South African companies are increasingly looking towards external payroll and human resources (HR) consultants to help them maximise the performance of their workforces, attract and retain the best talent, and align their HR departments better with their business objectives.
That’s according to Annemien Victor, director of Consulting Services at Sage VIP, who says that the growing complexity of the HR environment means that companies need outside expertise to navigate challenges such as performance management, the regulatory environment, and managing organisational change.
“We are seeing growing demand for HR consulting right across the business cycle – from driving an organisational culture and attracting and recruiting talent, to managing performance, developing the skills base, and structuring benefits,” says Victor.
“Companies realise HR strategy and operations have become challenging, yet they’re also aware that their people can be a strategic business asset. An external consultant who understands best practices can help them streamline the routine admin, put the right processes and policies in place, and orient their HR functions around business strategy.”
Consultants can help clients to assess, design and improve payroll and HR system and processes that ensure compliance with tax and labour laws while providing other strategic advantages. One area where companies are increasingly looking for external help is around administration and management of employee benefits, says Victor.
This area poses a growing challenge for companies because they are aware that the payroll is one of their largest expenses, yet know that their people are their competitive edge. “Companies that can afford high-end benefits are best positioned to attract the top talent,” Victor says.
“Yet many companies who cannot compete with the packages larger companies can afford are looking for no-cost or low-cost options that can give them an edge. Regardless of cost, it pays for employers to take the time to determine what matters most for their employees and structure benefits accordingly.”
The trend in South Africa is moving from the typical package of salary and benefits towards a structured total cost of employment where employees are empowered to manage their own packages more effectively with an understanding of how the benefits work and how the company is contributing towards them, says Victor.
“With the assistance of expert consultants in this field, organisations can create processes and systems that allow them to administer the employee benefits more accurately and effectively,” she adds. “This can also enable them to make better decisions as they can track trends and analyse data. One major problem for South African organisations is that they do not have a system or process to track real data, so they have let visibility into their processes.”
Victor offers 8 tips about how companies can reduce payroll costs without impacting on employee benefits:
* Having clearly defined processes and procedures.
* Analysing data for trends so that they can optimise benefit offerings.
* Linking benefits to a job and not just an individual.
* Centralising environments and using new technology (cloud based systems) to lower infrastructure costs.
* Reviewing requirements and processes every three to four years.
* Putting in place well-documented and approved contracts of employment, salary and wage policies.
* Empowering managers to make informed accurate decisions based on real time information.
* Keeping a record of company items in employees’ possession like company cell phones, laptops and vehicles.
