How To Manage Your Employees Pay Day Effectively

by Josh Biggs in Business on 26th July 2021

Pay periods usually vary from one company to another. Whether your employees’ pay day comes weekly, bi-weekly, or monthly, it is important to manage the pay date effectively, because it directly affects employees’ satisfaction, performance, and retention.

But how do you manage your employees’ payday? Worry not, as here are four tips to help you so you can keep your employees happy and motivated.

  1. Create a Payroll Calendar

A payroll calendar is crucial as it helps employees understand when timecards are due and when to expect payment. Additionally, the calendar helps your payroll team plan and execute payroll tasks such as collecting employee timesheets and running the payroll.

Usually, payroll systems like FreshBooks and AccountEdge Pro will include a feature to help you create a payroll calendar. However, you can also use an Office Suite program or a spreadsheet to set up the calendar yourself.

No matter which option works for you, it is vital that you show all pay dates in a fiscal year. Doing this will help eliminate any confusion about when employees should expect payment and the time frames their paychecks will cover.

  1. Offer higher benefits

Providing benefits beyond the basics is a great way to show employees that you genuinely care about them and their loved ones. The good thing is that there are many ways to assist employees in other areas of their lives other than paying their salaries on time. 

For instance, when an employee wants to apply for a personal loan, they will, in most cases, require a pay stub to show lenders that they are employed and have a consistent income. For that reason, you can make sure that employees get these financial documents at the end of every pay period, even when the state law does not compel you to do so.

Fortunately, you can find many different online check stub maker platforms that can help you create these documents quickly without calculations. Whether you choose a free or paid version, be sure to sign or certify the stubs so your employees can use them as legal documents.

  1. Pay employees at the end of every pay period without fail

Once you come up with pay dates for every fiscal year in your payroll calendar, make sure your employees receive their payment on or before the said dates. 

Even when the payday falls on a holiday or the weekend, ensure employees get paid on the previous working day​.

Paying employees at the end of every pay period without fail will ensure that they are happy, motivated, and productive.

  1. Be honest and upfront.

Transparent and honest communication is essential when it comes to managing your employees’ payday effectively. 

For example, essential payroll issues should be communicated in writing and copies displayed prominently in your workplace or given individually to employees based on what affects them.

Communication can include issues like:

  • Company payroll policies
  • The company’s payroll calendar
  • Employees’ classification
  • Employee reporting responsibilities
  • Procedures that the company uses to handle payroll mistakes

More importantly, you or one of the payroll specialists should be easily accessible so that employees can approach you with issues, questions, or concerns regarding the payroll. No matter what they raise, make sure that you acknowledge their grievances and inform them of your probable course of action for addressing the issue. 

Proper communication eliminates, or at least minimizes, many payroll issues that may affect employee productivity and retention.

Managing your employees’ payday may not be at the top of your list for things to do well. However, how you handle issues related to the payday and the payroll, in general, will determine employee retention and your overall business performance.

Categories: Business