Looking at On-Demand Pay Providers? Here’s What You Need to Know

Choosing the right On-Demand Pay provider is an important decision for any business. With employees seeking greater financial flexibility and businesses striving to offer competitive benefits, On-Demand Pay is becoming a sought-after solution. But not all providers are created equal. Here’s what you should know before making your choice.

What is On-Demand Pay?

On-Demand Pay, also known as Earned Wage Access, allows employees to access a portion of their wages as they earn it, rather than waiting for the traditional monthly or bi-weekly payday.

Imagine being able to pay for an unexpected expense without resorting to high-interest loans or overdraft fees. For employees, this can reduce financial stress and improve overall well-being. For employers, it’s an opportunity to enhance employee satisfaction, loyalty, and productivity.

Read more about what On-Demand Pay is and its benefits here.

Ensure Compliance with the Earned Wage Access Code of Practice

A critical factor to consider when evaluating providers is compliance with the Earned Wage Access Code of Practice and wider industry standards. This code ensures that providers follow ethical and transparent practices, such as ensuring there are no hidden fees for employees and maintaining clear communications.

Check that any provider you consider is certified under this Code of Practice. Certification ensures that you’re choosing a trusted and reputable partner for your organisation.

Read more about the Earned Wage Access Code of Practice here.

Understand Types of Reconciliation Offered

Reconciliation can be a headache when it comes to On-Demand Pay—unless you pick a provider that simplifies it. Reconciliation is about ensuring that advances provided to employees align perfectly with your payroll cycle.

There are two main types of reconciliation:

• Manual Reconciliation – Requires regular manual adjustments, which can increase the administrative burden on HR or payroll teams.

• Automatic Reconciliation – Automates the process, saving time and reducing the risk of errors.

Currently, only two providers in the UK market offer automatic reconciliation, and Level is one of them. If reducing administrative tasks is a priority for your business, automatic reconciliation is undoubtedly a feature to look out for.

Read more about automatic reconciliation here.

Consider Additional Services—Do They Align with Your Values?

Some On-Demand Pay providers bundle other services with their offering. For instance, debt management tools or payday loans might seem like helpful add-ons, but it’s critical to consider how these align with your company’s values and workplace culture.

Here at Level, we believe On-Demand Pay is an alternative to debt, and so we aren’t an alternative debt provider. Our platforms are debt free, and we don’t try to cross-sell to your employees.

Final Thoughts

Selecting the right On-Demand Pay provider requires a clear understanding of your goals and the provider’s offerings. Remember to:

• Understand what On-Demand Pay is and evaluate its benefits for your business.

• Ensure the provider complies with the Earned Wage Access Code of Practice.

• Prioritise automatic reconciliation (especially if reducing admin is key).

• Assess any additional services to ensure they support your company values.

Choosing the right provider could make a significant difference—not just in payroll efficiency, but also in employee well-being and overall satisfaction. Take your time, ask the hard questions, and pick a partner who truly meets your needs.