Time was crucial when the epidemic struck. There was a crazy dash to procure vital furnishes and feel ready for the unexpected, including toilet paper, hand sanitizer, and masks. This need for urgency, which pervaded all facets of people’s lives, emphasized the value of employers being able to get their paychecks when they require them.
Payments Journal talked with Jeanniey Walden, Chief Innovation and Marketing Officer at DailyPay, and Konstantin Getmanchuk, SVP of Products at DailyPay, to learn more about why HCM suppliers must provide their clients with an earned income access strategy.
What does HCM entail, and how can it be enhanced?
The recruiting, management and development of a workforce are referred to as human capital management or HCM. HCM is vital for any enterprise that wants to succeed. Despite this, many businesses struggle to hire, sustain, and involve their workforce. Workday is a cloud-based human resource management applications platform. It is well known for its ease of use and implementation as compared to the other human capital management frameworks. Get this Workday Training in which you will comprehend the concepts like basic navigation, landing pages, business objects, related action menus, slide-out tabs, search, hyperlinks, additional navigation topics, single and multi-select prompt fields, actionable reports, etc. for handling HCM.
New technologies are being used by payroll and HCM vendors around the board to boost their clients’ HCM services. On-demand pay solutions or Earned wage access (EWA) are one-way Human Capital Management vendors that can help businesses develop their HCM.
Employees gain from on-demand EWA that encourages employees to choose what they want to be paid rather than having to wait for a predetermined payment cycle. Employees and employers alike prosper from EWA. Employers profit from improved increased job productivity, recruitment, and reduced turnover while employees enjoy unmatched salary control and versatility.
“To remain sustainable, payroll and HCM organizations need to provide something strategic, and blending an on-demand pay support such as DailyPay helps [them] to do exactly that,” Walden said.
Earned pay access is more critical than ever in the aftermath of COVID-19.
If on-demand compensation was once thought to be a “nice to have,” COVID-19’s demand for increasing monetary turbulence and immediacy showed how crucial it is for workers to be able to set their own conditions for earning their wages.
Providing employees access to their unpaid wages is a crucial advantage that has a significant effect on their lives. COVID-19 has intensified many organizations’ plans to carry out an on-demand payment offering. Although some enterprises were implementing or searching using an earned income access payment model, many organizations’ efforts to launch an on-demand payment service have been boosted as a result of COVID-19.
Providing clients the opportunity for earned income access approach or deploy an on-demand pay will help HCM providers remain active in an intensely competitive environment.
“Staying competitive and contributing to [their] platform of capital helps HCM and payroll companies to build larger partnerships,” Walden said. “There is also no need for an HCM or payroll organization not to accept a DailyPay choice to offer them a comparative edge over what is currently available in the market.”
HCM suppliers may deliver earned income entry solutions in a seamless manner.
Payroll and HCM firms are rapidly realizing the requirement to adopt this emerging segment, provided the triple-digit increase in customers over the last year, there has been an increase in demand for EWA offerings.
However, supplying on-demand payment to likelihoods and current customers has traditionally been a difficult task. Till lately, Human Capital Management vendors had to prefer contracting with an organization by offering on a broader market or developing an on-demand solution in-house. However, generic marketplace solutions always fall short, and developing an in-house approach is no simple task.
“Developing a product to help earned income access entails a lot,” Getmanchuk said. He said, “Anything from having much supplementary credit and operating expenses and being able to finance the service, to develop all means of new monetary rails so as to transfer amount in real-time, and actually having the ability to assist and sustain this network across a diverse HRM payroll and systems of attendance and time”.
DailyPay sought to create a system for entering earned wages that HCM suppliers would embed into their own goods and offerings after seeing the desperate need for a simpler way for them to deliver on-demand pay.
On-Demand Pay Solution for Payroll Providers and HCM using ExtendPX
DailyPay started working on ExtendPX, an EWA approach that enables HCM vendors to deliver the benefit of On-demand pay that will transform life without a hard lift after learning about the urgent need in the HCM space.
ExtendPX enables HCM vendors to provide their customers a personalized variety of services, varying from merely tapping into DailyPay’s API to a wide end-to-end services’ range such as program finance, a white-labeled and personalized digital wallet, and consumer and employee assistance.
“We saw ExtendPX as a direction that allows HCM enterprises to rapidly, easily, and effortlessly expand their services into the fields of on-demand pay without it being a hard lift, so that they can preserve their existing customers happy while still searching for new ones,” Walden said.
ExtendPX couldn’t have arrived at a better time, given the pandemic’s current economic effect and the reality that more workers than it has even been consciously searching out on-demand compensation options from their executives.
“Now is an excellent time to extend the use of on-demand pay,” says the author. We observe that human capital management and payroll firms have excellent partnerships with their customers, and this is a great direction for them to strengthen that relationship while still providing them with a tool that is widely used by employees,” Getmanchuk concluded.
With this you might have come to an understanding about the crucial roles of HCM services like recruiting and managing the capitals of an organization by using the effective tools. By offering the on-demand pay solutions or through Earned Wage Access (EWA) you will be capable of improving the HCM for organizations. Through providing clients with an earned wage access approach or on-demand pay deployment solutions, HCM vendors can remain competitive in an extremely competitive industry.