Why Payroll Flexibility in Africa is so Sought-After

Payroll Flexibility in Africa
Picture of EDDIE VAN ZYL

EDDIE VAN ZYL

Africa Payroll Specialist, Africa HR Solutions

A one-size-fits-all approach works for many things…but payroll is rarely one of them.

Many payroll providers offer plug-and-play solutions: they’re easy to implement, easy to run, but also easy to tire of, and can easily become redundant – especially in Africa where each country is so rich, diverse, and unique that there is no such thing as a “standard approach” to payroll.

Besides, needs evolve with time, regulations change, and industry standards evolve, making payroll flexibility a must-have for companies on the African continent.

Here is how payroll flexibility proves essential in Africa:

Adapting to each African country’s particularities through payroll

While all its 50+ countries share a unique continental identity, Africa is also a diverse tapestry of customs, cultures, regulations, labor laws and more. The question is: can a standard payroll solution adapt to these particularities? Can this payroll solution seamlessly account for labor laws in Zambia for example, stating that beyond the 14 weeks of mandated maternity leave, a woman experiencing multiple births is entitled to 4 more weeks of leave? Further ahead, can this same solution accommodate different labor laws across other African countries? Or will you, as a client, have to manage several distinct payroll systems across different countries in Africa? tax returns
We have eliminated the need for these questions at Africa HR Solutions: our current payroll system has been created with the sole focus of improving payroll across Africa in one database. To do this:
  1. Each country on our system is set up individually with the required local Payroll Tax legislation and compliance.
  2. We also print payroll reports as required by the local Revenue Authorities in each of these countries.
  3. Our Statutory settings are maintained by a compliance team which is informed each time there are changes in local tax law and this is then updated on our system to achieve 100% compliance. Thanks to the high customization ability of our system, we can accommodate the labor laws for each country without any manual intervention.
  4. We ensure compliance in several different scenarios. For instance, in smaller African countries where the payroll taxes are mostly done by “local interpretation”, there can be cases where multiple companies within the country have different views on payroll items. Again, because we can customize any part of this process, we have the ability to cater for every and all needs when it comes to payroll legislation.

Adapting to your specific industry through payroll

Beyond countries, does payroll work the same for employees in different industries? Can your current payroll solution manage both workers in the agriculture industry for instance, and workers in the IT & Telecom industry?

In many industries that require manual labor, workers are paid more frequently, on a biweekly basis for instance. Many payroll solutions cannot handle this type of adaptation. As such, as a company, you may well lose your edge on the job market if you are not able to remunerate your workers according to the industry standard. Now imagine if your company employs workers who must all be paid at different frequencies, and for whom the labor law may differ depending on the nature of their activities… Payroll flexibility quickly becomes a must-have.

Stopping salary payments in time

Beyond making payments accurately and on time, there is also the need to do the opposite: stopping payments on time.

For example, there tends to be a high turnover rate among workers in manual labor roles, without much of a notice period, at times. This means that previously scheduled payments must be stopped before the next payroll run, otherwise your company will likely incur a loss. Surprisingly, many payroll companies cannot offer such a service, as it requires disruption of their whole payroll cycle, and rapid action – something they are not prepared for.

Offering different payroll frequencies

Thanks to our in-depth customization ability, Africa HR Solutions can accommodate the needs of different industries in Africa. We can run Monthly, Weekly and Biweekly payrolls. These payrolls can also be split into various pay runs to accommodate different workforces and industries. With different industries, you might also need to pay employees by the hour – something can easily be set up on our system thanks to our multiple pay runs option.

Besides, we also have the ability to pay employees on different dates within the same company. With specific industries, you will also need to cater for different types of employee contributions such as Unions, Retirement plans or Medical aid. Each of these can be added with their own calculations and set of parameters.

Africa HR Solutions employees

Adapting to a company’s changing needs through payroll

Companies change with time, they grow or shrink, merge with other companies, acquire them… The one constant in all this, payroll-wise, should be your payroll provider’s ability to meet your needs consistently: through recessions and layoffs, to massive hiring and more.

Adapting to a company’s changing needs in payroll necessitates a dynamic approach focused on proactive communication, flexibility, and responsiveness. By maintaining open lines of communication, regularly assessing the client’s evolving requirements, and offering customizable payroll solutions, payroll providers like Africa HR Solutions can effectively address:

  • Shifts in staffing
  • Shifts in pay structures
  • Shifts in compliance regulations

We utilize adaptable payroll technology to ensure that your payroll processes remain accurate, efficient, and compliant with changing regulations.

Additionally, proactive planning and continuous improvement initiatives from our part allows us to anticipate future changes and collaboratively develop strategies to meet your company’s evolving needs, fostering a partnership built on trust and adaptability.

Each company will have its own needs and requirements, and these can change at any stage. Being able to accommodate is part of our process and our promise with each client we onboard. Some examples of these changes are:

  • Lower and higher staff turnover
  • Changes in pay runs
  • Changes in bank systems
  • Changes accounting software

In some rare cases there may be companies that change from a Monthly to Weekly payroll frequency or vice versa.

Payroll providers should be able to adapt to the flow of your workforce, especially when it comes to growth. Some payroll providers offer solutions that cannot adapt to these changes, making them unsuitable and inconvenient in the long run. If your company were to grow from 20 to 100 employees, some payroll providers would not be able to keep up with your pace, forcing you to choose another one during a time when you should ideally be relying on a capable payroll partner.

Adapting to different payment methods through payroll

Can your current payroll solution manage salary There is a massive issue surrounding payment in Africa, known as the Cash Challenge. The relatively underdeveloped banking infrastructure in many African countries makes it so that payment through bank transfers (typically the more popular option in the western world) is difficult.

Such payments may take much too long to reach if your workers even have a bank account in the first place. So, generally speaking, cash is still very much preferred across the African continent. To find out more about the Cash Challenge and its implications, click here.

As such, if your current payroll solution cannot handle both cash payments and bank transfers efficiently, you may once again be setting yourself up for failure for not being able to adhere to the local payment standards.

Africa HR Solutions: Your Flexible Payroll Partner in Africa

Africa HR Solutions offers flexible payroll solutions to its clients, supporting them across the years, across 40+ African countries, legislative changes, company growth, recessions and more.

Choose a payroll partner who will be able to support you through all these changes during your expansion in Africa. Ready to know more? Our team is here for you!

Picture of EDDIE VAN ZYL

EDDIE VAN ZYL

Eddie Van Zyl is a passionate Africa Payroll Specialist. As a certified Sage 300 Payroll and HR Consultant with over 15 years of experience, Eddie specializes in full payroll project implementations, upgrades, and integrations. Prior to joining Africa HR Solutions, Eddie has worked 13 consecutive years as a Senior Payroll Consultant for Sage.

Table of Contents

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
Facebook
LinkedIn

Featured Blog Posts

GRANT GERAGHTY - Africa HR Team

GRANT GERAGHTY

HEAD OF CLIENT RELATIONSHIP

Grant Geraghty is the longest-serving member of the Africa HR team. This resident subject matter expert and client champion is responsible for gaining a deep understanding of our clients’ unique HR needs in Africa and providing tailored solutions that align with their business objectives. Grant collaborates closely with our clients to ensure that their requirements are properly implemented, providing ongoing support and guidance throughout the process.

Grant brings a wealth of experience to his role, having served as Africa HR’s longest-serving employee. He holds a Bachelor of Commerce degree, with a major in Economics and Business Finance, from the University of Natal in South Africa. Additionally, he has completed a certification program in Payroll and Tax Administration from the University of Cape Town, further enhancing his expertise in HR operations and compliance.

His commitment to delivering exceptional service and his extensive knowledge of HR in Africa make him an invaluable member of the Africa HR team.

KEVINA TAKOORDYAL Africa HR Team

KEVINA TAKOORDYAL

HEAD OF OPERATIONS

Kevina Takoordyal has a BA Hons Business Management from the University of Glamorgan, UK, with MBA in leadership and Innovation, MBA General, PMP Certified, and Agile Scrum Master. She currently works as the Head of Operations at Africa HR Solutions Ltd with more than 20 years of proven leadership capabilities in Operations, Business Development, People Management, Process Optimization, and Project Management in the Financial Services, BPO, Banking Industry, and Heath Care Industry. In Senior leadership roles with an international footprint across Europe working and extensive Pan- African experience from a compliance, finance, and operations angle, Kevina comes across with a panoply of cross-functional skills. Kevina also serves on a few Boards, Non-Independent Executive at MioD and for NGOs on a voluntary basis, a coach and mentor to aspiring female leaders across Africa and Mauritius.

Kevina is a firm believer in Servant Leadership with a strong focus and commitment to uplifting others, with the ability to deliver through a highly engaged – diverse team, and works towards consistently synergistic value creation. While being a focused and adaptive thinker and Kevina is actively participating in panel discussions on Innovation, CX, Digital transformation.

Kevina serves as Project Assessor for the National Youth upskilling program. She has been recognized as Global Talent in a few companies, Ceridian, and International SOS Ltd whereby she has been awarded a few scholarships and had the opportunity to be mentored by Senior Vice President in the US. Award Winner in various fields and at a national level and recognized including Super Achiever Leader Award in Africa in 2016, Awarded Africa Women Leader 2018.

VILOSHNA PACKIRY POULLE​

VILOSHNA PACKIRY POULLE

Head of Finance & Business Support

Viloshna is an experienced finance professional with 18 years of expertise in strategic financial planning, financial analysis, cash flow management, systems and controls implementation, financial reporting, and continuous process improvements. She currently serves as Head of Finance & Business Support, where she has successfully automated and leveraged the financial reporting system capabilities to ensure efficient company operations.

Viloshna’s background includes senior roles in a multinational pharmaceutical company and a large listed Mauritian conglomerate. Her meticulous attention to detail and strategic thinking have streamlined financial processes, making her a valuable addition to any finance team. Viloshna is a qualified finance professional with an FCCA qualification and an MBA, bringing valuable expertise to any organization.

In her current role, Viloshna leads the company’s Treasury and Payments function, including the fulfillment of the company’s cross-border payments into Africa. With her strong educational background and extensive experience, Viloshna consistently demonstrates her ability to optimize financial operations, minimize risks, and improve profitability. Her expertise in financial reporting and process improvements make her a valuable asset to any organization.

MARK DU PREEZ​

MARK DU PREEZ

Head of Legal & Compliance

A qualified lawyer who joined Africa HR Solutions in July 2020, Mark Du Preez has experience working in private practice for a reputable law firm in South Africa. He also played commercially focused roles at a leading private bank, wealth management company, and outsourcing firm in South Africa and Mauritius.

Mark has played a pivotal role in Africa HR Solution’s risk mitigation strategy, which positively impacted P&L performance over the years.

He currently leads the Partnerships function of the company including relationships and oversight with in-country partners (ICPs) across Africa.

Alex Daruty - Africa HR Team

ALEX DARUTY

Head of Commercial

Alex has more than 15 years of experience in the global, strategic development of both enterprise and consumer brands in categories including technology, transport, enterprise software, entertainment, and travel.

With experience in roles on both agency and corporate side, he has worked across international brands and has led the development and execution of multi-discipline campaigns across EMEA, NORAM and Asia Pacific.

His focus is on driving meaningful business impact through brand differentiation and building high-functioning, digitally oriented, and analytically driven capabilities. He is motivated by working with, and developing dynamic people, teams, and organizations.

He leads, manages, develops and mentors the Key Account Management department, including line management responsibility for the team of Key Account Managers and Key Account Administrator who represent the Company as the primary communication link between all relevant stakeholders, including clients, third party in-country partners and internal functions.

Originally from Mauritius, he holds bachelor’s degrees in International Business, Finance and Management from the University of Nevada, Reno.