Equus Blog

The three biggest risks of managing posted workers

Cross-border working may have taken a hit during the pandemic, but the dip is likely to be temporary, and companies will be facing the challenges of managing posted workers once again.

Here are the three biggest risks of managing posted workers, and how to tackle them.

1. Failing to register posted workers

One of the most serious risks for organizations - and certainly the biggest risk to their bottom line - that comes with managing posted workers is, for whatever reason, missing registration deadlines. There can be a financial risk to not registering: according to the EU Posted Workers Directive, EU countries can issue fines of thousands of euros for non-compliance. And in a post-pandemic environment, treasuries are more likely to want to find those organisations that aren't complying, and issue fines when they do.

It's perhaps not surprising that businesses may miss meeting local rules on posted workers: regulation can vary from geography to geography, and change over time within countries. It's quite possible for businesses to fail to comply simply because they don't know they have to register, or how exactly to meet the requirements. However, the fallout from missing deadlines can be severe: along with the financial risks, failing to comply can bring bans on short-term postings, as well as reputational damage. 

Keeping on top of registrations and local posted worker requirements doesn't have to be fraught with difficulties, though: technology solutions can take the hard work out of the process by identifying when posted worker registrations are required, by what deadlines and by automatically staying up-to-date with local regulation.

2. Relying on manual processes or outsourcing

To manage posted worker registration, some companies rely on manual processes and spreadsheets, or simply hand the job over to an outside accounting firm that promises to take the stress of compliance off their hands.

But both of these options have their pitfalls. Asking staff to do the job manually is a time-suck, with teams spending hours laboring over outdated spreadsheets that track who needs registration and which tasks are still outstanding. Because data is gathered manually, there's always the possibility that errors will creep in, while the repetitive work will almost certainly eat into time that could be better spent on less administrative tasks.

Asking external accountants to take on the job, on the other hand, is expensive, especially for companies with diverse posted worker requirements, and takes expertise and control of an essential aspect of the workforce out of the organization’s hands.

Luckily there’s a third option for companies to keep up-to-date with posted worker regulations.  With the right technology solution, companies will be able to save time and money while maintaining control of a key process.

3. Delivering a poor employee experience

Every company wants to deliver the best possible employee experience to attract and retain talent, especially in highly competitive fields where workers are used to frequently moving between employers. Posted workers often fall into this category, so making the posting process as smooth as possible can make a difference to workforce management and the overall business.

Technology solutions minimize the effort that employees put in to manage their postings. Instead of staff receiving repeated notifications and requests for information, tech enables much of the data to be gathered from HR and other business systems automatically.

Similarly, technology can help collate details from posting and host country, meaning employees are spared having to chase down missing details themselves. And alerts and information requests notify the employee only when input is needed. From an employee perspective, the best posted worker registration is one that is seamless and intuitive. 

To find out more about how Equus apps can simplify the management of  posted workers, click here.
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