Changing Pay frequency
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I was notified yesterday that the owners would like change the pay frequency from bi-weekly to semi-monthly. I am very resistent to do it now that the year has already started. Has anyone made this change mid-year? If so, how did it go? We are a small company (60 ees)and this should go over like a lead balloon.
Comments
How set are the owners on the change? If they really want it, then you must do it, but before you do, be ready to have issues tracking your hourly work force. The middle of the month and the end of the month rarely track with the end of a 40 hour pay period. So you find yourself having a lot of extra work to track overtime.
Don't forget to adjust your timesheets or whatever other method you use to track hours worked for the non-exempt staff.
If you must to this, try and pick a time when the end of your normal pay period coincides with the middle or end of the month. Either that or be ready to calculate a "stub" period - you know, a pay period with just a couple of days in it. Make sure you recalculate all the authorized EE payroll deductions and look at timing of tax payments, etc so you don't trip up with some of these mundane issues.
Make sure you communicate throroughly with the staff. Anytime you mess with peoples paychecks, you are going to get some flak. Even though the pay is the same over a year's period, they must all adjust their individual budgeting, financial planning, automatic withdrawals for payments, etc. Many people have a difficult time with change so be ready to deal with lots of people's issues - and be sure management repeats the mantra regarding whatever the business reason is for the change. It is almost a given that EEs will be disgruntled about this kind of change, but if management presents a unified force, they will deal with the change because they have to.