On-Demand Pay is quickly becoming a must-have benefit in modern workplaces. Providing employees with access to their earned wages before payday offers them greater financial flexibility and reduces the need to rely on expensive, predatory loans. With its many benefits for employee wellbeing and productivity, it's no surprise that HR, Payroll, and Wellbeing teams are increasingly exploring On-Demand Pay solutions. 

Choosing the right On-Demand Pay provider, however, is an important decision. This service impacts not just your employees' financial health, but also your company’s internal operations. To ensure a smooth and beneficial partnership, here are the key characteristics to look for when selecting an On-Demand Pay provider.

1. Look for Earned Wage Access Code of Practice Compliance 

When evaluating providers, compliance with the Earned Wage Access Code of Practice should sit at the top of your checklist. Established by leading On-Demand Pay providers and industry groups, this code lays the ethical and operational groundwork for offering employee-friendly pay access solutions. Compliance with the Code of Practice signifies that the provider operates with transparency, integrity, and fairness toward both companies and employees.

Key points a compliant provider will adhere to include:

• No Loans or Interest: On-Demand Pay is not a loan, and providers should not charge interest on withdrawals.

• Fair Fees: Providers might charge small transactional fees for withdrawals, but these should be clear, capped, and affordable. Hidden fees are a red flag.

• Employee Data Protection: A reputable provider will ensure that all employee financial and personal data is handled with care and in line with regulations like GDPR.

By selecting a provider that follows these principles, you safeguard both your employees’ finances and your company’s reputation.

2. Evaluate the Provider’s Additional Services 

On-Demand Pay providers are not all created equal. Some go beyond simply offering On-Demand Pay to provide services that actively support employees’ financial well-being. 

Top-tier providers may include services such as:

• Financial Literacy Resources: From budgeting tools to guidence, these resources can empower your workforce to make informed decisions. 

• Savings Solutions: Some providers allow employees to directly allocate a portion of their earned wages into savings accounts, helping them build healthy financial habits. 

• Affordable Advances vs. Predatory Lending Alternatives: For employees struggling with unexpected expenses, On-Demand Pay offers an alternative to payday loans or high-interest credit. It’s worth considering if the provider offers workplace loans, and how this aligns with your company values.

Before committing to a provider, make sure they align with your company’s wider wellbeing initiatives. A comprehensive approach not only supports employees but also builds loyalty and trust within your workforce. 

3. Prioritise Ease of Implementation

HR and payroll teams are already stretched thin, and a new integration should enhance, not complicate, existing workflows. Ensure that your chosen On-Demand Pay provider offers a solution that is seamless to implement and maintain.

One standout example in the UK’s market is Level, one of only two providers offering automatic reconciliation. This feature drastically simplifies payroll management by automatically keeping all records of payments and deductions up to date.

The benefits of such a system include:

• Time Savings: Payroll teams are spared manual tracking and reconciliation, allowing them to focus on more strategic tasks.

• Accuracy: Automation minimises the risk of errors in wage calculations.

• Employee Trust: When On-Demand Pay is seamless and accurate, there shuld be fewer employee enquiries or frustrations.

Consider scheduling a demo with potential providers to get a hands-on introduction to their implementation process and system capabilities.

4. Check the Provider’s Reputation

Reputation matters when choosing an On-Demand Pay provider. Look for a provider backed by a track record of excellent service and a commitment to user satisfaction.

Here’s how you can evaluate a provider’s reputation:

• Customer Testimonials: Look for reviews, case studies, and testimonials. Positive feedback from fellow HR or payroll professionals is a great indicator of reliability.

• Awards and Certifications: Providers with industry accolades stand out as trustworthy leaders in their field.

• Transparency: How upfront is the provider about their fees, terms of service, and operational practices? Avoid companies who make these details hard to find.

• Customer Support: A stellar provider should offer readily available and robust customer support, both during implementation and throughout the partnership.

A well-regarded provider not only facilitates a smoother partnership but also reassures employees that they can rely on the service to meet their needs.

Why Choosing the Right Provider Matters

Selecting the right On-Demand Pay provider isn’t just about offering a trendy benefit—it’s about ensuring long-term success for your company and fostering trust and loyalty within your workforce. Choosing the right provider will make all the difference in delivering a program that uplifts employees and drives business performance.

At Level, we compare the best On-Demand Pay providers on the market to make this decision easier for you: