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What is your motivation for wanting to push monthly payroll? How do you currently pay now, semi-monthly?
You have stated good reasons why your people would not want monthly payroll but no reasons why you want it. If you are trying to motivate, why are you considering something that they will see as a negative.
My feeling is to stay with a semi-monthly payroll and work to motivate your crew with the two things that you state are their motivators. Once you start doing that and get them going, you add other incentives down the line.
but again, why are you doing something that you know will be a demotivator??
My motivation for wanting to push payroll is to save cost. The company currently pays its independent contractors monthly, whether or not the clients have paid as promptly. This is the first time employees have been used. In the two weeks since we have begun recruiting for these positions, our cashflow has ranged from 0.9% to 353% of what would be needed for a semi-monthly payroll. Since this is a substantial contract, we could easily set aside dedicated payroll savings. But it might take a couple months to do so.
The client asked our company to bid for this contract. Less than a week passed between our proposal and their acceptance. Once our bid was accepted, we were basically told, "You got it! Get a contract to us by the end of the day, and as long as you have a twenty-four hour staff in place within the next week or so, we're good to go!"
Needless to say, that was very exciting, but did put us into the position of growing faster than initially anticipated.
We can't yet guarantee a semi-monthly payroll, let alone a bi-weekly, or weekly one. We want to make them happy, but need ideas on how to do more with less.
I can understand your wanting to save money on payroll processing. I guess the next question is what did you tell your employees when they started? How often did you say you would pay them? My thinking is to pay every two weeks or semi-monthly, even if it does cost more as that is the price you are paying to motivate and retain your employees.
As far as cash flow, that is another issue.
I'm with the previous poster, why do monthly payroll? Esp, in these times, employees want to be paid as frequently as possible.
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I know most employees would prefer to be paid at least semi-monthly. The small business that employs me has accepted our first contract requiring that the work be completed by employees and not 1099 independent contractors. Independent contractors, even when they exculsively utilize us as a hiring firm, view us more as a client who allows them the serve the roles of software developers and not wear the hats of collection agents. We pay promptly and monthly. The business is in the state of Florida, which does allow monthly payroll, so that's not the issue. The issue is that I need to motivate our small arsenal of interns. (Five entry-level technicians, male, ages ranging from 18 to 24.) They seem unmotivated by benefits other than (1) wages and (2) resume-enhancing onsite education/training. They are bright & young. They have great work ethics and dislike remaining idle. They also, like most young people, don't know how they'll manage to live for a month without a paycheck. These are already people who would rather have more money than insurance and retirement plan contributions. What advice can anyone give me to help make monthly payroll more attractive?