Severe Business Disruptions
Around the world, businesses in different industries are experiencing severe disruptions. COVID-19 is ripping through the world economy and the effects are something completely new to this generation. Major stock markets around the world have plunged more than 20%, while the number of unemployed in the US has hit the 6 million mark.
The global supply chain has been brutally battered with China’s industrial output falling by 13.5% in the first two months of the year. Travel restrictions in over 100 countries has left the travel industry in tatters, leading to multiple airlines laying off hundreds of staff.
Lockdowns throughout have left companies with no option but to temporarily suspend business and as a result consumer spending to stall. In a survey conducted by the Federal Reserve, businesses across the US had a bleak outlook and do not expect a rapid recovery.
A one-two punch from the US-China trade war and Covid-19 pandemic has left Singapore down for the count. Heavy blows to its economy have left economist predicting an 8.5% contraction for 2020. Often seen as Asia’s role model for economic growth the Lion City faces its toughest challenge yet.
Resurrecting the Economy – Singapore
With such a negative interpretation of the future, governments around the world are implementing economic relief measures and stimulus payments. Asia-Pacific nations are leading the charge, with Singapore making swift executions. Singapore has employed various schemes to try reduce the number of people losing jobs and businesses closing down during the coronavirus pandemic.
The Job Support Scheme (JSS) was introduced to support enterprises and provide resilience to the local economy. Under the JSS, the Government of Singapore will co-fund up to 75% of the first SG$4,600 of monthly wages per local employee. This initiative will be active for 9 months from April 2020. The support will be topped-up to 75% for all sectors in April and May, before being broken down to tiers for the other months.
An additional 3 schemes offer assistance to Singapore Residents affected by COVID-19 and low-income families:
- Temporary Relief Fund
- COVID-19 Support Grant
- The Courage Fund
| Temporary Relief Fund: • Singapore Citizens or PRs aged 16 years and above • Loss of job or at least 30% of personal income due to COVID-19 (after 23 Jan 2020) • Prior gross monthly household income of ≤$10,000, or monthly per capita income of ≤$3,100 • Not on ComCare assistance |
| COVID-19 Support Grant: • Singapore Citizens or PRs aged 16 years and above • Loss of job due to COVID-19; previously employed as full-time/part-time permanent or contract staff • Prior gross monthly household income of ≤$10,000, or monthly per capita income of ≤$3,100 • Live in a property with annual value of ≤$21,000 • Not on ComCare assistance • Must agree to actively participate in job search or attend a training programme under Workforce Singapore (WSG) or the Employment and Employability Institute (e2i) |
| The Courage Fund: • Households with at least one Singapore Citizen or Permanent Resident whose family member(s) have contracted COVID-19, or are on SHN, mandatory LOA, or HQO • Loss of complete or partial (at least 10%) household income due to COVID-19 • Prior household income of $3,900, or per capita household income of $1,350 • ComCare clients may apply |
| Source: www.gov.sg/ |
Even though measures are coming in to tackle the impact of COVID-19, many companies will still be required to make cost-cutting measures as revenue takes a hit. One area in which businesses can cut costs is by outsourcing their HR and payroll.
Outsourcing to Restart Your Business
To any smart business owner cutting costs while improving efficiency is essential. Although HR is becoming increasingly important due to the need for a strong employer branding, running a competent in-house HR team can be expensive.
Savings on Salaries
HR covers many aspects in a company, from recruiting, hiring and payroll. A proficient team would require individuals that specialises in each area. As salaries are on the rise in Asia assembling such a large team would be very costly. Employers could potentially save up to 50% on salaries alone if they outsource.
Savings on Time
Spending time on HR functions and payroll can be detrimental for the management team. With management placing increased attention on HR, overall productivity will be hampered as there will be less focus on revenue building. Relieve the management team from time consuming duties and allow them to work on expanding the business. HR outsourcing companies will stay ahead with the latest payroll technologies so you won’t need to.
Savings on Compliance
Policies are constantly evolving and changing. Outsourcing your payroll to professionals that know the complex regulations and who are always on top of changes is vital for complying with protocols. The comfort of knowing experts are handling your company’s payroll with precision and on time, can leave businesses reassured that they won’t be penalised for breaking rules.
3 Key Takeaways
The Importance of Good HR
Good HR is growing increasingly more important as companies try to build an appealing employer branding and company culture to attract top talent.
Outsource HR & Payroll to Cut Costs
Outsourcing your payroll and other HR functions can save businesses on salaries and time. Relieve your management from HR functions and let them focus on business growth while cutting company costs at the same time.
Leave it to the Professionals
Government regulations and policies are constantly being updated. Leaving your HR to professionals will help your business comply with the most recent developments and avoid penalties.
Related Articles:
- What is Employer Branding at a Time of Economic Downturn?
- How To Maintain Business Productivity During COVID-19
- 3 Easy Steps to Strategic HR Crisis Management
- How does the Labour Law in Vietnam Compare with HK and SG?
- How Exactly Does Payroll Outsourcing Work?
Links International is an industry leader in innovative HR outsourcing with services such as payroll outsourcing, visa application, Employer of Record (EOR), outplacement, recruitment and more! Contact us for more information on how we can help leverage your HR function.
