For Maine-based small business owners, there are benefits of using direct deposit to pay employees. Some employees, however, may not fully trust banks, or want to have paper checks in their hands on payday. Some ways to increase participation, and therefore maximize benefits are:
- Tell employees that it will save time and hassle. They won’t have to waste time standing in bank lines in order to get their paychecks into their accounts.
- Tell them they’ll get paid no matter what, even if they aren’t at work on payday.
- Tell employees that direct deposits mean increased security. There is virtually no chance of having a paycheck lost or stolen.
Dealing With Objections
Small business owners can still issue paper pay stubs to employees. This will help them know for sure that they have been paid. Another way is to send electronic pay stubs via e-mail. If not all employees have Internet access, some companies can install kiosks in the workplace where individuals can log in securely and view their pay acknowledgments. They may even be able to view on online pay history, depending on the service. Employees should also be reminded that they can always call their banks for payment verification.
Make Direct Deposit an Event
Once a small business owner has decided to go with direct deposit, it may be a good idea to designate a week for a Direct Deposit Drive. Let all employees know about it, and let them know that enrolling will be easier during the drive. Tell all employees when the payroll representative will visit, and make sure they know what they need to have in order to sign up (such as a deposit slip from their bank). Another way to encourage sign up is to allow employees extra time at lunch or break to sign up.
Sometimes, employees don’t participate in direct deposit not because they have objections, they just don’t know much about the system. Perhaps they intend to sign up someday when they get around to it. The key factor with Maine-based small businesses is communication. Company owners should make an effort to anticipate questions and provide answers. Let employees know someone is available to provide more information. With a little planning and communication, participation can be greatly increased.
For more information about the benefits of direct deposit, contact Filler & Associates.