Can’t workers wait for the salary? ADP Adds Early Access to Pay for Thousands of Employers

Thousands of employers using ADP now have the ability to offer their employees instant access to their payroll.

The payroll giant announced Thursday that it has partnered with DailyPay, a company that offers a tool that allows workers to access their wages before payday. DailyPay is now available for employer customers who use ADP’s HR platform. ADP says the partnership aims to help employers “improve financial security and benefit from better employee retention.”

This partnership is the latest growth signal for instant payment apps, which employers are increasingly turning to to help employees struggling with financial security. Giving employees instant access to their earned wages instead of waiting two weeks between paychecks can help workers avoid expensive payday loans and avoid late fees, advocates say.

These problems arise as more Americans live paycheck to paycheck: nearly 20% of Americans save no part of their annual income, while 21% save only 5% or less. , according to Bankrate.

“Employers are increasingly interested in offering flexible payment options to meet the needs of their employees,” says Craig Cohen, Managing Director of ADP Marketplace. “Historically, other means of earning wages earlier could impose interest or penalties on the worker. The DailyPay solution, now available to our customers through the ADP marketplace, provides a responsible vehicle for accessing early compensation and is simple to deploy for employees as it is integrated with the ADP platform.

ADP and DailyPay partnership follows in the footsteps of last month’s partnership between HR software maker Kronos and the Even financial app.

See also: Kronos and Even join forces to offer employees access to payday advance

New York-based DailyPay gives employees 100% of their pay instantly; fees are paid either by employees or by employers if they offer the service as a benefit. It costs $ 2.99 for instant transfers and $ 1.99 for the next business day.

DailyPay works directly with around 100 companies, including Sprinkles, Vera Bradley and Westgate Resorts, but the ADP partnership will open the program to thousands of other employers.

21c Museum Hotels – a chain of contemporary art museums and boutique hotels based in Louisville, Ky. With 1,200 employees – has “seen increased recruitment and better employee retention,” since inception. DailyPay’s work on its employees earlier this year, said Andrew Lotter, its director of human resources.

The company has seen a 10% drop in revenue since implementing DailyPay in the spring. It’s also a big win among employees, according to a survey of 21c Museum Hotel employees: 86% said DailyPay helped them pay their bills on time, and 42% said DailyPay motivates them to go. to work.

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