Salary Delays and Job Uncertainty: Should I Stay or Start Looking for New Opportunities?

Hello,

I am working in a medium-sized IT company for the last 5 months. We used to receive our salary on the 10th of every month, but for the past 2 months, there have been delays. Our employer has been giving us only half of our salary on the 17th and the remaining amount on the 25th or later. Other payments such as food reimbursements and increments are also pending.

Everyone is disappointed due to these delays, and the lack of explanation from our employer is adding to the frustration. Many employees are now searching for other jobs, and some have already left the organization. I am unsure how to retain them.

I am not sure what steps to take. Should I try to retain them, and if so, how? Should I also start looking for a new job? It's my first job, and I have only been here for 5 months. Changing jobs might negatively impact my career.

Please suggest what I should do. I am eagerly waiting for your replies. Please do respond.

You won't be able to retain them unless your employer is also interested in the same and discusses the problem and other things in detail with you. In my opinion, it's all happening because of the slump in the IT industry due to the fall in the rate of the dollar. My friend, who is an HR in an IT company, has the same problem! But I think the condition is not as bad as before. There are chances of it stabilizing; you shouldn't leave just yet unless there is any nasty trouble you're facing. I think you should highlight your concern regarding attrition to the employer once (I'm sure he is also aware of the present circumstances). If he doesn't seem to bother, then you have no option but to be a silent spectator!

Being an HR professional, you should have an idea of where your organization is heading. However, this is only possible if your top management also thinks that way. Therefore, this direction is actually driven by the culture and theme of the organization.

Do justice to your job by putting in your best effort to streamline things and create a positive work environment. Be happy with the work you do.

Hi Urvashi Verma,

Did you talk to your management in detail, or I would like to know what your payroll process and payroll dates are?

Good HR is the one who would assess the situation. If the real situation is the fact that the company is drowning, then what and how to do things is left in your hands. Just think in terms of resource utilization. If the company is not doing well, is this because of no projects or a mismatch of projects with resources? Do this exercise seriously, then suggest solutions to bring things to order.

"It is always better to feed 10 rather than to keep 100 people starving"... hope you understand.

I am still sure that quitting is not a solution before you put in your 100% effort.

If nothing works out, then it's all your decision and the management's. It's your call, but for sure, I feel there are better solutions to handle this.

Regards,

Don't panic as yet. From what I could gather, you are still worried about the organization when most people would desert. This speaks of two good qualities: coolness under stress and loyalty to the organization. Good, I am impressed; you are a good leader in the making!

Coming back to the problem, try and find out what exactly ails the company. What exactly is the reason for this financial stress? As one of the members pointed out, it could simply be the current recession. It is essential to know what is wrong. Once you know that, you can explain it to those employees leaving (that it is a temporary phase). If it is more serious, then you cannot stop the exodus; you may as well consider your own exit plans.

Take a cool appraisal and a considered decision. Best of luck.

Hi Urvashi,

As an HR person, you need to understand a clear picture of the existing situation of your company, what's the challenge that is being faced by your company, and of course, you have all the rights to do that, which other team members cannot do. If it is a short-term challenge, you can very well convince your employees and you can feel convinced. Salary is one of the basics for everyone, and your employer has to understand the importance of paying it on time and the consequences of not doing so. If you understand that the problem would last for a long time, you cannot stunt your career or the careers of others. As Manu rightly said, it shows your goodness to retain the employees in this crucial situation, but the payment of salary is something that is not under your control.

BR,
GVS.

Hi,

Salary is being paid, though a bit late. Other perks have been curtailed. The situation does not seem too bad to desert the ship. Get all the facts right and present them objectively before you consider quitting or advising others to do the same. There have been instances in the past, even in top companies, where employees worked for half the pay. However, everything depends on the organizational culture (Dolphin culture or Shark culture) and the level of loyalty everyone has for the company. I personally believe that HR should take the lead in protecting the interests of employees while ensuring that the interests of other stakeholders are also safeguarded. The Dollar has appreciated again, so that should not be a real issue if it was a concern before. Finance personnel can identify the real problem if there is no compartmentalization between various departments. Make a well-considered decision once you have all the necessary information. Thank you for the post.

ColVirendra

Hello Urvashi,

You need to speak to the boss and get exact details about pay, etc. Either you give money to your employees or give them some assurance. If you can give neither, then how would people stay back. HONESTY IS THE BEST POLICY in this situation. The boss should address all the employees and give them the correct picture instead of keeping people in the dark. You do your best but don't take things personally since you are only a medium between your boss and employees.

Riyaz

Hi,

Thanks for all your suggestions. I had a talk with my boss to ask about the reason behind this delay. He said, "I don't want to delay their salaries either. I don't feel good when this kind of situation arises. This is happening because of some problem in the transaction of money from the US to India" (as our head office is in Florida).

This is the reason he told me, but the employees are not satisfied with this answer. They think all these excuses are fake. They are not even properly doing their work now. It's a difficult condition for me to retain them or to motivate them.

Dear Urvashi,

Every company has ups and downs. Now it's your company's turn. And that too for the past 2 months only, with no conclusion yet. Explain the situation to your employees that it's a temporary issue. If it exceeds more than 4-5 months, then you should think about it.

Have a nice day.

Regards,
Naveen V.
HR

Dear Urvashi,

I am sailing in the same boat as yours; the company I work for is also facing the same issues, maybe worse than yours. Our salaries have been delayed for almost three months for the past year. But, I am still clinging on because as an HR professional, I don't think it's ethical to leave a company when it's in bad shape. It's a very difficult situation, especially in the recruitment front, but I feel it's a great challenge. If we are able to face these challenges and show results in our work, it's a great thing to do as it reflects on our capability.

I agree, sometimes it's very frustrating and feels very dejecting, but coming out of the situation in flying colors gives you the utmost satisfaction.

Check the manpower, take replacements only if it's needed and based on project requirements. Try to create a positive environment in the office. Send out motivational quotes, carry out games, or any lighter moments. Have personal interactions in the office; this way, you will know who all will leave, and you can act accordingly. As an HR professional, you will have to go through a lot of difficulties, but it can be worth it for your professional growth.

Keep your head cool, and when you think the situation is becoming worse and you feel you are losing your confidence, change the job!

All the best!

Hi,

Quitting the job due to this is not a proper solution. This is a very good case study you have come across at the start of your career. Face it...

Try to gain the confidence of your management. Speak to them about the issues happening. Provide them with the pros and cons of the situation. Try to understand from your management why the salary is not being paid on time.

Once you are clear on this, then you can consider retaining the people.

Thanks, Amit

Hi Urvashi Verma,

I agree with Mr. RK that "It is always better to feed 10 rather than to keep 100 people starving."

I, too, faced this situation once. I was not paid for 2 months, and my boss used to say that he had some problems in giving salaries. Consequently, all the employees left the company, and I worked for one more month hoping I could receive my salary in full. However, I gradually realized that my boss was unable to pay my salary, leading me to leave the job. Now, I understand that I have truly wasted three months of my time and money.

Therefore, it's advisable to inform your boss that you are in need of money and that it's challenging to work without salaries being paid on time, as you have obligations such as bank loans and rents. Remember to be loyal to your work rather than just to your company.

I suggest working for one more month and then considering changing your job.

Thank you.

Hey, please call me on 9372113514, as I have been facing this problem for the past 6 months and have handled it quite well. People are not leaving the organization, and it's mainly up to you to play a major role in this. You need to interact and improve your public relations; this is one way to gain their confidence. Additionally, you should initiate and target those people who are highly influential. Engage in activities, such as employment engagement activities, to divert their attention for some time. Make them realize that this is their company, and currently, there are certain crises. The company will definitely recover from this soon. If you need further assistance on how to solve this problem, feel free to call me. I am confident that I can provide you with valuable insights.

If people are leaving, let them go. It's currently an employer's market, and there are plenty of available candidates to join the organization. However, since you are just starting your career, I suggest you not leave at this point. At least try to understand that you should complete one year in any case. This will provide you with good exposure to handling such situations. Stay calm and composed. All the best.

Hi,

Discuss the matter with your boss. Try to understand the reason for the situation. Then decide what you should do.

PARTHA

Dear Urvashi,

I faced a similar experience in the organization where I worked. It was a small IT company and for the last few months things are in pretty bad shape. We haven't been paid our May and June salaries till date. For the senior management, salary is pending from April.

The company doesn't have funds but they keep recruiting people giving the salary they ask for in their appointment letters. But there is always a delay of 3 months in payment. But all employees used to write harsh mails to me regarding the delay in payment. Many employees have resigned in the last 4-5 months because of this.

There was tremendous pressure on me because of this and it started affecting my work. So, I have resigned from that company since I know that there is no future or growth in this company. My full & final is still pending.

If a company does not have funds or does not ensure that salaries are paid on time to employees by allocating funds for the same, there is no use continuing in such a company. The top management will say that things will change, but that day will never come or it will take a long time. HR and Accounts Dept. don't have any control over salary if the company's financial position is weak.

So, my advice to you would be to quit this company and try for a better job elsewhere. Go for a company which has proper rules and regulations, see their policies' hard copy and ensure that salary is paid every month. I have got a job in a better company which satisfies all the above.

All the best to you.

Regards,
Vijaya

Hi Urvashi,
As told to you earlier, we all have solutions for everything...if going by your inputs that there is a transaction of money problem then solution is Streamline your payroll dates.

Important things to take a look into Streamlining Your Payroll dates are:
Month-Prepare a Tracking Report.

· Internal Holiday Date for that month
· Bank Holiday Date in that month
· Sat/Sunday before Payroll date
· Payroll Process date ( Like you can restructure your payroll payroll period as 23-24 of every month, leave 1 week for process and salaries to be credited every 1st of the month without fail or any other date whatever you may feel good for your company)
· COO/MD -Release Date
· HQ Approval Date
· Bank Submission Date (Considering process time)
· LAST BUT NOT THE LEAST-SALARY CREDIT DATE.

Please propose this solution and try this i am sure things would work out for you...
If there is any other issue please let me know i might be help to u.

Regards,

Hi Urvashi,

The problem here is that most of the western banks have stopped offering overdraft accounts to businesses that deal with US companies. They fear that due to the recession, they may not be able to recover such funds. If your company is service-based, you will be affected regardless. Larger BPO and IT services do not face these issues as they have substantial cash reserves.

This problem should be rectified in the next few months as the US economy improves and the sub-prime crisis comes under control. However, management should be transparent about these issues to prevent employees from leaving the company. HR plays a crucial role here because employees are more likely to approach HR than the CEO. Therefore, it's essential to have a clear understanding of the problem and communicate it effectively.

I have experienced a similar issue for a few months, although it's in a much better state now. I hope your problem resolves soon.

Regards

Hi,

Thank you for informing me about the problem in Western banks. I was aware that the delay was due to some issue from the bank, but I didn't fully understand it. Thanks for all your suggestions. If anybody has any new suggestions, please share.

I have an opinion that it's better to look out for options because if your employer is not able to pay your salaries, then he is not organized or planned ahead in his business. He is either waiting for things to happen. I have had a bad experience myself, so be transparent in your communication. If you see that your compensation is not on time with a valid reason, start looking out for opportunities.

If you still feel there are valid reasons for salaries not being on time, then you are required to use your PR to retain your subordinates and explain the situation.

Dear Urvashi,

I think you should talk to Boss frankly, if your Boss is cool-minded. Salary is a very sensitive issue for any employee. So, you should motivate your Boss.

Regards,
Geeta

Hi dear,

The situation you are in, I was in a similar situation in 2001. I prolonged the decision to quit and had to suffer after the sudden closure. So, I would advise you to look for a new job and quit this at the earliest. I advise the same to all others because this situation is the beginning of problems.

Hi Urvashi,

The question is, how much patience do you have to stick with an organization like yours and work? Ultimately, everything boils down to money and job satisfaction. In your case, you should determine if you are content with both factors or just one. If you are not happy with any of the aspects, you should start considering better options. You could explain to the other company why you chose to resign. There should not be any negative impact.

Putting yourself in your employer's shoes, they may not be able to explain what is going wrong due to various reasons. One reason could be the potential panic among the remaining employees if they suddenly leave, and the repercussions that would follow. Another reason could be that the situation might stabilize after a month or two, and everyone could receive their salaries and benefits on time.

At this juncture, retaining employees is challenging. Either the employee should be informed that the situation will improve within a month or any other appropriate action should be taken.

I hope this advice has been helpful.

Thanks,
phoenix129in

Hi Urvasi,

As an HR, it's your responsibility to hold the people. I am in the same kind of situation. But one advantage for me is that my tech leaders are helping me to retain their juniors. Are your tech leaders also not interested in staying with your company? The management should be transparent in these kinds of situations. You can take the help of team leaders, explain the situation, and try to convince all employees together with the team leaders. If the team leaders understand, your tension can be reduced because there should be some kind of bonding towards the superiors from the people.

Also, discuss with your boss how to solve this problem and how long this issue will persist. If he gives you a genuine reason, you can convince the people stating the same thing. If you are not able to retain them, let the management meet the employees face to face, conduct a meeting, and let them explain the situation. Changing your job might not be the right decision as you may face bigger problems in the future. Let this be an experience in managing people.

Hope you can get through this situation.

Regards,
Lekshmi

Hi all,

I do have a similar experience to share with you. After retiring from a Central government job, my father joined a private company as the Head of HR & IR. Since the company had nearly 6-7 crores in profit monthly with almost 2000 employees, the company didn't pay the salary to its employees on time. They had a monthly salary date between the 25th and 26th, but the employees used to receive the salary after one month. To make matters worse, they had a policy where all leaves were deducted from the salary. For example, if you took a casual leave, the salary would be reduced accordingly. Despite repeated requests, the employees were upset, leading to an attrition rate of nearly 40-42% monthly.

During my interview with my father, the company promised to provide him with excellent perks, but the problems started in the very first month itself. Consequently, my father resigned within the first month and is now working with a reputed company.

Thank you.

Urvashi,

I was working for an IT company as well. My problem was similar to yours, and since I was heading the department and reporting to the MD of the company, I would have frequent discussions with him regarding this issue. I gave them about 6-7 months to improve, but it just didn't matter to them. I think you should put your foot down on this issue and let them know that it is not going down well with the employees.

By the way, I do not agree with the 10th being the date for salary as it is not a healthy practice. Be a little strict, or nothing is going to happen.

Vinit
vinit.v.srivastava@gmail.com

Hi,

Apart from its being demoralizing and a great inconvenience to the employees, it also denotes that there is something seriously wrong with the business of the company. The continuing pattern shows that the company is in financial trouble. What you have described is a very rare instance and should not have continued month after month. Or it could be a planned exercise to close down the business without much of employees related hassles!

Your concern for the company is appreciated, but you should also look up to your career and future. I feel you should seek a change. Staying and working with the company in such kind of scenario will definitely not be pleasant.

Best of luck,
Mohan.

Hi Urvashi,

I hope you are doing well, but it seems that you are facing an issue with your salary being delayed. There are a couple of reasons why the company has adopted this style:

1) Facing Financial Problem (Importance High)
2) Perhaps some of your organizational employees suggested paying twice a month.

I suggest that you should talk to your HR Department because they are the concerned people. If you have any questions, please let me know.

Regards,
Hassan