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How outsourcing and automation can help organisations navigate the HR and finance challenges of a reopening economy
Nick Peplow , Solutions Director , Liberata , explains how companies can adjust to smaller teams of back office staff in the HR and finance departments , and how to plan for the future .
Businesses have been hit hard by the pandemic , with the number of employees on the payroll in the UK plummeting by more than 828,000 since widespread closures and lockdowns began . With the exception of health and social work , ONS reports that every major UK industry , from education to IT , has seen its workforce shrink at some point over the last 18 months .
Adjusting to the reopened economy will be challenging for HR and finance departments , as many of these teams have been forced to downsize or furlough staff during the pandemic . Unplanned sicknesses , internal restructuring and the shift to remote working will continue to put pressure on back office staff and businesses . Additionally , tightening government regulations around supplier payments mean that administrative tasks , such as paying invoices can ’ t be put on the backburner for too long . At a time when businesses are scrambling to recover , it is essential that back office teams can focus on planning for the future , rather than solving internal administrative crises .
Normality brings backlogs
Yet , the workload of finance and HR teams has not decreased , meaning backlogs
build up much faster . A business that once would have relied on a team of people to manage invoicing and payroll may now be relying on a much smaller team or even no team at all .
Such backlogs can lead to an increase in errors , such as duplicate payments that can amount to significant losses if unchecked , as well as additional time spent trying to recover these funds .
Pressure on back office staff is likely to intensify once changes to the Prompt Payment Code are implemented .
New regulations mean that companies will be obliged to pay 95 % of their small business suppliers within 30 days or face additional interest on late payments , and the possibility of being placed ‘ on stop ’ by key suppliers . In the long run , this will mean backlogs are no longer just
A BUSINESS THAT ONCE WOULD HAVE RELIED ON A TEAM OF PEOPLE TO MANAGE INVOICING AND PAYROLL MAY NOW BE RELYING ON A MUCH SMALLER TEAM OR EVEN NO TEAM AT ALL .
an administrative issue . They will affect other areas of the business such as stock , supply chains and cash flow .
Help during a time of need
Clearing backlogs is the first hurdle to overcome when getting a business ‘ back on track ’. However , due to the financial strain the pandemic has caused , it is unlikely that organisations can afford to hire more permanent finance and HR staff . Instead , businesses should consider supplementing their teams by partnering with an organisation which can provide access to expertise as and when they need it . This will help them navigate the inevitable rapid changes that will accompany the reopening of the economy .
Once backlogs are cleared , senior staff will have a clearer understanding of their organisation ’ s financial position and plan for the future accordingly .
Future in automation
As businesses begin to recover , they should also look to technology as a means to reduce the administrative burden . Automation for repetitive tasks , such as processing invoices or payslips , can increase the efficiency and accuracy of company records .
Crucially , automation frees up staff and resources for other tasks . The road to recovery starts with reinventing the approach to back office tasks , so staff can refocus on adapting their business to the post-pandemic environment . x
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