more-arw search

Q&A Forum

Pros for Once a month pay days

Company policy for 30 years--Once a month pay----now new management wants twice a month on the 4th and 21st--immediately--will not give reason for those dates. My cons--(a)Current employees have had electronic deductions set-up (mortgages, bills, etc) for years and now without at leas a 30 day notice change their pay dates is absolutely unprofessional; (b) less chance for Finance/HR errors. Most of the staff is close to SS retirement age or already drawing SS (which is monthly. What else can be offered--I have a meeting at 2pm today to speak to this. Sorry for short notice, but was just notified a half hour agol Thanks in advance


Topic Expert
Len Green
Title: Performance Improvement Consultant and E..
Company: Haygarth Consulting LLC
LinkedIn Profile
(Performance Improvement Consultant and ERP Strategist, Haygarth Consulting LLC) |

It may be a cash flow/funding timing issue-if payroll has to be funded at or close to month end before major customers pay their invoices, then management may want to switch the timing of payroll, plus reduce its total impact by splitting it into two amounts, each 50% of what used to be paid.

So-is there something else in the wind.... a major investment coming up, bank reducing line of credit???

Either way, it should be done with notice so people can adjust those automatic deductions from their own bank accounts. If someone's net pay is going to be 50% of what they used to rely on at month end, then their major deductions early next month may wipe that out.

(System Analyst) |

Thank-you so much for your response. Cash flow was the issue. I'm good and definitely on board (always have been), but was more concerned that the employees needed more time to prepare for this change-- which was granted--now thy get at least a 60 day advance notice---my goal--achieved.

(CFO) |

You should check your State rules on payroll. Many states have strict rules regarding when employees have to be paid. Over the years, I have seen where payday policies such as monthly and bi-monthly had to be changed to comply with state laws. Cash flow or not, this becomes a State Dept. of Labor Issue if not calibrated correctly


Get Free Membership

By signing up, you will receive emails from Proformative regarding Proformative programs, events, community news and activity. You can withdraw your consent at any time. Contact Us.

Business Exchange

Browse the Business Exchange to find information, resources and peer reviews to help you select the right solution for your business.

Learn more

Contribute to Community

If you’re interested in learning more about contributing to your Proformative community, we have many ways for you to get involved. Please email [email protected] to learn more about becoming a speaker or contributing to the blogs/Q&A Forum.