There are many different options available when it comes to payroll and companies can issue salaries every week, every two weeks, or once a month. Looking at it all from an employee point of view, they would prefer to get paid more frequently and so getting paid at the end of every week is better. Paying employees weekly isn’t just good for them, but it is also good for your business as well. Employers frequently forget that employees do not live the lifestyle that they are used to and they get bills arriving on a very regular basis and for a lot of the time, they don’t have the money to pay. This can put their employees in very difficult situations and can sometimes force them to borrow money from lenders who charge incredibly high rates of interest. This is added stress that the employees don’t need and it affects how they do their job.
If you are a company who is outsourcing payroll in Malaysia, then you should know that if you were to ask your workers who get paid by the hour, they will always tell you that they want to get paid on a weekly basis. If you’re still not sold on the idea as an employer, then maybe the following benefits of our weekly payroll structure might help you to make a more informed decision.
– Often & consistent – As touched on previously before, if you have a monthly payroll, then this can put a great strain on all of your employees because they have bills to pay and no money in which to pay them. This means that they may have to get financial tips to help them balance their money better. If you pay them on a weekly basis, then they have cash all of the time when they need it the most. If you don’t pay your employees on a weekly basis, you will be forcing them to budget and to cut back on some of the necessary things that we need to live a normal life.
– Payment for overtime – It seems only fair that if you are asking your employees to do over time at the very last minute, that they should get paid for that extra work that they do as soon as possible. If you want to keep employee morale high and have motivated employees, then it’s best to pay them for the extra work that they do when they do it. Having to wait until the end of the month to get paid for additional hours, puts a very great strain on them.
– Easy planning – As an employer, paying your staff on a weekly basis is a lot easier to plan than having to pay them on a monthly basis. If it is your intention to pay your staff on set dates, then those dates don’t always fall on the same days every month. If you run a weekly payroll however, it is a lot easier to pay them because you know exactly when they have to get paid. For free government advice on payroll, please have a look here.
Happy employees are more productive employees, and as an employer, this is what you need to be aiming for. Pay them weekly and keep them happy.