For processing payroll, businesses have several options at their disposal. A biweekly payroll can be processed every other Friday; a semimonthly payroll on the 10th and 25th of each month; or monthly payroll can be processed on any day of the month (for example, on the last Friday of every month).
When it comes to most workers, the more often they are paid, the better. As a result, what is the best payroll option if you want to do the right thing for your employees? This week’s pay.
There are numerous advantages to weekly payroll for both workers and employers. Why should you pay your employees weekly, and how can it benefit your company?
Almost any hourly worker will tell you that they prefer being paid weekly. For a good reason, of course! The following are some of the advantages that weekly payrolls provide for employees:
It can be difficult for employees who only get paid once a month to keep up with their monthly expenses. With weekly paychecks, employees are guaranteed a salary each week, ensuring they always have the money they need.
Employees benefit from both regularity and frequency when it comes to their paychecks. When you send your clients a weekly check, they don’t have to worry about having enough money to pay their bills on time (like monthly or bi-weekly).
The number of hours an hourly worker puts in can vary from week to week, and as a result, so can the amount they are paid. Any time an employee puts in extra time, they expect to be paid for it immediately. Your employees will get paid promptly instead of waiting for future pay dates (which could be nearly a month away) to collect overtime pay if you use weekly paychecks for your business.
A significant benefit for hourly workers is receiving their paychecks every week. However, small business owners can also benefit significantly from this.
There are several ways that weekly payroll can support your business (and make your life easier!)
Monthly or semimonthly payroll processing makes it difficult to plan. Payroll, for example, could be processed on the 10th and 25th of each month. Those dates will change month to month, so you may need to process payroll on a Tuesday and a Wednesday one month and on a Friday and a Monday the next.
Managing your payroll weekly makes it much easier to fit into your busy schedule. There is a lot less guesswork when you know exactly when you need to process payroll (for example, on Wednesday afternoons)—and because that time is consistent, you can better plan your schedule each week, making it easier to get it done.
A bi-weekly, semimonthly, or monthly payroll structure can make it challenging to hire new employees. As a result, you’ll need to prorate their first paycheck and ensure they only get paid for the hours they worked during the current pay period. The backend management of this proration process can be tedious, time-consuming, and frustrating.
You can avoid this issue by running payroll weekly. New hires start on Mondays, so you don’t have to worry about prorating their paychecks, saving you time, energy, and hassle.
Employees who are paid on an hourly basis expect to be paid weekly. And by running payroll every week, you show your employees that you not only care about their financial well-being but are invested in creating a work environment where they feel heard, valued, and taken care of.
In this regard, what may be one of the employers’ most significant advantages of weekly payroll? Employees who receive their paychecks weekly are likelier to be engaged in their work.
Paying workers what they want shows that you care about their financial well-being, so they’ll be more loyal to you and your business. You can improve employee retention, reduce hiring costs, and create a sense of stability and consistency within a company when your employees are happy and invested in their work environment.