Q: Just wondering if you have any advice/tips how to propose to the management to adjust the pay cycle?
The company has very strange pay cycle (for me anyway), because they are paying a few days in advance.
The company has 250 employees and it’s a bit time consuming to do constant adjustments. The pay period is fortnightly on Wednesday.
Example, say pay run 7th July (Wed) = 1st week – 28 June – 2 July; 2nd week – 5 July – 9 July. But because the pay run on 7th July, we are paying Wed, Thur, Fr (3 days) in advance. So I basically don’t know yet if any employees went on annual leave or sick leave or any leave… I also don’t know if they worked overtime… or worked less…
I am thinking to come up with a proposal to adjust the cycle just to pay straight and clearly two weeks.
Do you have any tips?
A: You would need to write a business case on why the pay period needs to change and then fully consult with employees as it is an agreed term, listen to any issues they raise and then fully investigate. Business case could be on: cost of adjustments in payroll, payroll best practice, removing errors, ensuring employee are paid correctly first time etc.
- Give them plenty of time to adjust (3 months before the change happens)
- Maybe a goodwill payment