04:05
ISSUE 4
4. Outsourcing of Payroll The company can eliminate in-house payroll by utilising payroll service providers to share the responsibility of managing payroll, especially in crises. Here’s a checklist for choosing a payroll vendor: The vendor should have a proven track record of reliability and accuracy in payroll processing, even under challenging conditions. Their system must stay updated with the latest regulatory requirements and changes in labour laws and tax regulations. They must have a continuity plan of their own and proven diversification of the location to provide uninterrupted services. Outsourcing payroll offers the flexibility to scale the payroll services up or down without impacting business during unpredictable events such as pandemics, business downturns or natural disasters. 5. Robust Cybersecurity The Global Risks Report 2024, published by the World Economic Forum, identified cybersecurity risks as one of the top 10 global threats for the next 10 years. Cybersecurity Ventures’ report expects global cybercrime “Failure to maintain payroll operations can not only disrupt business continuity but also lead to non-compliance penalties and delayed payments.”
2. Financial Strategies for Payroll Continuity The financial situation of a company may see a downturn at some point. Even reputable companies such as Kodak, Netflix, Starbucks etc. have proved that financial turmoil may intrude. To avoid disruption, the organisation must have a plan to manage budget cuts, layoffs, and salary reductions while maintaining compliance with the laws. Additionally, fluctuating currency exchange rates can also add to the complexities of international payroll management. Alternative faster payment options to transfer funds will always come in handy when the primary way of payment is interrupted. Recently, a faulty software update from CrowdStrike caused millions of Microsoft Windows systems to display a blue screen. It impacted banking services as well. With alternative payment options such as digital wallets, businesses can ensure timely payments. 3. Technology for Payroll Resilience Technology plays a pivotal role in managing payroll. With cloud-based payroll systems, the processes will not only be standardised, but they will also allow flexibility to manage payroll from anywhere and anytime. Furthermore, using payroll software and technology
solutions helps in automation; streamlining processes, ensuring
reduced errors, enhancing efficiency and maintaining payroll records. This can help organisations to focus on their business in a time of crisis and ensure that employees are paid on time accurately.
Made with FlippingBook - Online magazine maker