Small businesses empower employees to save automatically using direct deposit, according to a new study from NACHA, an electronic payments association. The study unveils that nearly three-quarters (71%) of small businesses who offer direct deposit provide the option for employees to split their deposit into multiple accounts.
“By enabling split deposit, small businesses are delivering a valuable employee benefit,” said Janet Estep, NACHA president and chief executive officer (CEO). “Split deposit means employees put money aside before it hits their chequeing accounts, and they don’t become reliant on it for daily expenditures. It is a simple, safe, smart, automatic way to save.”
Delving deeper into the findings, the study concluded that there is a direct correlation between the size of the business and the likelihood of the organisation providing split direct deposit. The larger the business, the greater the ratio offering split deposit, for example:
- Eighty-one percent of businesses with 101 or more employees offer split deposit as compared to 65% with two to five employees.
- Of organisations with revenues of US$15m to US$19.99m, 76% offer split deposit contrasted with 61% of those with revenues under $500,000.
“The research showed that there is a continuous degree of variation in split deposit use by company size, both when reviewing the number of employees and the annual revenue,” said Estep.
When analysing the findings across industries, there was a clear consistency in the percentage of companies offering split deposit. There were nominal variations between professional services (73% of those offering direct deposit offer split deposit); personal, maintenance, food services (75%); finance, insurance, real estate (67%); retail, wholesale (70%); and manufacturing, trade (70%).
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