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On-Demand Pay Benefits for Employers & Workers (2025 Data)
Sep 29, 2025
Employer
On-demand pay (earned wage access integrated into payroll) is often marketed with broad claims. Impact metrics require baseline control comparisons. Below are directional data points (illustrative) used in internal ROI models.
Key Outcome Dimensions
- Retention / turnover rate
- Absenteeism / unscheduled absence rate
- Financial stress self-report indices
- Advance usage frequency drift
Illustrative Impact Table
| Metric | Pre | Post (6m) | Delta |
|---|---|---|---|
| Annualized Turnover | 42% | 36% | -6 pts |
| Absence Rate | 8.1% | 7.4% | -0.7 pts |
| High-Frequency Advance Cohort | 21% | 17% | -4 pts |
| Stress Score (1-5) | 3.6 | 3.2 | -0.4 |
Mechanisms Driving Benefit
- Liquidity smoothing reduces emergency absentee events.
- Earlier access substitutes for higher cost external advances.
- Engagement dashboards increase perceived employer support.
Implementation Optimization
- Launch in controlled pilot cohort; capture baseline for 90 days.
- Monitor substitution effect: reduction in external advance usage.
- Add optional savings auto-split to improve long-term outcomes.
Internal Links
Illustrative data for modeling; actual results require controlled measurement.