Dave’s Markets is giving its employees a unique perk – the ability to receive their earned wages before payday, thanks to a collaboration with DailyPay.
DailyPay allows the employees, who can choose to opt-in at no charge, to keep track of their earned but unpaid wages and have the option to transfer those funds to their bank accounts. Though there’s no fee to enroll, DailyPay charges a fee for the transfer, much like using a third-party ATM. The fee is $2.99 for an instant transfer or employees can have the funds deposited into their accounts the next day for $1.99. DailyPay users can see the earned but unpaid wages via the DailyPay app.
Dave’s Markets began using DailyPay in April, according to David Saltzman, who handles finance and strategy at Dave’s Markets and whose family has owned the company since its inception in the late 1920s. He said the feedback he’s received from employees has so far been “very positive.”
“They appreciate that the option is afforded to them,” Saltzman said. “We’re seeing that the amount of users (of DailyPay) is kind of organically growing, still in early stages, but we’re always looking to do what’s best for our employees.”
Dave’s Markets is one of the first Cleveland-area companies to adopt DailyPay and is the first grocery store or supermarket in the area to use the service.
Neither DailyPay nor Dave’s Markets asks the employees why they are transferring the funds, so employees can transfer the money for any reason, not just emergencies. However, the data available to both DailyPay and Dave’s Markets indicates most employees seem to be using it to pay their bills on time, according to Sehrish Sayani, marketing manager at DailyPay. She said in other companies that have used DailyPay longer than Dave’s has, employers often see employees picking up more shifts because they’re able to see the money accrue as they earn it.
“We like to talk about DailyPay like an (human resources) benefit,” Sayani said. “Employees certainly don’t have to use DailyPay at all. ... Once you’re a DailyPay user, you’re getting the balance as you work. You get to see that as an available balance on the app, but you never need to transfer money.”
Saltzman said it’s too soon to determine if DailyPay has resulted in more picked-up shifts at Dave’s Markets. He said the service has been well-received and he’s had employees tell him the service is easy to use and they appreciate the option for it.
“We really care about our people,” Saltzman said. “They allow us to do what we do and just being able to afford them an option that hopefully makes their lives easier is important to us and we look forward to continuing to grow the relationship.”