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HR and payroll platform Deel last week announced a new on-demand pay solution as part of its major summer product release update.
Deel’s new Anytime Pay is available on the platform now for its employer of record (EOR) clients. Employees can access a portion of their earned pay early and on-demand without fees or approvals right inside the Deel platform. Additionally, the feature doesn’t impact a client’s payroll cycles and is available for EOR clients at no additional cost.
“The world has evolved quite a bit, but when it comes to payroll, we’re still exactly running payroll the same way we’ve had it for ages,” Deel co-founder and CEO Alex Bouaziz said. “It feels very primitive to me that we’re still [getting] paid at the end of the month.”
Bouaziz told HR Brew the company plans to expand the offering to its global payroll clients as well later this year. (Customers can also opt out of the feature.)
According to the company, research indicates that access to salary before pay day helps with financial obligations and better plan expenses.
HR Brew previously reported that earned wage access (EWA) or on-demand pay programs have increasingly become seen as a “win-win” in payroll: employees can access their money early to help with both financial planning and dealing with unplanned expenses, and—with little effort—employers can reap benefits to retention and employee well being, advocates say.
Bouaziz said Deel’s 2024 acquisition of PaySpace and its multi-country payroll infrastructure gave the company the flexibility to facilitate running payroll untethered to a biweekly schedule (or simply once monthly). Employees can access up to 50% of their wages before payday using Anytime Pay.
“The idea of being able to be a blue-collar worker, where you go at the end of the day and finish your shift, press a button, [and] get paid the day after…that’s such a game changing infrastructure,” he said, adding “we’re not there yet.”
But companies with flexible pay solutions are becoming increasingly valuable to employees, and as much as 76% of employees said it was imperative their employer offer early access, according to research provided by Deel. Bouaziz said he expects on-demand pay to be a “mandatory benefit” offered by companies in the coming years.
“The flexibility we can bring to the employees…I think if you look to three years down the line, I think it’s going to be a mandatory benefit,” he said.
