Sponsored news: Overseas staff recruitment will create ‘needless payroll bottleneck’ – Nium
Spencer Hanlon, from real-time global payments firm, Nium, warns travel companies not to let the high season spike in overseas staff turn into an expensive headache
With the high season coming, travel companies are bolstering their teams with employees. With more work-from-anywhere and work-from-home employment policies than ever before, many of these new employees are going to be based overseas. Could paying them all be more of a headache than many anticipated?
Speaking at the Bavel Travel Summit in Barcelona – organized by Voxel Group – Spencer Hanlon said: “Many companies are feeling brave and venturing into new markets – or returning to old ones they withdrew from.”
“That means employing and then paying new overseas staff.”
“But often the locations these employees are based in will have a unique payments landscape and currency for businesses to navigate, which can increase costs.”
The forex fees for paying someone in Bali, the Philippines, or Turkey, for example, might add another 10% to their total salary cost.”
“Then there’s the headache and time consumed by the exchange rate risk.”
“Meanwhile, if there’s one rule about paying your staff that’s nearly as important as paying them the right amount, it is paying them on time:”
“Get it wrong once, and you face a lot of complaints, get it wrong twice, and people resign.” Hanlon says.
“Overseas staff payroll can get exponentially more complicated very quickly. On that basis, we at Nium predict that there is going to be a whole load of needless payroll bottlenecks going on.”
So how should travel companies looking to employ overseas staff respond to this challenge?
Nium recommends that, if you’re currently still relying on traditional bank transfers to make this happen, then you’re almost certainly going wrong.
Firstly, because of slow wire transfers via SWIFT, but also because this method is very expensive when you consider all of the associated costs, including hidden ones like poor exchange rates.
Plus, you can never be sure if the person receiving the transfer will receive the exact required amount in their local currency, meaning if they don’t, you have to do yet another.
Instead, you’ll need a global payments partner who offers you a service that includes multicurrency solutions, low exchange rate charges, and the ability to lock-in exchange rates in advance.
Plus, you’re going to need transparency on the tracking of monies sent and controls on who can and can’t send what to where and when.
This avoid frauds, reputational damage, and loss of trust.
Nium provides global payment solutions for some of the world’s largest airlines and online travel agencies.
Recently, it has enhanced its payroll solution – including end-to-end FX controls, beneficiary pre-screen and confirmation of payee, scheduled payouts, and direct debits in the US, UK and EU.
Needless to say, everything outlined above is looking solely at the challenge of paying staff. The same applies to paying your suppliers, contractors, and other businesses, too.
Whilst all of this might sound like an additional headache just as the high season is about to kick-off, the good news is that these recommendations can be introduced very quickly and with relative ease.
Hanlon adds: “As the global travel industry continues to open up, the ability to hire and scale across borders will become a key differentiator for many.”
“In today’s climate, there’s no excuse for payroll mishaps. Do the right thing now and make sure you’re ready to capitalise on the travel boom this summer.”
Learn more about Nium
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Learn more about : Nium ( United Kingdom )
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.