[UK] Strategic HR & payroll solutions for the struggling automotive industry

[UK] Strategic HR & payroll solutions for the struggling automotive industry
17 Feb 2021

The year 2020 brought unpredictable and fast-paced change across the globe with many industries facing an unprecedented number of issues and challenges. The automotive industry was no exception to this, with drastic drops in demand for travel as well as unforeseeable manufacturing interruptions continuing to be experienced. 

In the United Kingdom alone, year-on-year new car sales were down 46 per cent in March and 97 per cent in April (McKinsey and Company, 2020) and car production also fell to its lowest level since 1984 (BBC). Multi-country HR & payroll technology and services company Zalaris explores options to support the industry as it moves forward.

Whilst the long-term impact of COVID-19 has yet to be understood, it is safe to assume companies operating in the automotive industry are going to continue to face decreased consumer demand to ongoing restrictions. 

During the next few years, automotive businesses will benefit from protecting cash assets, however, it is important that long-term solutions are also considered. Surviving through these unprecedented times requires businesses to evolve and analyse the long-term sustainability and durability of their core business functions.

Protecting cash assets whilst continuing normal business operations brings with it the need to shift capital. However, this should not mean that funding is taken away from strategic departments, such as research and development, as it’s these technological advancements which drive competitiveness. Rather, an opportunity arises to review operational expenditure and establish alternative ways of reducing costs.

Take your transactional HR & Payroll activities for example. It has been proved that outsourcing these activities to a service provider like Zalaris can save your company up to 30 per cent on operational expenditure. Outsourcing these transactional activities eases the need to cut costs in other business areas, improves efficiencies within HR & Payroll processes, and ultimately frees you up to focus on other strategic core business activities.

Source: Zalaris

(Links via original reporting)

The year 2020 brought unpredictable and fast-paced change across the globe with many industries facing an unprecedented number of issues and challenges. The automotive industry was no exception to this, with drastic drops in demand for travel as well as unforeseeable manufacturing interruptions continuing to be experienced. 

In the United Kingdom alone, year-on-year new car sales were down 46 per cent in March and 97 per cent in April (McKinsey and Company, 2020) and car production also fell to its lowest level since 1984 (BBC). Multi-country HR & payroll technology and services company Zalaris explores options to support the industry as it moves forward.

Whilst the long-term impact of COVID-19 has yet to be understood, it is safe to assume companies operating in the automotive industry are going to continue to face decreased consumer demand to ongoing restrictions. 

During the next few years, automotive businesses will benefit from protecting cash assets, however, it is important that long-term solutions are also considered. Surviving through these unprecedented times requires businesses to evolve and analyse the long-term sustainability and durability of their core business functions.

Protecting cash assets whilst continuing normal business operations brings with it the need to shift capital. However, this should not mean that funding is taken away from strategic departments, such as research and development, as it’s these technological advancements which drive competitiveness. Rather, an opportunity arises to review operational expenditure and establish alternative ways of reducing costs.

Take your transactional HR & Payroll activities for example. It has been proved that outsourcing these activities to a service provider like Zalaris can save your company up to 30 per cent on operational expenditure. Outsourcing these transactional activities eases the need to cut costs in other business areas, improves efficiencies within HR & Payroll processes, and ultimately frees you up to focus on other strategic core business activities.

Source: Zalaris

(Links via original reporting)

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