Scot Parnell is the Chief Financial Officer at DailyPay. Since joining the team, DailyPay has built a fortress balance sheet to ensure the safety and soundness of their offering. Scot spent over twenty years as a finance leader in various organizations, such as TIAA, Citi Group, and Student Loan Corporation. He has a wealth of expertise in topics such as on-demand pay and many more, as well as vast experience leading businesses to achieve financial success.
Matched with his entrepreneurial spirit and enthusiasm, Scot has played a pivotal role in laying down the cultural foundation at DailyPay and designing an efficient finance team. An effective communicator and changemaker, he is known to drive visions from "here" to "there." Today, Scot shares insights about a topic new to the market, on-demand pay.
In this episode, we discuss what on-demand pay is, the ups and downs of on-demand pay, and how to successfully move from a large company to an earlier stage growth company amongst other finance-related topics.
Building New Financial Systems
DailyPay is a hyper-growth technology company that provides financial benefits to employees and employers. The company is building technology and the mindset to reimagine how money moves from when work starts. DailyPay is most known for its gold standard on-demand pay solution.
''I felt energized by the blend of leadership, technical abilities, and opportunities to impact the company and the industries that the CFO operated on.''
What Is On-Demand Pay?
On-demand pay is a new payment model where companies use various technologies to pay employees whenever they want. Generally, employees can access insights in real-time and see their wages according to their amount of work. The employee can withdraw their money on that day or whenever they want, without additional processing from the company's payroll team.
''Seeing that grow as DailyPay invests in new ways to help our partners and their employees is very rewarding.''
The Ups and Downs of On-Demand Pay
Using on-demand pay benefits employees by offering real-time flexibility for payments and giving them a financial security net by having money at hand whenever they need it. For employers, the advantages of on-demand pay include higher employee retention, engagement, and productivity. Regarding downsides, there might be some complications with taxes and pay errors. But there can be a few exceptions.
''We've engineered our product to assure that we're very compliant concerning tax labor, money transfer, and other forms of oversight.''
Moving From a Mature to an Earlier-Stage Growth Company
Having a transformation background is helpful when moving to an early-stage hypergrowth company. But deciding on this move can help you sharpen a few skills like prioritization, balancing investments, constant funding, and finding people that have the right fit for earlier-stage companies.
''I was looking forward to taking the skills I learned at the big company to an earlier stage company.''
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