The real cost of late payments
People power businesses, and when people are paid on time not only do you keep your employees stress lessened and enjoyment heightened but you also build a more productive workforce.
A recent survey performed by Xero found 43 percent of workers to be experiencing payday problems in Australia, rising to 49 per cent for those employed by small business.
This effected employees in varied ways with 68 per cent reporting feeling stressed and 45 per cent had missed payments such as mortgage repayments. These pay day problems come at a big cost with 43 per cent of employees feeling less engaged and productive at work and over a third (34 percent) of employees considering leaving their job as a result.
From all surveyed in the study the most common payment errors experienced by employees were incorrect salary payments (24 percent), followed by late salary payments (22 percent), underpayment of salary (22 percent) and overpayment of salary (10 percent).
As a small to medium business owner, sometimes you must do it all, but finances may not be your strong suit. It’s no surprise that 73 percent of business owners feel much more optimistic about their business when they have positive cash flow.
This further goes to impact the personal wellbeing of business owners with more than 40 percent of owners claiming late payments to affect their mental health, 43 percent of owners losing sleep over their businesses cash flow, and 37% of entrepreneurs have considered giving up because of cash flow issues.
This sounding all too familiar? Don’t struggle in silence, that’s what we are here for. Please give us a call, 02 9415 1511 or contact us and we can get you on track.