Blog-Emergence of Online Payslips

Why does the world need to shift towards E-payslips?

With every passing day, we are advancing in technology. This brings changes in our lifestyle and working habits as well. This blog tells why digital payslip is one such change that both employers and employees need to accept at the earliest.

If we go back to the basics, payslips were introduced into the corporate world so that employees can keep a detailed track of their earnings. And gradually, it became an evident proof of an individual's income, which is now required by many financial organizations to issue loans, mortgage etc.

In fact, under the section 8 of the Employment Rights Act 1996, it is stated that every employer has the legal obligation to supply payslips to their employees every time they pay them. This made every big and small organization operating in the world to churn out billions of payslips every month. It led to the enormous increase in paper production over the decades, i.e. about 52 times that too per employee, excluding the expense slips and paper used in posting them.

If an independent research is to be believed, every single payslip contributes to 2.8 grams of CO2 to the UK's total emissions. Now you can imagine what havoc all payslips from around the world do to our planet when the salary day comes.

This obviously got noticed by the environment protection authorities, and as a result, the government created a pressure on the companies to work more sustainably and reduce their carbon footprints. Soon the need to handle one of the major causes of paper generation, i.e. payslips has been identified. And this led to the development of online payslips or E-payslips which significantly reduce the dependence on paper for the production and circulation of payslips. As the name suggests, payslips online give employees an easy access to their detailed salary information and related tax deductions on the internet.

Interestingly, making a shift from paper to online payslips proves to be a win-win situation for all, employers, employees and our Mother Earth. Let's dig into it further and find out what good is lying for each one of them in this potent change.

- For companies

1. Improves their reputation for being advanced in their conduct.

2. Cuts downs the expenditure on paper, printing ink and stamps.

3. Time saved by reducing the administrative burden of payroll staff.

4. Fewer cases of incorrect pay strengthens employer's trust in the company.

5. Fast delivery of payslips to employees working from home, or on sites.

6. Avoids delays due to third party involvement.

6. The sense of satisfaction for contributing to saving the planet.

- For employees

1. Easy and fast access to payslips anytime, anywhere.

2. Rectifying mistakes in the payslips in real time.

3. More transparency gives more employers satisfaction.

4. Protection of salary details through passwords gives a big relief.

5. Availability of online P60 payslips.

6. The sense of satisfaction for contributing to saving the planet.

-For environment

1. Carbon footprints will be reduced to significant numbers.

2. More trees will be saved.

3. With less damage being done, a better place is created to live.

 

In case, the above-listed reasons are not enough to convince you, then businesses who are already a part of this change might make you think twice.

The payroll department of global fashion retailer H&M was able to save 21 hours a week when they switched to online payslips. Not only this, this decision reduced their environmental impact enormously, as they used to pr9int 250,000 payslip annually. Further, they employees across the UK and Ireland got 24×7 access to their payslips.

Also, it was reported by the Prolog Print Media that within 12 months, 56% growth has been seen in the number of organizations opting for e-payslips. According to Glyn King, the managing director of the company, "Printed payslips & e-payslips has become the most popular option by far with organizations achieving a 60-40 split between employees who opt for online payslips over print ones."

In this modern era, we all are so heavily dependent on technology that we can't think of a day without the internet or our mobile phones. Most of the time we are busy either on our desktops, laptops or phones. So it won't be a challenge for the most of the employees to adapt to this change. Those who are not tech-savvy can also be made interested in this change by projecting them the ensuing benefits. Though employees are confused about this new change but when made to choose one, the live results surprised everyone as 89% of employees preferred online payslips, according to David Woodward, the chief product and marketing officer at Ceridian.

As far as companies are concerned,  many have already become a part of this change, while others are still exploring the options. However, one can't deny the fact that cost-saving benefits are what many organizations look at and would aim to follow the footsteps of H&M. This helps companies to facilitate a modern, effective and flexible system to their employees, apart from reducing their environment impact.

With that being said, world which is heavily dependent and connected through the internet, would soon catch up with this change to embrace the resulting benefits.