Not a Member? Get access to HR news and resources that you can trust.
HR professionals share their advice for minimizing worker stress and boosting retention.
Is your employee handbook ready for the changing world of work? With SHRM’s Employee Handbook Builder get peace of mind that your handbook is up-to-date.
Virtual SHRM-CP/SHRM-SCP Certification Prep Seminars kick off September 12 and fill up fast!
Expand your influence and learn how to become an effective leader. Join us in Phoenix, AZ | OCTOBER 2 - 4, 2017
The traditional paper paycheck might soon be a relic of the past as more employers understand the cost savings and environmental benefits of direct deposit. A new study from the PayItGreen Alliance shows employers have saved more than $600 million per year for the past 10 years by paying employees via direct deposit—for a total cost savings of $6.7 billion since 1998.
The alliance’s research found that employers save an average of $176.55 per year for each employee paid by direct deposit. The study revealed that the environmental benefits of direct deposit have helped employers to establish corporate “green policies” and raise awareness among employees to be more cost conscious and “eco-friendly.”
According to the study results, if a business that employs 300 people and issues paychecks every two weeks switches its employees to direct deposit, the company would in one year:
The total environmental impact for that company would be equivalent to not driving 1,231 miles in a car, preserving 151 square feet of forest and planting 15 trees and growing them for 10 years.
The number of employers that offer direct deposit has steadily increased over the past 10 years. Data from the Federal Reserve Bank in 1998 showed that 46 percent of businesses in the United States offered direct deposit; that number had climbed to 66 percent by 2008.
The attitude among employees toward direct deposit has changed. The Federal Reserve data in 1998 found that 35 percent of workers who didn’t have access to direct deposit said they would use it if they had the option. Ten years later, 76 percent of employees reported that they would use direct deposit if they had access to it.
Bill Leonard is senior writer for SHRM Online.
You have successfully saved this page as a bookmark.
Please confirm that you want to proceed with deleting bookmark.
You have successfully removed bookmark.
Please log in as a SHRM member before saving bookmarks.
Your session has expired. Please log in again before saving bookmarks.
Please purchase a SHRM membership before saving bookmarks.
An error has occurred
Recommended for you
Become a SHRM Member
SHRM’s HR Vendor Directory contains over 3,200 companies
[/_catalogs/masterpage/SHRMCore/Main.master][Title][SHRM Online - Society for Human Resource Management]