Counter-point: it actually robs those employees from learning the ability to save, and denies them (albeit small, incremental) opportunities to earn interest.

You just made me recall one of my gripes with the finance department at my previous job; they would withhold posting an invoice until the week after it was due, and considered it good business. Why? Because that 100K would sit in their bank account for 5-7 more business days accumulating interest at ~5%.

It’s no different to only paying employees monthly; the company profits from withholding payment for as long as possible.