How Do You Distribute Weekly Paychecks?
The distribution of weekly paychecks is a huge opportunity to accomplish many important management objectives, if done properly. Let’s review what typically happens on Friday afternoons all over America:
Many small businesses subscribe to a weekly payroll service that prints checks and makes tax payments, then sends a package of checks to the business every week for distribution. Frequently, these are handed out by the Financial Officer or most often an Administrative Assistant, Office Manager or some trusted employee fairly low in the management chain. Alternatively, payroll may be done internally.
Handing out the checks is perceived as a task suitable for a staffer to handle. Rarely is any thought put into this procedure, it is merely a chore to be done. Granted, it’s a pleasant task but one handed down to be accomplished by someone with low authority and impact while the employee group watches the clock on Friday afternoon wondering when will the checks be distributed – the moment they wait for every week.
A few basic business principles deeply entrenched in business practices are relevant to this entire concept and require mention now to help you understand the opportunity and to create the best strategy for you and your business. While everyone always knows who the ultimate boss is (typically the owner), if the organization has any departments, including managers, then a valuable opportunity exists.
The owner, also frequently running the business as the CEO, is usually either too busy to handle the distribution of paychecks or chooses not to believing it is a job better suited for a staffer. Sometimes the managers are handed the checks to be distributed to the group they manage and this is an excellent procedure. Simply stated, the loud message delivered by the manager handing out the paychecks is that the manager is the real boss of the person receiving his check from him. It’s similar to the relationship between a pet and the person who feeds it – the feeder is the one the pet will demonstrate ultimate loyalty to. In this situation, he who pays you, the one who hands you the paycheck, is truly your direct boss, the one responsible for your well-being and the one you are loyal to, no one else. He’s the one that feeds you in a sense. Despite everyone’s recognition of who the owner may be, the person handing you your paycheck controls your loyalty and dedication, job empowerment, advancement, job training, etc.
In fact, to carry this program further, the job performance reviews should be conducted by the managers, etc. Thus, either of two decisions can be made. First, if the owner believes in supporting his management and if the management is truly hands-on and empowered with leadership and decision-making authority then it is absolutely proper and powerful for the manager to hand out the checks to his group. Further, while not intending this to be a weekly job review, a sincere “thank you” for a great week’s service, a note about a particular good job, an acknowledgement of news involving family, sickness, success, a personal touch… some comment is mandatory at the time of handing out the checks. At the very least, saying “thank you” is powerful and memorable. It’s seldom done but very important. In fact, the CEO/owner should train his managers to accomplish this task successfully and with power and purpose. It’s a huge opportunity to show appreciation and create an environment of mutual success and respect, more valuable than you would imagine and this is the moment to perfect it. He who pays you is your boss, that’s the principle, so support it. Develop the opportunity and make it work for everyone.
If the organization is smaller and does not have true managers, the CEO/owner can capitalize on the opportunity himself which is also completely acceptable, continuing the message that he is the boss and the group leaders are just that. The principles remain the same. In fact, it can even be argued that if the real boss – the owner – takes the time to relate to each employee, and with a personal note or comment includes the employee in the larger business family, this has additional value and effect.
One word of caution, this cannot be faked. It must be real and genuine or it will fail miserably. This program can be developed to include a larger concept of reward incentives and other hallmarks of employee appreciation and development. Take it as far as you want to go, but please take advantage of a huge opportunity for a classic win-win situation – make the distribution of paychecks an event and a strategy designed to further the business mission, as opposed to a chore that is offloaded as far down the line as possible. You will be very pleased with the results.
