COVID-19 is causing challenges for businesses around the globe – so how can they provide support for employees? Gary Wright of TMF Group shares his insights
With global markets reeling and citizens confined to their homes, the coming weeks and months will put companies’ business continuity plans to the test as never before.
“There is not a company in the world that will be left untouched by the effects of COVID-19,” says Gary Wright, HR & Payroll Solutions Lead of TMF Group. “Businesses will need to adapt their systems and structures to keep up with the changing legislation.”
Companies should always prioritise the best interests of their staff wherever possible, explains Wright. HR and payroll issues should be the focus now – ensuring people are paid the right amount at the right time is crucial to maintaining the trust and motivation of employees.
Not to say it’s always easy; Wright is keenly aware of the challenges involved. Third parties and partners also need to be kept informed about any changes to ways of working, or potential delays in payment or processing. They, too, could institute new workflows and these changes need to be reflected and shared around companies.
But with stark economic outlooks, Wright warns that companies of all sizes will come under intense pressure to get it right. From an HR and payroll perspective, there will be changes relating to sick pay, overtime, and leave − compassionate leave in particular.
“Companies have an obligation to stay on top of emergency legislation as it is announced, and rapidly integrate it into their policies,” explains Wright. “Clear communication and processes are more important than ever; they’re key to managing uncertainty among employees and third parties as the situation evolves.”
Wright points to the UK as an example; there has already been a move from the government to fund statutory sick pay (SSP) relating to coronavirus for businesses with fewer than 250 employees. Similarly, it has changed legislation to enable SSP to be paid from day one rather than day four, as is usually the case. Companies now need to ensure this update is reflected throughout their systems and that payroll is adjusted.
“It’s likely that other countries will adopt similar measures, and further down the line we may well see SSP extended to cover longer periods,” says Wright.
Payroll taxes are another area where countries have been passing legislation to help businesses. For example, in Australia, there have been payroll tax waivers passed in Queensland, Western Australia and Tasmania. Each scheme contains different specifics, such as deferral time and payroll amounts. It is imperative that companies pay close attention to the new rules and apply them to their current payroll systems in each jurisdiction.
Wright also believes that with staff welfare a top priority, some companies may decide to go beyond the legal requirements and voluntarily adopt measures to ease the stress and financial burden on their staff. Flexibility regarding adjusting paid and unpaid holiday is another area companies may wish to explore, as will areas such as overtime or use of contractors.
“This will help companies maintain a strong employer reputation when the crisis comes to end,” says Wright. “Such policies might include paid leave to allow people to care for relatives, or to support self-isolation.”
Facing such an astounding amount of changes, companies must focus on maintaining clear communication with staff, ensuring all new policies are consistent across jurisdictions – while still working within the limits of local regulations.
“The first step is to conduct a workflow analysis to identify processes that are critical in paying employees and filing tax obligations,” explains Wright. “Can all of the systems be accessed remotely?”
Wright also points to resourcing as another issue for consideration.
“Is there adequate back-up staff if key team members are unavailable?” says Wright. “As far as possible, companies need to ensure a broad knowledge base and avoid skillsets being siloed.”
Ultimately, Wright sees getting fundamentals like payroll right as a way to provide peace of mind not only to the management team and suppliers, but to the employees themselves.
“Knowing that they’ve got the resources they need to effectively carry out their jobs will enable them to be better focused on attending to business needs, and staying in regular contact with their work teams,” says Wright. “No matter the wider circumstances.”
