It is fair to say that there are many different businesses out there and they pay employees using different cycles. Some employers prefer to pay at the end of every week, others every two weeks and finally, getting paid at the end of the month. From an employee point of view, they would much prefer to get paid as often as possible because they have to deal with bills coming in at any time of the month and so it is better to have money at that time so that they can pay these bills. Companies on the other hand have agreements with suppliers and distributors that bills will be paid at the end of each month and so they wrongfully assume that this is the perfect situation for their employees as well. The unfortunate thing about this business decision is that they are forcing employees to get involved with money lenders so that they have enough money until the time comes for their salaries to be paid at the end of the month.
If you are currently using payroll outsourcing services in Malaysia then it is important that you understand what it means that your customers want and what they need. It may be suitable for your business to send and receive payment at the end of every working month but this may not be preferable for your staff. The key is to keep staff motivation levels high because we know that happy staff is more constructive staff. Here are some of the benefits for paying your employees on a weekly basis.
- Happier staff – This was touched on briefly before and it does make a lot of sense when it comes to a business context. If you are paying your staff more regularly even using online payments then they are unable to pay for the things that the need and so they will be much happier. If you have staff coming to work with a smile on their face then they are sure to give the day the best efforts and your business will benefit as a direct result.
- Consistency is always better – By paying your staff on a weekly basis, it ensures that they have money at all times when they need it the most. By paying them every month, you are putting undue pressure on them and so you will force them to start contacting moneylenders and they will be paying extortionate leap high levels of interest.
- Overtime payments – If you are asking your employees to come in at the last minute or to stay later which forces them to have to get someone to take care of the children then it seems only fair that you should take them for their overtime work as soon as possible. It is essential to keep morale high and just offering them more overtime is not good enough.
As you can see, paying your staff regularly and on time is the best way to go when it comes to your payroll. Your staff is the most important asset that you have, so make sure that you take care of it.