A new report highlights a sluggish shift in the HR sector from weekly to monthly pay structures, urging modernization to cut costs.
- Human resources and staffing sectors are slow to adopt cost-saving monthly pay structures, potentially missing out on significant savings.
- Despite potential savings, over 10% of HR jobs still offer weekly pay, resisting the shift towards more efficient payroll management.
- Monthly payrolls offer reduced costs and streamline management, critical for business cash flow and growth.
- Shifting payscales from weekly to monthly can yield savings of up to 50%, benefiting both companies and employees.
A recent study exposes the reluctance of human resources and staffing sectors to transition from weekly to monthly pay structures. This hesitation could mean missing out on significant cost savings, which could reach up to 50% in payroll expenses. The analysis covered 54,000 job postings on Indeed, highlighting industries slow to adapt despite the financial benefits.
Specifically, about 10% of HR jobs continue to adhere to weekly pay despite mounting pressures on profit margins and operational costs. Monthly pay systems not only reduce expenses but also simplify payroll management, thus improving cash flow—a critical element for business growth.
Cost analyses suggest that changing to a monthly payroll can save companies between £40 and £100 per employee each year. For a business with 2,000 employees, this adjustment can result in savings of approximately £140,000 annually. This represents a potential 50% reduction in overall payroll costs.
Abhishek Agrawal, General Manager at Access EarlyPay, emphasizes the importance of this transition, noting, ‘While weekly pay provides flexibility for employees, the substantial cost savings and efficiencies gained from monthly payroll are undeniable.’ Agrawal urges sectors, especially those lagging like HR and staffing, to recognize and capitalize on these financial benefits.
It’s indicated that businesses that switch to monthly pay not only improve their own financial stability but also enhance employee well-being. Evidence from Access EarlyPay shows employees on-demand pay can extend tenure by 30%, and 93% claim it helps manage living costs effectively.
Embracing monthly pay structures can significantly bolster financial health and employee satisfaction within HR sectors.
