How to Increase Direct Deposit Participation

2 min read
Mar 7, 2024 3:40:11 PM

There are many advantages of direct deposit to pay your employees. However, some employees might resist direct deposit. Perhaps they do not trust banks, or maybe they just prefer to have paper checks placed in their hands, whatever the reasons are, they are out there.

Because direct deposit can have so many benefits for your business, you'll want to encourage employees to use it. Here are four tips for helping persuade your employees to use direct deposit, and increase direct deposit participation within your organization.

Advantages of Direct Deposit

The following three benefits are great reasons to put in front of employees who are hesitant about using direct deposit. 

Saves Time, Money, and Hassle

Employees who use direct deposit are never forced to spend their lunch hours standing in bank lines to make sure their paychecks get into their accounts.

Employees Always Get Paid, Even if they Are Not Around

Even on vacation or out sick, employees will still have their funds deposited into their accounts.

Direct Deposit Has Increased Security

The chance of having a paycheck lost or stolen is virtually eliminated by using direct deposit.

Promoting Direct Deposit for Employees

In addition to the above benefits, here are a few things you can do to try and promote direct deposit and get employees to make the switch

Have a Direct Deposit Drive or Event

Designate a week for a Direct Deposit Drive. Put out some flyers or mention it in the newsletter, and list the benefits of signing up. If your company has various locations and departments, let employees know which day a payroll representative will visit their departments.

Also, let employees know what they will need in order to sign up (such as a deposit slip from their bank). Make sure that you give employees the extra time needed to sign up and have a giveaway to add an element of fun to the event.

Explain the Direct Deposit Process

Employers should also let their employees know how the direct deposit process works, and more importantly, how they will receive their pay stubs.

Some employers issue paper pay stubs, while others send electronic pay stubs via e-mail. When deciding a method, keep in mind that some employees with little or no access to the Internet might object to the electronic pay stubs.

Payroll Software that Supports Direct Deposit

Good communication with your employees and anticipating objections can greatly increase participation and maximize the benefits that direct deposit offers your company and its employees. 

However, it is also important that your payroll software can support direct deposit payments. AT Trivantus, our payroll software can handle a variety of direct deposit types, including checking, savings, and money market accounts

To learn more about our payroll software, contact us today, or take a look at our payroll software demo video recording

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