Over the years, technology has improved several areas of business. Whether it’s chatbots on our website to talk to clients when we’re away from the office or iPhones to help stay in touch with colleagues even while attending a business meeting on the other side of the country. However, there’s one area that companies still seem reluctant to release from the paper world; payroll.
These days, you can pay all your team members with little fuss and with no physical paper. If you still haven’t caught up with the times, allow us to explain why direct deposits may help your business.
What are Direct Deposits?
Before heading into the many benefits of paperless payroll systems, what are direct deposits in the first place? Just as the name suggests, this is a system whereby all payroll checks are paid into the bank accounts of employees automatically. Rather than dealing with a physical check or a paper payment, you (the payer) can pay money into the account of your employee (the payee) instantly.
If you want to take the stress from your shoulders permanently, you could even outsource to a particular HR/payroll software company. They have experts working on payroll matters every day, they will look after this area of your business, and you can concentrate on other matters (not to mention the added happiness to your team this effective system will bring!).
Benefits of a Paperless System
Quick and Convenient
Firstly, paperless payroll systems are more streamlined and convenient (for absolutely everybody!). Not only is it faster to issue paperless paychecks, but it’s also quicker for employees to receive them too, making this an ideal end of year business improvement. With some direct deposit plans, workers can access their hard-earned money the very same day. They don’t need to worry about cashing paychecks, there’s little room for error, and the whole system can be managed with an intelligent online platform. Within seconds, they see how many hours they’ve worked, their earnings, and more.
Removal of Human Error
Although people are great in many areas of business, we believe that automation is invaluable in others to remove the risk of human error. When it comes to record-keeping and maintaining a level of happiness with staff and their pay, technology has a huge role to play.
If you’re projecting yourself as a ‘green’ company with green products and environmentally-friendly solutions, the last thing you should be doing is sticking with paper-based payroll systems. The EPA predicts that 69 million tons of paper are used each year; this is something we can reduce with a little effort.
For small businesses, especially, you know that saving money wherever possible is the name of the game. According to some studies, printing paychecks are thought to cost up to $3 per employee. Especially when workers have to leave their desk to cash the check, the whole process becomes rather inefficient. With direct deposits, everything happens automatically (the likelihood of wasting time fixing errors also reduces!).
Reduce Storage Needs
Finally, when using direct deposits, you don’t have to store anything physically, and this means that your small office isn’t cluttered with unnecessary folders and boxes. You could go one step further because cloud-based solutions have even removed the need for storage on hard drives.
Will Direct Deposits Work for You?
We believe most companies will benefit from paperless solutions, but you should still be wary of potential drawbacks. This includes;
- Fees with pay card systems
- Paystub laws
- Delays with direct deposits over holidays and weekends
Why not consider making the switch today?