Even as Target posted improved earnings in certain quarters, CEO Brian Cornell’s paycheck didn’t reflect a win. Instead, it got slashed — again — thanks to
JasonDJ did a good job at explaining the what, the why would be down to cost-cutting. There are fixed costs associated with putting out payroll (beyond man hours required, there are processing fees etc.); so opting for 2/month instead of fortnightly saves you ~10% in fixed costs.
In general, because the transition puts too much of a financial strain on hourly/wage staff - they tend to live paycheque to paycheque and would struggle to be able to wait an additional 2-3 weeks for their pay to come through.
Besides risking possible staff revolt, it would also make hiring staff much more difficult if new employees learned during induction they might have to wait 5 weeks to be paid!
I guess it depends on what is seen as the norm in a particular country. In Australia, it’s most common for hourly wages to be paid either weekly or fortnightly - and I believe it’s a similar case in North America also.
Given they only the companies stand to benefit from paying employees less frequently, it makes it harder for those companies to compete for quality labour (without then offering a higher hourly rate, negating any benefit for them to do so).
why then separate it from biweekly?
Biweekly is fortnightly. Every two weeks. I.e. Every other Thursday.
Semi-monthly would be twice a month, i.e. the 1st and the 15th.
26 biweekly paychecks in a year…24 semimonthly paychecks in a year.
wtf
JasonDJ did a good job at explaining the what, the why would be down to cost-cutting. There are fixed costs associated with putting out payroll (beyond man hours required, there are processing fees etc.); so opting for 2/month instead of fortnightly saves you ~10% in fixed costs.
why not jush do it once a month then?
In general, because the transition puts too much of a financial strain on hourly/wage staff - they tend to live paycheque to paycheque and would struggle to be able to wait an additional 2-3 weeks for their pay to come through.
Besides risking possible staff revolt, it would also make hiring staff much more difficult if new employees learned during induction they might have to wait 5 weeks to be paid!
…then how come it works everywhere else?
What does?
paying out once a month. even when i worked an hourly job at a restaurant we got paid monthly.
I guess it depends on what is seen as the norm in a particular country. In Australia, it’s most common for hourly wages to be paid either weekly or fortnightly - and I believe it’s a similar case in North America also.
Given they only the companies stand to benefit from paying employees less frequently, it makes it harder for those companies to compete for quality labour (without then offering a higher hourly rate, negating any benefit for them to do so).
it also benefits the workers though. that’s why unions push for it.