HR Management, HR Strategy, Payroll Administration

Payroll: You need a Backup. And maybe a Backup to your Backup.

A lot of strategic planning in Human Resources is preparing for worst case scenario. What do we do if this happens? How do we keep business continuity if that happens?

For example, what would you do if the person in your company responsible for payroll came to you today and resigned? Effective immediately?

First, stay calm. Every problem has a solution. You have two problems to focus on – 1) Why is someone leaving the organization without notice? and 2) Who is going to process payroll?

For the sake of this blog, let’s focus on 2.

Of course, the next step is to put your Payroll Backup Plan in place! You would reference your documented processes and review these processes immediately with the individual cross-trained in payroll to make sure that the processes are accurate, and the person’s training is current. Now, you are covered for the short term until you can make a long-term decision.

This is a good solid plan.

Unless, of course, you are like a number of small businesses and do not have a Payroll Backup Plan because you don’t have a Payroll Backup Person because your current Payroll Person does payroll when they put on the “Payroll hat” from their regular day job of Office Manager or Accountant or CFO.

In that case, a Plan B needs to come about quickly. You do not have the option of delaying payroll until you find a solution (at least not an option that is lawful and will keep employees).

You are obligated to pay your employees in a timely manner, and you need to make sure that you are following all compliance regulations as well as your own policies.

At HR Affiliates, we often are Plan B! We have had several clients find themselves in this very situation in the past year. Some were existing clients, so it was easy for us to step in to take over the payroll function. We had already completed a compliance assessment, had reviewed and prepared payroll policies, and were familiar with their processes. Therefore, it was an easy transition!

Another organization, however, came to us for help amid this crisis, and needed us to step in immediately to process their very next payroll. We’re happy to say that we were able to accommodate and are still doing so. In fact, we have someone onsite to process payroll until we transition their processes from being dependent upon paper forms to being more digital and system based. We are finding efficiencies for them and are updating processes that will improve the organization.

We all know the importance of a back-up plan! However, we also know the realities of running a business today and the limited resources that a business may have. We also know that sometimes even the best laid plans don’t always work. At HR Affiliates, we can help you develop a back-up plan and can also step in and be your back-up plan!

Need A Backup Plan? How Can We Help?

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