How Can HR Manage Employee Frustration Over Delayed Salaries in a Small Software Firm?

Handling Delayed Salary Payments in a Small Software Firm

I am working with a small software firm, being the only one in the HR department, I am the single point of contact for employees. My employer does not pay salaries on time. As per policy, salaries must be credited by the 6th of every month, but due to fund issues, the employer provides salaries in two slots: employees below 40k gross in the first slot and employees at or above 40k in the second slot. Employees have somehow accepted this arrangement. However, now they are even delaying the first slot salary. Whenever I ask them, they say we don't have sufficient funds.

As an HR professional, I am unsure of how to handle employees in this situation. Everyone works for money and has their commitments. The employer does not want to take any action to address the employees' concerns and expects me to retain them and maintain discipline among employees.

Please suggest the best course of action.

Thank you.

Addressing Salary Delays in Your Organization

It is a tough situation. You will need to explain to the management that if any employee approaches the court, the company may have to close down. Therefore, timely salary payment is a must.

On the other hand, if there is a genuine problem that the organization is facing, which is causing a financial crisis, explain the situation to the employees and be open. Support both the management and the staff.

Thank you, Ashutosh, for your response. The issue at hand is that I have already discussed this matter with management. Unfortunately, they have a habit of making false commitments to employees, which makes it challenging for me to effectively manage the team.

When I inquired about employees' salaries, they informed me that the organization is experiencing difficulties. However, they have not shared any details of these issues with me, nor do they want me to communicate the situation to the employees.