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21.10.2020

Payroll when employees are working from home

With many organisations choosing to keep more staff working from home post-pandemic, what challenges might this bring for the management and finances of small businesses?

Why are employers choosing to keep employees working from home?

A recent study, reported by the BBC, showed that 74% of firms planned on continuing to have an increased number of staff working from home. 44% of bosses agreed that they found having staff working from home was proving more effective and productive than previously too.

However, working from home doesn’t suit all businesses, nor all employees. Many companies cannot provide their offering online, such as hairdressers or a plumbers, and many teams find working together more productive and enjoyable. Particularly for those who collaborate and create together, working online can pose a challenge.

 

Managing finance for employees working from home

As an employer, staff working from home can be a burden on your administrative duties. Needing to keep track of your employees’ work schedules and ensuring you are paying them with the correct tax code, child maintenance, student loans and any other complications is a necessity.

Tim Taylor and Co. can support you and your employees by ensuring the monthly payroll is completed correctly and on time. This will reduce finance-related anxieties on your part, providing more time to improve your business’ working from home procedures and communicate with your employees.

Click here to find our dedicated page about payroll accountancy services

 

Make your payroll seamless with Xero

At Tim Taylor and Co, we are certified partners with Xero, a revolutionary accountancy software. This software allows employees to log their time from an app in their phone, as well as book holidays, meaning you can be in full control and oversee your employees’ hours. As it all seamlessly links to your payroll too, employees will automatically be sent the correct payslip, on time.

What’s more, because the system is hosted on a cloud, you can check in with Xero from anywhere and see how many hours your employees are working quickly and easily.

Take a look at the full capabilities of Xero’s payroll, by clicking here.

 

Benefits of employees remaining at home post-pandemic

Among the benefits of working from home is the savings which comes with it. By not having to face the daily commute, not only do employees get more time to themselves and less stress, but they are no longer having to pay for petrol, train tickets or bus fares.

Some also find they are better able to create a healthy work-life balance, finding it easier to switch off at home, compared with the office, where talk about work is likely to continue. At home, time can be spent with your family, or on your own, to completely switch off.

Working from home means that employers have reduced floor space needed in offices, so they can consider downsizing to decrease rent, or use the extra space to create more room for expanding the teams that still need to work in the office.

 

The challenge of maintaining relationships and employee wellbeing

Whilst there are certainly benefits, working from home can have its downsides. Working remotely and having to communicate digitally, can mean reduced morale and more mistakes due to miscommunications.

There is also the issue of managing employees’ time. This is especially important if your employees work irregular shifts or are paid on an hourly basis, rather than salaries. Keeping track of who is actually working and when, can be a real struggle for managers and business owners.

It is also difficult to find ways to foster loyalty and social interaction amongst employees, with in-office benefits, like free food or social gathering perks, no longer a possibility. There are online alternatives, check out HubSpot’s online teambuilding game suggestions for inspiration, but managers must take the time to implement and maintain these not to lose the company’s culture.