If you have signed an employment contract that specifies something different to the Basic Conditions of Employment Act (BCEA), this will supersede what’s outlined in the Act provided that there is agreement between the parties and the conditions specified are not less favourable than the BCEA, warns Cathie Webb, member (and prior executive) of the South African Payroll Association (SAPA).
 
The BCEA is committed to regulating fair labour practice for both employers and employees in South Africa. It clearly explains what needs to be done when notifying an employer that you are leaving and what the employer needs to do when it comes to final salary payments. The Act also covers a multitude of additional issues and challenges that could face the business or the employee in the workplace, providing clear guidelines that are upheld by law.
 
However, when it comes to calculating remuneration during termination periods, there are some complexities that need to be addressed, which may not be covered by the BCEA.
 
The BCEA states that the notice period must be four weeks (for someone who has worked for more than 6 months with the company).  Many companies, though, require a calendar months’ notice. If the signed contract is for a calendar month, then the employee and payroll have to adhere to this timeline. Generally, the terms and conditions outlined in a signed contract will trump those outlined by the BCEA and employees need to be aware of this from the outset.
 
“That said, an employment contract may not offer working conditions worse than the basic conditions specified in the BCEA,” says Webb. “Employees do need to check their contracts before signing them to avoid unpleasantness. It is exciting to have a new job lined up, but the time to negotiate your employment terms is before you start, not after.”
 
Payroll needs to know
“It is critical that payroll be aware of what’s outlined in an employees’ contract to avoid any confusion when the person resigns,” adds Webb. “For example, many companies do not allow you to take annual leave in your resignation period, but situations may arise that make taking leave during this period a necessity.  This possibility needs to be planned for, so that both the employer and the employee know how this would be dealt with, and what is to be paid out in the final payslip.  Clarity from both sides is essential.”
 
Payroll needs to know and understand the rules of the 3rd parties who are paid from employee deductions / contributions.  Medical aids run from calendar month to calendar month, and contributions are usually made in arrears.  This means that the final deduction from payroll pays for their final contribution to the medical aid.  Pension and provident funds may work differently, with their month running from the 16th of one month to the 15th of the next.  This may mean that, in a company where a 30 day notice period applies and an employee resigns before the 16th of the month, they do not contribute to the fund in their final month, while if they resign after the 16th, there will still be a deduction.
 
Other pay elements like final commissions, travel claims and re-imbursements, shift allowances, etc., should also follow what has been stipulated in the contract of employment. 
 
Employees are also not aware that quite often they are not paid on the 25th of their last month.  Companies have been burned by employees leaving the moment they receive their final salary, and not working the last 5 or so days of their final month.  So companies may have a policy to pay employees who are leaving on first day of the following month. This must be outlined in the contract and will affect the employee if not clearly communicated when they resign.  This may result in an employee having to make special banking arrangements to deal with debit orders which may be set to be processed towards the end of the month.  Payroll can make this process a lot smoother.
 
“The BCEA also outlines how much notice is required according to how long a person has worked at a company,” says Webb. “If you have worked for less than six months it is one week’s notice, if for more than six months it is two weeks’ notice, and if it is more than a year it becomes four weeks’ notice.”
 
Webb emphasises that payroll plays a vital part in ensuring that both employee and employer finish their last month amicably.  
 
“Things need to be maintained by both payroll and HR so that when a person leaves all elements are calculated correctly and comply with the conditions outlined by the BCEA,” concludes Webb.
 
ENDS

MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, [email protected], www.atthatpoint.co.za  
 
For more information on SAPA please visit:
Website: http://www.sapayroll.co.za/
Twitter: @SAPayroll
LinkedIn: The South African Payroll Association

If you’re like most South Africans, your favourite day of the month must be payday! Bills get paid, the freezer gets filled and, budget permitting, a few luxuries may be indulged in. But have you stopped to think about the many payroll professionals who make payday possible?
 
Yet, according to Lavine Haripersad and Cathie Webb, both Executives of the South African Payroll Association (SAPA), there’s so much more that payroll does. “It’s time to recognise the many contributions payroll professionals make,” says Webb. “That’s why, on 15th August, SAPA launched its annual National Payroll Week, a campaign already celebrated religiously in the UK, US and Canada.”
 
The initiative will raise awareness of the important role payroll plays in the economy, business and people’s lives. This year, Payroll Week falls over the dates of SAPA’s national conference: 10th - 11th September for the Johannesburg event, 13th September in Cape Town and 14th September in Durban. The official slogan for National Payroll Week South Africa is “We Pay it Forward.”
 
Payroll’s contributions
“In most companies, payroll is seen as a back-office support service,” says Haripersad. “During National Payroll Week, we aim to celebrate and highlight how payroll professionals benefit their companies or the clients they service.”
 
A good payroll team motivates workers to be productive because they know they will be promptly and correctly remunerated for their labour. They also offer a human face to employees who need advice on the complicated calculations that determine their take-home pay. Plus, through voluntary deductions, payroll helps employees manage their money and reach their financial goals. In addition, they keep their organisations compliant with hundreds of ever-changing laws regulating income, taxes, information protection and more.
 
At the same time, payroll acts as a strategic advisor, providing management with information to better plan their workforce needs and control labour costs. Then there’s the economy. “A little-known fact is that payroll contributes 37.2% of the country’s total revenues,” reports Webb. It also ensures that financial planning services, like medical aids and retirement funds, are paid on time. However, that’s just the tip of the iceberg. Other payroll experts, like consultants, service providers or software producers, all contribute to a system that works reliably every month.

Celebrating the week
Making National Payroll Week successful starts with the payroll professional. “We’re asking our members to get creative and find unique ways to draw attention to the occasion and their services,” says Webb. They can hang posters on department notice boards, have colourful balloons in the office, or send electronic flyers announcing the event to everyone they deal with. To build awareness, they should share their photos or fun facts on social sites like Facebook, Twitter or LinkedIn, being sure to use the hashtag #PayrollWeekSA.

​They can also reach out to local news reporters, radio, bloggers or electronic news outlets to highlight their celebrations. Finally, National Payroll Week is about education, so they could hold workshops to help employees understand how their payslips are calculated.
 
SAPA asks organisations and the public to support payroll during National Payroll Week. “And next time you open your payslip,” asks Haripersad, “please remember the hardworking people behind it.”
 
ENDS
 
MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, [email protected], www.atthatpoint.co.za 
 
For more information on SAPA please visit:
Website: http://www.sapayroll.co.za/
Twitter: @SAPayroll
LinkedIn: The South African Payroll Association

Forward-thinking companies put in a concerted effort to empower payroll professionals to take on the role of educating and supporting employees with regards to their benefits and remuneration packages. Employees that get paid on time are also more engaged, which has proven to increase employee productivity.
 
“When staff are paid the right amount on time every month, they are happy. Happy employees are more productive, which makes companies more profitable. Professional payroll services essentially lead to higher customer metrics, lower absenteeism, and a lower turnover of staff,” Lavine Haripersad, an executive at the South African Payroll Association (SAPA) points out.
 
SAPA 2018 Conference
To talk more on this cardinal role of payroll professionals, experts and thought leaders in the industry will be presenting at SAPA’s upcoming annual conference. The conference is set to take place across three South African cities. The Johannesburg leg will take place on 10 – 11 September, then the event moves to Cape Town on 13 September and Durban on 14 September.
 
“We have an exciting list of speakers presenting at this year’s conference. Two of the presentations will be dedicated to international payroll, which is a hot topic among payroll professionals this year. Winners of the 2018 SAPA Awards will also be announced on 10 September at the Johannesburg leg of the conference,” says Haripersad.
 
Dumisa Sihawu, Senior Tax Manager at Deloitte, will be discussing what payroll professionals need to know about expatriate payroll; Kelly-Anne Joubert, Payroll Manager at Ericsson Sub Saharan Africa, will be discussing the future of payroll professionals; Rob Bothma, Master Principal Consultant at Oracle, will explore the impact that Artificial Intelligence will have on Human Capital Management and payroll; and Eldert Bongers, Product Manager at Sage, will look at the latest technology in the industry, among other noteworthy speakers.
 
Representatives from financial institutions such as FFG and Old Mutual will also cover topics such as advanced retirement planning and how the pinch in payroll departments can be reduced.
 
“For this year’s conference theme, SAPA’s executive committee came up with the theme ‘Power’ due to the great responsibility and influence that payroll professionals have. Not only does an effective payroll department ensure that staff are paid on time, but it has the power to reshape the experience that staff has with the company,” says Haripersad.
 
Celebrating National Payroll Week 2018
This year, National Payroll Week falls on the same dates as the SAPA conference and it was established to raise the profile and awareness of payroll and help demonstrate the impact that payroll has on the economy.
 
“In many companies, payroll is seen as a back-office support service. During National Payroll Week, we aim to celebrate and highlight how payroll professionals benefit the companies where they work or the clients they service,” says Haripersad.
 
From strategic decision making to monthly rewards and remunerations, organisations rely on their payroll staff for myriad services.
 
“SAPA is encouraging all payroll professionals to put the spotlight on the value they add to their businesses. Not only does the service these professionals offering help companies find new growth opportunities and boost employee morale, but they also work tirelessly to ensure that the companies they work for comply with all the relevant legislation. During this week, I hope our members can pause to think about the important work payroll professionals do each month to make payday a buzzing day,” concludes Haripersad.
 
To attend SAPA’s annual conference, please click here: http://www.sapayroll.co.za/Events/Conference.aspx and view the programme here: http://www.sapayroll.co.za/Events/Conference.aspx#8260426-programme
 
ENDS
 
MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, [email protected], www.atthatpoint.co.za  
 
For more information on SAPA please visit:
Website: http://www.sapayroll.co.za/
Twitter: @SAPayroll
LinkedIn: The South African Payroll Association

The increase in industrial action over the past two years has heavily stressed the need for a well-defined and well-understood remuneration policy in the event of a strike.
 
According to the Department of Labour’s Industrial Action report, workers involved in strike action during 2017 lost R251 million in wages compared to R161 million in 2016. This represents an increase of almost 56%.
 
The number of workers involved in strike action increase by almost 39% from 2016 to last year. According to the report strike action increased by 8% over the last two years and is the highest since the department started monitoring strike action.
 
The Labour Relations Act allows for the “No work, No pay Principle”, however it is not as simple as the mere loss of wages for the time employees are not at work. SAPA executive Lavine Haripersad says a company’s policy or practice note must be quite specific and detailed around the payment or suspension of benefits during the strike period.
 
The Policy
The impact on benefits such as medical aid cover, pension contributions and risk cover are seldom considered when the “No work, No pay Principle” is applied. In terms of the act the employer is not obliged to pay the employee during the strike period.
 
This also applies to the payment made by the employer on behalf of the employee for certain benefits.
 
“If these payments are suspended during the strike, it means employees are not covered when they at their most vulnerable. They could be injured, or someone might even die and their families are left exposed.”
 
Other payroll considerations relate to the impact on leave and bonus payments when employees participate in industrial action. Haripersad says a bonus payment will have to be made pro rata to adjust for the days the employee was on strike.
 
It is also general practice that there will be no leave accrual during the time workers are on strike. According to the Department of Labour’s 2017 Industrial Action report most strikes lasted around 11 working days, which translates into around half of the month’s possible leave accrual.
 
The Agreement
If there is an agreement between the union and the employer that the payment of benefits will continue during a strike, it is important that the policy states clearly how the money will be recouped at a later stage from employees.
 
Statutory payments will take precedence – this includes Pay-As-You-Earn (PAYE) and contributions to the Unemployment Insurance Fund (UIF). During strike actions the Human Resource Director and Executive Management are focused on the strike and in trying to ensure that the business is not affected negatively.
 
There is then little time to consider payroll issues. If there is a clear and well-understood policy and agreement, it is one thing less to worry about.
 
The System  
Most companies will have a system which can accommodate the calculations of pro-rata payroll and alignment to the policy to manage the impact of industrial action.
 
It is critical to keep accurate time records to know when the employee was absent from work to ensure that payroll is adjusted accordingly. Employers are legally required to keep these records during strike periods.
 
Another issue is when the strike continues from one tax year into the next and the adjustment of payroll. In some instances, it may be necessary to go back to the previous tax year and adjust payroll to ensure that the tax records reflect correctly, notes Haripersad.
 
ENDS

MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, [email protected], www.atthatpoint.co.za  
 
For more information on SAPA please visit:
Website: http://www.sapayroll.co.za/
Twitter: @SAPayroll
LinkedIn: The South African Payroll Associatio

Factors such as age, lifestyle and experience make it difficult to analyse whether employees want more net pay or better benefits, but one thing is certain, there is no one size fits all solution.
 
What has become evident is that millennials are redefining employee benefits and that employers must find ways to adapt.
 
Millennials are a growing sector of the workforce, and so employers need to consider how their benefit or remuneration structure should change to attract and retain talent. Younger people may prefer to look for benefits which they can personally manage, as they are technologically better skilled. The trend is to want higher net pay with fewer “built in” benefits.  On the other hand, for the older generation it may be different, they might prefer more security with benefits, in the form of health care and retirement fund savings.
 
The labour force may also look for more net pay, as they are already battling to make ends meet.  Over 55% of South Africa’s population currently live below the poverty line, and in such cases taking care of immediate needs overrules things like saving for retirement.
 
Higher paid employees will most likely favor better benefits as they already have enough money to take care of the necessities.
 
The role of the economy in employees’ preferences
Things like economic downgrading, unemployment and retrenchment threats play an important part in the decisions made by employees.  South Africans are financially stressed, and when people have less money, things like retirement and healthcare will take a backseat, and left to be worried about at a later stage. 
 
The basic cost of living in South Africa is estimated to be at R5 544 a month, and with the proposed minimum wage of R3 500 per month, employees will still be struggling to get by, leaving no possible room for saving for their old age.
 
The most important benefits
Benefits, rather than salary taken in isolation, are a better predictor of employees enjoying their jobs. Employers strive to attract, retain and motivate a skilled, high performance workforce. If an employee is in the position to negotiate better benefits, the most important ones to look out for are retirement, risk and healthcare benefits. 
 
When considering healthcare benefits, flexibility in choice is key.  Employees should be able to choose their plan to suit their and their family’s needs. 
 
When looking at retirement benefits, it is important to have a risk component included as part of a retirement fund scheme. The way to go would be umbrella funds with flexible options as every employee has a different need depending on where they are in their life. The cost of disability and life cover benefits can be very cost effective in a Group Scheme, rather than if taken in a personal capacity. Choice, flexibility and equity is key in the benefits model offer so that employees can make choices depending on their needs that are constantly changing.
 
Employers must remain relevant to their employee benefit offering.
 
The employer’s role in assisting employees to make better financial decisions
Employers should provide financial education to employees to assist them in making the right choices for their future.  A responsible employer will offer compulsory savings in the form of a retirement fund and basic health care benefits. Enforced payroll deductions as part of an employment package are often the only way employees are encouraged to save or to mitigate risks. It is argued that you are less likely to miss money already subtracted than money you are expected to save after paying all your monthly expenses.  employers need to remember that even if it is an employees preference to have a higher net pay with less benefits, should trouble strike the employee they will look first to the employer for a “bail out”, and assuming the employer needs the employee back at work, they will be left footing the bill.
 
In the end it is very much up to the individual’s needs when deciding between better benefits and higher net pay, and no employer should force their employees into either direction.
 
ENDS

MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, [email protected], www.atthatpoint.co.za  
 
For more information on SAPA please visit:
Website: http://www.sapayroll.co.za/
Twitter: @SAPayroll
LinkedIn: The South African Payroll Association

Traditionally payroll has been perceived as a less exciting domain of those in dull clothing immersed in numbers from dusk to dawn. However, like many industries today, payroll has been disrupted by technology and transformed by innovation, changing career paths and creating new opportunities.
 
In this digital era, software has stepped in to hold the reins of the numbers while payroll professionals find the patterns, manage the people and stand at the front line of company culture. It has become a career perfectly suited to young people with curiosity and mathematical capability.
 
“Payroll is a terrific career for young people looking for an opportunity that challenges their people skills, their mathematical talents and their ability to think outside the box,” says Cathie Webb, Executive, South African Payroll Association (SAPA). “Payroll is the largest cost that the company carries every month and those who work in this area become a strategic part of the business. They are fundamental to how the business operates.”
 
Not only has payroll changed thanks to technology, but it has evolved in its relevance to the organisation. It demands a savvy mind and the ability to unlock important insights – perfect for young and agile minds and those who are hungry to grow as individuals and in their careers.
 
“Payroll has also undergone changes in its structure,” adds Webb. “Now there is career progression from junior to mid-level to senior, dependent on the size of company you work for. In addition, there are recognised payroll qualifications at NQF Levels 4 and 5 as well as a BCom – strong business qualifications that can stand anyone in good stead across multiple areas of the organisation.”
 
Proactive payroll pays off
For young people just leaving school and looking to expand their horizons and explore different opportunities, there are also a variety of learnership programmes available. These provide school leavers with the ability to learn payroll practice while earning money over a two to three-year period.
 
“We are starting to see a lot of younger people choose this career today,” says Webb. “Payroll can be seen as the “shop front” of the company to its employees - it gives you the ability to impact how people feel about the business they work for.”
 
Payroll plays a powerful role in engaging with people and building a company’s reputation. Usually, if people are unhappy, it is payroll that’s the first to find out and can be the first to make a difference in their lives. Payroll is the department that sees evidence of the litmus test of how people appreciate, and feel appreciated by, their company. Add into this the advancements of technology and the variability of industry, and payroll is easily one of the more dynamic careers available today.
 
“You are part of the creative team that works at building how people perceive the company they work for, and the benefits provided by the company,” concludes Webb. “And, because every company needs someone to run their payroll, you can choose to work across a multitude of different industries. Payroll in a bank compared with a graphic design company or an architectural firm will be as varied and as exciting as the industry you choose. Payroll has become a really interesting career choice for the youth of today as it offers rich growth and plenty of opportunity.”
 
ENDS

MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, [email protected], www.atthatpoint.co.za  
 
For more information on SAPA please visit:
Website: http://www.sapayroll.co.za/
Twitter: @SAPayroll
LinkedIn: The South African Payroll Association

As big data, blockchain and the Internet of Things continues to change the way data and information is verified and shared, payroll management software will be able to increasingly position itself as a personal data authority across a variety of sectors, says Cathie Webb, executive at the South African Payroll Association.
 
“People need proof of income for a variety of purchases, ranging from buying a television or car to taking out a cell phone contract, a home loan application, or a lease on an apartment. Institutions usually require a series of recent pay slips, which can be an administrative hassle in terms of retrieving and printing seeing as most pay slips are delivered electronically these days,” says Webb.
 
She notes that adding to the frustration on a company or loan institution’s side, is the fact that these documents can be manipulated by consumers if they want to take on debt or purchase a product that they don’t really qualify for in terms of their income.
 
“One way that payroll management software can solve this problem is by being the middleman between consumers and companies who require proof of income. Instead of a consumer having to print out a series of pay slips to gain access to a loan agreement or goods, the payroll management software company could speed up the process by acting as a central information depository,” Webb points out.
 
Protecting privacy rights
While this is still an emerging reality, there are companies who are in the early stages of developing functionalities and features around privacy protection. Two significant hurdles that will have to be overcome and managed is changing the way that institutions request and verify private information from consumers, as well as managing how this type of information affects people’s right to privacy.
 
“While most consumers will agree, at least in principle, with the idea of not having to print out pay slips for everything, South Africa needs a more rigorous ombudsman to deal with any potential issues that may arise from an industry overhaul such as this. For example, if you feel that your personal data security has been threatened, where do you report it and what process do you need to follow?” says Webb.
 
The information that gets shared may not be as personal as your monthly salary, but small breaches of privacy may leave consumers exposed and this is something that will have to be considered ahead of time
 
People are still reckless in terms of agreeing to applications and third parties having access to information on their phones. Every time we agree to terms of service, we are giving away our rights to privacy.
 
“Companies’ Payroll departments have access to a lot of employee related personal information and they have a legal obligation to protect their employees’ information thanks to the POPIA (Protection of Personal Information Act). These responsibilities need to be carefully managed when it comes to sharing information in new ways that can improve lives, because data security will remain a risk,” Webb concludes.
 
ENDS

MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, [email protected], www.atthatpoint.co.za  
 
For more information on SAPA please visit:
Website: http://www.sapayroll.co.za/
Twitter: @SAPayroll
LinkedIn: The South African Payroll Association

The payroll professional has access to a vast repository of knowledge that can fundamentally change how employees engage with their income and the organisation.
 
While the payroll expert may innately understand how tax, medical aid and budgets fluctuate, for the employee this can be a number-filled minefield that makes little sense. By sharing knowledge and insight, the payroll practitioner could transform how employees feel valued by their organisation.
 
“People’s crises are often financial,” explains Cathie Webb, executive at the South African Payroll Association (SAPA). “They want to know why medical has gone up by 10% when their salary has only risen by a consumer price index related 5%, how to balance their budget, and how taxes impact on their finances.
 
Not all employees understand why they are taxed, who is responsible for the rules around taxation, and what impact this has on their daily lives.  Payroll should take on the role of educating and supporting employees, providing them with insight into new regulations and price hikes and how these will affect them in the future.”
 
By using foresight and planning, payroll can deliver relevant and timely advice to employees. Not when the changes hit, but in advance so everyone has time to prepare.
 
Proactive payroll pays off
“Share your knowledge through group sessions where you educate and inform people, not just one on one sessions that eat into your time,” adds Webb. “Use events such as National Payroll Week (every September!) to let people know what you do and why your expertise is invaluable.”
 
Many payroll practitioners find the idea of preparing regular training sessions outside their comfort zone, but these can really make a difference in how they engage with employees. In instances where the organisation is spread out across various branches, often those in the outlying areas have no idea what is going on. This is where payroll can shine.
 
“Payroll is the business internal shop window,” says Webb. “The information that comes out of payroll tells people a lot about how much the business cares about them. By proactively disseminating information from head office, payroll can show employees how much their needs are valued.”
 
If employees are battling with savings or budgets, perhaps introduce a savings scheme which they can access in December or when their main school fees are due. It’s an easy thing for payroll to do and it adds so much value. Another idea could be to implement a solution such as a debit card that doesn’t need each employee to FICA, but allows them to keep their cash secure.
 
“Look at how you are presenting your pay information to your employees as your payslip alone can add inordinate value,” says Webb. “Don’t have employees wait a week after payday to receive their payslip.  Consider sending an SMS to let them know they have been paid. Ensure that people are paid at the same time every month – it’s unfair to shift dates and times when they are relying on their funds.”
 
It says a lot about a company if its staff aren’t paid promptly or regularly.  Things can go wrong, though, and if they do, payroll can be the light that shines on the problem, giving people plenty of warning, explaining what has happened and giving clear timing as to when it will be resolved. Communication around payment failures is crucial and payroll should lead the charge.
 
“Finally, it is worth giving the ideas employees bring to payroll some thought, and proactively approaching management if they have value. Remember that a small thing can make a big difference to employees and their morale,” concludes Webb.
 
ENDS
 
MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, [email protected], www.atthatpoint.co.za  
 
For more information on SAPA please visit:
Website: http://www.sapayroll.co.za/
Twitter: @SAPayroll
LinkedIn: The South African Payroll Association

Artificial intelligence (AI) is one of the many digital disruptions that is affecting all parts of business and it poses unique opportunities and risks to the local payroll sector, says Lavine Haripersad, vice chairman of the South African Payroll Association (SAPA).

In America over 550 start-ups raised around $5-billion in funding to incorporate AI as a core component of their services in 2016. In the same year, around £1 billion was invested in AI firms in the United Kingdom, with the expectation that the industry will be able to boost the UK’s economy by over £230 billion in the next 12 years.

“With increased app-based capabilities as well as vibrant systems, contemporary staff members are more used to getting personalised, on-demand communication and feedback. Not only is today’s workforce more likely to use self-regulating technologies, but HR teams are getting smaller and they must meet increasing demands from the business,” says Haripersad.

How AI can enhance the HR environment
While the idea of AI in payroll systems is still relatively new, the payroll sector needs to be adaptive towards the benefits that it can pose for companies, employees as well as payroll staff. Haripersad says that when incorporated ethically and in smart ways, AI can vastly improve payroll processes and enhance the working experience for all levels of employees.

AI involves the coordination, handling and processing of large amounts of data. One way that this can be incorporated into payroll systems is by creating AI ‘chatbots’ that can engage with employees.

“If an employee receives their monthly salary slip, for example, and sees that the amount of tax they are paying this month is higher than the amount of tax they paid in a previous month and they want to know why this is the case, an AI ‘chatbot’ can use pre-programmed knowledge and resources to answer an employee’s query effectively. Employee queries regarding payslips are a frequent occurrence in any HR department, so this can greatly alleviate the pressure on HR staff if it is set up correctly,” says Haripersad.

Personalised, digitised guidance
Another way that AI can help is in terms of decision making processes, such as helping employees with their choice of medical aid and retirement fund options. Many large companies offer their staff medical aid options as well as retirement plans based on their risk profiles, need for saving and income levels.

“An AI program can help an employee navigate their options by assessing their personal information and risk profiles. Retirement fund options and the associated levels of savings and investment risks can similarly be programmed in such a way that an employee gets suggestions that truly match their needs,” says Haripersad.

AI offers much more than regurgitating information; the deep learning capabilities brings a deeper level of analysis to the type of processing that can be provided at different levels.

​Haripersad notes that ethics and privacy issues will remain a top priority in any system that incorporates AI. However, we need to remain open to how it can enhance our lives and the lives of employees.

ENDS

MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, [email protected], www.atthatpoint.co.za  
 
For more information on SAPA please visit:
Website: http://www.sapayroll.co.za/
Twitter: @SAPayroll
LinkedIn: The South African Payroll Association

Technology is changing and so is payroll software. While the advancements in payroll systems come with several benefits, these systems could also be exposing employers and their employees to online security threats, says Arlene Leggat, Director at the South African Payroll Association (SAPA).

“In the past, Human Resources and Payroll personnel would be the ones processing everything from timesheets to leave forms. If an employee’s banking details changed, they would need to notify the appropriate Payroll administrator to make sure their salary makes its way to the correct bank account. The next generation of payroll software has made it possible for employees to manage many of these tasks themselves,” says Leggat.

More sensitive information transferred electronically
Tasks that usually required paper trails and approvals, such as travelling allowances and overtime claims, can now be processed online, which leads to an increased amount of personal information being shared via web portals.

“As a Payroll company or a Payroll department, you will have a lot of employee related personal information at your fingertips. The more open and accessible your payroll system is, the more attention you need to be paying to things like firewalls, internet security, cyber threats and general information technology safety,” says Leggat.

Employers legally obliged to protect employees’ privacy
Employers now also have a legal obligation to protect their employees’ information thanks to the POPIA (Protection of Personal Information Act).  This legislation sets conditions for how personal information can lawfully be processed; it has been signed by the President and is now the law.

“Companies are responsible for making sure they are complying with this Act. It’s not only companies in the Financial Services and Healthcare sectors which need to understand their rights and responsibilities regarding personal information processing – any company who uses online payroll processing has to make sure they are protecting their people from harm as well as protecting their right to privacy,” says Leggat.

​International companies have an extra set of privacy concerns to deal with on top of the POPI Act. The GDPR (General Data Protection Regulation) was adopted by the European Parliament in early 2016 and while many of the stipulations are similar, a business will need to comply with both acts if they are transferring personnel and payroll data across borders.

“A company in South Africa may be outsourcing their Payroll function to their European counterpart. In this case, they would need to comply with both the GDPR and POPIA legislation. They are different flavours of data protection laws, but it could be necessary for you to tweak your Payroll processing strategy so that you have a global view and comply with what is common among them,” says Leggat.

Be future-ready
People are already wary of sharing their personal information, cell phone numbers, credit card numbers and addresses online. Having a future ready Payroll software solution can make your business more efficient, but it’s an employer’s responsibility to make sure that their employees are comfortable using it as well.

​“Companies need to take data protection seriously and their staff needs to know that their privacy is a top concern if you want widespread uptake in these systems,” concludes Leggat.

ENDS
 
MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, [email protected], www.atthatpoint.co.za  
 
For more information on SAPA please visit:
Website: http://www.sapayroll.co.za/
Twitter: @SAPayroll
LinkedIn: The South African Payroll Association