“I work for a small business with about a hundred employees. The business owner is smart, nice, and friendly but delays payments of monthly salaries. When I joined the company seven months ago, I was shocked that I had to work for over six weeks at a stretch before receiving my first pay. I resumed work on the first of August, so the delay was not due to an off-payment cycle but a company policy. The worst bit is that I was not informed of this, and no one talked about it. After completing my first month here with no pay, I asked some colleagues about the delay but only got referred to HR for a response.
When I approached HR to discuss this, I was informed that the official payday was the fifteenth of the new month. Aside from the fact that it was disappointing, I had a structured monthly financial commitment with a reasonable repayment date that I almost defaulted on. However, I eventually adjusted but was uncomfortable. Even though I forgot to ask HR if the December payment would be an exception to the rule, I was hopeful there would be a slight change just for the festive period.
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By November, things took a different turn as we got no pay for the next two months. I never believed I could work for that long without pay, let alone remain dedicated. I found out that the reasons for this were that I loved my job and enjoyed performing my role in the organisation. The business processes and mechanisms are solid, and I understand them end-to-end. Also, the company has some good employee benefits like a child education fund to augment school fees, family health insurance, and a pension.
In one of your articles, I recall stating that changing an organisational culture can start with anyone, not necessarily the business owner. In this case, I wish for a change and would like to be the change agent because I believe some policies in my company are hurting it more than helping it. For example, because of the funny salary policy, some employees have detected some loopholes that they take advantage of to get by before payday.
Lastly, about a year ago, our boss relocated to another country, so he only keeps in touch virtually and on the phone. His absence has created a void that is yet to be filled by a capable staff member. What can be done to put my company back on the right path?”
The above was an excerpt from a workplace scenario email I received recently. Mz. Rukky (real name concealed) would like me to advise what she can do about the whole situation. Even though there are so many areas to touch on, I’ll be focusing on steps to take to avoid unnecessary delays in salary payments, which cover cost, finance, recruitment, and management.
Amid challenging times, businesses face pressure. Some resort to holding salaries, aiming to retain staff and curb losses. However, such actions can harm staff well-being, tarnish reputation, and conflict with ethical and religious principles. Mz. Rukky aims to steer her company away from this detrimental practice, prioritising organisational health and employee welfare.
Amid challenging times, businesses face pressure. Some resort to holding salaries, aiming to retain staff and curb losses
Rukky, well-versed in business dynamics, plans to audit processes, eliminating duplicate roles and merging functions to optimise productivity. This practice, common in Nigerian businesses, can lead to staff being only half as productive as possible. Through the audit, Rukky aims to determine optimal staffing levels and implement cross-functional roles without sacrificing quality. This approach promises cost reduction and improved efficiency for the organisation.
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Avoid hiring individuals you can’t dismiss. Compassion or personal connections might lead to unnecessary hires, causing complications. While hiring acquaintances or referrals isn’t inherently bad, ensure they fit roles and are committed. Otherwise, strained relationships and inefficiencies may arise, affecting both the business and the referrer negatively.
Established hiring protocols should be followed rigorously, with exceptions allowed only when warranted. Assigning new hires to mentors ensures guidance and growth monitoring. Regular evaluations every three months assess progress; if issues arise, address them promptly or help the individual find a better-suited role elsewhere. Matching interests with job roles prevents counterproductivity, fostering growth for both individuals and the organisation.
Small businesses often poach employees for client access, neglecting financial considerations. Relying solely on a candidate’s ability to bring customers from their previous workplace is risky. Experience shows such hires often disappoint. A notable case saw Business B poach half of Business A’s staff, attempting to lure clients via bulk SMS. However, many clients returned to Business A, resulting in Business B’s demise within a year. It’s crucial to evaluate employees beyond immediate gains and assess their overall impact on the business.
Truly Earn Your Pay – Another genuine way to cut unnecessary costs is by ensuring the business owners earn their salaries. Because you own a business does not mean you are entitled to remuneration if you do not work there. At best, you can take allowances and wait for profit sharing. It might be a hard sell to management, but our deep dive revealed it to be one of the reasons the business is currently having liquidity problems.
Support Your Core Staff with Interns – Fill workforce gaps with interns rather than immediate hires post-optimization. Interns offer cost-effective labour and potential for permanent roles based on performance. This benefits interns by providing career-building opportunities, while employers gain flexibility in retaining or parting ways with interns based on mutual fit and commitment.
Prioritise Value and Goal Alignment – Value and goal alignment are crucial for system stability. Conflicting goals may arise initially due to limited understanding. Employees determine fit within ninety days. New hires should align personal values with corporate ones gradually. Organising alignment training can enhance employee engagement. Mz. Rukky could facilitate such sessions to emphasise alignment importance and improve overall engagement.
Read also: FG denies salary delay claims, assures of wage award soon
Pay Every Two Weeks – Value and goal alignment are crucial for system stability. Conflicting goals may arise initially due to limited understanding. Employees determine fit within ninety days. New hires should align personal values with corporate ones gradually. Organising alignment training can enhance employee engagement. Mz. Rukky could facilitate such sessions to emphasise alignment importance and improve overall engagement.
Call To Action
We changed the name of the sender of this case study for confidentiality purposes. Please note we are still accepting emails on workplace scenarios as case studies. Kindly send them to [email protected].
Olayinka Opaleye is a Well-being Specialist and Corporate Wellness Strategist. She writes from Lagos. Tel: 09091131150 or follow her on www.linkedin.com/in/olayinkaopaleye
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