Case Studies
Payroll Choices™ Program Delivers Unstoppable Results
Stein Mart – With a nationwide network of nearly 260 free-standing stores across more than 30 states, Stein Mart has over 17,000 employees at its department/specialty off-price retail shops.
The Challenge
In years past, events beyond Stein Mart's control hindered its ability to deliver paychecks to a network of 17,000 remote employees. One year it was air traffic congestion due to 9/11; another year a snowstorm hit Louisville and crippled the local mail distribution hub; then there were the frequent hurricanes in Florida, where the store is headquartered. With so many variables in the payment distribution equation, Stein Mart needed a fail-safe system that could deliver payroll despite so many obstacles. In addition, with employees spread out over 30 states and on four different payroll cycles, Stein Mart needed a seamless solution that would be compliant with all state wage and hour laws.
The Solution
The Citi Prepaid Services Payroll Choices program transformed Stein Mart's slow and uncertain paper check process to a secured, electronic solution. By shifting payroll payments from paper checks to reloadable Visa® prepaid cards, Stein Mart has the ability to instantly deposit funds to 100% of its employee base, even to those who do not have bank accounts. The payroll cards, backed by Visa's "Zero Liability" fraud protection, can be used to make purchases anywhere Visa is accepted and to withdraw cash at any Plus® ATM. Employees were also given options to access electronic paystubs, or eStubs, allowing them to receive their pay information on the web, via fax or by phone. Additionally, the Citi Prepaid Services Payroll Choices is fully compliant with the laws in all states where Stein Mart pays its employees.
The Result
The decision to implement Citi Prepaid Services Payroll Choices was made in April, and by July of that year, Stein Mart's payroll card system was live and fully operating. Replacing paper paychecks with a 100% electronic solution reduced Stein Mart's processing expenses by $80,000 to $100,000 per year. The company eliminated its need for paper, toners and printers and significantly reduced personnel resources. The biggest accomplishment, however, was the company-wide adoption rate. Prior to payroll cards, only 40% of Stein Mart employees were on direct deposit. With the Payroll Choices program, now all pay is delivered 100% electronically either by payroll cards or direct deposit. With this large scale benefits reformation in place, when Hurricanes Katrina, Rita and Wilma closed numerous Stein Mart stores in Louisiana, Mississippi and Alabama, all employees received their pay on time.
"The primary benefit [of payroll cards] is the comfort in knowing that all of our associates receive their pay on time every payday. No more delays caused by weather… or other factors beyond our control." - D. Hunt Hawkins, Senior Vice President, Human Resources