Direct Deposit: The Inexpensive Employee Benefit

Most employers don't think of direct deposit as an employee benefit. It's a payroll option. You either cut your employee a check, or you offer direct deposit. There isn't much difference from a payroll processing point of view. But in your employees' eyes, the difference is clear: direct deposit makes life easier.

Scenario One: A Trip to the Bank

There's nothing quite like the feeling of holding a signed check in your hand…until you have to hand deliver that check to the bank during your lunch break. The roads are crowded with people rushing to eat, rushing home, rushing back to work, and of course, rushing to the bank.

All of those people stand in line with signed checks in hand, looking at their watches every two minutes and wondering if they'll have time to down a sandwich in the car on the way back to work—just so they can use the money they've already earned.

Scenario Two: Let the Money Do the Moving

Direct deposit saves time, encourages employees to save through the ability to split deposits into multiple accounts, and may even help you manage your cash flow and increase employee retention. In other words, it's a benefit—for you as well as your employees.