Top performing payroll organizations have a 90% paperless payment distribution rate achieved through encouraging direct deposit, pay cards, and electronic pay statements. In 2009, top performers increased participation in these paperless options by 8% by maintaining a 1:1 ratio between direct deposit and electronic pay statements. Peers increased participation by 9% using the same strategy. While pay cards are growing in popularity, they have not significantly impacted rates yet but can help reach 100% paperless payments by serving unbanked employees. Success requires partnering with HR to enroll employees in paperless options at hiring.

1. Metric Of The Month: Top Performers have a 90% paperless payment
distribution rate
The paperless payment distribution rate is the total of direct deposit, pay cards and electronic distribution of pay statements. This metric focuses on
100% paperless payments.
In 2009, our performance study data shows Top Performing payroll organizations increased the participation rate by 8% by focusing on having a 1:1
ratio between direct deposit and electronic pay statements. The peer group used the same strategy and increased their participation rate by 9%. The
other component of this metric is pay card participation. While we have seen more companies interested in implementing a pay card program, we’ve not
yet seen a significant impact on the paperless payment distribution rate. With the goal being 100% paperless payment distribution, companies will start
implementing pay cards to fill the needs of the unbanked population as well as alleviate the cost of production and distribution of paper payments and
statements. Savvy change management is a key component necessary to encourage employees to receive electronic pay advice statements and use
pay cards if direct deposit is not an option.
This is another area in which we see Top Performing payroll organizations partnering with Human Resources to encourage employees to participate in
paperless payment distribution options at the point of hire.
Does your organization work with Human Resources to encourage employees to Paperless Payment Distribution Rate
participate in paperless payment distribution at the point of hire? Does your
organization have a 1:1 ratio between direct deposit and electronic distribution 90%
of pay statements? Have you implemented pay cards for your unbanked
employee population? What is your paperless payment distribution rate?
76%
Provided By Felicia Cheek, Global Time-to-Pay Advisory Program Leader, The Hackett Group
The Hackett Group, a global strategic advisory firm, is a leader in best practice advisory,
benchmarking, and transformation consulting services, including shared services, off shoring and
outsourcing advice. Utilizing best practices and implementation insights from more than 4,000 benchmarking
engagements, executives use Hackett's empirically based approach to quickly define and prioritize initiatives
to enable world-class performance. Top Performers Peer Group
2009 Payroll Performance Study
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