Why do US companies pay out every week instead of every month? Is there some sort of benefit to it? I would think the overhead is higher and makes things more complex especially if you have an outage.
The article emphasizes "this week" not because the USPS pays weekly, but because Friday of this past week was the standard bi-weekly payday.
I was curious if there was some benefit for a company to pay more frequently when it appears to be more of an overhead.
Monthly seems too long for me from a worker’s point of view though, you’re effectively giving the company a short-term, interest-free loan at that point. And when you factor in the fact that your purchasing power is reduced by the time you get paid, and any opportunity costs, the real cost to the worker can be quite high.
If I had to guess, it's an artifact from when people had to pick up their paper checks from their boss. Now with computerized direct deposits, I don't see why it can't be every week (or even daily).
The comment was asking why not pay monthly instead of fortnightly, which would be less frequently.