HR and payroll trends shaping the employee value proposition…
The pandemic has fundamentally changed corporate culture, forcing companies to implement work-from-home arrangements, which include anytime, anywhere flexibility.
This flexible future has disrupted payroll management, which can no longer rely on outdated manual systems. It must automate, record in the cloud, adhere to legislative changes on an international scale, while remaining on top of cybersecurity issues and technological developments.
At the same time, companies need to recognize the importance of their employee value proposition (EVP). And while many teams insist that teams return to the office, forward-thinking companies are embracing flexible arrangements and hoarding “sweeteners” to attract and retain top talent.
Increasingly, this means being able to work from anywhere in the world. In a “Great Resignation” environment, retaining talent is the ultimate HR challenge. A year ago, employees began quitting their jobs in record numbers. A Microsoft study found that 41% of the global workforce were already planning to leave their employer, and these intentions are already becoming a reality.
Microsoft said employees want the best of both worlds: More than 70% of workers want flexible remote work options to continue, while more than 65% want to spend more time in person with their teams. To prepare for this, 66% of business decision makers have considered redesigning physical spaces to better accommodate hybrid work environments.
“The data is clear: extreme flexibility and hybrid working will define the post-pandemic workplace,” he said.
Months later, the the wall street journal reported that the percentage of Americans leaving their employers for new opportunities is at its highest level in more than two decades.
How quickly that changed. This year the reported newspaper that many of those who quit their jobs during the pandemic had regrets. And a large number of workers have returned to their former employers. So-called boomerangs accounted for 4.5% of all new hires among companies on LinkedIn in 2021, according to the professional networking site, up from 3.9% in 2019.
Companies that take their EVP to heart thrive. A company’s EVP, the unique set of benefits an employee receives in exchange for their skills, abilities and experience, is about defining the essence of your company – what makes it unique and what it represents.
On May 9, Airbnb announced that its employees could work from home, forever, without losing pay. The holiday rental company, which uses its slogan ‘belong anywhere‘ heart, spoke of a surge in traffic to its careers page, with Fortune reporting nearly a million inquiries in a matter of days.
In an increasingly complex work environment, payroll processes must follow these global trends, to enable companies to attract and retain the best employees, meet their needs and thrive.
How businesses manage their payroll matters more than ever, as businesses face a level of payroll complexity that many have never faced before.
A white paper from Sage, titled ‘Payroll and HR in South Africa: Meeting the challenges of change‘ reveals some key insights into the local market, after surveying 600 small businesses (with less than 99 employees) and 400 mid-size businesses (with 100-1,999 employees) in August 2021 to find out how they are navigating the growing complexity of the payroll and while also facing new challenges around remote working and data security.
He revealed that with access to some of a company’s most sensitive and valuable information, payroll and human resources (HR) professionals have a “gold mine” of information. that can improve business strategy, streamline compliance, and attract and retain top talent. Few are using it to support business decisions and meet candidate and employee demand for greater flexibility, competitive advantages, and easier access to HR data and information.
But, without a specialized system, this information remains buried under a growing pile of administrators.
With the growing complexity of payroll and HR, companies need better reporting analytics to inform strategy and planning, faster reporting to deliver timely insights, tighter data security to improve compliance and a streamlined payroll process to reduce errors, reduce costs and increase employee satisfaction, which are offered by Sage’s specialist cloud-based payroll and HR systems. It also offers ease of integration, online support, access from anywhere, automated tax calculations and direct links to banks and tax authorities.
As a global market leader, Sage provides technology to small and medium-sized businesses to enable them to manage HR payroll processes, as well as their finances and accounting. More than three million customers worldwide trust us.
HR plays a strategic role within an organization, advising decision-makers on the exchange of recruitment training and animating the corporate culture. They must be able to adapt to the changing payroll landscape, due to new work arrangements, training requirements, sick leave and other complexities.
According to our research, 89% of respondents recognize the importance of keeping up to date with the latest legislation. Seventy-seven percent of respondents said they struggle with the complexity of payroll taxes, while 50% struggle to explain tax calculations to their employees.
Unsurprisingly, 88% of companies that were already using cloud-based payroll and HR systems were better able to adapt to remote or hybrid working arrangements. As repositories of some of the most sensitive business information, 31% of payroll and HR professionals, especially those using cloud systems, are focusing more on cybersecurity than a year ago.
Most (70%) payroll and HR professionals plan to move from manual, offline systems to cloud-based software in the next year, citing data security, time management, and shifting to payroll models. remote and hybrid work as main reasons.
Employees no longer want to be seen as just workers; to be successful, they want to be seen as a person in an organization doing a task. This trend in the future way of working creates complexity, in a multilateral legislative environment.
And companies need to ensure they have payroll technology that can support these complexities. DM/BM
Author: Gerhard HartmannVP: Medium Enterprises, Sage Africa and Middle East