How to Successfully Change Pay Periods

If your organization is thinking of changing from one payroll schedule to another, it is important to transition properly. Follow these six steps to change seamlessly to a new schedule.




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1.  Create a team that will guide the change. Having one team in charge will increase ease of implementation and will decrease potential for mistakes during the process.

2. Investigate the details. Charge one individual with the job of researching the legal ramifications surrounding the planned change in payroll frequency. Make sure your new schedule abides by state laws, and confer with your company’s lawyer to discuss contractual issues regarding the change.

3.  Save the date. Set a date for the change and make a timeline. It is especially helpful to make the change occur as close to the end of a fiscal year or the end of a quarter as possible to decrease record-keeping problems.

4. Communicate with employees. Inform your people of the change sooner rather than later. Advance notice will allow workers to plan accordingly for the change. Communication is especially critical if you plan to decrease the frequency of pay as this will impact employees’ monthly budgets.

5. Educate your employees about the change. Hold a question-and-answer session with your employees about the transition. A session like this will allow employees to feel heard and informed, and also helps prevent any confusion.

6. Integrate planned changes into new contracts rather than rewriting all existing ones. Write the new pay schedule into contracts offered to new hires, gradually phasing out the old pay frequency and converting to your new schedule over time.​
Pay frequency is an important strategic decision for management because of its effect on legal compliance and costs, as well as its impact on employees.

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