When you think of payroll, you might still envision paperwork and envelopes given to employees by hand. Even with direct deposit being the norm for years, there is still a significant paper component to manage.
As with most things, payroll is going digital – and for good reason. There are many benefits to digital payroll for employers and staff alike. Read on to learn why switching to paperless payroll could be right for you.
1. Empowering employees with self-service features
Modern digital payroll systems offer a user-friendly dashboard that empowers employees by providing 24/7 access to their payroll information, from anywhere. According to a 2022 survey by the American Payroll Association, over 75% of employees prefer accessing their pay information digitally. This self-service capability reduces administrative workload by eliminating frequent employee queries about payroll details, thus allowing HR personnel to focus on more strategic tasks.
2. It increases convenience and eliminates delays
When you’re manually processing your payroll, delays come up that are a normal part of business. But that isn’t the case when you take your payroll digital.
Because everything runs automatically, you no longer experience holdups due to holidays or slow mail. Additionally, everything is distributed instantly online, meaning everyone gets paid on time.
You’ll reduce the chance of mistakes as well. Taking human error out of the equation means you no longer have to spend much time correcting mistakes or investigating what went wrong.
3. Enhanced security with advanced technologies
Security is a paramount feature of modern paperless payroll systems. Today’s platforms typically incorporate advanced security measures such as multi-factor authentication and biometric verification, significantly reducing the risk of unauthorized access. A report by Symantec highlights that the use of multi-factor authentication can prevent over 99% of attempts at data breaches. Furthermore, cloud storage ensures that all payroll data is backed up and protected against physical theft or damage, with strict compliance to data protection regulations like GDPR and CCPA.
4. It saves you money, and valuable time
There are obvious cost savings in reducing the paper, postage, ink, and toner required to distribute paper pay stubs. Those costs are significant, too. But you will see the biggest savings in the hours no longer needed to run your payroll.
With most of the process automated, it’s no longer necessary to spend time tallying up hours worked, calculating overtime and sick pay, and then sorting out taxes. Instead, your software will take care of it for you.
5. Contributing to environmental sustainability
Transitioning to a paperless payroll system significantly diminishes the environmental footprint of a business. The environmental impact of using paper in the workplace is substantial; for instance, it’s estimated that an office worker uses an average of 10,000 sheets of copy paper each year, much of which can be saved with digital alternatives (source: U.S. Environmental Protection Agency). By adopting digital payroll, companies not only reduce their paper usage but also minimize the energy consumption and waste associated with paper production and disposal.
Final thoughts
Adopting a paperless payroll system brings numerous benefits, aligning with the needs of both businesses and their employees. With enhanced security features like multi-factor authentication, convenient self-service access for employees, and significant environmental and cost savings, digital payroll systems are not just a modern convenience but a strategic necessity. Companies looking to optimize their operations and contribute to environmental sustainability should consider the transition to paperless payroll as a key step towards future-proofing their business operations.
