In an entrepreneur's life,specially in a StartUp Phase,when his earnings are less than his expenses,payment of salaries to his employees and on time,has always been a discussion point.Many of these discussions,unfortunately are not true,but some are,and it is a good "coffee shop" discussion area for job seekers.With the advent of social media and the no holds bar communication followed,this for the entrepreneur,hits where it hurts.So to some,who want to score points with his erstwhile sensitive entrepreneur, this could be a moot point to score.But payment of salaries to his employees,for a sensitive entrepreneur who is building an organisation is a pride of place.He is very proud of being responsible to run so many families in some ways,having provided employment and we would like to retain that pride as much as possible.
In my case,in the early days,cash flow was always a problem,salary never was.I had observed a simple policy that payment of salaries,is linked to the product we sell or the services we offer to our clients,so its mandatory.I remember those days,when payment of our salaries were totally dependant on month end collections,and to pay salary on the 1st.,was always becoming tight.So, I took a decision,that our salaries would be in the Bank on the 5th of every month for employees to encash it.Yes,the first month was somewhat of an issue for 4 days,but I addressed an all employees meeting,to tell them why I was doing it.There was readmade agreement on the issue.From that day onwards,our collection cycle used to end on 31st.,and salaries paid on 5th.Now ofcourse,with the growth of the enterprise,it is not that relevant,as collections are not always linked,but it has become a culture.An Organisation runs on its culture,and this is one such thing.The question then arises is,have we ever failed to pay our salaries on 5th.,as promised ? If we have,how did we handle it ? the answer is Yes.We have failed on 2 or 3 occassions.Every time,I failed,for reasons beyond our control,I used to write a notice for the employees,apologising for the delay,and giving them the date for the month,which would be 2 or 3 days later.Again this sets a culture,and defines the importance the organisation gives to such things.Most of the times,these things happens in the organisation,for lack of clarity in communicating effectively to the employees.If the communication process follows the culture of the Organisation,employees respond positively, most of the times.These happennings are also some 15+ years back.Recently it is no longer relevant.
But I wanted to raise this today, to the people,who raise these kinds of loose communications,on a "coffee shop",if ever anyone has such issues,please take it out with data,and a complaint and not a loose talk.An entreprepreneur's life is ardous.He spends many sleepless nights to build for the society and for himself,something he wants to be proud of.Give him that time.Be a bit more kind to such entrepreneurs,who are sensitive,good innovative entrepreneurs,who are genuinely trying to contribute.Pulling them down casually,may hurt or impact his journey. Be the watchdog,not the rumor monger.
Maybe,the same thing one cannot say, when it comes to supplier payments,but they are mostly getting cashless these days.Good luck .