend is 100% compliant with all states, including California. We do not debit, and we do not process payroll deduction.

JW:

So some other on-demand providers process through a payroll deduction model or they debit the employee’s bank account directly, we do not. The reason that you don’t have to change anything about your payroll system when you’re working with DailyPay is because we’ve set everything up intentionally to be compliant so there is no constructive receipt, there is no tax implication, there is no compliance issues from a deduction model. And the person that asked that question, anyone else that’s asking, definitely get in touch with us, happy to share you, we have some best practice slides that go through that and in a lot of detail and explain how it works and how it’s compliant.

JW:

It looks like we have time for just another question or two. How does it work for paying arrears versus current? The way the DailyPay works is in an existing pay period, you must work the hours, it must come validated through your time management payroll systems, so it’s not me saying, “Hey, I typically make $300 a day.” Your payroll system is saying, “This person made $300 a day. It’s the same amount of money is available to them as if they quit that day and you had to pay them out their final paycheck. So you only get paid for the money that you’ve earned for that pay period.

JW:

At the end of the pay period, if you have not used DailyPay at all, you get your money through your pay check process, just like you normally would, and the DailyPay balance sets back to zero because you’ve just accessed all the money you’ve earned for that pay period, and you start to earn more money again as you continue to work. What we do not allow at DailyPay, we do not allow you to take more money out than you would receive in a paycheck. So you would never get a negative balance. So we do all withholding. So if you’ve worked enough hours to earn $100, we will know that. We will also know through your systems that probably about $20 needs to be withheld for taxes and other deductions.

JW:

So what you’ll see in DailyPay is, you’ve earned a $100, $80 is available to you. So you’ll never be able to take out that full 100 and then you get paid and there’s no way to pay for your taxes and your other benefits or child care, wage garnishments, things like that. So we work really closely with you and we have an algorithm that manages that process. All right. I think we are out of time almost. Cindy, thank you so much again, for all of your brilliant ideas. I think you’ve really lifted up this whole group and really inspired us with your great approach on how you give care to clients, to employees, it’s been amazing. So thank you so much.

CE:

Thanks for the invite, and I have really enjoyed it, and I’m glad I could share our positive DailyPay experience.

JW:

Yes, I appreciate it. Back to you, David.

DR:

That was a good talk. Thank you both, Jeanniey and Cynthia, we really appreciate you being here today. Everyone, if you have questions that did not get answered, don’t worry, we’ll be forwarding those to Jeanniey so he can answer them when she has next availability to do so. Make sure you take advantage of those resources in our resource list, and as always, keep an eye on HR Exchange Network for more webinars, online events and other content dedicated to keep HR practitioners at the forefront of change. Until next time, stay safe.

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