Every company needs to have their own “Pay-day”
This is one of the most awaited days for most employees, though; it could be a disaster for many companies if not handled carefully.
Here in the Philippines, the most common are monthly and semi-monthly (twice a month)
There are also some who pay weekly and bi-weekly (every two weeks) most owners might not think that this matters a lot.
But, believe it or not these schedules may share similarities but also has their different advantages and disadvantages. They also have a lot of impact not only to the company but to the employees.
Being paid means a lot to them!
Contractualization may not be an acknowledged and official word to the dictionary but believe it or not, it is one of the major issues being called-out in the Philippines.
It has been a nightmare to many employees for the past years and it has tarnished the reputation of many giant companies.
The employees’ earnings and wage are one of the top issues involving this matter. It was a war continuously being fought by a lot of Filipinos.
So it is very important to have a systematized procedure of payment. A schedule that fits the living of your workers as well as will make accounting more easily could make a lot of difference. It is actually the key to success!
Going through, knowing our country, we are one of the countries with the most hardworking people not only in Asia but in the whole world. ; However, it is also undeniable that we are poverty-stricken. Many families depend on the earnings being brought to them by their breadwinners. That’s what we need to be mindful of as well.
For salaried employees, monthly payrolls are of no problem. But for hourly or contractual that are mostly composed of blue-collar workers, it might be a big problem. So at this case, having an alternate schedule might be necessary.
Nevertheless, bi-monthly (twice a month), bi-weekly (twice a week) and weekly are some of the most popular options.
So, here are some tips that might help you think about these alternatives:
Having the bi-monthly system will make deductions easier for you. We know that healthcare insurance are a thing in the country.
Though some companies do not encourage it (which is wrong), it is still important.
It would also be easier for your accounting and finance department to process this. Plus, they would also have more time which can also make their reports clearer and easier for you to monitor and analyze because reports are being run monthly. This also applies to both bi-weekly and weekly basis of payrolls though reports are seldom being run on a weekly basis.
The thing with a weekly basis payroll it is attractive to your employees. They find it more encouraging when they are being paid more often. So the closest your payment schedules are placed, the more it can make your workers feel empowered.
Without any negative implications, we know that these earnings that your employees have worked hard for are very important to them and with all the hard-work they have rendered; they deserved to be given enough compensation.
At the end of the day, the decision still depends on the CEO. He should know what’s best both for the company and its working force. Good decisions will not only pay the employees reasonably but it will also pay-off to the part of the company administration.