Companies of all scales are under tremendous thread in many aspects with the severe economic shock resulting from the impact of COVID – 19 reinfections. Up to now, our country is still undertaking tests on Vaccine and cannot determine the time to control the pandemic situation, which makes the enterprises face with great obstacles in finding out the solutions for difficulties as well as not knowing when this outbreak re – emerge. Ensuring all employees receives sufficient and timely pay is pivotal to maintain their trust and motivation. This is the right time for businesses to consider the payroll outsourcing service.
Labor market in early 2021 after the COVID – 19 outbreak at the end of 2020
After the Lunar New Year, because of the effect of COVID – 19 outbreaks at the end of 2020, which also the peak hiring season of the year, the demand for labor has experienced a major change. There are 5 business lines expected to have recruitment activities recovered soon, including: wholesale, retail and trading (17%); information and communications technology (18%); processing and manufacturing (14%); medical and health care (9%); professional consulting services (10%).
In addition, the demand for labor in information technology, digital banking, financial technology, e – commerce, etc. will gradually recover as these are the market segments which obtain sustainable development. Despite further difficulties, 2021 is considered to still have highlights thanks to the attraction of investment waves. In the context of the COVID-19, enterprises have searched for a new business – production direction and effectively promoted for the pandemic control measures.
Furthermore, Labor code 2021 also has many adjustments regarding the benefits of employees. These are some new regulations of Labor Code taking effect from 1/1/2021 which the employees should know about as below:
- There are only 2 types of contract: indefinite – term contract and definite – term contract
- Can enter into the electronic or oral contracts.
- Amend regulations on probationary time.
- The employee can unilaterally terminate the contract without reasons.
- Increase the retirement age according to routes.
- Adjust the benefit of leaves and overtime.
Payroll service trend in the context of living together with the pandemic
A recent survey shows that 30% of organizations have lost their ability to manage the payroll due to the influence of COVID – 19. The reason is that the payments for complicated emergency request increase; the access to work – from – home technology and taking care of employees are not really good.
Payroll service trend in the context of living together with the pandemic - Figure: Internet
A small management team with lots of limitations can cause serious damages to businesses when problems occur or a key member decide to leave for any reason. Outsourcing now can help you overcome challenges. This will help to save costs for the enterprise while handling the personnel matters under the laws, at the same time keeping the management activities go on.
The benefits of payroll outsourcing service for businesses
19. These are the benefits which enterprises can obtain upon cooperating with units providing payroll calculating service, assisting good salary management after the impact of Covid pandemic as below:
Decrease in management cost
One of the most visible benefits is the cost savings when leveraging an experienced and large – scale organization to provide service. Besides, you can reduce the costs from handling errors in relation to payroll processing due to incorrect manual calculation. Furthermore, internal handling process needs a large number of human resources and office space, which some enterprises have troubles to put investment in.
Payroll outsourcing help reduce management cost - Figure: Internet
Accessing to and strictly complying with the laws, risk management
When outsourcing the payroll service, you can acquire valuable knowledge which kept by the expert. This is extremely necessary during Covid crisis since regulations of the government change constantly.
It is crucially important to keep the system compliant and exploit the automation to reduce the frequency of errors when countless new legislative changes taking effect every year. There are many organizations do not upgrade their system promptly and do the works in calculation sheets resulting in a lot of risks.
Payroll outsourcing help businesses access to and strictly comply with regulations on salary - Figure: Internet
Maximization of payroll data use
A good payroll provider will send you various reports, both before and after running the payroll. This ensures the transparency and helps you understand the entire process.
Apart from the report focusing on regulatory compliance, a payroll service provider can use their expertise to help businesses maximize the use of payroll data.
Good payroll providers will send you various report - Figure: Internet
With constant changes in salary management law as well as the complicated situation of COVID – 19, ensuring the application of policies to support employees and compliance with the laws is vitally important. Therefore, considering outsourcing payroll support services is extremely necessary for businesses.