When Do You Pay Your Employees?
By Deborah Sweeney on December 14, 2012
What’s the best possible type of pay schedule? Do you pay up weekly? Every two weeks? Once a month?! If you’re setting up your first payroll and are wondering when the best time to send out the checks are, here’s some $$ based advice based on personal experience.
This is the old standby, and the one I set my company up on. It makes it easy to budget, and your employees aren’t forced to rub pennies together and live off of Ramen noodles while they wait for their next check. However, there are some who feel this is far too infrequent for their lifestyles…
Our social media manager Heather has told me she’d be in heaven if we paid weekly. You get a steady flow of income every week and, hopefully, don’t want for money. The problem is that people may have trouble budgeting on this schedule – Heather followed up with the addendum that weekly pay would allow her to shop at Ann Taylor LOFT more often. And while that may be fun, as her boss I have to try to look out for her wallet’s well being!
3. Monthly (Just Say No.)
This is the most hated of the pay schedules, but there are still businesses that use it. Remember when I talked about forcing your employees to live off of Ramen? Unless you have a knack for perfectly budgeting your money, you end up in a hole looking for the ladder out that is your payday at the end of the month.
In the end, bi-weekly affords the most dependable and workable options with a good compromise between weekly and monthly pay schedules. While every business has different needs, I rarely hear horror stories about being near starvation from employees that are paid bi-weekly!
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