Manual v/s Office Workers: why your industry type matters in payroll
“One payroll solution for all industries” is a phrase that, unfortunately, sounds better in theory than in practice.
As we’ve seen before with our Africa Payroll Expert, Eddie Van Zyl, plug-and-play payroll solutions are hardly ideal for companies expanding to Africa. Now, going further into this idea of customised payroll, we look into why your industry type matters, and why your chosen payroll provider should have expertise in the subject. Otherwise, as incredulous as it may seem now, your payroll system may be so incompatible with your activities that you will be forced into making a switch to another provider.
A quick look into the different industries across Africa
- Oil & Gas
- Mining
- Engineering & Construction
- IT & Telecommunications
- Finance services
- NGO
- Agriculture & Farming
- Education
- Electronic
- Marketing
- Biotechnology
- Healthcare
- Transport & Logistics
- Fintech
- Food & Beverage
- Manufacturing
- Renewable sources
- Trade
- Human Resources
- Automotive
- Tourism
- Textile
- Transport
- Infrastructure
- Construction
- Space
Why your industry type matters in Africa:
1. Payroll frequency can change in Africa
Different industries work at different paces.
Naturally, things will operate differently given this changeable nature.
In industries like agriculture and construction, where most jobs are manual in nature, the pay frequency tends to be higher than that of people working in office jobs, who are typically paid once a month at the end of the month. Workers in agriculture and construction may be paid twice per month or may even ask to be paid weekly.
In such industries, the turnover rate also tends to be high, which means that your payroll provider will need to:
- Offboard employees compliantly and rapidly
- Settle all current payments that must be made (including leave payout if applicable)
- Stop payments that were planned for departing employees before the next payroll run
- Onboard new employees compliantly and rapidly
- Arrange for payments to be made to them all within one week of them onboarding (if the payroll frequency is weekly)
Unfortunately, many payroll providers do not possess the flexibility required to meet such needs. Some payroll solutions can only cater for “typical” scenarios where workers get paid at a specified period at the end of month, and where workers put in their notice period in advance.
Now, you may also wish to consider this scenario: even if you operate in an industry where manual work is the norm…you may also employ people who will occupy office-based roles. You may have an in-house marketing department, for instance, or maybe one of your officers in senior management roles needs a secretary. This means that your company will concurrently employ manual and office workers.
Naturally, secretaries and labourers do not get paid at the same frequency. Where a labourer might get paid once every 2 weeks, secretaries typically get paid at the end of each month. Your payroll provider must be able to cater to these 2 different pay frequencies impeccably and consistently.
Otherwise, it is your business that stands to lose from your payroll provider’s lack of ability.
2. Contract types may differ in Africa
Not all employees are hired on the same basis. Contract types and clauses may differ across industries, and it’s important to consider these differences.
In manual labour industries for example, notice periods may be much shorter than those for people working in office-based roles.
It is your payroll partner’s job to ensure that they respect not only the local law, but also the specific terms of your contracts with your employees.
3. Life and health insurance policies will differ in Africa
Employees working manual jobs are more likely to face greater occupational risks than those working office jobs. Workers in the mining industry, in oil and gas, agriculture, and manufacturing among others, face health risks through exposure to the elements, to chemicals, strains, cuts, and more. Workers operating heavy machinery across industries for example can also be at risk of death during the execution of their daily work functions.
Given the difference in risks faced, it’s not surprising that workers in manual jobs tend to receive extensive health insurance and life insurance covers.
But is this something that your payroll provider can account for?
Because it is worth reminding that medical and life insurances are part of the employee benefits every worker is entitled to, and which a payroll provider must manage.
Once again, in the case of a company employing both manual workers and office workers, this can be tricky to manage.
4. Informal employee expectations may differ in Africa
All industries have their own specificities. Where work culture differs from country to country, it can also differ from industry to industry. As such, there may be unsaid local expectations from employers in a specific industry. If your payroll provider does not have previous experience in that industry, you may well miss out on informal rules, which would make you lose your competitive advantage on the talent market.
How Africa HR Solutions can help
Africa HR Solutions has extensive experience supporting companies across these industries:
- Oil & Gas
- Mining
- Engineering & Construction
- IT & Telecommunications
- Finance services
- NGO
- Agriculture & Farming
- Education
- Electronic
- Marketing
- Biotechnology
- Healthcare
- Transport & Logistics
- Fintech
- Food & Beverage
- Manufacturing
- Renewable sources
- Trade
- Human Resources
Over 14+ years, we have been trusted by more than 400 clients across 46+ African countries with their HR and payroll needs on the continent. We have helped companies in the healthcare sector thrive, have enabled the expansion of organisations in the agriculture and food processing industry, and have been a complete HR partner
Leverage our team of experts.
Achieve peace of mind for your business operations across Africa with Africa HR Solutions, your trusted compliance partner. Streamline your payroll process and ensure adherence to regulations effortlessly. Contact us today for a worry-free expansion journey
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