Payroll - Your thoughts

[Sanchez]

Would you accept a job that pays monthly?

Many companies (small operations for the most part) in our area have moved to a monthly payroll system. Our firm made the decision over ten years ago to pay our employees monthly. We disclose our payroll policy to all applicants.

We have not had any employee complaints and some believe that it is a positive in that it forces a strict budget. In ten years we have had one employee voluntarily leave the firm (for family reasons) and our staff has remained relatively stable.

From an employer's standpoint this system saves money in payroll expense, helps cash flow (we bill out monthly), and gives us some comfort that our staff members are responsible money managers. Our key employees deal with trust accounts containing client funds.

This morning I was discussing payroll with a government employee and it is her position that employees at her office would revolt if the entity moved to monthly payroll. She stated that there was some discussion that the entity wanted to move to 24 pay periods per year (two per month) rather than 26 (payroll every two weeks) and the blowback was significant. Employees felt that the two months per year when they received three payroll checks was like a bonus.

What are your thoughts?

 

[Allison]

I did accept a job that pays monthly. It's been that way forever here.

 

[tink_n_pooh]

I wouldn't "prefer" being paid monthly however it wouldn't be an end all for me either.

I think those people who would, as she said, stage a revolt, might need to get their priorities straight (just IMHO of course). Be thankful that you have a job and are getting paid

 

[Magic Mom]

I get paid monthly.

 

[Christine]

I had a job that paid monthly once. It took some getting used to but, overall, not a big deal. I now work for the government and get paid 26 times per year. I never look at those "extra" pay periods as bonuses because I do not budget monthly so I never got that but a lot of people view their finances differently. If they budget strictly on monthly income, they are essentially living below their means for the overall yearly pay because they don't figure in those extra checks.

I can't imagine that someone would "revolt" though.

 

[HM]

I've been at a job where I'm paid monthly (on the 25th) for 23 years!

My DH is paid twice a month (15th and last day of month).

I don't think either of us would be bothered if the situation changed for us.

 

[js]

I work in a private college and we get paid monthly. I worked for many years in NYC and always got paid bi-weekly so this was the first job I had that got paid monthly. It wasn't too big of an adjustment and I certainly would not take a job just because it pays monthly.

 

[Acklander]

Any time you make changes you're going to hear people grumble. As far as would I take a job that pays monthly? Sure, I'm settled in my life with savings to cover me until the first paycheck came in, after that it all equals out the same. When I was young and first started working it would have been an issue though. As I wouldn't have been able to buy groceries until the first check came in, so at that time in my life I would have picked the company at paid weekly vs monthly.
And as far as the PP comment of, if they complain they have the wrong attitude and should be lucky to have a job...... For several years corporations have been cutting everything to the bone and expecting the remaining workers to pick up the slack because "they're lucky to have a job". Seriously, that is getting old. Since many corporations are bringing in record profits during these difficult times I think the phrase should be changed to " they are lucky to have employees" who continually to give their all for longer hours, less pay, and less benefits.
If a company wants to change the payroll to help reduce costs, so they can stay competitive, great. If a company wants to change payroll to help reduce costs so the CEO can get a big get bonus - I'm not gonna get all warm and fuzzy about it.

 

[mickeyboat]

We are paid weekly here, and I think there would be a revolt if we switched. Many many people who work here life paycheck to paycheck and are not good enough money managers to be able to work with a monthly pay schedule.

I worked for a company who switched from weekly to 26 pay periods. There was major resistance but one it was done, it didn't take lond for people to get used to.

I could do monthly.

 

[kelleigh1]

I am used to being paid every two weeks, but if it was a job I wanted, I'd adjust to monthly. And I might even welcome it because as some mentioned in a different post yesterday, with getting paid monthly, you pay all your bills when you get paid and then you know exactly what you have left every month.

 

[Janepod]

I had a monthly payment schedule for one of my old jobs. It was inconvenient, but not a deal breaker.

 

[Disneychix]

My parents were teachers who only got paid 10 months out of the year. If they didn't know how to budget for the summer months we would've been very hungry for 2 months!

I wouldn't prefer to get paid monthly but it would just take some getting used to. What happens to people newly hired if they start on the 2nd and payday is the 1st? That would be one long month with no paycheck!

 

[Sanchez]

Any time you make changes you're going to hear people grumble. As far as would I take a job that pays monthly? Sure, I'm settled in my life with savings to cover me until the first paycheck came in, after that it all equals out the same. When I was young and first started working it would have been an issue though. As I wouldn't have been able to buy groceries until the first check came in, so at that time in my life I would have picked the company at paid weekly vs monthly.
And as far as the PP comment of, if they complain they have the wrong attitude and should be lucky to have a job...... For several years corporations have been cutting everything to the bone and expecting the remaining workers to pick up the slack because "they're lucky to have a job". Seriously, that is getting old. Since many corporations are bringing in record profits during these difficult times I think the phrase should be changed to " they are lucky to have employees" who continually to give their all for longer hours, less pay, and less benefits.
If a company wants to change the payroll to help reduce costs, so they can stay competitive, great. If a company wants to change payroll to help reduce costs so the CEO can get a big get bonus - I'm not gonna get all warm and fuzzy about it.

A few thoughts;

We are a smaller operation and have always offered to help new employees for the first month or two. However, it is more difficult for larger companies to do this so I understand how some people would have a problem accepting a position with this pay schedule.

I am not sure that I understand your last paragraph. One of the main reasons to have monthly payroll is to cut costs, however the benefits to the employee are not cut. I am not sure why it matters whether the CEO is going to get more money. In our firm the partners income is directly affected by expenses . . .we will see an increase in income for cost cutting like this. However, there is a delicate balance. We want happy, well paid employees because they are productive and in the long run increase our income.

 

[Pakey]

We pay bi-weekly for one division and weekly for another and have a large workforce that lives paycheck to paycheck. I can't imagine the drama an announcement of paying monthly would create here.

Payroll is one of my departments and I would live it from that standpoint as I could reduce staffing.

Personally it would make no difference to me as most of my income goes into savings anyway.

 

[BernardandMissBianca]

I'd rather be paid more often then once a month but it wouldn't be the deciding factor on taking the job. Basically what I would do is move 1/2 the money immediately to a savings account to have for the second 1/2 of the month.

Right now DH gets paid every 2 weeks, I hate it because since we were newlyweds he has gotten paid on the 15th and the last day of the month, every single bill is cycled through that pay schedule. The 2 week cycle throws everything off. So I just make sure I lay out due dates on a calendar to figure out what to pay when.

 

[disykat]

I've always been paid monthly. When I was single I simply called all my monthy bill commitments and asked for a bill date that corresponded with my paycheck. Then I sat down once a month and paid the bills. Easy as pie and very easy to budget that way.

My dh get's paid every two weeks. I had to rearrange my system, but like this as well. I'd be fine with going to monthly for both of us though. The only problem would be the transition. As someone said, a month is a LONG time during that first month!

 

[Green Tea]

People don't like change. With something like moving from 26 to 24 pay periods, there is an unconscious feeling of losing money. Same with the monthly change. If the company actually did make the switch to 12 from the 26, folks would grumble, revolt, think it was the worst thing in the world, then they would get over it.

 

[MrsJackSparrow4Life]

My biggest issue with it would be adjusting my payments for the first month or so.

My last bi-weekly paycheck would only cover two weeks worth of bills and it would be another month before I would see another paycheck so it could be an issue getting things paid for on time during that month. Hopefully I would have enough money in savings to cover the difference for a short time period.

 

[angwill]

When you said they were a government employee that would revolt it made sense. They probably have a union behind them so they would fight any change little as senseless as it may be. At least that seems to be the way it happens around here.

 

[klacey1]

Right now DH gets paid every 2 weeks, I hate it because since we were newlyweds he has gotten paid on the 15th and the last day of the month, every single bill is cycled through that pay schedule. The 2 week cycle throws everything off. So I just make sure I lay out due dates on a calendar to figure out what to pay when.

I completely agree! I was paid the 15th/end of the month here (and at my previous job) and loved it. I had all of my bills due on specific dates and it worked well. The every other week thing kind of throws things off--like you, I sat with a calendar for awhile and had to juggle everything around. I'd rather get paid once a month than every other week as long as it was on a specific day every month.