Why Employers Should Switch to Electronic Payslips
Electronic or e-payslips are digital versions of your traditional paper payslips. Since the global economy encourages businesses and consumers to switch to digital mediums, e-payslips allow employers and payroll service providers to reduce their environmental impact and streamline the process.
According to a report by flipping book, 77% of people are using online self-service platforms to generate their payslips. Besides that, e-payslips are cost-friendlier. Businesses can reduce their office and miscellaneous expenses by asking payroll companies to generate employee payslips online.
But is it benefiting both parties? The following are some things to consider:
1. Savings
As a business owner, reducing your expenses wherever you can is important. Paper payslips can be compromised, given the rapid digitisation of payment processes and payroll accounting.
If all-important P/L statements and balance sheets can be generated online, why can’t the same be done for payslips? By doing that, companies will evade postage, printing and paper expenses. The employees who were busy printing manual payslip copies can now devote their time to addressing more pressing concerns.
Thus, employers can generate more revenue and allocate their resources appropriately by switching to online medium.
2. Streamlining the process
The distribution process of traditional payslips can be improved for various reasons. Since the process will involve coordination between the payroll company and HR, it can take weeks for employees to receive their payslips. However, electronic payslips can be directly emailed to the employee without involving any departmental coordination.
This not only streamlines the process but also takes the burden off the shoulders of your in-house team. Besides that, payroll accounting firms also provide online self-service to employees. They can generate their payslips through their application or by heading to their website.
3. Reducing carbon footprint
Climate change is one of the top concerns for businesses and their clients. The use of paper only adds fuel to the fire. Therefore, to reduce the carbon footprint, it is important to eliminate paper slips from organisations. Less paper use will minimise market demand, resulting in less production, and reduce deforestation.
By reducing your carbon footprint, you also set a precedent for all the employees and clients working with/for you. You also register your business in the good books of state authorities and enhance your reputation.
4. Security
Often security is one of the biggest concerns in the online world. You wouldn’t want a hacker to access your confidential financial information. The good news is that payroll companies have SSL/TLS-secure portals in place that are secured by two-factor authentication systems.
Only generate your payslip on your behalf if they know the password and an OTP is sent to your registered device. Moreover, unlike e-payslips, paper payslips are subject to theft and loss. Once lost, you may not be able to generate it again. But online payslips can be generated as many times as you want.
Final Thoughts
Epayslips are doing an excellent service to global businesses and environments. That is why the Chartered Institute of Payroll Profession or CIPP’s payslip survey concluded that 83.3% of businesses have already switched to e-payslips from traditional mediums.
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