Almost two-thirds of Americans live paycheck to paycheck, with potential for financial ruin if an unexpected expense occurs outside the traditional pay period. In this month’s “Real-Time Payments Tracker®,” Oglebay’s Karen Hess tells PYMNTS how offering real-time payroll to the resort’s employees helps bridge financial gaps and boosts retention.
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The implementation of instant payments access for Oglebay employees was designed from the ground up to alleviate employees’ financial struggles and boost retention. Hess explained that she first learned about the possibility of instant, on-demand payroll from a trade magazine that described a Memphis hotel employee’s struggle paying for services for her asthmatic child.
“[Her son] needed his medication, but she didn’t have the money to get his prescriptions filled,” Hess said. “But fortunately, she had a product called DailyPay and was able to access her pay [immediately] and get the prescription needed for her child. After reading that article, I thought if it helps one employee, it’s well worth it.”
The RTP® network powers the seamless transfer of earned income for payments provider DailyPay. Employees can transfer income to their bank accounts, payroll cards or debit cards. The payroll system can make transfers in seconds, allowing users to have their funds on hand instantly in the case of a financial emergency. 
These instant transfers give employees an alternative to high-risk options such as payday loans if unexpected expenses rear their heads.
The program was an instant hit with Oglebay employees. Since its implementation in 2018, 42% of the resort staff currently leverages it to pay for a vast range of everyday expenses, according to Hess.
“The average amount transferred is $94, and on an 11-month basis, the total amount transferred has been about $1.5 million,” she said. “People are using it [for] their basic needs. At the top of the list is bills, second is food, third is transit. So, it’s for all the right reasons.”
From the resort’s end, implementation was largely seamless. Hess noted that there was little effort needed on the part of Oglebay’s payroll team, and the operation of the instant payment system was entirely invisible.
“I don’t want to say it was just flipping a switch, but it was close to it,” she said. “My payroll benefits manager had to do very little preliminary work in order to implement the program.”
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