Managing Payroll during economic uncertainties is something of a chaotic process. It gets extremely difficult to maintain the employees pay and at the same time save the company from a huge loss. If either one falters the company will fall under a huge loss.
In situations like this it's extremely important to communicate with the employees about the situation at hand and deal with it accordingly. This not only assures the employees their security but also builds trust among the employees.
The next thing, is to do some cost-cutting, and in today's world what better way to do cost cutting than to perform on a remote basis or hybrid basis depending on the nature of the business.
While managing all of these, it's extremely important for the company to also adhere to the laws of the country so that they don't put themselves in a legal fix. Also not adhering to certain legalities can cause the loss of trust by employees towards the company.
This is the time the company must make some strategic-decisions for a better and positive work environment in the future. Read further to gain some tips to help you with it;
Now it's important to understand how these economic uncertainties can shape your business setting. It's recommended to be prepared for these difficulties during uncertain economic situations.
→ Consumers might reduce they're purchases, this can inadvertently cause more damage to the company.
→ It might become difficult to find funding during times of uncertainty, and this can cause a short flow in the capital of the company.
→ Employees might feel threatened about losing their jobs and will start panicking.
→ Often during times of economic uncertainty the government tends to change its approach by increasing the tax and many such changes are to be expected.
A company is interdependent on many other factors for a smooth and successful functioning but market volatility and economic disruptions due to many reasons can cause the smooth flow to be disrupted. If there is a market volatility the consumers confidence and they will subsequently start spending lesser on products. With the deterioration in the spending factor the company can face huge losses.
Now that we have analysed the possible disruptions in the regular work flow. The company needs to think of way to effectively cut costs in different ways. This way the company can survive without loosing their employees.
● Get a proper analysis of your budget and expenses.
● Now according to the budget cut, to avoid panic try suggesting the employees to go on a voluntary leave so that the company doesn't lose their valuable member and the employee doesn't get laid off permanently.
● Now although there's not much that can be done with the salary, the benefits can be temporarily frozen. Maybe stop the EPF funds for a few months until recovery.
● Now, time to cost-cut on the utilities. Try reducing the work timings so that the electricity bill isn't as usual.
● Negotiations are key for this change, negotiate with the suppliers and vendors about cutting the price or giving cash-dicounts.
● Also it's extremely important to assure the employees of the assistance available for them through financial advices and counselling.
Communication is the key to everything. And during times of uncertainty it definitely helps in communicating more openly and effectively. Here's why communication during economic uncertainty is important:
1. Communicating with clarity can build trust
2. A sense of understanding will be seen amongst the employees if communicated during the early stages.
3. There is a chance that together the company can come up with adjustments for quicker recovery fr this dip.
4. Communicating with them continuously can help them understand that this is just temporary and feel reassured.
5. Also throughout sharing small moments of happiness and success can boost morale.
Technology can be highly useful during these kinds of situations. Instead of opting for high priced payroll systems choose one which is pocket-friendly. Reducing manual errors can be extremely useful since cost needs to be cut and errors cannot be ignored.
Also for any information related to the payroll employees can use mobile websites through which they can see clear updates. This can also reduce the need for many administrative heads.
Using cloud based systems for a centralised understanding of payroll and the other tax related information that will now be handles using cloud based systems.
Also integrating departments together can help get tasks done fast and quick. For example the accounting and HR team.
Staying away from legalities during this time is a matter of concern. So it's advisable to stay in touch with the legalities and tax deadlines. That being said here are some legal aspects to keep in mind during an economic uncertainty;
→ Reviewing the legal formalities and keeping up to date with it, is one way to stay away from any law suits.
→ Ensuring that no wrong practices are being practiced in the company and that everyone gets the right compensation for their work.
→Paying the wages on time, cause if not this could be a cause of a lawsuit against the company or the organisation.
→ Pay the taxes appropriate and don't with hold any tax money from the government. And give the details regarding it to the employees.
→ Ensure that the employees feel safe to voice out any concerns regarding the payroll services. Giving them the safe space to speak up for themselves.
To conclude, remember that economic uncertainty is a part of any business establishment. During tough situations like this it's important to keep in mind the importance of the company's work culture and it's employees well-being. Adapting to the changes can be tough in the beginning but staying together strongly as a team should be something that you shouldn't compromise on.
What are some other innovative ways, your company tackles uncertainties as such? Comment to let us know!
