Encourage Participation in Direct Deposit Payroll. There’s little doubt that paying employees through direct deposit saves most companies money and hassles in the form of lower check writing fees, fewer lost or stolen checks and no stop payment charges. Major savings are realized because employees stop taking time off to go to the bank. As more employees sign up for direct deposit, the savings grow. But some employees are still suspicious of the process. How can you encourage staff members to participate? Here are some practical solutions.
There are obviously many benefits of using direct deposit to pay your employees. But there may still be resistance from some employees who don’t trust banks, or prefer to have paper checks placed in their hands on payday. Here are some ways you might be able to increase participation, and therefore, maximize
The Benefits:
Dealing With Objections
Some employees may ask: “How will I know for sure that I’ve been paid?” Some employers still issue paper pay stubs to employees. Others send electronic pay stubs through e-mail. Employees who do not have Internet access may object to the electronic pay stub. That’s why some companies install kiosks in the workplace where individuals can log in securely and view their pay acknowledgments. Of course, employees can also call their banks and receive verification over the phone.
Depending on the service, recipients may be able to view not just the current pay stub, but an online pay history. In some cases, they can even view and print copies of their last W-2 forms.
Make Direct Deposit an Event
Designate a week for a Direct Deposit Drive. Put out some flyers or mention it in the newsletter, touting the benefits of signing up. Make enrolling easier during the drive. If your company has various locations and departments, let employees know that a payroll representative will visit on a scheduled day to sign up those who wish to join, and tell them what they need (such as a deposit slip from their bank). Or allow employees extra time at lunch time to make their way to the office where they can sign up. You can also “sweeten” the deal by giving all new enrollees a treat. One company gave away money-themed candy bars, such as Payday or Hundred-Thousand Dollar bars. It’s a small token but adds an element of fun and interest.
Sometimes, employees who do not participate in direct deposit don’t voice any objections. They just don’t know much about the system, or they intend to sign up someday when they get around to it. Communication is key. Anticipate questions and provide answers in a newsletter, handout or e-mail, and let employees know someone is available to provide more information. With a little planning and communication, you can greatly increase participation in direct deposit, and maximize the benefits to your company and your employees.
Call Vision HR for help setting up direct deposit or enrolling new employees in the system. Direct Deposit is a free service for all Vision HR clients to aid in streamlining the payroll process so that your spending less time on employee related transactions. (877) 641-0012.
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