Changing Pay Periods - Handle with Care

November 06, 2018

Consider the impact on employees when changing pay periods.

You’re ready to change your pay period, but aren’t sure exactly how to make it work. You may need to determine creative ways to alleviate potential financial hardship on your employees. For example, when moving to arrears, you could ease the transition by adding a certain number of days’ pay to employees’ paychecks. If the change in pay frequency could put employees in a bind, consider offering a short-term loan paid through payroll. Your accountant can help you calculate what options would work best with your cash flow.

To help smooth the transition for your employees, consider these very smart tips:

Set a date for the change. Planning ahead gives you time to address any financial concerns and allows the opportunity to …

Give employees advance notice. Change can be challenging, but time to prepare is always appreciated, as is your willingness to ….

Be open to questions and concerns. Implement an open-door policy for employees to ask questions, establish a FAQ document in your FLIGHT library, email all employees, or hold Q/A sessions.

With solid preparation, you and your employees can enjoy a smooth transition to a new pay period.