|Maintenance of Employees’ Direct Deposit Data|
Increasingly, companies are simplifying the upkeep of their workforce’s personal data by allowing their employees to take care of their own direct deposit accounts via a workforce management solution’s employee self-service feature. This functionality offers important business value by improving employee satisfaction while also reducing the administrative workload for HR/payroll staff. Employees have immediate security-protected access to view their paycheck details and pay histories and change their direct deposit accounts. Employees often can create numerous accounts for direct deposit and can select to deposit a fixed amount, percentage amount, or available balance to a designated account.
Paperless Payroll’s Payback
Companies that migrate to a paperless payroll environment are discovering significant monetary and time savings. Businesses using electronic pay distribution save $1.02 per check. While at face value that may not seem like a hefty sum, consider this: For a company with 1,000 employees, printing checks on a biweekly basis costs $27,802 annually. Moving to a paperless payroll would reduce that cost to $1,300 a year. A 5,000-person payroll costs a business $139,010 annually with paper checks, whereas paperless payroll dramatically decreases that expense to only $6,500.
In addition, companies save time through electronic distribution when they no longer handle forms or rekey information. They also save on labor and equipment because printing and delivery of paper takes time and effort, while generating documents digitally is nearly instantaneous via the Internet. In addition, businesses avoid spending time and money replacing lost or stolen paper. A business’s payroll department benefits as well, as it becomes more strategic by eliminating tactical duties. The payroll staff provides a higher level of service to employees and gains greater control through the effectiveness and speed of an electronic audit trail.
Through paperless payroll, errors are typically reduced because real-time access to accurate data requires employees to validate and verify transactions and inquiries. Employees can view their payroll histories at any time throughout the year, reducing routine calls to the payroll department. The HR team gains a better understanding of groups of employees, giving the group insight into the best ways to structure pay and benefits. The department can use its payroll portal to publish payroll policies and handbooks.
Employees who travel for business, work from remote locations, transfer between departments with some regularity, or take vacation time find direct deposit a more reliable payment method and have easy access to their paychecks, with pay stub information available online 24/7 as soon as payroll is posted. Electronic payroll empowers employees by offering easy access to benefits and payroll history. Most companies using paperless payroll or looking to move to a paperless environment will want to employ an HR/payroll solution that allows workers to check several years of consecutive pay stubs, as well as yearly summaries online.
Making the Change
Without a doubt, creating a paperless environment requires an adjustment in cultural mindset. While some employees will embrace the change without hesitation, it’s important to educate and train employees about the benefits of electronic distribution. But before you make a move, you’ll first want to consider several important steps:
1) Define your overall business objectives
2) Analyze your current environment
3) Identify the stakeholders within your organization
4) Prioritize the company’s goals
5) Identify key measures
6) Implement in phases
7) Define your communication plan
Define Your Overall Business Objectives
Identify your company’s objectives in moving to a paperless environment. Determine where you expect your greatest savings – in terms of both money and time – will be. Certainly you can expect to save on storage space, paper and equipment, and the costs associated with paper checks such as stuffing/preparation and distribution/delivery. But don’t forget to include the benefits from automating your processes, eliminating various transactions, reducing errors, and using workflow to speed processes.