Rosstone offers services to help mitigate the ripple effect of Covid-19 on business
Download Rosstone’s guide to learn how to pay resources compliantly and on time in Africa
As a result of the Covid-19 pandemic and subsequent lockdown, many industries and companies will have to make alternative plans to keep their doors open. That being said, the show must go on and projects across the world and in Africa must continue.
According to McKinsey, governments around the world have already allocated over $13-trillion to stabilise economies in free fall and restart growth. Despite the financial measures being delivered at speed and successfully, the crisis drags on and new questions are being asked.
Is the money directed in the best possible way, and is more needed? McKinsey researchers have estimated that by 2023, government deficits will reach $30-trillion. However, if governments and the private sector work together, they can avoid the consequences of huge deficits.
Now, more than ever, the impact that artificial intelligence will have on the fast-tracking of production in the continent is evident.
SA has always been slow to follow other countries in adopting the growing trend towards employment outsourcing and the use of contingent labourBartley Joseph, Rosstone Consulting MD
The role of human resource management will take another deeper dip, as its administrative tasks continue being replaced by self-service portals such as the intranet, workforce planning tools, and payroll software.
This is all in line with the lean way of thinking and digitisation. However, many organisations are still practising a lengthy and cumbersome manual process when it comes to onboarding and offboarding employees.
Chances of layoffs
This comes as a direct result of companies being on lockdown and, in some cases, halting production. According to Bartley Joseph, MD of Rosstone Consulting, SA has always been slow to follow other countries in adopting the growing trend of employment outsourcing and the use of contingent labour.
“Covid-19 should make all employers reconsider their stance in this matter. The benefits far outweigh the traditional permanent and direct employment models. More than ever, companies need to enjoy the flexibility and on-demand options that these models provide. Why pay for tenure when it is more impactful and efficient to use skills only when you need them?” says Joseph.
The challenge many organisations face is particularly prevalent when it comes to needing to pay contingent employees across borders. When considering doing business in Africa, one of the first challenges is access to financial resources and the risk involved with making foreign payment. And in-country laws pertaining to work permits, registration of businesses, labour and taxation can be daunting.
Companies such as Rosstone offer services that align with Africa’s needs in the time of fast-tracked Covid-19 challenges. Rosstone Professional Solutions will identify the right skills for your company, vet them, and ensure that they comply with the regulations in the country of your business operation. Rosstone will also facilitate the payroll process, taking on the role of employer of record.
The world post-Covid-19 will accelerate some existing trends and create new ones. Business models will have to evolve to not just grow but thrive. For most, if not all, business leadership teams recovery will mean restarting and reinventing operations in an unstable world. Ability to balance resilience, adaptability and prediction will separate leading companies from the flock. In tricky situations such as these, a company will have to learn to advance where they can, retreat as soon as they must, and adapt as needed.
Covid-19 may have caught the world off guard, but payroll roll out and finding the right skills doesn’t have to become a last-minute job. Together we can come out victorious.
Want to become competitive and learn how to overcome the challenges in paying resources compliantly and on time in Africa?
This article was paid for by Rosstone Consulting.