How Do You Convince Employees When Salaries Are Delayed? Seeking Advice!

Dear Cite member, this is to request you to please suggest how to convince employees if the company is not paying salaries on time.

The best policy in such circumstances is to speak the truth and place the facts on the table—maybe in a common meeting with the employees. If you begin to think of any circuitous routes to tell the employees, you are bound to end up in a sure-shot disaster.

I recollect an old movie of Aamir Khan... not sure of the title... where he goes to the shop floor, thanks the employees for the work they put in, and informs them that he needs to close his business since all his attempts to raise the funds needed to execute the big order they were working on have failed. The employees appreciate his honesty and plain-speaking in the matter and start giving ideas where all of them share the situation and responsibilities (including some proposing to take half-salary and some to work extra hours). As in any movie, the ending is a happy one... but there are two big lessons for any corporate in this.

Lessons for Corporates

One, it always pays to be honest—not as a last-minute measure/alternative, but as a wholehearted policy.

Two, never underestimate the low-rung employees' mindsets/nature. They can come up with absolutely great and practical gems in any brainstorming session if they are convinced that you are speaking from the core of your heart.

However, the primary aspect in such an attempt is that the company needs to have clarity in future plans—if this isn’t there, then the best way could be to inform the employees to make their choices, including leaving.

I have seen quite a few companies (especially IT) where the employees are either left in the dark or given a rosy picture until the very end—and when the need arises to lay off people, there’s total chaos and needless acrimony.

All the best.

Regards,
TS

It is a very big offense to employees since everyone will have their own commitments, and employees mainly have to plan their commitments as per the company's pay. So, you will definitely face a big challenge if you try to convince employees. Instead, plan a fixed payroll day and communicate the same to all employees in advance to ensure salary credits as per the committed date.

For this, you need to have a discussion with management, with a prior observation of the maximum delay that is happening every month. Propose a fixed date to management considering the maximum delay happening every month, ensuring they will be confident enough to accept the date you refer. Put the matter in such a way conveying the importance of PAY ON TIME and the impacts of the regular delay of payments. Since the date you referred has already mentioned the maximum delay date (take the maximum delay happened from the last three months), management will accept the proposed date for sure.

Here you need to remember that PAY ON TIME does not refer to the salary payment on the first working day of the month or the last working day of the month, but it's more about paying employees as per the communicated dates.

So, as this approach provides maximum buffer time for the management to arrange the salary funds and ensures employees' pay as per the committed date, you can actually come out from this issue instead of trying to convince the employees.

I second Sateesh; please prepare for an open house or a similar format for communication with your employees. Consider all the points that need to be acknowledged and addressed. Create a mind map of all the questions that would be raised by your employees and find the most honest answer to each. Request suggestions from your employees on how to maintain stability until the salaries can be disbursed. Even though you can't implement all their suggestions, you might still have the opportunity to involve them at a different level, similar to what Sateesh suggested.

Be prepared to handle tough questions and hard feelings. Addressing them openly now is far better than bottling them up for a potential disaster later.

Talk to the most trusted leaders and ask them to assist in managing this open house with you. These leaders will have insight into how the message should be conveyed to your employees and can help you craft the communication effectively.

Consider this as an opportunity to bring the best minds together to work towards a shared goal. Stay focused on solutions rather than on expressions. Wishing you all the best!

Just wanted to know if it is a regular feature or if it has just happened for the first time? If it has just happened for the very first time, then you could simply send an email explaining the reason. I am sure the staff will understand, or you could use the methods suggested by others. You could also consider paying lower-income employees first and holding back the salary of those who are highly paid. Surely, you should involve them in the decision-making process.

Addressing Regular Salary Delays

If this is a regular occurrence, it needs to be addressed quickly, or you will end up losing the most talented people in your organization. It is detrimental not to pay salaries on time, as entire families depend on them. It is HR's duty to ensure that people are not recruited until there is a stable flow of business, which will guarantee timely payment of salaries.

Regards,
Anita

Dear Cite member, this is to request you to please suggest what to do if the company is not paying salaries on time and how to convince employees.

Importance of Timely Salary Disbursement

Disbursing salary on time is essential for various reasons. It was an issue in my previous organization. I had joined approximately two months ago, and by the third month, I had only received one paycheck. I was contemplating the same issue and was planning to initiate by sending an email, drafting a sincere, polite, yet assertive message.

Fortunately, our owner asked for our valuable suggestions, and although I was the first to send the email (as I had already prepared one), to my surprise, I found that others shared the same concerns. Consequently, salaries are now being disbursed on the 7th of every month as promised.

I hope this information proves helpful.

Regards

Hi TS, The name of the movie was "HUM HAIN RAHI PYAR KE." However, in this context, HR is not running the company. If HR comes forward to convey such messages, they might find themselves in trouble. It's better that such actions be taken by top management personnel.

Regards,
Chetan.

You can't play fair-weather friends. If employees feel that the company considers them part of a family and supports them during personal distress, if they perceive honesty from the company, and if they are convinced that financial problems are due to macroeconomic or other external factors, they will stand by you. However, if they believe that the company and top management are siphoning off funds, leading to the problem, and if different standards are applied based on one's position in the company, then it is difficult to convince them. Employee solidarity, transparency, and honesty must be built into organizational policies and culture, and you can't rely on them only when it suits you.

Long-term Organizational Development Strategy

Please view this as a long-term organizational development strategy. Be honest and demonstrate it through actions, not just words. You must learn to carry them with you, be honest and explain, and involve them in suggesting solutions. I don't think employees are bad or want their company to be in turmoil, as it affects them too.

Good luck.

I agree with you all. Seriously, we are facing the same problem. In such cases, it's very true that if the company is not doing well, I request recruiters to never drag a fresh candidate who is running a smooth job. Maybe in such cases, you should recruit a person who is in need, but obviously provided that they clear all the interview levels.

Regards,
Bhawna