Three years ago, while reviewing employee benefits, Saint Simeon’s determined that employees might find the option of being paid weekly versus every other week helpful in managing their personal budget. A survey with employees found that many preferred to continue to be paid every other week, but a significant number responded that being paid weekly would, indeed, be helpful with money management. Saint Simeon’s is a life plan community with 170 residents comprised of assisted living, skilled nursing, memory care, and a small number of independent living. 60% of employees are direct care workers.
Given the response, Saint Simeon’s researched having 2 payroll options – weekly and every other week. Adding another payroll option would increase payroll administrative costs, however, Saint Simeon’s decided to try offering the 2 options for a year. The trial proved successful. Approximately 1/3 of employees preferred a weekly check so that they could manage their money differently.
The option of choosing either weekly or every other week has continued. Employees can change their option at the beginning of each year. While the cost of administering 2 payroll options increased Saint Simeon’s operating expenses, the positive impact for employees is considered a benefit. An additional positive outcome is an appeal to recruits/potential new employees.
Employees choose to be paid weekly or every other week every calendar year. While some employees change their option annually, on average, about 1/3 of the workforce chooses to be paid weekly. Saint Simeon’s uses an outside payroll vendor that charges by payroll run, i.e., the number of payrolls per year.
Factors for Success:
- Make sure that you have sufficient payroll staff to manage 2 separate payrolls and review the additional cost of offering more than one payroll option.
- Potential new employees, as well as current employees, view the choice of paycheck frequency as a flexible benefit they may not get elsewhere.
Need more information? Contact Lindsay Fick, CEO, at Saint Simeon’s