Technology

Teleworking: the new HR priorities

Many companies have been able to transition from a face-to-face working model to a fully remote model within days, and they have successfully maintained this working format throughout the pandemic. As proof, according to the World Economic Forum, the number of permanent teleworkers will double this year, or more than a third of all employees.

A health constraint that has become a necessity

The successful and uncompromising onboarding of remote staff is an operational necessity for most organizations and has been a major managerial challenge in recent months. In this particular period, Human Resources are under great pressure and strive to maintain the productivity, motivation, commitment and connection of their workers, all factors that constitute moving targets in the new normal.

Prioritize digitization

Although most modern workflows are predominantly digital, physical records remain the primary method of documentation and storage for many HR departments. However, in the digital age, this practice is particularly problematic for remote employees who need to access this information.

Cloud storage solutions are a great alternative, offering HR departments a way to improve their overall workflows.

In particular, they make it easier to find and locate information, strengthen collaboration, reduce costs, reduce operational disruption and promote scalability. In addition, to help grow remote teams, HR managers can leverage digitization, automation, and cloud computing to drive IT cost reduction, scalability, security, and collaboration.

Indeed, in a remote environment, these technologies are based on cloud computing. Gartner forecasts $ 4 billion in IT spending worldwide in 2021, an increase of 8.4% over 2020 boosted by the massive use of the cloud. These investments are essential to support remote teams.

Prepare for changing tax scenarios

In an international context, when remote teams work in countries with different jurisdictions, this can have significant tax consequences that HR managers must take into account. For example, when employees work in different locations from their employers, they may constitute a permanent establishment (PE) taxable presence, which is likely to result in tax obligations or tax registrations. unique value added (VAT).

It can also undermine the group’s transfer pricing strategy and result in the attribution of additional profits to multiple jurisdictions. Today’s businesses are globalizing at an earlier stage of their growth, so employee mobility should be considered alongside finance.

Additionally, for companies operating in Europe, payroll tax obligations may vary from country to country. Salary obligations are distinct from the rules relating to the residence of employees.

When international companies have, for example, ten employees in ten different countries, wage costs and social security contributions increase in proportion to the financial complexity and the accounting workload. Whether companies are welcoming newly appointed teleworkers who work overseas or expanding their operations overseas, HR managers need to prepare for the shifting tax scenarios that come with these realities.

For many businesses, the past year has been a crash course – and unexpected – on disruption. Traditional workflows were disrupted, successful businesses began to falter, and flexibility returned to the forefront.

The pandemic will eventually subside, but there will be no turning back, this new standard has undeniably changed the rules and moved, even blurred the borders. Global HR managers in France will therefore have to continue to be flexible and will have to adapt to changing realities in order to support teams remotely. This can be done by cutting wages to take account of new life scenarios, or by paying allowances to employees who leave cities where costs are high.

Whatever scenario is chosen, one thing is certain: HR managers will have to innovate to keep their employees productive, motivated, engaged and connected. It is by setting the right priorities that they will be able to effectively redefine the rules of the game to develop and supervise their organizations at the dawn of the new normal.

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