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HR & PAYROLL WHAT WILL IMPACT YOUR ORGANISATION IN 2020? Employee engagement is changing, characterised less by one-size-fits-all policies and more by personalised methods, with the aim to foster and maintain employees’ genuine attention to the business. LBy Ascender Regional Sales Executive Ben Bontia. ast year wasn’t a strong in popularity, this focus on employee one for retailers, as news wellness is here to stay. Each employee’s headlines focused on several circumstances are unique, and it’s underpayment cases that important employers understand this resulted in huge financial losses (in and offer a solution that suits them as some cases, hundreds of millions of dollars), not to mention the reputational damage that followed. With this came heightened employee awareness and expectations surrounding pay, throwing employers into the spotlight. So, how do we improve in 2020? All these concerns point to the urgency of keeping up with new HR and payroll practices. Employers have a lot on their plate, ranging from pay accuracy and employee wellness to advancements in technology and new legislation compliance. Adapting to change is challenging. However, with the right advice, it is certainly achievable. Are you checking in on employee wellness? Traditionally, employee wellness benefits included ping-pong and pizza. However, expectations in 2020 are shifting, and one-for-all solutions may no longer work. Instead, employers are encouraged to tailor benefits to individual employee circumstances. For instance, to assist employees with unforeseen financial complications, employers can offer flexible pay. This helps to alleviate the stress affecting some 2.4 million Aussies who are financially strained. As a direct result, employers are seeing a spike in employee productivity and wellbeing. Work flexibility (such as the ability to work remotely and having flexible hours) is the single most important factor behind current Gen Z employees’ selection of their job — more important even than salary, according to a 2019 study by Nintex. There are many approaches to this, one being the four-day work week – an initiative Microsoft recently implemented, resulting in a claimed 40 per cent increase in work productivity. With financial freedom growing in demand and agile working soaring an individual. Pay transparency to be enforced In an increasingly open society, pay is no longer a taboo subject. Employees are now far more interested in what other colleagues earn and are prepared to discuss this openly. While this helps employees to self- examine their skill set and performance, it also prompts internal scrutiny on the degree of pay equality and fairness. As the underpayment hurdles in 2019 flipped the Australian retail industry upside down, in 2020 demand for increased pay transparency will continue to rise among a number of major stakeholders, including employees, organisations and government. For HR and payroll managers such transparency means fostering clear communication with each employee. Both parties will need to have an in-depth understanding and mutual agreement on the legally binding contract, including pay package, hours worked and leave policies. On top of this, the Fair Work Commission’s review of the modern awards and its implications for employees paid under an annualised salary clause has become the staging ground for a broader discussion on equitable pay. While it doesn’t immediately impact the General Retail Industry Award, there are many retail HQ employees affected under the Clerks – Private Sector Award, something retailers must take notice of. All this adds complexity to the payroll process. However, by getting the message of transparency across, employers will generate trust among employees. AI and bots continue to grow One of the biggest challenges retailers face is compiling the correct information from day one. This was one of the biggest factors that contributed to underpayments, as one small, unintended error could snowball into hundreds of millions of dollars in loss. The good thing is that technology is constantly evolving. There are now more tools in mobility, cloud and data sharing that enable new ways to engage with employees around payroll. This will not only ensure accurate tracking of time, attendance and pay, but also help with efficient resource allocation. In 2020 we will see AI chatbots and robotic process automation being further sophisticated to mimic basic human-level intelligence. For HR and payroll managers, this means they can leave auto replies and online redirections for robots to manage, and focus on more meaningful tasks that contribute to the organisation in a strategic and creative way. Retailers, what does this mean for you? This marks the best time for retailers to shake up the status quo and address the needs of a whole new generation ready to reshape the workforce’s values. Those who keep up with changes will secure their own place in the ever evolving market and stay ahead of the game. “Adapting to change is challenging. However, with the right advice, it is certainly achievable.” About Ben Bontia Ben has more than 18 years’ experience as a sales professional, with an entrepreneurial outlook and an unwavering focus on customers. He takes personal pride and satisfaction in distilling customer needs and sustainable solutions to deliver ongoing value for Ascender’s clients and customers. 58 RETAIL WORLD APR, 2020