When you support your workforce, you will gain their trust and commitment and they will be more willing to work harder. Providing regular payments to your staff will increase their happiness and improve their mental health and performance. In the event of a disaster, however, this may not always be possible.
Many things can be classified as a disaster that will affect your payroll. These include flooding, disease, property damage, and natural disasters. All of these things can stop your business and prevent you from paying your employees. Payroll disasters can include even less serious things, such as small payroll errors. This could lead to staff being overpaid or underpaid.
This guide will help you understand how to protect your workforce and fund their wages, even after a catastrophe. Continue reading to learn more.
Payroll Disasters
Payroll disasters can be anything that has an immediate impact on employee payments and that you were unaware of. This can include a natural disaster which causes damage and stops your business completely from operating or a payroll error which messes with your business finances. You must remain level-headed and compliant, no matter what type of disaster you are facing. This will ensure you protect your employees and treat them fairly.
The severity of the disaster will determine how well you can respond. These factors include:
- Business Health : A system can be put in place to help keep your business flowing smoothly, so that you can pay staff on time.
- Incident severityspan size=”font-weight 400 ;”>: It can be difficult to manage a disaster that affects the entire workforce. Effective planning is therefore essential.
- Time Scale for Recovery : To plan your finances, you need to know how long it will take before you can resume normal business operations.
How To Fund Your Workforce Following a Disaster
Catastrophe Credit Insurance
Insurance for “whole-turnover excess loss” is also known as catastrophe credit insurance. This insurance protects companies from financial losses resulting from unexpected bad debts arising from disasters. You could lose a lot of cash if an unexpected event interferes with your business’ operations. This insurance will protect you from financial ruin.
Employee Assistance Programs
EAPs are a great investment for your business. They provide coaching and counseling services to your employees in person, online or via telehealth. It can be beneficial to your business, because it gives employees the support and guidance they need in order to recover from financial losses following a disaster.
Disaster Relief Funds
Disaster Relief Funds (DRF) are financial resources used to provide immediate or long-term support to individuals and community members affected by natural disasters or conflicts. After a disaster, you should create a fund to cover your employees and pay their wages.
Connect to Vendor Partners
Contact your vendor partners and ask them about their capabilities. Also, ensure that they prioritize employees who are affected by the disaster. Vendor partners may be willing to help you raise the money needed to protect your employees, if a disaster occurs that affects your business.
Donation Request
If a disaster occurs that has a negative impact on your day-to-day business, you can expect to receive donations from loyal customers. Your customers will want to see your business back in action as soon as possible, and their donations may be the only way you can do this. Set up a GoFundMe account or something similar to receive donations when a disaster has stopped your business’s operation.
Conclusion
Employee resilience span styles=”font-weight 400 ;”>. Planning ahead and implementing strategies such as employee assistance programs, catastrophe credit insurance and community support, through donations or other means, is crucial to ensuring that your business is able to continue supporting its employees in the event of an unforeseen disaster.
The original version of this article, Protect your Workforce: Funding wages after disaster, appeared first on HR News.
