{"id":22805,"date":"2021-11-03T11:23:43","date_gmt":"2021-11-03T15:23:43","guid":{"rendered":"https:\/\/www.dailypay.com\/?p=22805"},"modified":"2022-01-28T14:11:16","modified_gmt":"2022-01-28T19:11:16","slug":"workforce-financial-challenges-solutions","status":"publish","type":"post","link":"https:\/\/www.dailypay.com\/resource-center\/blog\/workforce-financial-challenges-solutions\/","title":{"rendered":"Payment Technologies Provide Solutions for Workforce Challenges"},"content":{"rendered":"\n

As employers struggle to provide the right mix of pay and benefits that will allow them to recruit more effectively and keep the talent they have, they are recognizing that \u201cstill, more than half of our workers living paycheck-to-paycheck,\u201d said ADP<\/a> Vice President for Strategy and Thought Leadership George Mavrantzas.<\/p>\n\n\n\n

Speaking during a recent Source by DailyPay podcast<\/a>, Mavrantzas said that \u201cwe know this humongous financial wellness concern\u201d is mixed into the equation for keeping and attracting new talent. To differentiate themselves, \u201cemployers are trying to meet those demands through innovative payment platforms,\u201d he said. <\/p>\n\n\n\n

Setting up the need to update employee payment mechanisms is \u201cthis dynamic shift in the workforce composition, this continued consumerization of payments,\u201d that includes the introduction of mobile digital wallets, Mavrantzas said. <\/p>\n\n\n\n

According to Mavrantzas, nine to 10 million people in the generations just entering the workforce don\u2019t have bank accounts, and surprisingly, he discovered, \u201cit wasn\u2019t because they couldn\u2019t get one, it\u2019s because they didn\u2019t want one. We found that they \u200b\u200bwere less tethered to relics of the past\u200b\u200b like brick and mortar financial institutions and paper checks.\u201d  <\/p>\n\n\n\n

In addition, new employer payment mechanisms \u201creally fit well into this era of COVID where we talk about contactless payments, contactless receipts,\u201d Mavrantzas said. <\/p>\n\n\n\n

\u201cThe data that we are receiving really highlights some of these technological demands our younger generations are putting on the market, that is, around speed, access, convenience,\u201d Mavrantzas said.  <\/p>\n\n\n\n

But simply providing a more frictionless way to make payments is not enough. <\/p>\n\n\n\n

\u201cWhen we look at these technological advancements, we [at ADP] really have to ask that one big question. Is it secure and does it work? Is it going through all the data integrity testing, proof of concept, all the different things that you need to know is going to work with such a high sense-of-urgency application. We\u2019re dealing with people\u2019s hard-earned wages so we have to have a high-level of urgency, up time on the system,\u201d he said. <\/p>\n\n\n\n

Along with securing the data, employers and providers need to be compliant, Mavrantzas said. As with any \u201cinvolvement with payroll, if you\u2019re not talking about compliance as well, how do you mitigate the compliance within the technology as well? And, from a payments\u2019 perspective, you\u2019ve got a variety of overlapping banking regulations, federal, and then you\u2019ve got 50 states to deal with. So you really have to work with a partner that has the system and has the agility to move quickly,\u201d he said.<\/p>\n\n\n\n

Mavrantzas added that with his company, \u201c\u200b\u200bwe\u2019re not just providing a replacement to direct deposit or a replacement to a paper check. We\u2019re offering a program that is fully robust and more functional than your normal credit union and bank software, which allows you to take advantage of rewards and savings envelopes, and have the ability to do on-demand pay.\u201d<\/p>\n\n\n\n

Regarding on-demand pay solutions, which DailyPay specializes in and is an ADP Marketplace<\/a> partner, Mavrantzas said \u201cwith the introduction of these financial wellness tools, like on-demand pay, we can get in front of that, help employees bridge that gap. That way, they can spend more time at work … I think that\u2019s one of the key parameters that we\u2019re looking at in terms of keeping employees happy, keeping them more productive, especially in the unstable state we\u2019re in today.\u201d<\/p>\n\n\n\n

You can access the video of the full podcast here<\/a> and subscribe to other Source by DailyPay episodes here<\/a>. <\/p>\n\n\n\n

DailyPay is building technology and the mindset to reimagine the way money moves, from the moment work starts. DailyPay\u2019s pay experience goes beyond compliance and flexibility. Through the DailyPay BalanceTM<\/sup>, the technology seamlessly integrates with a variety of pay systems to continuously and accurately track earnings, makes them accessible and accounts for the amounts, so the payroll team doesn\u2019t have to take any action. <\/p>\n\n\n\n

For additional resources on this topic, see:<\/p>\n\n\n\n