Category: Innovation

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Innovation

Guide to Payroll Management for Global Teams 

By Aisosa Ajayi

In today’s globalized world, businesses often extend their reach beyond national borders, establishing global teams. Managing payroll across different countries poses unique challenges. Here are five essential strategies for Human resources, compensations, or total reward professionals to manage global payroll effectively, ensuring compliance, efficiency, and employee satisfaction. 

  1. Navigate Local Employment Laws 

Complying with local employment laws is crucial for global payroll management. Each country has unique tax system, employee rights, compensation standards, and mandatory benefits. Familiarize yourself with local payroll laws, including tax obligations, social security contributions, and labour requirements. Engage local payroll providers, tax consultants, or legal advisors to avoid legal issues and penalties. 

  1. Choose and Integrate Payroll Solutions 

Selecting the right payroll system is vital for efficiency and compliance. Use cloud-based software for multi-country payroll processing, offering automated tax calculations and custom currency conversions. Ensure integration with existing HR systems to streamline processes, reduce errors, and enhance reporting capabilities. 

  1. Establish Clear Communication and Policies 

Effective communication and transparent payroll policies are essential. Develop clear, accessible policies outlining payment schedules, benefits, and tax implications. Conduct regular check-ins with employees to address payroll-related questions and gather feedback for continuous improvement. This ensures everyone is informed and issues are promptly resolved. 

  1. Manage Currency and Exchange Rates 

Handling payments in different currencies and managing exchange rate fluctuations is critical for fair compensation. Pay employees in their local currency to avoid exchange rate issues. Regularly monitor exchange rates when local currency payments cannot maintain equitable pay standards.  

  1. Ensure Data Security and Privacy 

Protecting payroll data and complying with regulations like GDPR is paramount. Implement strong security protocols, such as encrypted data storage and secure access systems, to safeguard sensitive information. Train payroll teams on data privacy practices to ensure responsible handling of employee information and compliance with international standards. 

By focusing on these strategies, Total Reward professionals can effectively manage the complexities of global payroll, ensuring compliance, efficiency, and employee satisfaction. Embrace these practices to enhance overall employee satisfaction and strengthen human resource management. 

“Selecting the right payroll system is vital for efficiency and compliance”

About the Author

Aisosa Ajayi coordinates communications and experiential marketing at HumanManager, where he is responsible for curating and managing messaging, developing content, and staying attuned to industry trends in human resources management.

Categories
Innovation

Is Salary Enough to Keep Your Top Talent? Tips to Attract & Retain  

By Olakunle Yusuff

The war for talent is real! Most employees are actively considering new job opportunities that align with their aspirations and career growth. While a competitive salary is certainly important, it is just one piece of the puzzle. Employees now crave a workplace that fosters growth, values well-being, and aligns with their values.   

So, how can your firm stand out in a crowded marketplace and attract – and keep – the best talent? Here are seven powerful strategies that go beyond the paycheck to create a work environment that top talent will love:  

  1. Have a Compelling Benefits Package  

Move beyond the basics. Offer a comprehensive benefits package that includes health insurance, retirement plans, generous paid time off, and learning opportunities for professional development. This shows your commitment to your employees’ overall well-being and future success.  

  1. Prioritise Work-Life Balance  

Today’s employees are juggling work, family, and personal commitments. Offering flexible work hours, remote or hybrid work options, and supportive policies for parental leave or caregiving demonstrates that you value their time and well-being.  

  1. Cultivate a Positive Work Culture  

It is not just about tennis tables and free lunches (although, these can be nice perks!). Build a positive culture of open communication, collaboration, and a sense of community. Encourage teamwork, recognise employee contributions using data-driven performance appraisal, and empower your team members to do their best work.  

  1. Invest in Career Development  

Employees want to feel like and see that they are growing and progressing in their careers. Provide clear paths for advancement, mentorship programs, and opportunities for skill development and training. This shows your employees that you are invested in their long-term success within the company.  

  1. Recognise & Reward Achievements  

A simple “Thank you” and “You did a great job” goes a long way. However, consider implementing programs that acknowledge employee contributions through bonuses, incentives, or public recognition. Feeling valued and appreciated boosts morale and motivation to do more.  

  1. Promote Workplace Wellness  

A healthy workforce is a happy and productive workforce. Go beyond traditional health insurance by offering employee assistance programs, mental health support, and on-site wellness initiatives.  

  1. Align with a Higher Purpose  

Help your employees connect their work to a bigger mission. What positive impact does your company make in its immediate environment and beyond? What Corporate Social Responsibility (CSR) initiative is your firm supporting?   

By aligning with employees’ values and offering work that contributes to a meaningful purpose, you can enhance job satisfaction and loyalty.  

Embrace Technology for Recruitment and Retention  

Job seekers can easily rate a firm based on the recruitment process and the attitude of interviewers. The good news? HR tech, social media, Artificial Intelligence (AI), and other technological tools can significantly enhance your recruitment process and employee retention. Explore platforms that facilitate easy communication, knowledge sharing, and onsite and virtual team building.  

By implementing these strategies, you can create a work environment that goes beyond just a paycheck. You will attract top talent who is looking for a place to grow, contribute, and feel valued.  

Ready to learn more about building a talent-magnet company culture? Click Here to watch our webinar replay on salary benchmarking techniques and Subscribe to our newsletter for HR tips and insights delivered straight to your inbox!  

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Innovation

Workplace Trends you should Look Forward to in 2022

The global post-COVID landscape has utterly changed many businesses. From the new normal to conversations around prioritising employee’s mental health, providing relevant perks, the great resignation, enhanced technology tools for staff and customers, and many more, the modern workplace — now more innovative and evolving — will never remain the same!

Suffice to say that 2022 will see a lot of these supposedly temporary adaptations becoming part of the norm. Could this be good news? Yes, I think.

Here are some workplace trends in 2022 and what they might mean for you:

1. Hybrid & Remote-work-first model

2021 did not only prove that employees could be trusted to work remotely, it showed that majority of workers might want to hold on to that model. Just as the number of remote-first companies have multiplied, even more are opting for a hybrid work system.

This implies that hybrid and remote work are here to stay, but the question now is: “How many days should employees work from the office or at home? Dynamic businesses and human resource managers are open to negotiate with their staff on how to work, instead of imposing a straight jacket option for all.

2. Workers having more than one job

Remote work has helped employees save work travel time, which in turn became an opportunity to get extra jobs either owned by the employee or another company. This has inherently widened the talent marketplace as individuals can work beyond their borders, and in different time zones.

As they multitask and split their time appropriately between employers, individuals have a duty to ensure that having more than one job doesn’t have an impact on their ability to perform well in each role.

3. The Great Resignation

One of the post-COVID effects is that employees had time to review their growth process and decide if they want to switch career or continue in their chosen path. This led to the ‘Great Resignation’ and increased competition in the marketplace.

The Great Resignation is empowering workers as more people switch careers and make bold career decisions. The result is that employers now offer better working conditions and incentives to maintain and keep performing staff. The rise of the four-day work week in some companies is proof of this.

4. Improved employee welfare management

Office perks, unlike before, are no longer essentially linked to the buildings in which work is done. So, if you are aiming for happier employees in 2022, there needs to be a mindset shift when it comes to benefits. This could be in terms of flexible work hours or days, competitive salaries, recognition of highly performing staff, contribution to household bills especially when a company cuts down on office work days, wellbeing and mental health benefits or support at work!

5. Skills over roles

There is a big change in how work is assessed as more business managers are now concerned with what potential staff can do, not just what they have done. Skills are germane to drive organisation’s competitive edge and the workflow that makes that happen.

Employees therefore need to develop critical skills that potentially open up multiple opportunities for their career advancement, rather than preparing for a specific type of role they desire.

If you’re preparing for a major career change, you should carry out some research to find out which skills are most important to your future career.

6. Technology growth in the workplace

There is also an increasing technology adoption by businesses and for their customers. For instance, Artificial Intelligence (AI) and data analytics are creating more jobs and helping businesses scale up comfortably and efficiently. These jobs include web development, UI/UX design, UX writing for chatbots, and more.

The insights above are some of the major features of the modern workplace emerging.

What is your business doing differently to key into these changes? How are you as an individual leveraging these changes for your career advancement? Are there more workplace disruptions to look forward to?

Kindly share your thoughts in the comment section.

Categories
Innovation

4 Things Every Employee Must Know About Nigeria’s Finance Act 2020

On January 1 2020, the Finance Act 2020, a collection of amended tax and fiscal laws, took effect and further regulates individuals, private and public firms, as well as state and national institutions.

The Act made substantial amendments to the Companies Income Tax Act (CITA), Value Added Tax Act (VAT Act), Petroleum Profits Tax Act (PPTA), Personal Income Tax Act (PITA), Capital Gains Tax Act (CGTA), Customs and Excise Tariff (Consolidation) Act (CET Act), and the Stamp Duties Act (Stamp Duties Act).

It also clarifies previous grey areas such as possible non-taxation, double taxation and introduced an income exemption category.

This said, employees, human resources (HR) practitioners and employers should note below the implications of this law for their organisations and specifically financing:

1. All minimum wage earners will no longer pay tax!

Good news, right?

The law has exempted any employee who earns N30,000 or below from paying personal income tax. This is a huge relief to the lowest earners in the country. Meanwhile, all other income earners will be subjected to the full Personal Income Tax Act (PITA) tax provisions and .

NOTE: See Paragraph 33 of the PITA.

2. You will now pay more tax

This is how:

Prior to the enactment of the Finance Act 2020, 20% of your Gross Income, National Housing Fund (NHF) and your pension contribution are deducted before it (your gross income) is taxed.

In simple terms: Gross Income — (20% + NHF + Pension Contribution) = Taxable Income

For instance, if:

Gross Income N100,000

NHF N5000

Pension Contribution N5000

Your taxable income will be:

N100,000 — (20% + N5000 + N5000)

= N100,000 — (N30,000)

Taxable Income = N70,000

What has changed?

In the new law, tax exempt items (your pension contribution, NHF) will first be deducted from gross salary or income before computing your 20% (relief allowance).

Using same figures, taxable income will be:

N100,000 — (N5000 + N5000)

= N100,000 — (N10,000)

20% Relief Allowance = N90,000 x 20%

= N18,000

Tax Exempt Income = N18,000 + N10,000

= N28,000

Taxable income = N100,000 — N28,000

= N72,000

This shows that your tax exempt is lower and taxable income, higher. The reduction would then result in higher tax and lower disposable income. Employers need to update their payroll templates or applications to ensure compliance.

NOTE: Read Section 33 subsection 2 of the Finance Act 2020.

3. It affects your Post-employment Savings/Insurance or Investment Plan

Life assurance or annuity plans from the immediate previous year are now allowed as retrospective deductions from your taxable pay.

This means that tax relief on life assurance only applies for the previous year. Also, note that the contribution must be recognised by the Pension Reform Act 2014, in line with provisions in Finance Acts 2019 and 2020, Section 20 (1g) of PITA. We can then say that having a life insurance plan is a legal way to reduce your tax.

NOTE: See more in the re-introduced section 33 subsection 3.

4. Your Compensation after Losing or Leaving your Job is also Affected

Now, you don’t have to worry about the tax man.

According to the new law, if you lose your job or you leave your job, and your compensation is exactly N10million or below, no tax!

But if you are paid more than N10million, you will be taxed on the excess only. The law goes further to state that taxes would be payable by the 10th day of the next month and would require reporting during annual tax filing.

NOTE: This is an amendment to section 36 subsection 2 of the Capital Gains Tax Act (CGTA).

These are some summary information on the new Financial Act 2020 and how it might affect you. As an employee, you can ask your HR to explain further and as an employer, speak to your tax consultants to explain the implications to your staff.

HumanManager, a product of SystemSpecs, will ensure you are compliant with all relevant laws of Nigeria. This online solution will also automate your payroll and ensure efficiency in your HR processes as attested to by hundreds of organisations across many industries through the years.

Get compliance-ready for the taxman, start HERE to request a demo or send a mail to [email protected].