If we have decided on a biweekly pay structure, perhaps as managers we need to take the lead in helping our employees to make a smooth transition. We could accentuate the positive aspects of this new system. It is also worth noting that our industry employs a large percentage of young people who may not as yet understand the value of a good budget. This is a good opportunity for them to learn early to spend their money wisely. While we certainly shouldn’t pry into people’s personal finances, there is nothing wrong with educating workers in these areas if it’s done in a collective format. Try the following suggestions.
• Encourage your employees to learn the value of a budget. There is a wealth of information online and in bookstores on making a budget.
• Twice a year they will in a sense get an extra paycheck. How so? Well, if you make a good budget you will base it on two checks a month. Twice a year a third pay week will appear. That check could be used for items such as vacation, savings, dinner out, etc.
• Explain to them the value of biweekly pay. To say it’s because it “helps you save money” might seem hollow to them. Instead, why not tell them what the extra money saved will do to help improve the company?
• You might want to point out having a lump sum every two weeks enables you to pay large bills like rent and car payments with one check. There is some value to that.
When writing this article I wanted to be objective, but in the back of my mind I wanted to prove that weekly paychecks were the best way to go. Throughout the research process it became apparent that biweekly had advantages for the employees as well as the company. It also seemed apparent that the less money you make the more important it is to have money coming in each week.
There are pros and cons to both choices. It is not a one size fits all decision, but I hope I have given you some things to think about as you make the best choice for your own company.
About the author: Jon Olson is the production and operations manager for Sterling Surfaces in Sterling, Mass. He has been a solid surface fabricator since 1982 and can be reached at email@example.com.