The COVID-19 pandemic forced many companies to adopt remote work arrangements, in workplaces and industries where this was feasible. It now appears, that this trend will continue well into 2021. And, while this was taking place HR leaders had to deal with job cuts, rehiring and managing employee morale. In short, no small task.
According to the recent article in HR Dive by Topia titled, 3 challenges HR leaders face in 2021 those challenges include:
‘Hidden’ remote work risk – The great thing about the remote work model is work can get done from anywhere. The challenging thing about the remote model is the same – work can be done from anywhere. With so many employees working from “home” your employees can be working in another city, state, or country without you knowing it. This opens up businesses and employees to tax and permanent establishment risk. While many jurisdictions have given a pass for this in 2020, it is likely that they will start enforcing it again in 2021.
Business travel compliance – One of the first forms of employee movement to come back in 2021 will be business travel. In the US this will mean getting on top of state-to-state payroll withholding. In Europe, there’s the more complex challenge of the A1 and Posted Workers Directive to tackle. With COVID-19 shutting down most cross-border business travel, complying with these rules was not a top priority for most companies. We can expect that in 2021, as the virus gets under control and organizations start deploying employees across borders, countries will be looking to enforce this rule and others to ensure they are getting the appropriate tax contributions.
Employee demands for new working models – There is a lot of discussion around how work will get done in a post-pandemic world. Some businesses have moved aggressively to embrace remote work. Some organizations have gotten rid of corporate campuses or made working remote the de-facto practice. We’re likely to see more nuanced approaches and policies moving forward. These include fully remote work, flexible work, extending vacation with remote work in their holiday location, etc. Organizations will need the right frameworks and tools to manage new and complex types of employees vs the traditional in-person/office and fully remote employee.
In conclusion, 2020 may have been one of the most challenging times for many companies on a global scale. And, while there have been opportunities too, HR leaders continue to be tasked with adapting to an ever-changing, regulatory labour and payroll compliance, as it relates to the Covid-19 pandemic.
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