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
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 helps structure personal finances since bills are always due at the end of the month. it also incentivices putting more into savings. at least that’s how i understand it.
Counter-point: it actually robs those employees from learning the ability to save, and denies them (albeit small, incremental) opportunities to earn interest.
You just made me recall one of my gripes with the finance department at my previous job; they would withhold posting an invoice until the week after it was due, and considered it good business. Why? Because that 100K would sit in their bank account for 5-7 more business days accumulating interest at ~5%.
It’s no different to only paying employees monthly; the company profits from withholding payment for as long as possible.
…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.
How does being paid less frequently benefit workers?
it helps structure personal finances since bills are always due at the end of the month. it also incentivices putting more into savings. at least that’s how i understand it.
Counter-point: it actually robs those employees from learning the ability to save, and denies them (albeit small, incremental) opportunities to earn interest.
You just made me recall one of my gripes with the finance department at my previous job; they would withhold posting an invoice until the week after it was due, and considered it good business. Why? Because that 100K would sit in their bank account for 5-7 more business days accumulating interest at ~5%.
It’s no different to only paying employees monthly; the company profits from withholding payment for as long as possible.
well i don’t know too much about this other than the fact that we do it because labour unions.
also, that anecdote describes a breach of contract. that’s why late fees are so large.