ADP adds PayActiv to the marketplace
PayActiv operates the customer base of payroll company ADP, landing in the ADP marketplace, the company said on Wednesday (July 25th). Current ADP customers will be able to use PayActiv’s services, which include employee financing and financial management. PayActiv allows employees to access earned but unpaid income, bringing workers closer to $ 500.
“Having timely access to earned income alleviates additional debt for those already under financial stress,” Craig Cohen, managing director of ADP Marketplace said in a statement. “By offering PayActiv’s services through ADP Marketplace, our customers’ employees now have on-demand access to the money they have earned and can avoid costly alternatives.
Companies pointed out the so-called Fin-Tax – high interest rates and fees associated with alternative employee financing solutions, such as payday loans – as a major obstacle to the financial well-being of employees. The press release quoted Broadmoor Consulting CEO Todd Baker as underscoring the challenge.
“Americans from working low-income families struggle to cope with periodic small financial shocks while spending billions of dollars on high-cost payday loans, auto title loans, and bank overdrafts that don’t pay off. that make the problem worse, ”he said. “Employers are also suffering, as employees in financial difficulty are prone to health problems, absenteeism and high turnover. “
According to CEO and founder of PayActiv Safwan Shah, companies that take advantage of an employee prepayment option like PayActiv “can save up to $ 50,000 per year for just 100 employees” enrolled in the program.
Last month, ADP announced that it would leverage its network of partners to develop artificial intelligence (AI) -based enhancements for payroll and human capital (HCM) solutions. In an announcement, ADP said its second annual Datathon event focuses on AI innovation with more than 40 partners, resulting in three main use cases.
They understand the optimization of talents, the correlation between the educational experience and recruiters; user experience, with a 401 (k) benchmarking solution for employees; and a business impact tool, which uses AI to connect employees to a digital career coach.