There are some employees who dedicate their physical and intellectual capabilities to earn a living. Workers use their energy, talent and capabilities to take home their base pay and some bonuses for good work. However, there are employees who work only when needed. These people perform minimal tasks and wait for payday to get their income. No matter what their drive at work is, receiving their salary on time is necessary.
Try to imagine if their wages were not released on time. Even before the pay comes, they have already figured out where they would devote their income. A delay on the clearing of their payroll can cause them to perform poorly for their work is not being compensated. Workers will be more unmotivated if their salary has been delayed for months.
If the salary delay happens once, it could just be caused by numerous computations on bonus pays, leaves with pay and incentives. However, the company might be dealing with a bigger corporate issue if the salary is barred for a number of paydays. There is a possibility that the business operations are not being converted into profit.
This can also mean that the debts that the company incurred are bigger than what it earned. If delayed salaries will continue, the motivation of the employees to work will be shattered and this may lead to the resignation of several employees. This can happen for they feel that the business is like a sinking ship that is going nowhere but down. Also, the company must refrain from over-spending even if their profit is improving.
Using money only on what is needed lessens the danger of releasing their salary late. This also gives the company the position to hand out more bonuses to its workers.