A new survey of 4,000 employed Americans reveals an immediate opportunity for business of all sizes to save more money and help the environment by making a few payroll changes.
PayItGreen.org's survey revealed:
- 72 percent of US employees receive their pay via direct deposit
- Only 4 in 10 small business employees use direct deposit for their paycheck.
- "Lack of employer offering" is the main reason cited by employees not using direct deposit.
- 86 percent of employees in large companies use direct deposit.
- "Convenience" is cited as the primary reason employees use direct deposit.
- 5 out of 10 employees using direct deposit find the positive environmental impact very motivating
- Industry-wise, the "consumer services," "food/leisure," and construction" sectors lag the most in offering direct deposit to employees.
- Savings: Businesses that use direct deposit for payroll can save from $2.87 to $3.15 per paycheck by using direct deposit versus paper checks.
- A business with 25 employees would save at least $2,000 per year. A business with 100 employees could save $19,000 per year and larger business much more and with little effort.
Additionally:
- Small businesses waste an estimated three to five days writing checks annually.
- Employees waste nine to 24 hours annually going to the bank or credit union to cash their paychecks, which accounts for an estimated $3 to $5 billion in lost productivity nationwide.
PayItGreen is a non-profit coalition led by NACHA, The Electronic Payments Association whose members are committed to educating consumers and businesses about the positive environmental impacts of choosing electronic payments, bills, and statements over paper. PayItGreen members are small- to medium-sized businesses, large corporations, credit unions, banks of all sizes, regional payment associations, processors and other financial industry service providers and stakeholders.
To learn how your company can benefit from membership, visit www.payitgreen.org/business.
Current Issue - May 2024