Entice boomers to take advantage of direct deposit
Your baby boomer employees—those born between 1946 and 1964—are more likely to demand paper paychecks than younger workers and those older than 61. The main reason: They don’t trust direct deposit, says a survey by the U.S. Treasury Department.
Many of these employees also:
- Are attached to the monthly ritual of the paper check
- Are receptive to direct deposit, but need motivation
- Don’t understand how direct deposit works
- Don’t have a bank account.
It pays to get employees signed up for direct deposit. Although organizations pay for direct deposit, the process can save your company money through speedier reporting of transactions, reduced bookkeeping, fewer lost checks and check cashing without delays.
Unless your organization wants to keep printing and distributing paychecks until the youngest of the baby boomers starts retiring in 2029, start enticing your middle-aged employees to enroll in your direct deposit program. Persuade them by touting these benefits of the paperless payday:
- Direct deposit reduces the risk of lost or stolen checks, check fraud and identity theft.
- Employees who use direct deposit can access their money as soon as their banks or credit unions open on payday instead of waiting until their checks clear.
- Direct deposit eliminates the need to go to the bank to deposit the check.
- Direct deposit is free to employees. Some banks even offer free checking to people who are paid via direct deposit.
Looks good on paper
- 25% of baby boomers receive their wages, salaries or other regular payments by paper check, compared with 13% of people older than 61.
- Boomers ages 51 to 60 are less likely than boomers overall to enroll in direct deposit within the next year (18% versus 30%).
Source: U.S. Treasury Department