With the strong economic shock deriving from the consequences of COVID-19 recurrence by late 2020, companies of all sizes have been under enormous pressure in all aspects. Up to now, our country is still undergoing the testing phase of vaccines and it has not yet been able to determine the time to control the epidemic. This presents still a strong obstacle for businesses to figure out how to deal with the difficulties and do not know if the epidemic will break out again anytime. Making sure that all employees are fully and punctually paid is critical to maintaining their trust and motivation. It is time for the enterprises to consider outsourcing payroll services.
Labor market at the beginning of 2021 after the COVID-19 outbreak by the end of 2020
There has been a lot of change in the recruitment needs after the Lunar New Year, due to the impact of the COVID-19 outbreak at the end of 2020, which was also the peak of the recruitment activity of the year. There are 5 industries that are expected to recover soon, including: wholesale, retail and trading (17%); information and communication technology (18%); processing and production (14%); healthcare (9%); professional consulting services (10%).
In addition, labor demand in information technology, digital banking, financial technology, e-commerce etc. will also gradually recover, as these are market segments with stable development. Despite many difficulties, the year 2021 can be considered positive with some certain bright spots thanks to attracting investments amid the context of the COVID-19 epidemic, businesses have found new production and business directions, and the efficiency of epidemic control measures have been promoted.
What's more, there is significant change related to the employees’ benefits in the Labor Code in 2021. Below are some new regulations stated in the Labor Code coming into force from January 1, 2021 that should be known to the Employees.
- There are only two types of labor contract: Indefinite term labor contract and definite term labor contract.
- The labor contract may be concluded in electronic form or verbal form.
- Regulation on probation is added.
- The Employees may unilaterally terminate the labor contract without any reason.
- The retirement age will increase in accordance with the relevant
- Adjustment of benefits for days off and overtime.
Trend to use payroll service in the context of living with the epidemic.
In a recent survey, it was found that more than 30% of organizations losing their control over payroll management due to the consequences caused by the COVID 19 epidemic. This is due to the increase in payments for complicated emergency requests, poor access to work-from-home technologies and inadequate care for their employees.
Trend to use payroll service in the context of living with the epidemic - source: Internet
With a small and limited management team, the businesses can suffer serious losses when something goes wrong or if a key employee leaves for whatever reason. Outsourcing services in this time may enable you to overcome challenges. This will help save costs for the businesses while processing personnel issues in accordance with the law, and at the same time, keeping the management activities smooth.
Benefits of outsourcing payroll services for the businesses
Below are the benefits that the businesses can enjoy when cooperating with a payroll service provider, well supporting salary management after the Covid-19 related influences.
Lower management expense
One of the most obvious benefits is cost savings of using an organization with qualified scale and experience. Besides, you can reduce hidden fees in dealing with payroll-related errors due to inaccurate manual calculations. Furthermore, internal processing sometimes requires a large amount of manpower and office space, which many businesses can hardly invest their resources in.
Outsourcing payroll service may help lower management expense - source: Internet
Accessing and strictly adhering, risk management
When outsourcing payroll services, you can also learn valuable knowledge from payroll professionals. This has been essential during the period of the Covid-19 crisis, amid the context in which the government regulations have constantly changed.
With a variety of new legislative changes going into effect on a yearly basis, it's critically important to keep systems compliant and operationally automated to reduce the frequency of mistakes. There are many organizations that fail to timely upgrade their systems and perform a lot of work in the spreadsheet, which may pose a lot of risks.
Outsourcing payroll services to help the businesses access and more strictly comply with the laws on salary regulations - Source: Internet
Maximizing the use of payroll database
A good payroll provider will give you various reports, both before and after your payroll is produced. This ensures transparency and helps you understand the entire process.
In addition to reporting regulatory compliance, a payroll service provider can use its expertise to help the businesses maximize the use of payroll data.
A good payroll provider will give you various reports - Source: Internet
With constantly changing payroll regulation and the complex situation of COVID-19, it is extremely important to ensure that policies applied to support the employees and comply with the law. That is the reason why it is so crucial for the businesses to consider outsourcing the payroll services.