When job seekers go through a job ad, the first thing that always draws their attention is the salary section. If it is not satisfactory, they move on in their search. Just like it is the employee's responsibility to do a good job, so is the employer’s responsibility to define the job details, highlight the salary remunerations, and put in place adequate measures to ensure that every worker receives their pay on time and with no stress.
Employee Payment Options
Before choosing a payment option for paying your staff, first, you have to calculate their individual gross and net salaries and factor in any work bonuses. Once this is done, the next thing will be to determine which payment option works best for your staff. Doing this would help strengthen work ethics and build loyalty and goodwill between employees and their employees. Every employer must pay careful attention to the welfare of their staff, most especially with the prompt disbursement of their pay as at when due. Studies have shown that about half the number of employees begin to search for another job as soon as there arises an issue with the payment of wages.
Cash payments:
This involves the direct payment of cash to employees, face to face, without employing the means of any complex technical process. However, using this method entails that you are very mindful of the process, and you do not make mistakes in calculations, whether in figuring the amounts owed or in disbursing it.
Pros:
There is only one advantage to this payment method: it's a good option for employees who do not have a bank account, are not tech-savvy, or are unaware of other payment options. And it is free to use. Neither the employer nor employees need to pay any service fees to use it.
Cons:
There is the issue of loss due to mismanagement of funds. Having cash at hand can be an easy way to spend impulsively, and it can also be time-consuming for the employer.
Issuance of checks
This is one of the most common methods employers pay their employees. Even though an employee does not have a bank account, they can still use a cheque-cashing service to cash in their wages.
Pros:
It helps employees better manage their funds instead of having ready cash at hand. Also, employers can easily send the cheques through mail or other communication channels. Having a bank account is not a prerequisite for cashing a check, so employees under this category are safe. Also, the probability of theft of cheques is significantly lower because it is easily traceable.
Cons:
There can be an issue of bounced cheques, and it could require some decent amount of money and time to sort them out.
Bank Transfers
This is by far one of the easiest and less stressful methods of paying employees. It involves no hassles at all. However, to use this option, both the employer and employee must possess an active bank account. All it requires is to transfer funds from the company's account to the employee's with the click of a button.
Before using this method, however, make sure to notify your employee of your payment methods from the onset so that they are aware. The payment process could even be automated by using cloud-based payroll software.
Pros:
It is a straightforward process and easy to carry out. Also, the issue of stolen or bounced checks is not there, and employees can prevent loss of funds by having them safe in the bank.
Cons:
Some employees might not have bank accounts. This is the only limiting factor.
In summary:
These are the three primary methods employers pay their employees the wages. Other methods include pay cards and mobile wallets, although not so common as the ones treated in the article. Whichever way you choose, make sure that your employees know and are cool with it. In all, choose the one that works best for everyone.
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