How Are Workday and DailyPay Targeting Turnover Costs?
Workday has named DailyPay its strategic partner for on-demand pay services, elevating a relationship that began two years prior with a technical integration.
The partnership targets millions of workers across the United States and Canada as employers seek to address employee financial stress and high retention costs. The move gives DailyPay preferential positioning to Workday's client base of 11,000 customers.
The collaboration comes as businesses grapple with the financial implications of competitive labour markets. With more than half of US workers living paycheck-to-paycheck according to industry data, businesses lose approximately US$1tn annually to turnover costs.
DailyPay's earned wage access platform is designed to address this by allowing employees to access wages they have already earned, offering a solution to unexpected expenses that may arise between traditional bi-weekly pay cycles.
On-demand pay to mitigate retention challenges
The service integrates with employer payroll systems, enabling employees to request earned funds via an app. The amounts are then automatically deducted from their next scheduled paycheck.
For finance leaders, this model presents a method to improve employee retention and reduce the high costs associated with recruitment and training new staff. Early adopters in the retail, hospitality and manufacturing sectors report reduced absenteeism and lower recruitment costs.
The benefits could be most pronounced in industries with high turnover rates and large populations of hourly workers.
By offering financial flexibility, companies can differentiate their employee value proposition in a tight labour market, potentially leading to measurable improvements in recruitment metrics and employee satisfaction scores.
Integrating financial wellness into existing payroll
A key aspect of the partnership is the deep integration between DailyPay and Workday's core platforms. DailyPay has been integrated with Workday Human Capital Management and Workday Payroll since 2023.
“The employee experience goes far beyond perks and benefits – it's about supporting employees' total well-being – and their financial health is a critical part of that”
This allows for real-time wage calculations without requiring a complete overhaul of existing payroll processes, a critical consideration for any chief financial officer evaluating new technology.
This embedded approach within Workday's interface is designed to reduce friction points that can hinder adoption with standalone solutions.
Matthew Brandt, Senior Vice President of Global Partners at Workday, positions the partnership as part of a broader employee well-being strategy.
“The employee experience goes far beyond perks and benefits – it's about supporting employees' total well-being – and their financial health is a critical part of that,” he says.
Matthew explains that giving employees access to their earned wages on their own terms helps to remove a major source of stress.
He adds this is “empowering a workforce that's more resilient, engaged and productive”.
Partnership accelerates market penetration
For DailyPay, the strategic partner designation is a major commercial development. It provides a direct pathway to Workday’s customer base, which includes over 60% of Fortune 500 companies.
This reach is particularly valuable as large enterprises often adopt solutions that integrate seamlessly with their existing human resources technology. For Workday, the partnership allows Workday to expand its service offerings into financial wellness without the need for in-house development or acquisition.
This partnership between Workday and DailyPay reflects growing demand for flexible pay arrangements across North America.
“We are honoured to strengthen our partnership with Workday and become their Strategic Partner for On-Demand Pay,” says Stacy Greiner, CEO of DailyPay. Greiner states that DailyPay is reshaping how an entire generation of employers and employees interacts.
She adds: “Through this expanded partnership, DailyPay will be able to serve more businesses focused on their employees' financial well-being and reach tens of millions of workers who will benefit from the power to access their money on their time.”
Industry observers expect the partnership to accelerate adoption among mid-market companies that rely on Workday's platform.
