Many software and hardware solutions are available to businesses for processing payroll. Payroll processing can be done on a biweekly basis (for example, every other Friday), a semimonthly basis (for example, on the 10th and 25th of the month), or a monthly basis (for example, on the last Friday of every month).
On the other hand, most workers believe that the more frequently they get paid, the better. Consequently, what is the most excellent payroll alternative currently available if you wish to treat your employees fairly, particularly your hourly workers? Payroll is done each week. Providing a weekly paycheck is advantageous to employees and employers in several ways. Let’s look at some of the reasons why you should think about paying your staff every week, as well as some of the ways that weekly payroll might benefit your company:
What are the employee benefits of weekly payroll?
If you ask any hourly worker, they will all tell you that they prefer getting paid once a week rather than biweekly. To a perfectly valid point! Employees gain in several different ways from a payroll arrangement that is every week, including the following:
Paychecks are issued regularly to employees. Employees only receiving cash in hand once a month can be challenging to manage when combined with the financial burden caused by monthly payroll. Employees receive payday each week when they are paid every week, which enables them to have cash in hand they require when they require it, which is both consistent and convenient. Your employees will benefit from the regularity of their weekly pay and the frequency of the payments. Instead of having to budget for less consistent payroll options, receiving a weekly check guarantees that your customers can pay their bills as soon as they come in.
The number of hours worked throughout the pay period, including overtime, is reflected on each paycheck. The number of hours an hourly worker puts in on a weekly basis can fluctuate, and as a result, the amount they are paid can also change from week to week. When employees put in extra hours beyond what was agreed upon, they expect to be paid as quickly as possible. Instead of waiting for future pay dates (which could be nearly a month away) to collect their overtime pay, you can ensure that your employees are paid in a timely manner for the time they put into your business if you pay them on a weekly basis. This allows you to ensure they are delivered promptly for the time they put into your business.
What are the employer benefits of weekly payroll?
Weekly payroll is a significant benefit for hourly workers; however, it also provides significant advantages for proprietors of small businesses. As an employer, processing payroll every week can be beneficial to your company (and make your life easier!) in several ways, including the following examples:
The establishment of a weekly payroll schedule facilitates the process of planning.
It might be challenging to make appropriate preparations when payroll is processed monthly or semimonthly. Consider the following scenario: you handle payroll on the 10th and the 25th of each month. These dates will fall on various days of the week from one month to the next; for example, one month, you could have to process payroll on a Tuesday and a Wednesday, and the following month it might be a Friday and a Monday instead. These dates will change from month to month.
When you process payroll every week, it makes fitting other obligations into your schedule much more straightforward. You now know exactly when during the week you need to make time to get it done (for example, on Wednesday afternoons), and because that time will stay consistent from week to week, it is much easier to plan your schedule around it. Instead of scrambling to find time to process payroll on random days and times throughout the month, you now know exactly when during the week you need to make time to get it done (for example, on Wednesday afternoons).
There will be no more partial pay periods given to new workers.
Hiring new staff can take time and effort when you have a payroll schedule that is either semimonthly, monthly, or biweekly. You will need to prorate the employee’s first paycheck if they begin their employment in the middle of a pay period. This will ensure that they only receive payment for the hours (and the portion of the pay period) they put in. Managing this proration process on the back end may be a difficult, time-consuming, and stressful experience at times. If you process payroll every week, you won’t have to worry about this issue. Because most recruits start on a Monday, all your new employees will begin at the beginning of a new pay period, so there is no need to bother about prorating their payment. This may save you substantial time, energy, and aggravation because most new hires start on a Monday.
Employee satisfaction equals employee investment.
Paychecks should be issued every week to hourly workers. And by processing payroll every week, you are demonstrating to your staff that you not only care about the financial well-being of your employees but are also involved in cultivating a working environment in which they are made to feel heard, respected, and cared for. As a result, what is most likely the most significant advantage of weekly payroll for employers? Your staff will be satisfied with the weekly payment, and research has shown that happy employees are more involved in their jobs.
You can show your employees that you care about their financial well-being and increase their loyalty to you and your business by providing them with the sort of compensation structure that they request. In turn, they will care more about you and your business. And when your workers are content and invested in the environment in which they work, they are less likely to seek employment elsewhere. This can help you improve employee retention, reduce the costs associated with hiring new workers, and establish a sense of consistency and stability within your organization.
How Hourly may assist you in making the switch to weekly pay periods
There is little question that switching from a bimonthly, semimonthly, or monthly pay period to one weekly has many significant advantages for both employees and businesses. Why don’t more organizations use it as their primary payroll arrangement? The question of cost is at the forefront of many people’s minds. As a result of the fact that many payroll service providers charge their customers each time payroll is processed, switching to a weekly pay period can be up to four times more expensive than paying your staff every month. Are you ready to learn more about how Hourly can assist you in shifting to weekly pay periods while minimizing the financial impact? Could you get in contact with us right away?