Manual, paper-based payroll processes are becoming increasingly cumbersome and expensive for employers. Yet, moving an entire workforce to an all-electronic payroll platform can be daunting for companies of any size. While financial executives and HR leaders may face some initial challenges navigating such a transition, including a slow employee adoption rate, the long-term savings in operating and environmental costs and staff resources, it's worth the effort.
Direct deposit was the first step in moving employees to an electronic payroll process and is still widely used worldwide. In recent years, a growing number of employers have begun to offer the use of payroll cards to issue wage payments to their employees. In fact, the ALINE Card by ADP® currently has more than 1.5 million total users and has experienced double-digit year-over-year growth. This method of payment is an increasingly viable option for different segments of employees, particularly those who don’t have access to a traditional bank account.
When it comes to payroll cards with features like the ALINE Card by ADP, an advantage for employees is the ability to have greater access to their wages and other personal financial information such as employment-related deductions and contributions. Employees are also able to use their payroll cards like a debit card to access their money and make transactions.
The growing usage of payroll cards makes them a compelling alternative for companies seeking to enhance employee service. As more employers seek to streamline payroll processing, payroll card programs will continue refining their services to meet the evolving needs of both employers and their employees.
To learn more, visit http://info.adp.com/Wage_Payments
Gary Lott is Divisional Vice President and General Manager of ADP Unemployment, Payments and Garnishment Services