If you're a business owner or finance manager, you're likely familiar with the nightmare of paying salaries in cash โ from the moment you head to the bank to withdraw the cash until payday arrives.
Here are a few reasons why paying your employees or contractors their salaries in cash is a bad idea.
Reason 1: Time wastedโ
The many steps involved in paying your employees in cash on payday can mean many hours of wasted time you could spend on your business. You need to first source the cash (which could take many hours in itself), then you need to count it, divide it into envelopes, and distribute it to employees. We estimate that paying salaries in cash can waste 2 full work days a month, or 192 hours per year that you could spend on growing your business. Thatโs not even counting the amount of time and productivity that is wasted by employees, who need to leave their work to collect their salaries in cash.
Reason 2: The Risk of Robbery ๐ธ
Time wasted is highly frustrating, but what about the risk of getting robbed? When you have to handle large amounts of cash, the risk of robbery increases. Imagine repeating this process multiple times a month. The risk of getting robbed increases the more employees & branches you have.
Reason 3: Miscounting Money โ๏ธ
Assuming you've passed the first two hurdles, the third step involves counting the cash and dividing it into envelopes. Can you fathom the challenge of preparing salaries for 30 employees with different salaries? What about 70 employees?
Now, imagine the daunting task of doing this for 100 or 200 employees. You get the point. Mistakes are very likely to happen.
Reason 4: Change and decimals ๐ช
Salaries are rarely round numbers; they often involve fractions or decimals that don't exist in physical currency. Rounding decimals up or down either causes losses for the company (especially with a large workforce) or creates a frustrating experience for employees.
Reason 5: The Never-Ending Queue ๐คฏ
The final step is payday, where you announce that salaries are ready and brace yourself for the long queues. Companies either inform employees that salaries are ready, leading everyone to leave their work and flock to the finance department to collect their cash envelopes and sign off, or they divide employees into groups or designated days.
Both approaches result in wasted time and reduced productivity from the company's perspective!
Reason 6: Delays โฐ
All of these potential hurdles can create delays for the employees to receive their salary on time, which can create a terrible employee experience. Employees have bills to pay, families to support, so they expect to receive their salaries on time. That is not at all guaranteed when cash is involved.
The Good News!
You can start sending salaries digitally with a click of a button and without going through the hassle described above.
axis enables small businesses to send salaries digitally & instantly onto the axisPay mobile wallet of their employees.
And whatโs best is that you can get started on the same day.
Employees get access to a fully interoperable mobile wallet, which means they can send and receive money from any mobile wallet in Egypt. They can also pay their bills, buy anything online with a virtual Visa card, and scan any QR code to pay online or in-person. They earn points & cashback every time they spend with the axisPay mobile wallet.
They can cash out from any ATM, Fawry, or axis branch. They can also cash in from any ATM, Fawry, Instapay or axis branch.
Leave us your company details here to get started! ๐๐ผ
Conclusion
Paying salaries in cash is an incredibly tedious process. By embracing digital payment options like axis, companies can save time, money, and enhance the overall experience for their employees. Consider exploring digital payment alternatives to streamline your company's payroll process.
