Paperless Pay Discussion
withPatrick Koroly, ADP
Agenda
Why companies are moving to Electronic Wage Payments
How to Integrate into your Organization
Choosing a Vendor
About ADPs Aline Pay Card
Fun?? Facts
$36 - $43
55% +
94%
Paperless Savings Per Employee/Yr.Sources: The Hackett Group, Payroll Performance Study, 2009.American Payroll Assoc. Workforce Management and Payroll Performance Studies, 2010.
% Americans using a Smart Phone
Percent of Dog owners who say their
dog makes them smile at least once per day#
Benefits of Electronic Payment
Solutions
Four Universal Objectives
HR & Payroll departments are focused on:• Increasing operational
efficiency
• Minimizing financial and compliance risk
• Attracting and attaining quality employees
• Reducing environmental impact
Best in Class Companies Use Electronic Pay to Cut CostsAn APA published
study revealed:• Top performers attain
90% electronic pay distribution that costs $41 per employee
Versus 76% by peer group that costs $84 per employee!
• Top Performers save over 50% in payroll processing costs
Top Performer
s
Peer Group
90%
$41
$84
76%
0
100%
$100
%
ele
ctr
on
ic
pay
$ c
ost
per
em
plo
yee
Sources: The Hackett Group, Payroll Performance Study, 2009. American Payroll Assoc. Workforce Management and Payroll Performance Studies, 2010.
Cost of Printing/Distribution
$33 Billion – the amount spent on printing checks each year
Cost of Postage continues to increase
Fed Ex/UPS Charges
Multi-locations = multiple Bank relationships
Misc: check stock, toner, etc…
Payroll Dept’s time to process
Why Move to Electronic Pay?
The Electronic Payment Landscape Is Slowly Taking Shape…
Events
Wage Payments in the U.S. today…
the United States… 72% of Americans
receive pay via Direct Deposit
Pay Card is a solution for the Unbanked• 7.7% of American
households are unbanked
• 17.9% are underbanked – still use check-cashing services
So Why Aren’t More Companies at 90% Electronic?
Many companies hit a ceiling when going electronic
A segment of employees don’t have traditional banking relationships
No means to do direct deposit
Some simply prefer physical check payment
Expanding to this group is perceived as a daunting task
Many cautious about process interruptions and complications
Hesitation with presenting new solutions to Unions
How to Integrate Pay Cards into your
Organization
Secure Executive Support at the Initiation of the Program..
Allows the company to realize the full benefit:
Distribution Costs
Delivery Guarantee
Disaster Recovery/Business Continuity
89% of participants in our 2010 Global Payroll Performance Study indicate a high/medium level of executive support but they haven’t been able to leverage it to increase organizational influence…
Position as Employee Benefit
Pay Cards need to be positioned as benefit to employees
●Reduces fraud
●Allows them to take advantage of other conveniences like online bill payment
Every attempt should be made to eliminate and/or alleviate changes to/from paycards to paper payments…
Position as Employee Benefit…not only for Unbanked
Pay Cards for the Banked are on the rise – they use for:
●Children in College
●Christmas Club
●Vacation
●Fun money
Every attempt should be made to eliminate and/or alleviate changes to/from paycards to paper payments…
Include it as a part of the Onboarding process
Include it as part of annual benefits open enrollment/and other benefits employees can opt into at certain times during the year
Make Electronic Payments a Characteristic of Your Corporate DNA…
Choosing a Pay Card Vendor
Choosing a Pay Card Solution
Key Components: Branded
Compliant:
Direct Deposit
Pay Card
Self-Issued Checks that can be activated without activating the Card
Convenience/Accessibility to Funds:
Choosing a Pay Card Solution
Cardholder Convenience/Accessibility to Funds:
Large ATM Network Footprint
Access Funds “Pay to the Penny”
Low Cardholder Fees:
Free Withdrawals at ATM per pay period
Free Cash Back (Supermarkets, Convenience Stores…)
Free POS and Signature Based Transactions
Free Cashing of Convenience Checks
Ability to Load Funds onto the Card (Green Dot MoneyPak)
Choosing a Pay Card Solution
Electronic Banking for Cardholder:
Check Balance
Bill Pay
Ability to Transfer Funds
Order Checks, Additional Cards, Report Lost/Stolen Cards
Mobile App Technology
Check Balances and Transaction History
Find nearby ATM Locations ATM Locator
Text and Email Alerts
Mobile App Technology
Choosing a Pay Card Solution
Implementation
Experience and Resources
Solutions Architect
Customized Rollout Plan
Customized Communications: brochures, letters, emails, posters
Multi-Lingual support
Multi Location/Tabling Services to go on site to talk to employees
Dashboards to measure success
Cardholder Average Usage Used?
ATM Networks: Primary method used by cardholders to access cash
ATM Usage: The average cardholder uses the ATM 2.6 times per month.
POS Transactions: The average cardholder conducts 6 debit and 8 signature based transactions per month.
Convenience Checks: Less than 1% of transactions are convenience checks.
Best Practices
Mandate where allowable Direct Deposit, Pay Card, Self-Issued
Check
Incorporate into Overall Culture Use Cards for New Hires, Bonuses and
Termination pay
Executive Support
Effective Communication
Combine with On-Line Pay Statement to reduce costs, offer more convenience
© API Fund for Payroll Education, Inc.
Thank you!!