By the end of September, the furlough scheme will officially be phased out. However, with 1.9 million people in the UK still relying on the scheme for their income, its time companies start planning for life after furlough, ensuring their Human Resources & Payroll is uninterrupted.
As the governments support starts to wind down, and the economy increasingly reopens, businesses are now needing to look at further contributing to their furloughed staffs entitled wages of 80%. Plans are needed to balance payrolls and determine what portion of wages will be contributed to by the government vs by the business. However, with so many businesses still not operating to their full capacity due to continued social distancing and lockdown measures, many will run the risk of their operating costs becoming higher than revenue. We know the last thing businesses want to do is make their employees redundant, however when a reduction of business expenditure is required after an increase due to additional payroll expenses, it can seem like the only option.
There is a way to reduce your operating costs and keep your employees.
Have you considered outsourcing your HR & Payroll functions?
By outsourcing your HR & Payroll employees and transactional processes to an outsourcing partner, if done the right way, and with the right partner, you can see a significant cost reduction of up to 30% of your average annual operational expenses.
But outsourcing doesn’t have to lead to you making further redundancies.
Did you know if you were to outsource the services provided by your existing in-house employees to a partner like Zalaris you could also explore TUPE of your employees?
What is TUPE? The transfer of Undertakings Protection of Employment Regulations (TUPE) is a process whereby your new outsourcing partner utilises the same people to run the transactional activity you are outsourcing. To put simply, your HR & Payroll departments employment would be shifted to your new outsourcing provider with the same contracted employment terms. The staff who are transferred to the outsourcing partner continue to provide the exact same service they were performing in house, meaning you can rest easy knowing the people transacting your HR & Payroll have the expertise needed to adequately support your business.
It’s a simple and effective way to continue to protect your employees and your businesses cash flow.
Do you want to learn if outsourcing and TUPE are right for your business?
We’re always open for a chat! Contact a member of the Zalaris team or use the Contact Us form.