The COVID-19 pandemic has been a major setback for businesses of every size and complexity. Lockdowns, economic turmoil and devastating financial conditions globally had literally brought businesses into a standstill. Internal functions have changed as remote working has become the new normal. Business leaders are forced to transform their operations, create technology-based efficiencies and reduce costs.
Amid this challenging scenario, how are businesses addressing the challenges facing a crucial HR function – payroll? Discussed here are the recent payroll changes businesses are experiencing as the global health challenge continues to unfold.
1. More Businesses are Now Switching to Payroll Automation
During a pandemic as intense and devastating as this, more organisations are now trying to cut down their dependencies on human labour. Before COVID-19, many businesses had already started to automate certain payroll functions to address demanding and complex requirements. This global outbreak is expected to further boost the rate of adoption.
Automation may not only support businesses to maintain continuity amid such tough times but also enable them to streamline operations and work efficiently.
2. Expect Legislation Changes in Payroll
The recent health crisis requires payroll teams to adapt quickly to short-notice changes to HR legislation that may come in the near future. For instance, staying compliant with regulatory standards isn’t just the norm anymore. The “new normal” requires organisations to support employees in maintaining the highest standards of hygiene and wellbeing. It is also about ensuring they are paid optimally for their role in the organisation.
With the COVID-19 pandemic, several emergency measures have been implemented. These include revising sick pay and other initiatives. However, a major segment of organisations has reported struggling with the complexities of adopting the new measures while some are concerned about the intensive manual work that will go in adapting to these changes.
3. Payroll Outsourcing Can be an Effective Business Solution
Today, only a small percentage of businesses outsource their payroll functions. However, the effects of COVID-19 on the payroll are expected to accelerate the demand for outsourcing key HR functions such as payroll. Industry experts anticipate payroll outsourcing to be a short-term or long-term solution, given the threats posed by crises like COVID-19.
Businesses that are experiencing poor payroll capacity could benefit by outsourcing expertise and support to a managed HR services provider like GOHRBPO. They are better equipped to address complex and large payroll requirements efficiently.