DailyPay will improve your bottom line. It’s that simple. It helps push employees toward higher productivity and better levels of engagement.
With benefits for both employee and employer, we know that this sounds too good to be true. Let us explain.
In order for your employees to take advantage of DailyPay, they need to enroll in direct deposit. Improving your direct deposit enrollment rate can be a hidden payroll savings.
Paper checks can cost anywhere from $4-20 between supply costs, processing, and shipping. Reducing this cost improves a bottom line for businesses that already operate on a tight margin.
Additionally, when your direct deposit enrollment rate is high, you can eliminate “payroll manpower”. Whether that means reducing the cost of a bookkeeper who manually prints checks, stuffs envelopes and make trips to the post office, or allows you to reallocate the time of a team member who wears multiple hats, direct deposit turns more of your revenue into profit rather than operating expenses.
There are more costs to payroll than supply and staffing expenses. It costs money to actually run payroll, too. Payment schedules are a highly debated topic. Employers must balance the expense of payroll with the need to keep your employees happy. SurePayroll suggests that while base account fees vary widely from one provider to the next, you can expect to pay anywhere from $20 to $100 per month, plus an additional $1.50-$5.00 per each employee per each time payroll is run. For a company with 500 employees, this can add up to $5,200 each month, if you run payroll biweekly.
The more you run payroll, the faster these fees add up. If you can limit the number of times your employees are paid, you're saving money. One way to limit the number of times you run payroll, and still ensure your employees have access to their earned wages, is with DailyPay. You can add more space between your payroll events. This is especially valuable if you run payroll weekly, which would double the ancillary fees described above.
Keeping employees happy and positions at your company filled is a unique recipe. One ingredient is the company culture. Most businesses recognize that perks are a way to differentiate you from other similar opportunities. Perks have gotten flashier and more expensive. It’s not suitable for every business to cater breakfast every Friday or offer unlimited PTO. Still, perks can be the difference between “just a job”, and an opportunity to be a part of a company that treats them well.
Employees will work harder to keep their spot on the company roster when given the right treatment. DailyPay is a great solution for a solid company perk, that doesn’t come with a high price tag. DailyPay is free for companies to use.
When morale is high, employees start to feel a greater sense of accountability. They are working to earn their keep in the company. In fact, a recent case study we conducted shows that companies who use DailyPay have seen a 41% average reduction in turnover. Additionally, 73% of DailyPay users say they are more motivated to come to work. Improved productivity and decreased turnover are both directly related to an increased bottom line.
The United States is experiencing a tight labor market. There are more jobs than employees. This means companies have to work harder than ever to attract top talent.
Turnover and recruiting are two of the largest expenses a company must endure outside of wages. It can cost around $16,000 to replace an employee who earns $40,000. DailyPay is a recruiting tool that works. We have found that people are 1.9 times more likely to apply for a job that pays daily than a job that pays weekly. An increased applicant pool saves your company money and time on the recruiting process.
It’s not uncommon for business owners to face the topic of employee loans or paycheck advances. It’s difficult to be put on the spot for this need. And, the decision to say ‘yes’ or ‘no’ can be complex.
If you do offer an employee loan, you need to assess risk. Can you trust this employee will pay you back? It can be difficult to create a standard for who can ask for an employee loan or how often you’re able to dole them out. For many businesses, the easiest solution is an across-the-board ‘no’. This inflexibility from an employer can be detrimental to a company culture and productivity.
Employee loans can also be associated with a slew of hidden tax implications that are easily overlooked. Mistakes on employees loans can wind up costing a company money in fees and penalties.
To avoid this hidden bottom line buster, DailyPay can provide your employees access to earned wages whenever they need. This can greatly reduce the requests for paycheck advances and employee loans that you are faced with each year.
If you want to learn more about how DailyPay can work in your organization, reach out today!