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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

participate in paperless payment distribution at the point of hire? Does your

organization have a 1:1 ratio between direct deposit and electronic distribution

of pay statements? Have you implemented pay cards for your unbanked

employee population? What is your paperless payment distribution rate?

Metric Of The Month: Top Performers have a 90% paperless payment distribution rate

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.

90%

76%

Top Performers Peer Group

Paperless Payment Distribution Rate