How to Ensure that Franchisees Do Not Exploit their Staff

How to Ensure that Franchisees Do Not Exploit their Staff
How to Ensure that Franchisees Do Not Exploit their Staff

Franchisors should make sure that their franchisees pay their staff on time. They need to ensure franchisees interpret their payroll legislation and awards correctly. When brands lose sight of the action by franchisees, it can cause severe damages. Workers produce best in environments where they feel comfortable and appreciated. Franchisors have been known to offer training and support to companies that need to treat workers well. Learning to manage a franchise business is critical to operating a successful franchise. Here are the top five tips on how franchisees can pay their staff correctly:

Add a clause in the franchise agreement

A franchisor needs to be sure that their franchisees are working on their payroll correctly. A franchisor can ensure that all franchise agreements be done centrally at head office. Being done at the head office will ensure that risks are mitigated.

Use external payroll providers

There is a need to ensure that franchisees are doing their payroll correctly. To achieve this, you need to ensure that your franchisee outsources external payroll providers. External payroll providers, such as help with this work in an efficient manner. They work to ensure payrolls are provided on time and per the provided legislation.

Auditing of subcontractors for your franchisees

Every franchisor has to ensure that franchisees and subcontractors working for them are well paid. Paying them well ensures that they work efficiently with the company in mind. There is, therefore, the need for franchisees to submit their payroll awards regularly, so as they can do a payroll audit. A payroll compliance audit is not used for tax purpose but instead used as an assurance to the franchisor that their franchise has adequately interpreted the award.

Choose payroll technology correctly

It is essential to have a payroll technology that fits the company purpose. Companies need to ensure that technologies such as facial recognition and fingerprint software are appropriate for attendance monitoring. For instance, a fingerprint scanner should be used in a situation where it is difficult for it to become unrecognizable. There is, therefore, a need to select a payroll technology that is perfect for your industry.

Ensure your payroll professional is well trained and qualified

Every franchisor has to ensure that their payroll professionals have the right qualifications. Companies need to shun a “set and forget attitude.” Payroll professionals need to make it a habit of attending conferences to maintain training requirements. They also need to keep themselves up to date with payroll legislation.

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