Hi guys,
My name is Sunil, and I just joined a new organization. To my surprise, on the salary day, I received an email from our HR department stating that due to a delay in payments by the clients to our company, the salary will be processed one week later than the scheduled date.
This is completely new to me. I had worked for 8 years prior to this and never faced salary delays, at least not due to the above-cited reason.
Now, I want to ask you guys if this is a normal process, and I should not be worried about anything. In my opinion, any organization must have reserve funds to pay the salary of their employees in such circumstances. It raises an alarm bell for me that my company may not be able to pay me because its clients are delaying payments.
Please help.
Thanks in advance.
From India, Delhi
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My name is Sunil, and I just joined a new organization. To my surprise, on the salary day, I received an email from our HR department stating that due to a delay in payments by the clients to our company, the salary will be processed one week later than the scheduled date.
This is completely new to me. I had worked for 8 years prior to this and never faced salary delays, at least not due to the above-cited reason.
Now, I want to ask you guys if this is a normal process, and I should not be worried about anything. In my opinion, any organization must have reserve funds to pay the salary of their employees in such circumstances. It raises an alarm bell for me that my company may not be able to pay me because its clients are delaying payments.
Please help.
Thanks in advance.
From India, Delhi
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The bottom line is that the company does not have reserve funds to take care of such issues. You would need to review your options as this is a clear warning bell on how the company is being run. If you find a better option, go for it.
At the end of the day, the company should realize that you also have bills to pay. Try and find out the track record...does this happen often with your company... A delay in client payment is no reason...any professional company would have at least 3 months reserve to take care of all eventualities.
From India, Mumbai
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At the end of the day, the company should realize that you also have bills to pay. Try and find out the track record...does this happen often with your company... A delay in client payment is no reason...any professional company would have at least 3 months reserve to take care of all eventualities.
From India, Mumbai
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Hi Sunil,
Payment of salary is purely based on the availability of cash flow. Even though the salary is to be paid by the 7th (or 10th in some cases), many organizations, due to inadequate cash flow, delay the payment of salary. In my previous organization, they had a system of staggered payment, i.e., lower-level staff would receive the salary first on the 07th and the managers the last, but with no fixed time frame. I used to receive the salary between the 15th and the 20th every month as I was in the Managerial cadre. I never felt it was an issue. I adjusted my personal expenditure cycle so that I was able to manage even if the salary was delayed. Don't look at this as an issue. If the organization is good and if you feel happy to work in the organization, think twice before you quit. After all, the salary is not the only criterion to work in the organization. More than the salary, professionalism, culture, growth opportunities, job satisfaction, good team members, etc., are vital. If you are happy with all these aspects, then I suggest trying to adjust your personal monthly expenditure cycle so that you can manage even if the salary is paid late. As correctly said by one of my friends, employees are not paid for six months. Think of their plight. One of my friends was not paid for six months, and he never disclosed it to his wife, managing with his personal resources.
BHAVAN
From India, Bangalore
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19Payment of salary is purely based on the availability of cash flow. Even though the salary is to be paid by the 7th (or 10th in some cases), many organizations, due to inadequate cash flow, delay the payment of salary. In my previous organization, they had a system of staggered payment, i.e., lower-level staff would receive the salary first on the 07th and the managers the last, but with no fixed time frame. I used to receive the salary between the 15th and the 20th every month as I was in the Managerial cadre. I never felt it was an issue. I adjusted my personal expenditure cycle so that I was able to manage even if the salary was delayed. Don't look at this as an issue. If the organization is good and if you feel happy to work in the organization, think twice before you quit. After all, the salary is not the only criterion to work in the organization. More than the salary, professionalism, culture, growth opportunities, job satisfaction, good team members, etc., are vital. If you are happy with all these aspects, then I suggest trying to adjust your personal monthly expenditure cycle so that you can manage even if the salary is paid late. As correctly said by one of my friends, employees are not paid for six months. Think of their plight. One of my friends was not paid for six months, and he never disclosed it to his wife, managing with his personal resources.
BHAVAN
From India, Bangalore
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Hi Bhavan,
This is not an adjustment but a compromise with the situation, and moreover, it could not last long. If someone is working in an organization and regularly attending his duties, then it is the organization's duty to pay his salary on time, regardless of whether the fund flow is there or not.
It is not a good sign that due to non-availability of funds, the salary could not be released. Think if banks act like this, that today no money has been deposited, hence we can't allow any withdrawal, or we are unable to operate ATMs.
Every organization has some emergency funds to cater to day-to-day operations.
From India, Bangalore
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This is not an adjustment but a compromise with the situation, and moreover, it could not last long. If someone is working in an organization and regularly attending his duties, then it is the organization's duty to pay his salary on time, regardless of whether the fund flow is there or not.
It is not a good sign that due to non-availability of funds, the salary could not be released. Think if banks act like this, that today no money has been deposited, hence we can't allow any withdrawal, or we are unable to operate ATMs.
Every organization has some emergency funds to cater to day-to-day operations.
From India, Bangalore
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Hi,
Please try to find out the reason for the delay in the clearance of the invoice from the client. Now that you are also a part of the organization, it is your duty to contribute towards making the company profitable. If you believe you have no connection to the company's profits or losses, remember that without your effort, the company may struggle to pay salaries on time.
Pankaj Painuly
From India, Delhi
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Please try to find out the reason for the delay in the clearance of the invoice from the client. Now that you are also a part of the organization, it is your duty to contribute towards making the company profitable. If you believe you have no connection to the company's profits or losses, remember that without your effort, the company may struggle to pay salaries on time.
Pankaj Painuly
From India, Delhi
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Hi Sunil,
I do agree with Bhavan. With the mentioned situation, you have to compromise if you think that you are working in your dream profile. Everyone is not blessed with their desired profile and responsibilities. If you take my example, I am working as an Executive-HR for an IT company where even I faced the same problem for the last 3 months. But still, I am not looking for other options because I am most happy with my job. With hardly 8 months of work experience after my PG in HRM, I am working in a Generalist role, which is a desired role for most HR professionals.
I suggest you just sit behind and decide what exactly you are into in that particular job. If it is salary, then immediately go for another opportunity, and if it is the profile or any other things, then concentrate on what you need to do.
Regards,
Soujanya Hegde
From India, Bangalore
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I do agree with Bhavan. With the mentioned situation, you have to compromise if you think that you are working in your dream profile. Everyone is not blessed with their desired profile and responsibilities. If you take my example, I am working as an Executive-HR for an IT company where even I faced the same problem for the last 3 months. But still, I am not looking for other options because I am most happy with my job. With hardly 8 months of work experience after my PG in HRM, I am working in a Generalist role, which is a desired role for most HR professionals.
I suggest you just sit behind and decide what exactly you are into in that particular job. If it is salary, then immediately go for another opportunity, and if it is the profile or any other things, then concentrate on what you need to do.
Regards,
Soujanya Hegde
From India, Bangalore
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Hi, Mr. Sunil,
In India, 70-80% of the companies pay salaries in this manner. You should be happy that you are receiving your salary within 10-15 days. In many cases, salaries are paid in installments after 3-4 months.
Regards,
R. Swaminathan
From India, Madras
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In India, 70-80% of the companies pay salaries in this manner. You should be happy that you are receiving your salary within 10-15 days. In many cases, salaries are paid in installments after 3-4 months.
Regards,
R. Swaminathan
From India, Madras
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Dear Swaminathan,
Please don't say that in India 70%-80% of the companies are paying like this. When an organization couldn't pay the salary on time, what growth can you expect from that company? It's completely the chairman's lookout for payments.
Do you think when they make profits they share with you? Never. Then on what basis does an employee have to sacrifice for all this stuff? Each and every individual has their own commitment and problems. At the end of the day, if you're not paid, imagine how you and I feel in this situation.
I'm really sorry if anything is wrong in my statement. This is my view on the subject.
Good to know you,
R.K
From India, Mumbai
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Please don't say that in India 70%-80% of the companies are paying like this. When an organization couldn't pay the salary on time, what growth can you expect from that company? It's completely the chairman's lookout for payments.
Do you think when they make profits they share with you? Never. Then on what basis does an employee have to sacrifice for all this stuff? Each and every individual has their own commitment and problems. At the end of the day, if you're not paid, imagine how you and I feel in this situation.
I'm really sorry if anything is wrong in my statement. This is my view on the subject.
Good to know you,
R.K
From India, Mumbai
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Hi Sunil,
You have not mentioned whether it is an MNC or NC. In general, MNC companies will not behave as you said, whereas NC companies are likely to act as per their convenience. There is no law in India to regulate these NCs.
So, better don't panic and stay calm; take things as they come since we are in India, an underdeveloped/developing country.
Thanks,
Kanna
From India
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You have not mentioned whether it is an MNC or NC. In general, MNC companies will not behave as you said, whereas NC companies are likely to act as per their convenience. There is no law in India to regulate these NCs.
So, better don't panic and stay calm; take things as they come since we are in India, an underdeveloped/developing country.
Thanks,
Kanna
From India
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Yes, I agree with Bhavan. Basically, you have to decide your priorities. If salary is your main concern, then start looking for another job. Apart from the salary issue, if the other parameters suit your requirements, you can manage that on your own.
Thanks
From India, Gurgaon
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Thanks
From India, Gurgaon
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