Kundun Consulting

The Financial PRESENCE in your business.

Oct
21

Streamlining Payroll

Posted by admin

I have worked and operated with payroll frequencies at all the levels - weekly, fortnightly and monthly. My clients are always asking me what the best timeframe is. My answer is always fortnightly.

Of course you can pay any method that you want to however experience has been that fortnightly is the most efficient for the following reasons:

- It is just he right timeframe. People get enough pay to splurge or pay larger bills and don’t have to wait too long for their next pay.
- It is short enough for everyone to remember what has happened.
- It simply stops complaints. The other frequencies get too many questions asked and complaints made.

People don’t like monthly. They get too much money into their accounts, spend it quickly and then struggle for the remainder of the month. Complaints and “whinging” occur too frequently as they make an unsuccessful attempt to change the process.

Weekly is too short and just forces people to plan too much to meet their larger expenses. It also creates too much work for your payroll processor and should be avoided at all costs.

Ultimately your staff will tell you whether they are happy or not, but getting this right is critical to a happy workforce.

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