Providing Terminated Employees Access to Online Paycheck History

Many companies have either recently implemented, or are currently exploring, the option of providing terminated employees with access to view paycheck history, with the possibility of expanding access to include being able to view year-end earnings statements and other self-service functionality. This approach is not without controversy, with the benefits of reducing the support levels necessary for this portion of the employee population potentially offset by the possible increased risk associated with disgruntled employees somehow being able to cause problems using that information or to gain access to other confidential data ^[1].  While there is always an inherently associated increase in risk when any type of access is granted to a system or website, when structured properly this increased risk can almost completely be eliminated.

Recently, the Peeriosity iPolling^TM functionality was used to pose two questions to the Payroll ^[2] membership regarding the current status at major corporations of providing terminated employees with online access ^[3] to paycheck history, as well as the solution utilized to do so.   Reviewing the results from the first polling question, just 25% of the surveyed companies have implemented this type of access to terminated employees, with another 20% that are currently evaluating the option of doing so.  Interestingly, 20% have carried out this type of evaluation and decided not to proceed, while 35% have not yet even considered this practice.  These results clearly demonstrate the strong debate that is going on within companies regarding this strategy, with almost an even split between those that have implemented it and those that have rejected it.

Taking a look at the results of the second question regarding the solution utilized by companies to provide this type of access to online paycheck history, the use of a third-party website is by far the most prevalent practice, with 83% of the companies taking that approach.  An additional 17% use a company-provided external website.  Even though no companies were using the company Intranet site for this type of application, it was important to point that out in the results of this poll.

Below are some of the comments provided by Peeriosity members on this topic:

Consumer Products & Services Member: Complexity with security permissions and other projects has pushed this down the priority list. We process everything “in-house” where this might be easier to accomplish with a vendor.

Manufacturing Member: Our employees have access to their information through April following termination. For example, if they are terminated in August 2015 they will have access until April 2016. During this period they have access to all their pay and W2 information through our 3rd party provider, ADP.

Consumer Products & Services Member: Terminated employees contact our call center to receive a copy of their pay statements.

Manufacturing Member: Terminated employees contact the Employee Contact Center to request copies of pay statements prior to termination. Once an employee is terminated all new pay statements are printed and mailed to their address on record.

Manufacturing Member: ESS access is taken away from all terminated employees.

Software & Internet Member: Currently printing final pay stubs for terminated employees and are exploring options for online access.

Media & Entertainment Member: At one point in time terminated employees had access to our portal for up to 30 days after termination. However, that was changed when our portal started to be used for things other than providing pay statements and W-2s. Now, once an employee has a termination date ^[4] in our system they lose access immediately.

Non-Profit Member: The fact that this is being raised to evaluate is a positive thing. I expect that our organization is like so many others – not opening the firewall to access by prior employees. Some have cited the ability to provide such access by 3rd party contractors as a strength in teaming for external processing. It will be interesting to gauge the results of this poll by those who process payroll in-house AND allow former employees access to online information.

Healthcare, Pharmaceuticals, Biotech Member: We stop all access to our systems when an employee terminates including ESS. Personally, I think it is a bad decision and I am trying to change it.

Computers & Electronics Member: Terminated employees may have to register for access if they did not already have an external login.

How do terminated employees access paycheck history and other related information at your company?  If not currently offered, is providing online access to this type of information something to consider?

Who are your peers and how are you collaborating with them?

 “iPolling^TM” is available exclusively to Peeriosity member company employees, with consultants or vendors prohibited from participating or accessing content. Members have full visibility of all respondents and their comments. Using Peeriosity’s integrated email system, Peer Mail^TM, members can easily communicate at any time with others who participated in iPolling.