As part of our planning for a possible complete lockdown due to Coronavirus we have been reviewing the jobs due in the next few months in order to minimise delays and disruption.
We have been able to complete all March payrolls meaning that we have several weeks before four-weekly and monthly payrolls will again be due.
The situation has highlighted the fact that a small number of clients are still paying their staff weekly and incurring extra costs as a result.
In an effort to reduce both our workload and your costs in this period of uncertainty we are writing to suggest that you consider changing to four weekly or monthly pay.
Monthly payments are best when the recipients are paid the same amount each month, ie salaried. Where staff hours vary, for example they complete a timeheet and are paid for the hours worked each week, then four weekly is easier.
We realise, of course, that there can be resistance to this change from employees used to managing their money from week to week. In order to make the change employees must give their explicit consent.
Incentives can be given to encourage them to accept the change. A one-off bonus or a % pay rise for example, which would be covered by your saving in our fees. Additionally/alternatively you could make the change gradually, with a month or two where staff are paid fortnightly before moving to four weekly or monthly.
Should you decide to make this change we estimate a 30% reduction in your payroll bills over the course of the year. Clearly this cannot be guaranteed as starters and leavers and possibly dealing with any government financing due to Coronavirus may lead to additional work but this would be the reduction in cost of the basic payroll package.
We would suggest that you consider the above and discuss the matter with your employees. If you require more information please get in touch.