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Why Does It Take Some Companies So Long To Pay Their Worker?

too bad down here. some firm will just intentionally hold on to their workers salary without been paid as and when due.

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74 answers

how far how are you surviving?

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Wallie, I wish I could agree with you. But Glo's practices don't show transparency. Remember you sign an employment contract that indicates your conditions of service. Glo has all sorts of ridiculous stuff, including giving their staff letters of shadow companies, while they actually work for Glo. They don't really owe staff wages, but the environment is too unstable in my view.

Another telecoms company did something similar to what you're describing. They paid people on a monthly basis a flat wage gross of tax, with no perks or bonuses, until much later when they tried to put a structure in their HR and confirm all their staff, about a year and a half after they started.

Eventually they restructured the salary and put a portion of it in bonuses. Staff grumbled, but, well, nothing could be done but to adjust. I think that was a lot better, since at least they put a legal contract on the table.

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Cretin!

Beg a trailer driver to drive over your worthless brain!

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Utter Rubbish!!!

If his salary is 100K, then the company should tell him that. They should make it clear before he starts, not mislead him.

In the West, your salary is different from your bonus.

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Good employer and demonstrates principles as well by paying those that were sacked what they were due even though they could not do anything if they were not given anything.

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There are many reasons a company won't pay salaries as at when due, above all is indequate planning and nonchallant attitude. This are reasons that can be better explained if their were chances to do so. Other reasons are unrealistic cash projection/inflows,deliberate attitude of business owners,poor sales and little or no profit,attraction of bank interest in the case of huge amount, whatever reasons may it be let those in the position of approving the payment have it at the back of their minds that the aftermath will be borne mosthly by them.

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Hi,for those of us who found ourselves in the position of receiving salaries almost at the end of the new month should take courage and listen to the rythm of the business, if the situation repeats itself, then think like a man.I received a salary for July on 52/08/2010 meaning 22 August 2010 got pay for July salary, I have then observed that you spent more when your salary is delayed and make you a poor planner.

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I thank God 4 d companies I av worked in. Such practices r unheard of.

For all those people commending Glo, I doubt u understand what they are trying 2 say. The employment contract doesn't specify dat any part of the salary should be tied to performance. Most companies give a percentage of their profit as bonus to workers based on the worker's performance. It may be written in the employment contract or mite just be best practice of the company. Glo is being underhand in dir dealings. U av to let the staff know upfront dat half of what is written in dir contacts is tied 2 performance so dat dey can better evaluate d offer.

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Another buffoon, when you were in school did your lecturer ever mention withholding pay from your staff or suppliers? or perhaps you think buying the latest SUV as the MD is more important than paying the people making money for the company? ode olodo

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It is just sheer greediness and selfishness. Most of them won't be able to pay their workers, yet they maintain their lavish life styles with the company's revenues.

Advice to Nigerian students: Start from your secondary school to save for your own personnal business.

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It is really bad that one should be working without getting paid, to begin to imagine this, is truly beyond imagination.

Worst part is that even our so-called HR (Human Resources) consulting firms are the greatest culprit in this matter.

I am a victim of one, as we speak i am still battling on collecting back over 4 MONTHS salaries, out of which the ones i even collected were in bit and pieces, i have sent emissaries to this MAN (KUDA, ) he is the managing partner of his firm but you would see clearly how he throws the money around, even owe the dustbin guy that packs dirt from the compound, on top of all this, he molests his staff.

Please join me to plead with him, to pay me my salary, i have children and family who solely depend on my income no matter how small.

My suggestion is that such firms should be closed down, due to abuse of the profession, why should  a firm like that ever be referred to as an HR firm?

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start your company and lets see what you do.

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Exactly what i was thinking.

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SanFranc, I’m afraid Glo’s practice does not fall within the same issue as not paying workers on time. There is nothing wrong in tying performance to pay and it is actually a preferred method of payment by most professional companies in the US. How else would a company guarantee that people are not just loafing?

However, what differs is that companies over here typically wait till the end of the year to pay you the “bonus” for meeting your goals. For example, one of the companies I worked for will pay you your monthly salary and another 20% depending on your performance.

A way of looking at Glo’s practice is to say that your salary is 100k and you CAN get another 100k bonus if you bring value to the company. I’m actually impressed that Glo has such a structure; it shows that they’re forward thinking.

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@ jarius

I want to know if with an engineering degree and interest in investment banking i can apply online to VETIVA and other investment outfits.I need your response ASAP.

Thanks

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@ jarius

I want to know if with an engineering degree and interest in investment banking i can apply online to VETIVA and other investment outfits.I need your response ASAP.

Thanks

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The issue seems to be that of cash flow. Like most said, most sole proprietors don’t know how to properly run a business. I wonder how many of those people will be able to tell you exactly how much income they need per month to generate X naira at the end of the year after all overhead (salary, rent, utility etc) is paid.

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@Blank,

The kind of comapny you worked, was the most reasonable. I guess the management team had their head on thier shoulders. Very, very reasonable decison i must say,

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My few reasons

1. Mismanagement

2. Poor internal controls

3. Non professional managing the business

4.Current meltdown(Though we are beginning to experience an upward movement in the economy)

5. Business synergy

6. Inappropriate staffing

5. poor cashflow

6.Cash Divertion

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Infact, Iam tired of this naija employers. My boss will just mismanage the money at the end he will tell us there is no money. Pls I need a new job. If any text to arichi4love@yahoo.com

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Your manager/Director can give you excellent answer to this question of your.

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is GLO among too? But they claim to dash out some much. That will be wickedness as they are doing well visibly

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NAME THEM PLS AND LET THEM FEEL THE HEAT FROM OUR KEYBOARDS.

Arik, A.I.T, Glo, go on, we are listening.

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crazy crap.often intentional.sorry plight for some workers. As if they'll have do shift jobs elsewhere.

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This topic is sooo interesting!

But unfortunately there is hardly anything we can do about it cos no law regulates such activities and every Tom, Dick and Harry wants to be called a CEO/Managing Director or even Chairman. But it does not end with one man businesses, some 'big' organizations are invloved in this devilish act of delaying salaries as well. For instance, Glo. On appointment, you are not told about the 50/50 rule, but once you start work, you will be paid 50% of your salary when due, but the remaining 50% is tied to your target performance, so if your salary is 200k, you get 100k automatically, then whatever percentage achieved in your monthly target is paid you as the balance! And this gets paid so deep into the next month. Whats that??

God help you if you score below 50% of your ever increasing target, na hunger and debt go kill you.

Abeg help me pray that my August salary is paid by Wednesday oooooo

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wow,when l was just thinking l ve been paid last in May,yours is something else.l wonder wat this country is turning into

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I still strongly belief that the major reason reason is that companies many company fails to recognise corporate governance and by so doing they fail.is just the case study of the rich vs poor man.

One exploit the fact that i will give my children the best opportunities for them to be great in life while the poor man belief in what yoruba people called olorun lo ba ni to ju omo.

The truth is that many companies fails to manage well and in ability to pay their workforce well isone of greatest failure of many corporation in nigeria

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I do not totally agree Steve Balmer is better than Bill Gates on the job. Bill Gates had to step down from running the business mainly due to anti-competition/monopolistic strategy and agreements made thereafter.

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By the way the name of the company is Research and Marketing Services Limited(RMS) owned by Tejumola one of Africa's biggest research firm and as at then dey dont owe expatriates dey pay millions or top management.

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I think most of d time, Nigerian businessmen are plainly wicked. Some make serious money and still owe for @ least 6 months. Especially in Lagos. Yet their branch in other countries like Ghana where they make next to nothing they dont owe. They go to states where the boys dey vex like Benin, Warri, Port Harcourt where people would even refuse a ghost worker job owing salaries and they hardly owe. Are they afraid of being kidnapped, killed etc? Whatever d case is they owe less than in Lagos. I had to leave Lagos due to such reasons. My last wages was paid into bank a year after working and u have to beg for d money to be paid. Just leave and expect your money to be paid into bank dey wont. Simply wickedness. I believe dey use jazz for there business to grow that includes inhumanity to their staff.

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What is the law? Do you people know the law that your employer has to go by. The first step is knowing what his responsibilities are by law and then go from there

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arik air is something i dont understand they spend alot of money on expertrate but i dont see what they are here for. and delayed salary till 19th of every month is painfull where is our government to intervain this the airline that flies to jfk lht jnb and west coast.despite all this workers are not receiving the toking in time and the chairman dont even seems to care about this. allahu ahlam

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I own a growing business and used to pay staff on the 3rd of every month and realised that staff turnover was very high.I looked at my mum's business too and noticed same so i did a little research and realised that neighbours and friends who pay at the middle of the month and have lower staff turnover.

I have been paying salary on the 15th and i have now retained the same staff for over 8 months and they are alot more creative,from time to time i give out incentives for meeting targets .

(My mum still pays every 3rd and still has high turnover.)

Its a real shame because i do feel guilty delaying salary but past studies have shown:

I hate to think people are so used to salary being withheld that anything otherwise they kick the system.

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typical naija factor cant happen anywhere else. A friend got around £20,000 in back pay after it was discovered he had been underpaid for about 3 years.

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Over 70% of Nigerian companies are guilty of owing their workers.

Majority o the workers are even the poor low income earners.

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is this new?

i rem leaving 4 moths salary with my ex-oga b4 i left naija and my dad(R.I.P) was owed for 15months by daily times back then

maybe i am reading wrong but this aint new

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Men this is Nigerian factor, even when the money is there, the will delay it to make some money for themselves tru bank interest. Even big companies do this, we nigerians r wicked, too selfish and self-centerd

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Its so sad that the labour force in Nigeria is taken advantage of by either a greedy Govt or Greedy entrepreneur all because the supply of labour is more than its demand. It is now common to pay fees before one is interviewed. Once the job is gotten, u are either not paid on time or not paid at all. Even after retirement pensions and benefits arnt paid. When does respite come for the poor nigerian who has been exploited by his govt, his employer and his fellow citizens? God bless Nigeria.

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In some cases I blame both the employees and the employer. Leaving aside those silly employers who are just plain wicked and selfish, many people work for companies where it clear the company is not making any money and they are still there. Graduates and other job seekers look for work without checking the viability of the company they intend to work for.

Companies often employ more people than they require. You go into an office and find people milling around doing nothing but expecting salary at the month end.

In the Europe and America many staff are paid weekly, not monthly, they are paid directly from cashflow, no waiting for month end.

Nigerians need to be more realistic, we need to ask ourselves how much have I contributed to this business? If I am a salesman and I bring in 5 million naira a month then I deserve a salary, but if my sales are only N25K a month , then how can expect a salary of N50k. This can be used in other jobs, if you are a teacher in a private school, you have 30 students in your class, paying N7000 a month, total turnover is N210k a month before rent, diesel and other costs then you can expect to be paid. But if your school only has 15 students paying N1500k, total turnover N22,500 a month how much can the teacher earn? But in Nigeria the school with 15 students will employ 20 teachers, one bursar, headmaster, deputy headmaster, driver, gardener, etc and they will all expect salary.

The moral of my story, check the viability of your potential or current employer.

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All these sharp practices are perpetrated by one-man businesses and some small to medium size companies. It is very rare in MNCs as well as well big Nigerian companies. I don't think a bank will even do this.

Here, 25th day of the month is for sure, and on very rare occasions, 26th-27th, except at the height of the liquidity crunch when we had it inadvertently delayed till 3rd of the next month.

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Nigeria labour condition is killing !

3 months no pay !

Have to go on leave without pay.

Who do you tell , federal govt ?

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Thanks for this thread. I once worked for a dude who was starting out as a publisher in Nigeria back in 2006. This guy launched his Magazine about a month before I joined his firm. I had just completed my NYSC and was really looking for a job. My dad was not helping matters as he said I had to get a job and start planning to start out on my own. Due to my love for writing, I applied to many Media houses and Advertising agencies to no avail. I was nearly employed by This Day Newspapers but because I was still a Corper, my appointment was delayed until the end of the service year. After the service year, I scurried down to the paper's offices in Apapa, but I was told the company had finished recruiting new people.

Anyway, I got a 'job' with this guy I'm talking about. I started churning out stories and carrying out interviews for his Magazine. My salary was 15,000 Naira [ I'm just laughing as I type this ], yet this publisher could not pay me for months. He hired about 4 of us as writer-reporters and had a secretary. He could not pay the editorial staff and was always avoiding coming to the office. Sometimes, he gave us the Magazine to sell ourselves. I would sell my copies and he would collect the money. I discovered that I had more knowledge than the guy when it comes to publishing and Media Matters. It got to a stage I was trekking to work. The funny thing was that Mr Publisher was dressing well and sending his secretary [ They were from the same state ] to buy food for him in a big flask almost everyday. It was a horrible period for me. I was frustrated, angry and hopeless. Anyway, God had other plans for me. About four months later, I left Nigeria and I'm flourishing where I am now. If you cannot manage a business effectively, don't start it. Many Nigerian employers dabble into business because others are doing it or it seems to be profitable. God help us all.

www.vibes-extra.blogspot.com

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Raymond Dokpesi frusration!!!!!!!!!!!!!

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Uncle Bisi Olatilo (Biscon World) is a culprit, He paid Jan salary,Feb 17, Feb salary March 24th ans so on, He hired 3 graduates June last year and didn't pay them until November(October salary please).

Some employers are just plain wicked! He asked my cousin to resume March 16th. She did and asked him later that week that was she going to be paid for the remaining part of the month? He said of course not;so she asked him that how about starting the next month then,he said no,and she stopped going. BISCON=Sweatshop!

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Most organisation dont kno what it means to run a company effectively. especially a one man business or self owned company.

eg. a man has a oil and gas firm that i know. doesnt pay salary yet rides in exoctic cars, even the sister from the village sef drives a 2005/2008 vw passat all on the company expense. a senior managemtn stole over 29milliona naira and still working with the company and none of his benefits were withdrawn.

wont mention the name of the company as it has nothing to do with me. but these are reasons why people suffer . most companies dont even know the meaning of Human resources not to talk of understanding it and the laws of Nigeria are not even helping matters at all.

thats why i dey even look for multinational company to work with in 9ja so dat when month end reach we no go begin talk too many grammer or carry placard.

@warhorse

you couldnt have sait it better those highlighted reasons are the reasons why companies dont progress in nigeria and staffs are not being paid.

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A.I.T , Arik Air Major Culprits

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ONE MAJOR REASON IS THAT MANY COMPANIES JUST TAKE UNDUE ADVANTAGE OF THE LABOURLAW WHICH IS PRACTICAL DEAD AS PER IMPLEMENTATION.

2. UNDUE ADVANTAGE OF LABOUR MKT SATURATION I.E SUPPLY OF LABOUR IS MORE THAN DEMAND FOR LABOUR

GOODDAY

TAIWO

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The following are my reasons:

1. Lack of Knowledge of Business Management

Nigerian private business peoples assume they know what it take to run a business. The becomae the CEO, accountant and cash manager at the same time. There are no checks on the running of the business. The are poor on sensitivity analysis and so cannot understand the direction of the business. The business plan stops when they acquired loans from the bank. That my definition of gross mismanagement

2. Lack of Creativiity

Almost everybody claims to be creative. A big lie. Nigerian companies feel creativity stops at coming up with a business idea and starting it up. Sorry! All along in the implimentation, growth, stability, maturity and even death stages of a business, creativity is needed. We are poor creators of business strategy all along the way of business operations. This has a big and negative implication on cash flow and payment of salaries.

3. Mindset of "The Boss"

Can you believe that Bill gates is not the Chief Executive Officer of Microsoft? Bill used to be but he later stepped down from the position for someone better that he is in the job of CEO - Steve Ballmer(or something like that). Nigerian business men? Almost never. they want to be Chairman, CEO even after death. bad business oooooooooooooo. Business is driven by varied functions. you must use the right person for the right job. That leads to the fourth reason -

4. Leadership

I laugh a lot when I see and hear the many programs of leadership that go on in Nigeria and the many person that go with the notion that leaders are made or can be made. my dear all, as controversial as this issues, I wish to state and re-state that a true leaders thatcan lead human organizations with a strong sense of the combination of goal, human nature and fame can never be made. He/she must have to be born with the bio-inherent tendencies to lead these functions. it has to be someone who prizes fame much more than money. American leadership is based on fame and not money. look at the rich entrepreneurs of America, Japan, and Europe - even when the money comes, they give it away.

We need persons who will practice shephard leadership-source for human resources, find and exploit their potential while leading them to greener pastures as and at when due. unfortunately, Nigeria has few if at all any of such. Even if they exist, there are "trample upon". Shhhhhhhhhhhhh. never say the beautiful onse are not yet born; they have been born but were trampled opon and are still been trampled opon. The propaganda itself that a business leader can be nurtured tramples of the truism that business leaders, as long as they will lead people and their initiatives, are actually natured - Born in other words.

5. In Our Character

Nigeria is a class society. Most previlleged people want to remain the previlleged and do not want others to become previlleged. Most private company owners feel bad paying money to workers even when the workers has worked for it. They feel they are enriching others rather than themselves. They pride themselves with the balance money in their account or business account and any reduction in that money hurts them.

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One of the major reason is that employers of labour take undue advantage of the labour law that is not be proper implemented by Government .Otherwise when at the particular period as agreed with employees due and no payment and if the employees seek redress from the law court and it properly handled by the judiciary arm of the government then many employers will know it is unlawful to refuse and not to pay their workforce as when due and again they will know that they are commiting sin to humanity and severely punishable by God almighty.it is just that God judment is beyond human comprehension.

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