The devastating impact of passing on late payment to your staff
When late payment from your customers is restricting your business’s cash flow it can make meeting everyday commitments challenging.
Whether that’s paying suppliers, settling utility bills or providing goods and services to your customers on time, the ramifications can be damaging to any business.
Yet new research, conducted by Cascade HR, has underlined just how damaging it can be when your employees are paid late as a result.
Incredibly, the study found that more than a fifth of British workers (22%) have been paid late from their current employer – and nearly half (49%) of those said they had experienced it more than once.
As a result, those who received their wages late suffered serious financial losses, with almost two-thirds (61%) forced to borrow money to cover the shortage. One in three (33%) were unable to pay their bills, 27% received late payment charges from their bank and one in five (21%) were unable to cover basic living costs.
The negative impacts stretch much further than monetary implications, however, with 17% stating that being paid late caused strain on relationships outside of work.
Oliver Shaw, CEO of Cascade HR, said: “The issue of late payments can present some really serious difficulties for employees, who are often relying on the timely arrival of their wages so they can fund their living costs. It’s concerning to see that within some companies, late payments have happened on more than one occasion and workers are suffering as a result.
“As our research highlights, when wage payments are delayed by even just a few days, it can lead to further financial implications with some employees being forced to loan money from other sources. Late wages can also cause more widespread problems with regards to personal relationships and social circumstances.”
If late payment has left you wondering how you’ll meet your wage commitments there are ways you can improve your cash flow without passing on the burden to your employees.
As a trusted debt collection agency we excel at recovering your unpaid invoices so that you can concentrate your time and resource on your core business.
To see if we could help your business get paid faster contact us today on 0800 9774848 or firstname.lastname@example.org.