Company policy for 30 years--Once a month pay----now new
Pros for Once a month pay days
Answers
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.
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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.
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
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