Some employees simply do not like to have their paychecks directly deposited into their checking accounts. The idea of having a tangible check in their hands after they have earned it provides a certain amount of security and peace of mind. Furthermore, there may be concern regarding their employer having secure information and access to their checking account. If explained properly, these concerns can be addressed, overcome and will go a long way to help further automate your payroll system. There are several ways to inspire employees to take advantage of direct deposit into their checking account. Below are some ideas, however keep in mind your employees should never feel coerced into signing up for direct deposit. Unless it is a state law, all you can do is educate them on the benefits of the system.
One way to inspire your employees to use direct deposit is to explain to them the ease and convenience of having their money made ready to them on payday, sometimes even the day before their scheduled pay date. No more taking their lunch hour to run to the bank and deposit a check or fight traffic on a Friday night to get their money into their checking account. Furthermore, if payday falls on a Saturday or holiday, the employee may have to wait for funds to be available until the following Monday.
Speaking of convenience and safety, what happens when an employee loses or has his or her paycheck damaged? How many days will a check reissue take? What if a check is stolen? Or, what if a paycheck is accidentally deposited into the wrong person’s account at the bank? With direct deposit, none of these possibilities are a concern.
A second effective way to encourage direct deposit is to have employees who do use direct deposit vouch for the ease and convenience of using the system. It is one thing to hear an employer extol the virtues of direct deposit, but there is a much greater level of credibility when a co-worker attests to its’ reliability.
Third, let your employees know that direct deposit actually saves them money. This will definitely get their attention and perhaps inspire them to sign up. There are actual costs, direct and indirect, of manually depositing a check; costs such as the time to get to the bank, maintenance on a vehicle, and gas to get to the bank.
A fourth idea to inspire your employees to use direct deposit is to have them speak to the manager at their bank to explain the benefits and walk them through their valid concerns. When an employee remains unconvinced about the reliability and safety of direct deposit, having someone with authority at the institution in which their money is being deposited goes a long way to assuage their fears.
The fifth and final tip is to actually practice what you preach. Have your management team and yourself enroll in direct deposit and let your employees know. This will show them that you truly do believe in what it is you are trying to inspire them to do.
H/T Source: Gatekeeper Business Solutions