I recently started tweaking the payroll department at my business. One of the changes I plan on making is offering direct deposit to my employees. Is this going to save me any time or money? Or am I adding more to my workload?
The majority of employees are being paid by direct deposit these days. It certainly saves everyone time and stress knowing their paycheck is going right into their bank account. It would benefit you as an employer to consider some of the advantages of the direct deposit process before diving right in.
Save on Company Cost
Your company’s funds are reduced just by printing and signing checks. Imagine having significantly lower paper or ink expenses. Time is also greatly consumed by signing, folding, stuffing the checks into envelopes. If you make the switch to direct deposit, none of those time eating factors exist. Another bonus is how you’ll save some money on checks that get lost. No longer would you have to deplete any funds on investigating or reissuing lost checks.
Lower The Risk of Fraud
When it comes to financial frauds, checks are the most vulnerable payment method.
This problem can be very expensive to deal with, and affects everyone in your company including your clients. Direct deposit is a secure and private route, eliminating the possibility of any forging or altering of your employee’s checks.
Become Environmentally Conscious
It is important for companies to become more focused on what they do with environmental resources. One way to become more environmentally friendly is to go digital by instilling direct deposit. Your company can conserve almost four pounds of paper a year just by eliminating paper checks and bank statements. Paper is not the only resource being annually wasted by companies. Direct deposit saves fuel and waste as well. Check out these statistics below and do the math. Offering direct deposit can help your company impact the green movement in a profound way.
|Paper||3.7 pounds of paper saved|
|Water||35.7 gallons of wastewater prevented from discharging into lakes, streams and rivers|
|Gasoline||1.4 gallons of gas saved by switching to electronic Direct deposit|
|Solid Waste||4.3 pounds of waste prevented|
|Greenhouse Gases||10.7 pounds of greenhouse gases prevented|
Higher Employee Morale
Happy employees mean productive employees, and that all trickles down from the top. If employees are receiving direct deposit, it sends a message from the higher ups that their convenience and happiness is a priority. As a leader, you are telling your employees that you don’t want them waiting in long lines at the bank, or to be in the office for their check to arrive. Direct deposit is a guarantee that your employees will receive their pay even if they are on sick leave or vacation. Direct deposit also offers you and your employees a way to better manage money, and everyone can benefit from that.
If you are considering direct deposit, let me and my team know how we can help. Making the switch is easy if you let us guide you through the process Start saving your company time, money, and resources by talking with us today.