Payroll Deduction – Gaining Popularity in Corporate Cafeteria’s

Submitted by Steve Petty (Retail Project Manager)


A new form of payment is gaining popularity and sweeping the corporate world. An employee working in a corporate environment can take advantage of charging a meal in the cafeteria, or a prescription in the pharmacy or even a gift in the gift shop simply by swiping their Employee Badge at the POS.

Many employers have decided to offer charging at the POS with their Employee Badge Card, commonly known as Payroll Deduction. Many employees find that it’s a way of managing their expenditures at work, while others simply like the ease and simplicity of being able to charge vs. carrying money.

Food Service Vendors report an increase of revenue of 10% to 15% wherever the process is implemented. The ease of being able to satisfy one’s hunger simply by swiping a card is a temptation too strong to resist. In a very prestigious way, an employer is providing a benefit of “borrowing until payday”. While this helps the employee, the employer definitely reaps the sales increase because of the extended generosity.

The Payroll Deduction Transaction uses an employee’s payroll badge as the medium to prove authorization by capturing the Employee ID Number from the badge. Back Office Software compiles transactions using the Employee ID Number to insure accuracy and electronically communicates with the payroll software eliminating the possibility of hand keyed mistakes.

The payroll deduction process does not charge interest like a credit card; nor does it charge late fees. The payroll badge does not have a limit like a gift card. The payroll badge does not need to be re-charged like a cash card. If you are an employee in good standing, you are self policing because your paycheck will reflect only what you earned against what you spent. However, if there are abuses by certain individuals, charge limits can be set to their profiles.

The payroll deduction transaction keeps cashier drawer totals balancing better due to less cash handling and because it’s hard to steal from a drawer full of charge slips.

This type of system is currently being used in many hospital cafeterias throughout the country. Other entities within the hospitals such as gift shops and pharmacies and coffee shops are also using the system. Additionally, it’s making its way into many corporate environments that have a small window of time to process the lunch hour; the speed of the transaction with the Payroll Badge Card is excellent for this criteria. There is no delay in authorizing payment with a Payroll Badge Card.

We are also starting to see a lot of special uses for this type of system like tracking complementary lunches given to training employees. In some cases we are limiting certain items that are allowed to be complementary. There are other sites that require a lock out of one meal per mealtime. (I.e. Breakfast, Lunch, Dinner)

Regardless of the reason, Payroll Deduction is slowly becoming a standard mode of payment within cafeterias across the country and is winning the kudos of the Employers, Employees, and Food Service Vendors.

We have Come Along Way since the Abacass

The other day I was explaining to a new associate the history of technology in the retail environment. I was explaining how and why Cash Registers evolved from basically adding machines to theft prevention devices and how electronics revolutionized everything into we what we now call point of sale. Suddenly I noticed a little glaze in the eyes of the recipient and I realized that although my history lesson was factual, it was no longer relevant. WOW! Who would of thought!


You see in today's world, Technology is not a new piece of science, Its a fact of life. In his mind all he's ever known is technology and any thing prior was prehistoric. Today's modern cash registers are complex, integrated computer networks that have entrenched themselves into every aspect of the business and retail world. In fact those businesses that have embraced technology have taken a bold path of no return.


The simplification and automation that today's technology adds to the business world cannot be out done except with more technology. So Once a business embarks on a path utilizing technology they will never go back, they will always move forward. Technology will become the new way of doing business. and the entrepreneur who sees the benefit's will begin to look for other ways that technology can improve daily operations. They will view the old way of doing business as archaic and irrelevant to the future. Just as my student did. However most small business fail to look at technology this way. They treat it as a expensive necessity instead of a long term investment into the future.


When considering the use of technology in a business it is crucial to make a long term plan and budget. Having a set goal and Researching is the most important thing a business owner can do before committing to purchasing any form of technology. The wrong purchase can be economically painful and in some cases fatal to the survival of the business however the right purchase with a tactical and affordable goal can can be the catalyst to success and growth.


It all Comes back to Return on investment ROI. Don't just buy a computer. Buy a back office that will improve your accounting and tell you if your making money. Buy a system that will help control your inventory and lower your food or inventory cost. Buy a solution with a Point of Sale and insure accuracy and improve your staffs through put. Take a look at all the new gadgets that will enhance the customers experience. This is a "I Want it Now" society so your POS should deliver finger tip information and availability, immediate receipts, fast credit processing, it should take the leg and pencil work out of everything you do, and most importantly, be EASY TO USE. It should compile information about your customers and have the ability to offer incentives for there return and be able to identify them when they do return and suggest a reward. It should be able to grow with your business and your vision and with the advancement of new technology. this means an open system. that is a system running on an open platform or operating system. Does all this cost more? Yes . But the return is ten fold.


Last but not least computers don't run themselves. you will need some portion of your staff dedicated to running your system so budget accordingly. consider it a necessity and part of the overall cost. Its all in the planning


In closing let me say that it is those hard challenges in business that you overcome that bring you to the next level.

If you always do what you always did you will always get what you always got.

we live in a technological world that is limited only by our lack of imagination. Let technology work for you and your business.

Welcome

This blog offers its readers interesting and educational information relating to technology and its influence on the Point of Sale industry. Within it you will find a wealth of facts, opinions and perspectives from leaders in the industry as well as suppliers and end users of this technology. We encourage lively, open discussion and hope you feel free to leave a comment and share your thoughts and opinions as well.