Corporate Structure in India

Corporate Structure in India

India today is the fifth largest economy and is poised to be the third largest economy in the next few years. This economic growth provides huge opportunities for entrepreneurs and businesses. This is a land that has a large number of highly skilled workforce with abundant resources and boasts of having the largest youth workforce in the world.

This is the best impetus to start a business, however, starting a business in India is a daunting ask, especially if you are unfamiliar with the various corporate structures available. Whatever the Corporate Structure one chooses, a well-defined code of conduct has to be chalked out if one desires to achieve success in this competitive business world. In this article, we will discuss the various corporate structures available in India and delve into the role of HR in this fast-paced growth phase where proper planning and execution is the key to success.

Corporate Structure in India

1.  Sole Proprietorship
  • The Sole Proprietorship is the simplest and most common business structure in India. This is a corporate structure where one single individual owns, manages and controls the organization.
  • In a Sole Proprietorship firm the single owner enjoys the entire profit and on the other hand, has to bear the risks or losses of the firm.
  • The sole proprietor invests the entire capital of the business and may raise additional funds through borrowings.
  • From the legal angle, the sole proprietor and the business are the same.
  • Sole proprietorship firms have fewer legal formalities.
  • This business structure is suitable for businesses that are involved in the manufacturing of goods that require manual skills like tailoring, jewellery making, etc.

This business structure is suitable for small businesses and localized in markets that are limited and where the customer gives importance to personal attention. The liability of the firm is borne entirely by the sole proprietor.

2.  Partnership Firm

A Partnership Firm is a business entered into by two or more individuals who are governed by a ‘Partnership Deed’ that outlines the rights and obligations of each partner. The Partnership is registered under the Partnership Act, of 1932.

  • To start a Partnership Firm, a minimum of 2 individuals are required.
  • The Partners share the profits in the ratio as agreed to in the Partnership Deed.
  • The Partners have unlimited liability.
  • The law considers the partners and the Firm as a single entity.
  • Raising funds for the firm is easier wxhen compared with sole proprietorship.

This type of corporate structure is suitable for businesses like retail and wholesale trade, manufacturing units, professional services, etc.

3.  Limited Liability Partnership (LLP)

Limited Liability Partnership (LLP) is a firm incorporated under the Limited Liability Partnership Act, of 2008. Unlike as in a Partnership firm, partners in a LLP are not subject to unlimited liabilities caused by the business. The responsibility of Partners towards losses or debts is limited to the investment made by each partner, and the partners are considered as separate legal entities. The individual partners are protected from the liabilities created by the misconduct of one of the partners.

  • There is no condition on the minimum amount of Capital Investment to start a LLP.
  • There is no limitation on the number of partners in a LLP. Normally there have to be 2 or more partners to start an LLP.
  • Starting an LLP is easier when compared to a private company as there are fewer legal requirements.
  • The cost of registering an LLP is very low when compared to that of a private company.
  • The compliance requirements of a LLP are much less. LLPs are required to submit any two statements, i.e., the Annual Return and Statement of Accounts.

The number of LLPs in India is on the rise and in the FY 2023-24 58,990 companies were incorporated compared to 36,249 incorporated in FY 2022-23.

4.  Private Limited Company

A Private Limited Company is a privately owned firm that may issue shares and have shareholders. The company is registered under the Companies Act, of 2013 and is not permitted to trade shares in public exchanges. The liability of the shareholder is limited to the number of shares held by each shareholder. A minimum of 2 shareholders are required to start a Private Limited company and there is a cap of 200 shareholders. 2 directors are required to administer such a company.

  • The Private Limited Company is a separate legal entity and has the right to sue and be sued under its name.
  • Private Limited Companies enjoy greater borrowing capacity than LLP firms as it has more options in taking on debts. Banks and other Financial Institutions prefer to lend to Private Limited companies rather than to LLP’s or Partnership concerns.
  • A Private Limited Company remains unaffected by the death or resignation of any member.
  • The Company has complete ownership of its properties and the shareholders cannot lay claim to ownership.
  • Any person can be associated with the Private Limited Company as a Director, Shareholder, or Employee at the same time.

The Private Limited Company is required to have and maintain paid-up capital of ₹ 1 lakh as prescribed by the Ministry of Company Affairs (MCA). This amount may vary as per the guidelines of the MCA.

5.  Public Limited Company

A Public Limited Company is a business entity registered under the provisions of the Companies Act, 2013, that can issue shares to the public and have unlimited shareholders. This type of corporate structure is best suited for entrepreneurs who are planning large-scale business operations.

A Public Limited Company enjoys all the privileges of a corporate entity with limited liability. It is mandatory for a Public Limited Company to get listed with the stock exchange to raise capital from the general public. This type of corporate structure has to comply with stricter legal restrictions than a Private Limited Company.

  • The liability of the shareholder is limited to the shares they own. As a separate legal entity, the Public Limited Company has the right to sue and be sued without involving any shareholder.
  • The stocks of the Company can be acquired by anyone either privately through an Initial Public Offering (IPO) or trading on the stock market.
  • The minimum Authorised Share Capital of a Public Limited Company is ₹5 Lakhs.
  • A minimum of 7 shareholders are required to incorporate a Public Limited Company.
  • A minimum of 3 Directors are required to start a Public Limited Company.
  • Proper Memorandum of Association (MOA) and Articles of Association (AOA) have to be submitted along with Form DIR-12.
  • The death of any member or shareholder does not affect the life span of the Public Limited Company.
  • A Public Limited Company can raise the required Capital through the stock market by using debentures and bonds.

Public Limited companies are subject to strict regulations and have to comply with various rules and regulations. They are required to publish their complete financial statement annually.

6.  One-Person Company

A One-Person Company is a corporate entity that has only one person as a member. This is a recent addition to the corporate structure with the view to facilitate individuals to own and manage companies alone. In this corporate structure, the shares of the company are owned by one person and it is mandatory to have a nominee for the sole person for registering this type of business.

  • Only the owner is responsible to make business decisions and administer the company. This is in variance to the long processes and measures that a few other companies adopt.
  • One-person company is eligible to receive all benefits under the Micro, Small, and Medium Enterprises Development Act, 2006.
  • One-person company is a small or medium business entity and any delay in payment; they are entitled to receive interest @ thrice the bank rate.
  • The corporate structure allows the owner to take higher business risks without any depletion n personal assets.

One-Person Company has to be registered under the Companies Act, 2013.

7.  Section 8 Company

Also called as a Non-profit Company, a Section 8 Company can be incorporated under the provision of the Companies Act, 2013 with the status of a Limited Company. The company cannot use the word Limited or Private Limited in its name.

The objective of the Section 8 Company is to promote commerce, arts and science, education, sports, religion, social welfare, research, charity, environment protection, or any other such objectives. The company shall utilize its profits or other income to promote the above objectives and is prohibited from paying any dividends to its members.

  • A Section 8 Company can be registered by an individual or by an association of individuals.
  • The objectives of the company should be to promote commerce, arts and science, education, sports, religion, social welfare, research, charity, environment protection, or any other such activities.
  • The company has to invest all the profits or any other income only in the objectives mentioned above.
  • The company is not allowed to pay dividends to its members.
  • Being considered a charitable institution, section 8 companies enjoy the benefits of 80G of the IT Act.
  • They are exempted from paying stamp Duty on the Memorandum of Articles and Articles of Association.
  • A Section 8 Company can be set up without the requirement of having minimum paid-up share capital as in other corporate structures incorporated under the Companies Act, 2013.
  • This type of company is registered with limited liability.
  • They possess a disinct legal status, therefore, its existence is independent of its members.
  • The continuity of a Section 8 Company is not affected by any change in its membership.
  • The Section 8 Company has better credibility than other types of corporate structures as they function under a flexible and transparent constitutional framework.

A Section 8 Company has to strictly follow the norms formulated by the Central Government and failure to do so may lead to closure of the company.

8.  Joint Venture Company

A Joint Venture is an agreement between two or more parties or companies to cooperate and administer business or achieve a commercial objective. Both parties contribute towards capital mutually and share the profits/losses based on the agreed ratio.

There are two types of Joint Venture companies in India.

1.  Equity-based Joint Venture

In this type, the parties agree to establish a new legal entity through a mutual consent agreement. Both parties share the profit/loss and take part in the management of the Venture.

2.  Contractual Joint Venture

In this type of Joint Venture, the parties agree to work jointly without creating a separate legal entity. Both parties work together to achieve common goals without creating a new entity. In this type of Joint Venture, neither of the parties will share ownership of the business at the same time may leverage some level of operational control. Both parties are bound by the governing agreement to share the profit/loss. In most cases, it is a foreign company that would get into such an agreement with an Indian Company.

  • A Joint Venture is formed by the contribution of 2 or more parties or companies to achieve an objective.
  • The parties sign an agreement to contribute mutually to accomplish a particular objective.
  • The Joint Venture does not require a particular name as they are shared by two or more parties or companies.
  • The Joint Venture agreement is temporary and ends when the project is completed and the desired goal is achieved.
  • The Profit or loss is shared in the ratio as agreed to and where no such ratio has been agreed they are shared equally.
  • The Co-venturers are free to continue their own business unless agreed otherwise during the life of the Joint venture.

A joint venture is a symbiotic business contract between two or more companies for enhancing marketing, positioning, and client acquisition. Joint Ventures have stood the test of time and have been used across sectors, particularly in high-technology, high capital or high-skill sectors. They are prevalent in sectors like oil and gas, insurance, banking, asset management, infrastructure, and more recently in the defense sector.

Joint Venture Companies are incorporated under the Companies Act, of 2013 and are also regulated by the Competition Act, of 2002, the Foreign Trade Act, of 1992, the Foreign Exchange Management Act, and also come under the purview of SEBI and RBI regulations.

9.  Non-Governmental Organizations (NGOs)

Non-Governmental Organizations (NGOs) are entities that are formed to pursue goals and aspirations that relate to the public, social, or political good of the nation or world. They are a not-for-profit organization that focuses on activities to relieve suffering, promote the interests of the poor, environmental protection, provide basic social resources, and undertake community development.

NGOs are registered under the Societies Registration Act of 1860 and have a legal status.  They do not form part of the government.

  • NGOs have a specific purpose or cause that they support.
  • They are voluntary groups created by like-minded people who wish to serve society.
  • NGOs are autonomous bodies and enjoy little or no governmental interference.
  • Private donations and
  • NGOs have a huge role in nation-building, providing aid, and philanthropy.

Funding for the NGOs is from contributions received from various sources and also includes membership dues to government grants. The organization works to influence public policy and advocacy.

The following Associations can sign up as a NGO in India.

  • A Trust can register as an NGO as per the Indian Trusts Act, of 1982 if it has one or more trustees.
  • A society of people can sign up as an NGO under the Societies Registration Act, of 1860, if its objective is to serve society.
  • Any company, club, or association run by professionals can sign up as an NGO by registering under the Companies Act, 2013.
  • Any Charitable Trust can sign up as an NGO under the Charitable Endowment Act, of 1920.
  • Any statutory body that gives membership to persons on their stature and standing in society.
  • Any group, association, or society that works for the upliftment of society.

We have given(GetifyHR) a brief overview of the different corporate structures available in India. Choosing the structure that is suitable for one’s line of business and expertise requires the advice of a qualified lawyer, auditor, or a professional.

Five Powerful Ways to Honor and Commend Employee Achievements

Five Powerful Ways to Honor and Commend Employee Achievements

Recognizing employees goes beyond just a kind gesture; it is a calculated tactic to improve productivity, retention, and employee engagement. Employees who participate in effective recognition programs will feel valued and appreciated, which will change the workplace.

This blog post will discuss five efficient ways to acknowledge and recognize staff accomplishments, offer a check list focused by GetifyHR for its valuable clients and putting these strategies into practice for employee retention and the like. It also highlights an interesting Q&A section which predominantly throws light on various Employee Engagement Programs in the current scenario.

1. An explanation of Personalized Recognition

Recognizing each employee in a way that speaks to them directly is known as personalized recognition. This strategy can take several forms, such as a public acknowledgement catered to their preferences or a personalized gift or handwritten message. GetifyHR, ensures that their clients proffers each employee a personalized award shows and make them realize that they are valued by the company for more than simply their job.

What is the significance of ‘personalized recognition?’

Individualized acknowledgment demonstrates to staff members how much you respect them. Employee satisfaction and loyalty increase as a result of the employer and employee’s personal bond being strengthened.

How can we comprehend the choices of workers for acknowledgment?

In the current situation, ‘Employee Engagement’ turns out to be very vital. Hence, GetifyHR aid its clients to conduct surveys, one-on-one meetings, or informal conversations as a part of Employee Engagement. This will pave way to learn their preferred methods of recognition.

What kinds of gifts can be personalized?

Examples include custom stationery, a favorite book, tickets to a concert, or a gift card to a preferred restaurant.

2. Let’s examine the main benefits of individualized appreciation in the workplace here.

Employees who receive personalized acknowledgment feel appreciated for the special contributions they have made, which strengthens their emotional bond with the company and their job. Employees are more likely to remain motivated and engaged when they see that their unique efforts are acknowledged and valued.

GetifyHR believes that ‘Personalized Appreciations’ are more motivating and meaningful since it takes into account an employee’s unique actions and contributions. Employees are more inclined to keep pushing for greatness when they know that their efforts—both distinctive and hard—are given due importance by their employers.

Personalized acknowledgment has the potential to boost output. Employees are more likely to continue delivering excellent work when they feel valued for each unique effort. High productivity, proper leave management and a culture of constant improvement are fostered by this positive reinforcement. GetifyHR always ensure that their clients lay hands on ‘Personalized Acknowledgement’ and also supports them duly for its assurance..

Employees and the company have a stronger emotional bond when they receive personalized acknowledgment. Employee retention rates and the related expenses of recruiting and on boarding new hires are lower when compared to offering the needed appreciation and acknowledgement for their distinctive contributions.

Overall job happiness is greatly enhanced by personalized recognition. Recognition that highlights an employee’s individual accomplishments and contributions makes them feel better about their jobs and the company, which buoys up retention rates.

‘Incentives are very vital’, as per GetifyHR. Organizations can incentivize and reward individuals who make significant contributions to important projects..

Employers can honor innovative contributions by giving staff members the chance to pitch in their ideas to leadership teams, showcasing original solutions in business communications, or granting innovation awards. GetifyHR always stresses its clients on providing ample opportunities to employees to voice out their thoughts/ideas.

Individualized acknowledgment promotes a respectful, appreciative, and upbeat atmosphere. Personalized acknowledgment on a regular basis fosters a welcoming and inclusive work environment where everyone feels appreciated.

3. Incentives Based on Performance

Justification

Employees are rewarded with performance-based incentives according to their accomplishments and contributions. These incentives might take the form of cash rewards like bonuses or non-cash benefits like additional vacation time or chances for career advancement. Employees can be inspired to pursue greatness by organizations when benefits are linked to performance.

How can we make sure that incentives based on success are equitable?

Clearly convey the transparent criteria to all staff in order to achieve fairness. Review and modify the criteria on a regular basis to take into account evolving personnel roles and business environments.

What kind of non-monetary performance-based rewards are there?

Some examples include opportunities to attend industry conferences or seminars, additional vacation days, flexible work schedules, and professional development courses.

What is the effect on employee motivation of performance-based incentives?

Employees are encouraged to work hard and achieve excellence by offering concrete benefits through performance-based incentives, which incentivize them to do their best work.

Performance-Based Incentives’ Impact

Employees receive prizes based on their productivity, excellent leave management, performance, or accomplishment of predetermined goals when they receive performance-based incentives. These incentives can come in many different ways, including non-monetary benefits like additional vacation time or public recognition, as well as monetary rewards like commissions, bonuses, or other awards.

Putting performance-based incentives into place can have a number of important outcomes.
Programs for Employee of the Month:

‘Employee of the Month’ programs are designed to recognize and honor exceptional staff members on a monthly basis. Employees who receive this kind of acknowledgment are inspired to pursue greatness and are encouraged to have a healthy competitive spirit. Recognizing top performers on a regular basis can help the organization establish a standard of excellence.

What needs to be a part of an Employee of the Month initiative?

To inspire others, an Employee of the Month program ought to have transparent selection standards, an equitable nomination procedure, significant awards, and public recognition of the recipient’s accomplishments. GetifyHR strictly stresses its clients to abide by these parameters for their business’ growth.

What are some ways to guarantee a fair selection process?

To lessen prejudice, make sure the selection process involves several reviewers and that the criteria are transparent.
For programs that honor ‘employees of the month’, what are some noteworthy awards?
Gift cards, additional time off, public acknowledgment, or a designated parking space, which has become the need of the hour are examples of meaningful benefits..

4. An explanation of ‘Peer Recognition’ programs

Through peer recognition programs, staff members can honor and recognize one another. This strengthens team dynamics and creates a supportive work atmosphere. Workers can highlight the collaborative work within the team by nominating peers for recognition.

What are the benefits of peer recognition programs for the workplace?

Peer recognition initiatives promote an atmosphere of appreciation and respect for one another. Employee engagement can grow in leaps and bounds. They foster a culture of mutual recognition and support among staff members, thereby enhancing team dynamics and morale.

How can we put in place a peer recognition system that works well?

Provide an easily navigable site so that staff members can suggest colleagues and provide input. Highlight and honor these accomplishments on a regular basis.

How can we effectively promote peer recognition?

Promote the program through internal communications, provide training on giving constructive feedback, and create a culture that values mutual respect.

5. Description of Career Development Opportunities

Recognizing someone with chances for career advancement can be a very motivational gesture. This entails offering instruction, mentoring schemes, and career-growth prospects. Workers may become more engaged and devoted if they perceive these possibilities as investments in their future.

What role do opportunities for career growth play as a vehicle for recognition?

Opportunities for career development acknowledge employees’ potential and make investments in their advancement. This improves workers’ abilities and contributions to the company in addition to motivating them.

What kind of possibilities for career advancement can we provide?

Provide mentorship programs, employee self on boarding techniques, boarding leadership development courses, training courses, and chances for career progression or rotation.

How can we determine the need for development among employees?

To understand employees’ goals and opportunities for development, GetifyHR supports its clients to conduct regular performance reviews and career conversations. The acquired data can be utilized to customize development initiatives.

Conclusion

It is crucial to acknowledge and reward employee accomplishments in order to promote a happy and effective work environment. Employees might feel appreciated and inspired to give their best work when they work in an atmosphere that offers career development possibilities, individualized recognition, performance-based incentives, Employee of the Month programs, and peer recognition programs. Individual contributions are acknowledged through personalized acknowledgment, which raises employee engagement and morale. High performers are rewarded with performance-based incentives, which increase productivity.

Programs for Employee of the Month offer recognition to the public, but peer appreciation creates a positive work environment. Giving employees the chance to advance professionally demonstrates a commitment to their development. To successfully apply these techniques, make use of the checklists that are supplied, and consult the Q&A sections for answers to frequently asked problems and concerns. One of the main factors influencing employee engagement and organizational performance is a well-designed recognition program.

POSH Act

Comprehending the POSH Act 2013: An All-Inclusive Manual for Occupational Safety

Maintaining workplace safety is essential to creating a respectful, upbeat, and productive atmosphere. The Prevention of Sexual Harassment (POSH) Act is a crucial piece of legislation in India that aims to protect workers’ safety and dignity—especially that of women—in the workplace. This in-depth manual seeks to clarify the main points of the POSH Act and its role in improving workplace safety.

Overview of the POSH Act

2013 saw the enactment of the POSH Act, also known as the Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act. It aims to shield female employees from sexual harassment at work and to offer a complaint resolution process. The Supreme Court of India’s 1997 Vishaka Guidelines, which emphasized the necessity of law to stop sexual harassment in the workplace, served as the foundation for the Act.

Important Clauses of the POSH Act

1. Sexual Harassment Definition

Sexual harassment is defined by the POSH Act as a broad range of unwanted acts or behavior (directly or indirectly), including advances and physical contact, requests or demands for sexual favors, sexually suggestive comments, the display of pornography, and any other unwanted physical, verbal, or nonverbal behavior of a sexual nature.

2. The Act’s Scope

The POSH Act applies to both the organized and unorganized sectors and protects all women, regardless of age or job position, whether they work directly or indirectly. It comprises regular workers, contract workers, ad hoc workers, trainees, interns, and even those who drop by the office.

3. Committee for Internal Complaints (ICC)

It is required for each organization with more than ten employees to set up an Internal Complaints Committee (ICC) in each branch or office. This provision guarantees a formal, structured procedure for handling complaints about harassment and discrimination in the workplace. The ICC is in charge of receiving employee complaints, looking into them thoroughly, and suggesting suitable measures to be taken against violators. This committee is essential to preserving organizational integrity, guaranteeing adherence to legal and ethical requirements, and preserving a respectful and safe work environment..

4. The LCC or Local Complaints Committee

The Act requires the District Officer to form a Local Complaints Committee (LCC) for workplaces with less than 10 employees or when the complaint is directed towards the employer. This guarantees that the POSH Act applies to every workplace.

5. Know the Difference

It’s critical to understand the differences between the International Criminal Court (ICC) and the Internal Complaints Committee (ICC). The latter is an international court that hears cases against defendants for crimes like crimes against humanity, war crimes, and genocide. It is situated in The Hague, Netherlands. The International Criminal Court has worldwide jurisdiction and resolves serious international crimes, in contrast to the organizational ICC, which deals with internal workplace disputes. Despite the fact that they both use the abbreviation “ICC” and engage in investigative procedures, their responsibilities, purviews, and functions differ significantly.

6. The Process of Complaint and Redress

A detailed procedure for submitting complaints is outlined in the POSH Act and it must to be completed in writing within three months of the incident. The employer or District Officer must receive the report from the ICC within 90 days of the investigation’s conclusion, and they have 60 days to implement the recommendations.

7. Secrecy

The POSH Act places a strong emphasis on maintaining secrecy throughout the complaint process, from filing to inquiry to suggestion implementation, in order to safeguard the complainant’s privacy and dignity.

Interesting Insights into POSH:

The Act, which went into force on December 9, 2013, aims to shield women against sexual harassment at work and offers procedures for filing complaints and seeking remedies if such an instance occurs. Employers’ obligations in this regard are outlined in the POSH Act, which includes disclosing complaint data in yearly reports.

Furthermore, the Securities and Exchange Board of India required all listed businesses to provide information on sexual harassment allegations in their annual reports starting in 2018.

The requirement for data pertaining to the Act’s execution to be disclosed is a useful addition to the legislation. It can facilitate efficient monitoring of the effectiveness of the law and act as a significant accountability mechanism.

Nevertheless, almost ten years later, there is still no publicly accessible database that compiles information from various employers and businesses. Finding trends and patterns across the sector is tough since the data is still dispersed over different business reports and frequently presented in unintuitive ways.

Stunning Statistics:

Together, the focal companies reported 161 cases in FY 2013–14, the first year the POSH Act went into effect. In a year, this figure shot up to 465.

The figures increased in every year that followed until the first year of the COVID-19 epidemic, FY 2020–21. Across the 300 companies, 586 incidents were reported overall, down from 961 cases in the previous year.

In FY 2021–2022, this number gradually rose to 767; the next year, it surged by 51.2% to 1,160. About 109 accusations of sexual harassment were settled against these companies in FY 2013–14. In FY 2014–15, this increased to 406.

But the number of instances that have been settled has generally lagged behind the number of complaints over time. In FY 2016–17, 2.1% fewer complaints were addressed than the previous year, despite a 12.9% increase in the number of reported instances.

In a similar vein, after FY 2020–21, the first year of the pandemic, the number of complaints increased dramatically, but the number of instances that were successfully resolved fell short.

Advantages of the POSH Law

POSH Act’s implementation offers the following advantages:

Establishes a Safe Work Environment:

It promotes a courteous and safe work environment, which is critical for both the health of employees and the organization’s general output.

Promotes Reporting:

The Act promotes victims’ coming forward without fear of reprisal by offering a transparent process for remedy.

Increases Awareness:

Consistent training and sensitization initiatives required by the Act increase knowledge of what sexual harassment is and how to stop these kinds of situations.

Assures Accountability:

The Act makes businesses responsible for maintaining a secure workplace and handling grievances in a timely and efficient manner.

GetifyHR and Safety at Work

We at GetifyHR recognize the value of a polite and safe work environment. Being a top supplier of payroll outsourcing services, we guarantee quick and accurate payroll processing in addition to providing complete compliance management solutions, which include POSH Act compliance. Our knowledgeable staff helps businesses establish Internal Complaints Committees, provide training programs, and make sure the Act’s legal requirements are met.

Organizations that engage with GetifyHR may concentrate on their main business operations while we handle their payroll and compliance requirements, guaranteeing a secure and law-abiding environment.

In summary

One important piece of law that attempts to give women a safe and respectable place to work is the POSH Act. Comprehending and executing the POSH Act’s provisions is not only legally required but also an ethical duty for all establishments. Establishing a respectful and safe culture can help firms increase employee happiness, lower attrition, and boost overall productivity.

GetifyHR is dedicated to assisting businesses diligently in their efforts to establish a secure and legal workplace. With our proficiency in compliance and payroll outsourcing services, we assist companies in managing the intricacies of labor regulations and guarantee POSH Act compliance. By working together, we can create a workplace where everyone is valued, respected, and feels safe.

Payroll Outsourcing Benefits

Payroll Outsourcing Benefits for Start-ups – a Comprehensive Guide.

India is witnessing an exhilarating growth trajectory when it comes to start-ups. From a lowly position, it has now jumped to the number three position in the world, after the USA and China, for the number of unicorns it has to date. The biggest challenge faced by start-ups today is finding the right talent for core business activities and HR-related services like Payroll processing and Compliance issues.

Payroll processing and HR management are amongst the most critical aspects that demand a high degree of efficiency. Handling these critical aspects internally is not only time-consuming but is also prone to errors that will negatively affect the success and growth of the new venture. The primary aim of the start-up is to focus on their core business activities and all their efforts would be channeled to achieve this. Inevitably, HR-related services like Payroll Processing and Statutory Compliance management take the back seat and this may prove to be a mistake in the long run. It is, therefore, advisable to outsource the payroll process to an external agency as it offers a wide range of benefits that could propel growth. In this article, we delve into the benefits of outsourcing the Payroll process to an established service provider.

In-house Payroll processing and its challenges

Payroll processing and Statutory Compliance are highly complex operations that require a high degree of expertise. Handling employee data and their work performance, and maintaining the contributions towards EPF, ESI, Professional Tax, Labour Welfare Fund, Insurance, and TDS payments requires a team that is highly efficient and always in the know of the changes in rules and regulations. For a start-up, handling these complex and rather critical operations in-house can be a huge burden and highly challenging.

Drain on Valuable time:

Manual processing of the Payroll which includes calculating salaries, deductions, taxes, generating payslips, and filing returns is a time-consuming and tedious process. The valuable time that is spent on these operations can be gainfully spent on core business activities that are critical for growth. Acquiring full-fledged customized Payroll software to handle this process is not also an ideal solution as it may not be able to handle frequent changes in the statutory rules and regulations.

Non-compliance with Statutory Rules and Regulations:

Complying with all the statutory rules and regulations requires in-depth knowledge and the ability to implement changes as and when they occur. Deductions towards EPF, ESI, Professional Tax, and Labour Welfare Fund have to be very accurately maintained to avoid penalties and legal issues. Managing these and TDS calculations is a challenging job and performing these in-house increases the risk of non-compliance due to lack of expertise or oversight.

Lack of Expertise:

During the early stage of growth, start-ups operate with a lean team as they may not have the resources to hire a dedicated HR team possessing specialized payroll expertise. This may lead to a lack of proper working knowledge and understanding of the intricacies of Payroll processing and statutory compliance, thus increasing the risk of errors leading to non-compliance.

Challenges of Scalability:

The growth of a start-up is indicated by the addition of new employees, the onboarding of freelancers, or expansion to new locations. Managing the complex Payroll and statutory requirements in-house during this growth phase can become increasingly difficult. This would necessitate the employment of additional experts who may not be readily available, thus hindering the ability to scale efficiently. An in-house payroll system may not be able to adapt to the changes in rules and regulations thus creating a bottleneck and hindering growth.

Benefits of Outsourcing Payroll and HR Management

The main aim of a start-up is to focus on its core business activity; therefore, outsourcing the Payroll process to an external agency is a prudent financial move that offers multiple benefits. Some of these benefits are:

1.  Cost Saving

Most Start-ups normally begin their journey with limited resources and every rupee that is invested has to be spent with prudence. Cost cutting is a wise and effective move, and one decision that would help in cost saving is outsourcing the Payroll process. In doing so, you can significantly reduce operational costs by eliminating the need to maintain an in-house payroll department. Instead of hiring and training employees to specialize in payroll processing, investing in expensive software and hardware, or spending on regular updates, start-ups can outsource payroll to experienced service providers to achieve the task at a fraction of the cost. This will enable the start-ups to strategically allocate their financial resources toward product development and marketing activities to propel growth.

2.  Efficient Time management

Efficient management of time is essential for growth. By outsourcing the payroll process, start-ups can free valuable time. Payroll processing is a complex and time-consuming operation that requires meticulous attention to detail. By outsourcing this process you will be able to streamline the entire operation, which in turn will enhance productivity.

3.  Statutory Compliance risks

Being compliant with all the statutory rules and regulations is vital for the growth and success of the start-up. These rules and regulations are prone to frequent changes and it is important that companies keep themselves abreast of all such changes. By outsourcing Payroll processing you can avoid these pitfalls as the service provider would be fully equipped to take care of such issues, thus keeping the company fully compliant, always.

4.  Scalability

As the start-up grows, there will be an increase in the number of employees and the number of locations where the company operates. This will increase the complexity of payroll processing. An in-house payroll system may struggle to adapt to these changes resulting in inefficient handling of the payroll that will spoil the reputation of the company and curtail its growth. However, by outsourcing the process to an experienced service provider, you will be able to adapt to the increasing needs thus ensuring seamless scalability without compromising on accuracy.

5.  Data Security and Confidentiality

Employee data is vital and sensitive data that has to be maintained with a high degree of security and confidentiality. Start-ups must prioritize data security to protect the privacy of their employees and take full responsibility for its security and confidentiality. When this operation is performed in-house there is a greater chance of this vital data being tampered with. This can be fully avoided when you outsource as experienced service providers employ robust security measures like data encryption, firewalls, and efficient access controls to safeguard this vital and sensitive data.

6.  Access to Advanced Technology

Service Providers utilize cutting-edge technology to handle the Payroll process. With their ability to upgrade the system in tune with the growing technology, they will be able to provide their clients access to highly sophisticated systems that enhance accuracy and efficiency, thus drastically reducing the likelihood of costly errors.

7.  Frees the HR team

When you outsource payroll, you are actually freeing your HR team from a mundane task and allowing them to focus on core business activities. The complexity of payroll processing and statutory requirements would impose huge pressure on the HR team. This can be fully avoided by outsourcing the payroll and this enables the start-up to achieve its target smoothly.

How to choose your Service Provider?

Choosing the right Service Provider to handle your Payroll and HR Management is vital as any mistake would adversely affect your business growth. Some of the important points that you have to consider while choosing a service provider are provided below:

Access your Business needs

Make a full assessment of your requirements so that you are aware of the features relevant to your needs. Your budget for payroll service will depend on the outcome of this assessment.

Type of Outsourcer you require

The whole idea behind outsourcing Payroll and HR management is to fully automate and integrate the system so that the entire process is streamlined and can be handled without the usual stress that comes with the process. A managed payroll system runs your payroll accurately and on time, calculates the deductions towards EPF, ESI, PF, and LWF, calculates the taxes, and generates the Payslips. On the other hand, a fully outsourced module takes care of every aspect of payroll as mentioned above, but also supports your employees with all their payroll needs. You have to make the choice.

Integration of Modules

If you are looking for total integration, then you have to choose a service provider that supports a payroll module that integrates with the accounting module. This can fully automate both your accounting module and payroll module thereby improving functionality and enhancing the working of the business.

Pricing

Pricing is an important factor when you choose the service provider. The cost of service varies in accordance with the features they offer. Most payroll service providers charge a flat rate every month or for a pay period. Choose what is suitable for you.

Compliance

Payroll processing is subject to local laws and these rules and regulations may vary from state to state. It is, therefore, essential to assess whether the service provider is capable of complying with all relevant rules and regulations. Find out whether the provider has a thorough understanding of the country’s tax laws, labor laws, and other laws. Contact other businesses that have used the services of the outsourcer to get an idea of the level of compliance they maintain.

24/7 Support

When choosing a payroll service provider, it is essential that you take into account the kind of customer support and other services that they offer. Look for providers that offer support 24/7, and have dedicated personnel to support and train.

Scalability

Your business may grow over time, and it is essential that you choose a service provider that can scale according to the changing needs. Look for a service provider that offers scalability with the ability to customize as per the changing needs of your business.

Conclusion

Every start-up has to pay their employees consistently on time. For this to happen, the payroll module has to work accurately and consistently. If the payroll is managed in-house this process is going to take a lot of time and effort. Even if you generate the payslips without errors, handling them in-house may not be the most efficient way to use your time and money.

However, outsourcing the Payroll process and Statutory Compliance requirements to a service provider can provide significant advantages as it offers cost savings, efficient time management, full compliance, data security and confidentiality, scalability, and access to high-end technology. By outsourcing to an experienced service provider, start-ups focus on their core business activities, drive innovation, and achieve sustainable growth and success. Simply put, payroll outsourcing is a vibrant financial move that allows start-ups to blossom in today’s competitive market.

GetifyHR is a leading outsourcer of Payroll processing and HR Management in the country. We have assisted clients across the country to streamline the Payroll process and achieve full compliance with all statutory rules and regulations. As a start-up, you would be in a position to efficiently and accurately handle all your Payroll and Statutory Compliance requirements by associating with us. We assure you of a smooth and hassle-free journey towards growth.

Blog

Top 10 Proven Ways to Spot Lack of Employee Engagement

Introduction

The modern workplace is a vibrant environment that showcases the skills and attitudes of the employees.

Employee engagement is a strong measure of the health and performance of the organization. Engaged employees are just not showing up to work, they are interested, motivated, and very actively contributing to the success of the organization. Employee engagement is the cornerstone of organizational success. Engaged employees exhibit greater commitment and innovation in achieving the company’s goals and contribute to higher production.

Lack of employee engagement, on the other hand, is a silent but potent disruptor of the functioning of the organization. A lack of employee engagement can lead to decreased productivity, high turnover rates, and a negative work environment. Spotting signs of disengagement early on is crucial for addressing underlying issues and fostering a more positive workplace culture. Here are the top 10 proven ways to spot a lack of employee engagement:

1.  Decreased Productivity:

One of the most evident signs of disengagement is a decline in productivity. When employees are disengaged, they may complete tasks at a slower pace or produce work of lower quality than usual. They may struggle to meet deadlines, the quality of their work suffers, and they show a lack of enthusiasm for completing their tasks.

2.  Reduced or Minimal Effort:

Disengaged employees lack the enthusiasm to go the extra mile and tend to exert minimal effort in their work. They may do just enough to get by, lacking the motivation to go above and beyond their job requirements.

3.  Lack of Initiative:

Engaged employees often take initiative and seek out opportunities to contribute to the organization’s success. Conversely, disengaged employees become passive and hesitant to make decisions. They may show a lack of initiative and wait to be told what to do rather than proactively seeking solutions or improvements.

4.  Reduced Interaction:

Engaged employees typically engage in frequent communication and collaboration with their colleagues. A lack of employee engagement may manifest as reduced interaction, with employees withdrawing from team activities or avoiding social interactions.

5.  Unwillingness to Learn:

Engaged employees display great eagerness to learn and develop their skills to advance their careers. Disengaged employees, on the other hand, may display an unwillingness to learn new tasks or acquire new knowledge, leading to stagnation in their professional growth. They show little or no interest in learning new skills or taking on additional responsibilities that would advance their career growth.

6.  Deteriorating Relationships:

Disengaged employees tend to have a strained relationship with their co-workers. Disengaged employees may exhibit negative attitudes or conflicts with co-workers, leading to deteriorating relationships and a tense work environment.

7.  Frequent Absenteeism:

Frequent Absenteeism is a sure sign that the employee is lacking engagement. Such disengaged employees tend to take too many days off as they lack the urge and motivation to come to work. They frequently call in sick or take unplanned leave and such excessive absenteeism can be a red flag indicating underlying issues with employee engagement.

8.  High Turnover:

When employee disengagement grows unchecked, employee turnover tends to increase. Disengaged employees are more likely to seek fresh opportunities elsewhere, thus leading to increased turnover. This will push up the associated cost of recruiting and training new employees.

9.  Negative Attitude:

Disengaged employees may exhibit a negative attitude toward their work, colleagues, or the organization as a whole. They may complain frequently, express cynicism, or demonstrate a lack of enthusiasm for their tasks.

10.  Lack of Enthusiasm:

Finally, a lack of enthusiasm is a telltale sign of employee disengagement. Engaged employees are passionate about their work and demonstrate enthusiasm for achieving the company’s goals. Disengaged employees, on the other hand, may lack enthusiasm and show little interest in their job responsibilities.

Conclusion

The impact of disengaged employees on the functioning of the organization will be significant if it is not identified and corrective measures are not taken immediately. The top level management and HR team must recognize the signs of disengagement early and take proactive steps to re-engage the employees. By recognizing these ten proven indicators of lack of employee engagement—such as decreased productivity, reduced effort, and negative attitudes—organizations can take proactive measures to address underlying issues, boost employee morale, and foster a culture of engagement and excellence.

GetifyHR has been fully supportive in recognizing these signs early in all their client locations across the country. We provide ideal solutions in getting all employees on board so that the functioning of the organization is streamlined and the motivation and commitment of the employees are maintained for a highly engaged and productive workplace.

Blog EPF

EPFO – Standard Operating Procedure for Joint Declaration

The Employees Provident Fund Organization (EPFO) has brought about changes to the Standard Operating Procedure (SOP) for receiving Joint Declarations for correcting mistakes in members’ Universal Account Number (UAN) profile, and employers’ EPF Accounts, and the procedure to be followed by the Field Office.

The notification to amend the SOP was released by the EPFO vide No: SU/2022/Rationalisation of work areas/Joint Declaration/17 dated 11-04-2024.

Purpose of the Amendment

The purpose of the amendment is to describe accurately and in detail the procedures of receipt of Joint Declaration for corrections in UAN profiles by the members and employers and the procedure to be followed by the field office in making these corrections. The proposed changes to SOP will make it easier and simpler to minimize both incompleteness and mismatches.

The changes would also ease the difficulties encountered in claim settlement due to data mismatches, especially in parameters such as:

  1. Name
  2. Gender
  3. Date of Birth
  4. Father’s Name/Mother’s Name
  5. Relationship
  6. Marital status
  7. Date of Joining
  8. Reason for Leaving
  9. Date of Leaving
  10. Nationality and
  11. Aadhaar Number.

The SOP for Joint Declaration aims to streamline the process of rectifying discrepancies in member profiles, thereby reducing claim rejection and minimizing the risk of impersonation and fraud through the manipulation of UAN.

The process

The process entails a collaborative effort between the employees and the employers with due authentication by a process of Initiation, Verification, and Approval by the Field Office (FO).

1.  Initiation

As and when a member files a Joint Declaration, it gets authenticated by the Employer. The submitted documents are then verified for accuracy by the designated Verifier within the FO.

2.  Verification

The modification request and supporting documents are then cross-checked by the designated Verifier to ensure compliance with EPFO guidelines and regulations.

3.  Approval

Upon verification, the JD is forwarded to the designated Approver for approval. This could be the Regional Provident Fund Commissioners (RPFC), Additional Provident Fund Commissioners (APFC), or other authorised officers of the organization.

List of acceptable documents that can be submitted for the different parameters

Name and Gender
  1. Aadhaar (mandatory)
  2. Passport
  3. Death Certificate
  4. Birth Certificate
  5. Driving License
  6. Service photo identity card issued by Central, State, UT Govt./PSU/ Banks
  7. School Leaving Certificate (SLC) or School Transfer Certificate (TC) or SSC certificate or Mark Sheet issued by Board/ University containing name and photograph.
  8. Bank passbook having the name and Photograph cross-stamped by the Bank Official.
  9. PAN Card/e-PAN
  10. Ration/PDS Photo Card
  11. Voter ID/e-Voter ID
  12. Pensioner Photo Card/Freedom Fighter Photo Card
  13. CGHS/ECHS/Medi-Claim Card with Photo issued by State/Central Govt/PSUs/Rashtriya Swasthya Bima Yojana (RSBY) Card.
Date of Birth
  1. Birth Certificate issued by the Registrar of Births and Deaths.
  2. School Leaving Certificate (SLC) or School Transfer Certificate (TC) or SSC certificate containing Name and Date of Birth or Marksheet issued by any recognized Government Board or University.
  3. Service records certificate issued by the Central/State Government Organizations.
  4. Where proof of date of birth is not available, a Medical Certificate issued by a Civil Surgeon after medical examination of the member and supported with an affidavit on oath by the member duly authenticated by a Competent Court.
  5. Aadhaar
  6. Passport
  7. PAN Card
  8. Central/State Pension Payment order
  9. CGHS/ECHS/Medi-Claim Card issued by Central/State/UTs Govts./PSUs having Photo & Date of Birth.
  10. Domicile Certificate issued by the Government.
Father / Mother name, and Relationship
  1. Passport of Father/Mother
  2. Ration card/PDS Card
  3. CGHS or ECHS/ Medi-Claim Card with photo issued by Central/ State Govt./PSUs.
  4. Pension Card
  5. Birth Certificates issued by Municipal Corporation, and other notified local Government bodies like Taluk, Tehsil, etc.
  6. Marriage Certificate issued by the Government.
  7. Photo ID card issued for schemes like Bhamashah, Jan-Aadhaar, MGNREGA, ARMY Canteen Card, etc., by Central/ State Govt.
Marital Status
  1. Marriage Certificate issued by the government
  2. Aadhaar Card
  3. Divorce Decree
  4. Passport.
Date of Joining
  1. Employee register
  2. Attendance register
  3. Appointment letter or any other document as establishments maintain under any central or State Labour Act
  4. Letter of establishment on the letterhead duly signed by the Employer or the Authorized Signatory showing the date of joining, supported by ECR of the employee during the said period.
Reason for Leaving
  1. Resignation letter
  2. A letter from the organization on their letterhead clearly stating the reasons for leaving, supported by the ECR of the employee during the said period.
  3. Termination letter issued by the employer to the employee.
  4. Any document as the organization deems fit to establish the reason for exit of the employee duly signed by the Employer or the authorized signatory of the organization on their letterhead.
Date of Leaving
  1. Resignation letter/termination letter
  2. Experience certificate or any other document an organization maintains under any Central or State Labour Act
  3. Wage slip/salary slip/full and final letter
  4. Letter of organization on their letterhead clearly stating the date of joining and duly signed by Employer or the authorized signatory.
Nationality
  1. Copy of Passport
  2. Copy of Person of Indian Origin (PIO) card issued by the Govt. of India
  3. Long Term Visa (valid) along with a Foreign passport (valid or expired) of country of origin issued to minority communities of Pakistan, Afghanistan and Bangladesh, namely Hindus, Christians, Sikhs, Buddhists, Jains, and Parsis.
  4. Valid Visa issud to a Foreign National along with a valid Foreign Passport.
  5. Tibetan Refugee Card (supported by one more ID)
Aadhaar
  1. Member Aadhaar card or e-Aadhaar card with details of linked active mobile phone.
Submission of Documentary Proof

All changes to parameters have been classified into Minor and Major changes and these have been detailed in Table 2 of the SOP.

All requests for Minor or Major corrections will have to be supported by documentary proof as prescribed in Annexure 1.  For Minor corrections, at least 2 documents from the list of documents mentioned in Annexure 1 for that particular parameter are required to be submitted. For Major corrections, at least 3 documents from the list of documents mentioned in Annexure 1 for that particular parameter are required to be submitted.

Frequency of Corrections

The SOP has fixed the frequency at which corrections to various parameters can be made through the Joint Declaration Form. The same is tabulated hereunder:

Sl. No. Parameters No.of times changes can be made

1.

Member Name

1
2. Gender

1
3.

Date of Birth

1
4. Father/Mother Name

1
5. Relationship

1
6. Marital Status

2

7.

Date of Joining

1

8.

Date f Leaving

1

9.

Reason for Leaving

1

10.

Nationality

1

11.

Aadhaar

1

The Procedure

The EPFO has streamlined the process of updating profile parameters by embracing digital technology thus making it accessible through the online platform. The process is simple and both the employees and employers alike can leverage the power of digital technology to submit the JD online.

Firstly, log on to the EPFO website at https://www.epfindia.gov.in/.  Then log into the Employee login using the Universal Account Number (UAN) and the Password. Employers can use their EPF credentials to log in. After logging in, click on the “Online Services” option on the portal and look for the Update or Correct EPF details, and select the Joint Declaration Form (JDF). Once the Form opens, fill in the required details accurately and ensure that all the details called for are filled in. Depending on the parameter that you are updating or changing, upload the supporting documents.

Next, submit the Form after fully verifying that the details provided by you are correct. After submission, you can track the status of the Joint Declaration Form submission through the EPFO portal and ensure that the processing is taking place and the details are fully updated.

Once the changes are approved, the member’s photo which is retrieved by the EPFO interface with UIDAI Aadhaar data will become visible in the member profile on their portal and the IT interface of various authorities.

Conclusion

Through this highly efficient and structured process, EPFO not only aims to maintain the profile integrity of the member but also hopes to minimize claim rejections and reduce the risk of impersonation and fraud. By leveraging technology through the Unified Portal Application, EPFO endeavors to enhance transparency, streamline efficiency, and usher in greater accountability in its operations. EPFO’s commitment to providing the best of technology for the benefit of employees and employers alike demonstrates a step towards a brighter and more streamlined future on social security and the management of EPF Accounts.

GetifyHR has been fully supportive of the needs of the employees and employers in handling EPF, and we have always updated ourselves immediately on all the changes brought in by EPFO from time to time. We are fully geared to handle these changes and support our clients and through them the employees in all aspects of EPF.

Life Certificate

What is the Life Certificate in PF and what are all its uses?

All Central and State Government employees are eligible to receive Pension on retirement at the age of 58.  The benefit was not available to employees in the private sector.  However, the Government of India, with the view to support the employees in the private sector legislated the Employees Provident Act in the year 1952.  Controlled by the Employees Provident Fund Organization (EPFO), the scheme envisages providing benefits to the employees in the private sector that they hitherto had no access to.  One such scheme under the EPF Act is the Employees Pension Scheme (EPS) which was launched in the year 1995 by EPFO to enable retirees in the private sector to get regular pension after retirement at the age of 58.

All pensioners, whether they are pensioners of the Private Sector, Central Government, the State Government or members of any Government Organization are eligible to receive pension upon retirement at the age of 58. These pensioners are required to submit an Annual Life Certificate (ALC) to the authorised Pension Disbursing Agency (PDA) like the authorized Banks, Post Office for further continuation of the pension.  This certificate has to be submitted in the month of November for receiving pension.  The ALC has to be submitted in the form prescribed in Annexure XIII of CPAO Booklet Scheme, 2021.  However, in case of pensioners of the age of 80 years or above, the Life Certificate can be submitted from 1st October onwards.

In order to get the Certificate the pensioner has to either personally present oneself before the Pension Disbursing Agency (PDA) or have it delivered to the Agency through the authority where they have served earlier.  This procedure was causing a lot of hardship to the pensioners, especially for the aged and infirm pensioners who cannot present themselves always before the agency to secure the ALC.  Moreover, many employees post retirement choose to move to different locations either to be with the family or for some other reasons.  This would pose a lot of hardship in getting the ALC from the Agency and adversely affect the receipt of pension in the subsequent months.

To overcome this problem, the Government initiated the Digital Life Certificate for Pension Scheme also known as the Jeevan Pramaan.  This scheme addresses this problem by digitising the entire process of generating the Life Certificate.  Jeevan Pramaan is a Biometric enabled digital service for Pensioners that streamlines the entire process and makes it easier and hassle free for pensioners.  Pensioners of the Private Sector,  Central Government, State government and any other Government Organization can take benefit of this facility.  By this process the presence of the pensioner before the Pension Disbursing Agency is done away with thus benefitting the pensioner and also cutting down on unnecessary logistical hurdles.

How it Works?

Jeevan Pramaan uses the Aadhaar Platform for Biometric authentication of the Pensioner.  On successful completion of the authentication, the Digital Life Certificate is generated.  This gets stored in the Life Certificate Repository, which again can be accessed by the PDA online.

How to Register?

Pensioners have to register first to receive the Jeevan Pramaan Patra or Life Certificate.  They can approach the nearest Citizen Service Center (CSC), Banks or Government Offices to register.  The filled in application has to be submitted here and the Biometric authentication using the Aadhaar will be conducted.  Once this is successful, a Jeevan Pramaan ID will be generated.

Alternately you can download a Mobile App or PC App to register online from the official website https://jeevanpramaan.gov.in.  For this purpose you will require Internet and STQC Certified Biometric Device.

The Jevan Pramaan Application can be downloaded from the official website.  Click on the download option to provide your email ID, Captcha and click on “I agree to Download”.  Enter the OTP that you receive in your email and click on “Download for WindowsOS”.  You will receive the download link in your email.  Click on this link and a Zip file containing the Jeevan Pramaan application will get downloaded.  You can unzip this file and follow the instruction provided in the client installation document.

Once the Jeevan Pramaan ID has been generated, the pensioner needs to connect to the Portal once again using another OTP.  Next he/she has to select “Generate Jeevan Pramaan” and enter the Aadhaar and mobile number.  Click on the generate OTP option and enter the OTP number that you receive on your email or mobile.  You will also be required to input the Pension Payment Order (PPO) number, the name of the Disbursing Agency, your name and a few other required information.

On successful completion of this operation, an SMS acknowledgement is sent to your mobile number including your Jeevan Pramaan Patra or Certificate.  The Certificate is stored in the Life Certificate Repository and is available anytime and anywhere for the Pensioner and the Pension Disbursing Agency (PDA).

This scheme is not available to remarried or re-employed pensioners.  They are required to submit the Annual Life Certificate in the conventional way to the Pension Disbursing Agency.

Conclusion

The Jeevan Pramaan Patra effectively addresses the problems faced by the Pensioners who have to present themselves in person at the Pension Disbursing Agency every year to continue getting their pension dues.  Under this scheme the pensioners have the option to generate Jeevan Pramaan Patra, either online or via a mobile app.  By using Jeevan Pramaan, a pensioner can now digitally provide proof of his/her existence to the authorities for continuity of pension every year, instead of requiring appearing in person before the Pension Disbursing Agency.  By employing biometric authentication to authenticate the pensioner’s identity, the scheme effectively prevents fraudulent activities.

This is a great boon to all beneficiaries and we at GetifyHR have been assisting our clients and their employees who have retired in effectively generating a vital document like the Annual Life Certificate.

HR Work culture

How Human Resource activities can boost Work Culture?

The success of any organization wholly rests with the Human Resources Management team. Where the focus is to achieve the objectives of the organization, clear procedures have to be followed and this entails adopting and implementing rules and procedures that promote employee engagement and well-being. The HR team recruits and helps keep talent so that greater productivity is achieved by enabling a positive workplace culture.

The efficiency of the HR team fosters open communication and this not only helps in creating a positive work culture but also strengthens the bond between the Management and the Employees. In this article, we explore the strategies implemented by the HR team to boost workplace culture.

What is Work Culture?

Your work culture is the shared set of practices that guide your organization. These include your values, your beliefs, and your attitudes as reflected in the way you respond to your employees and customers. Work culture has a direct bearing on the types of candidates you attract for various open positions in your organization. A strong and positive work culture boosts productivity, reduces employee turnover, and improves employee engagement.

Work culture is a vital part of the organization’s core culture. It is prone to grow and change according to the circumstances and is, therefore, different from the organization’s core values which largely remain the same over time.

What is the Importance of Work Culture?

A positive work culture will strongly impact employee experience.  It will have an impact on individual and team morale, employee engagement, and job satisfaction. A positive workplace culture creates a loyal and strong team of employees. On the other hand, a negative work culture promotes a toxic workforce that can curtail the growth of the organization and make it difficult to hire talent and retain them. Surveys have shown that positive company values and culture rank as the top influence on whether a candidate decides to accept a job offer. On the contrary, poor company culture is the main reason for employees to leave their jobs.

Factors that help in developing work culture?

Several factors help in developing a positive work culture. Let’s look into some of these:

  1. A supportive leadership.
  2. A feeling of being respected.
  3. Whether the actions of leaders align with the core values.
  4. Proper benefits, perks, and amenities.
  5. Learning opportunities.
  6. Opportunity for professional development.
  7. Job security.
  8. Frequency and quality of reorganization.
What are the strategies needed by HR to create a positive work culture?
Exceptional Onboarding Experience:

Provide an exceptional onboarding experience to new hires. A well-designed onboarding process is crucial for integrating new hires into the organization’s culture. HR can streamline the transition by providing comprehensive orientation, introducing company values, and fostering smooth relationships with colleagues.

Competitive Compensation:

The best way to attract and retain the best of talent is by providing fair and competitive compensation packages. HR can develop and implement competitive compensation and benefit packages that encourage and retain the best of talent. They play a vital role in benchmarking salaries, assessing market trends, and ensuring that employees feel valued for their contributions.

Team Building Activities:

Encourage team-building activities in your organization. HR-initiated team-building activities promote camaraderie, collaboration, and trust among employees. In an organization that oversees a distributed team, the biggest challenge is to establish genuine connections. By organizing regular team building activities the HR can help bring that “human” touch back to your workplace. These activities can range from informal gatherings to structured workshops aimed at enhancing teamwork and communication.

Promote Recognition:

Recognizing and rewarding employees for outstanding results would boost morale and motivation. This would encourage employees to continue performing at impressive levels and make them feel valued within the organization. This will act as a motivation to their peers to improve their performance, thus enhancing work culture and fostering friendly competition that leads to better performance. HR can implement recognition schemes, including employee of the month awards, peer-to-peer recognition, and milestone celebrations.

Collecting Feedback:

Collecting employee feedback is one of the most effective engagement initiatives. Regular feedback mechanisms, such as surveys and suggestion boxes, enable HR to gauge employee sentiment and identify areas for improvement. Actively listening to employee feedback demonstrates a commitment to their well-being and fosters a culture of continuous improvement.

Prioritize Welfare Programs:

The priority is to create a healthy work-life balance and the HR team must maintain the mental and physical health of the employees for better retention. When individuals are tired, stressed, or on the verge of burnout, they cannot be expected to perform at their best. HR plays a vital role in prioritizing employee welfare by offering benefits such as health insurance, wellness programs, flexible work arrangements, and family-friendly policies. These initiatives enhance employee satisfaction and promote work-life balance.

Improve Communication:

A healthy work culture can be brought in only with effective communication. Clear and open communication is the key to the success of any team and this is especially true for HR teams. In most organizations, HR is the main point of communication between the top management and the employees. HR can facilitate transparent communication channels, provide regular updates on organizational changes, and encourage open dialogue between management and employees.

Training and Development:

Investing in employee development through training courses and professional development programs demonstrates a commitment to individual growth and skill enhancement. HR can give employees the chance to update their knowledge and skills through training and development programs. This will enable the employees to feel appreciated, improve job satisfaction, and inspire them to work to their maximum potential. HR can identify training needs, organize workshops, and provide resources to support ongoing learning.

Accept New Technology:

The workplace is ever-evolving and continues to change at great speeds. New processes disrupt proven ways of completing jobs and new-generation employees come with different expectations and behaviors. Every organization is prone to the effects of change, in both technology and process. Embracing technology innovations streamlines processes, enhances productivity, and fosters a culture of innovation. HR can champion the adoption of new tools and platforms that improve workflow efficiency and facilitate remote collaboration.

Employment Engagement Survey:

Employment Engagement is a concept that highlights how the employees feel towards an organization and how their feelings translate into actions and behaviors at work. An employee engagement strategy is, therefore, the steps you take to build positive engagement at work.

Conducting regular engagement surveys allows HR to assess employee satisfaction levels, identify areas of concern, and implement targeted interventions. These surveys serve as valuable tools for measuring the effectiveness of HR initiatives and fostering a culture of continuous feedback and improvement.

Conclusion

In conclusion, human resource activities play a pivotal role in shaping and enhancing work culture. By prioritizing elements such as onboarding experiences, competitive compensation, team building, recognition, feedback collection, welfare programs, communication improvement, training and development, technology adoption, and engagement surveys, HR can foster a positive and productive work environment conducive to organizational success. Investing in work culture isn’t just a choice – it’s a strategic imperative for businesses aiming to thrive in today’s competitive landscape.

At GetifyHR, we have invested our time and effort in enhancing the work culture at different client locations across the country, with the sincere support of the HR teams. We have been able to provide regular updates and ideas to streamline the process so that employees have access to the best practices and technology that not only improves the work culture but also enhances productivity.

Employee Training Methods and Techniques

10 Best Employee Training Methods and Techniques

Introduction

In today’s rapidly evolving corporate landscape, organizations are realizing the significance of investing in employee training and development. It not only enhances individual skills but also improves overall organizational performance. With the advent of technology, various training methods and techniques have emerged to cater to diverse learning needs. This article explores the top 10 employee training methods and techniques that have proven to be highly effective.

1.  E-Learning

E-learning, a popular training method, involves the use of electronic devices and online platforms to deliver educational content. E-learning has become one of the most widely used employee training methods, especially in the post-pandemic world where work-from-home has become the norm and employees can’t attend in-person training sessions. It offers flexibility, self-paced learning, and extensive accessibility, making it ideal for remote employees or those with busy schedules.

One-line training sessions keep the employees engaged and enhance their retention power as they combine interactive games, quizzes, gamification, and other activities. It gives employees the freedom to learn on the go with their smartphones. Apart from being interactive, the components can be automated thus reducing usage of time and lowering overhead costs. E-learning is also scalable, giving it the freedom to be upgraded as and when needed.

2.  On-Job Training

On-job training is a hands-on approach where employees learn by performing tasks under the guidance of experienced colleagues. It provides practical knowledge, promotes skill development, and helps new hires integrate into the company culture.

On-job Training enables the active participation of employees by allowing them to learn as they work. This is one of the most effective methods to train employees in a new process. It offers faster user adoption of tools and features and provides better results as it is easier for employees to learn while they are working on a project themselves.

On-job Training also saves money that would otherwise be spent on costly off-site training programs. It enables employees to acquire new skills without disrupting their daily schedule and be productive and also facilitates employees to focus on skills that are most relevant to their jobs.

3.  Instructor-Led Training

Instructor-led training (ILT) is a traditional method that involves a trainer delivering content to a group of employees. It facilitates direct interaction and immediate feedback, fostering better understanding and collaboration among participants. It mimics the physical classroom with an instructor present to lead the training session. This training uses a lecture-style presentation with the support of visual components.

In this form of training, there is direct interaction between the trainer and employees, thus preventing social isolation.

All questions and doubts that arise during the session are responded to quickly and effectively. This is a very effective method to impart complex knowledge that needs personal guidance.

4.  Role Playing

Role-playing encourages employees to simulate real-life scenarios, allowing them to develop problem-solving skills, improve communication, and enhance their ability to handle challenging situations. It promotes active learning and boosts confidence.

In this form of training, both the learner and the trainer act out their roles in a potential workplace scenario. This method is highly effective for employees whose job roles include direct interaction with the client or customers.

Role-playing boosts employee engagement and encourages the learner to utilize problem-solving and critical-thinking skills at the right moment. It also prepares employees to handle critical work scenarios and improves employee-customer interaction skills.

5.  Coaching

Coaching is a personalized training technique where an experienced professional guides and mentors employees to help them achieve specific goals. It focuses on individual growth, skill enhancement, and performance improvement through regular feedback and support.

This method allows employees to ask questions that they may not feel comfortable asking in a regular classroom session during an instructor-led training session. The employees learn by watching the performance of their mentor in real time. Coaching helps to strengthen the relationship between the employees.

6.  Peer-to-Peer Training

Peer-to-peer training involves knowledge sharing among employees within an organization. It fosters collaboration, builds camaraderie, and enables individuals to learn from their peers’ experiences and expertise.

Peer-to-peer learning is a mutual learning technique that involves employees of the same level engaging in collaborative learning.

This technique allows employees to work through new concepts and share ideas with their peers working on the same project. This method provides an opportunity to teach and be taught by one another, and is, therefore, an effective way for organizations to enhance productivity with a stronger workforce.

Peer-to-peer learning encourages greater connectivity, collaboration, and teamwork among the employees. It enhances employee engagement and helps boost productivity.  It also promotes the sharing of knowledge within the organization.

7.  Gamification

Gamification incorporates game elements, such as competition, rewards, and challenges, into the learning process. It increases engagement, motivation, and knowledge retention by making training interactive and enjoyable. It engages learners and makes them more willing to take on repetitive tasks despite the risk of failure, by leveraging psychology.

Gamification encourages the learner to achieve the learning objective thereby increasing engagement and completion rates. The learner receives instant feedback as they progress through the game. To boost employee motivation, they are provided with badges or rewards as they proceed through the game.

8.  Case Studies

Case studies present real-life scenarios for analysis and discussion. They encourage critical thinking, problem-solving, and decision-making skills. By examining past situations, employees can gain valuable insights and apply them to their work.

In this method, employees are presented with a real or fictional complex situation to analyze and use as a reference for arriving at their solutions. While the cases may vary in complexity and detail, learners should be provided with adequate data to analyze the situation and come up with their solutions. Case studies enhance data analytical, decision-making, and problem-solving skills. When employees constantly work on case studies, they gain confidence to handle similar situations in real life. It encourages employees to think outside the box.

9.  Mobile Learning

Mobile learning, also known as m-learning, leverages the convenience of mobile devices to deliver training content anytime, anywhere. It enables employees to access bite-sized modules, quizzes, and videos on their smartphones or tablets.

Mobile learning utilizes familiar technology promoting higher engagement and comfort, and the content is delivered in a variety of forms such as podcasts, videos, and quizzes or in an e-learning format that helps to increase engagement and boosts knowledge retention.

10.  Collaborative Training

Collaborative training involves group activities and projects where employees work together to achieve common objectives. It encourages teamwork, communication, and the exchange of ideas, fostering a culture of continuous learning.

Collaborative training enhances the overall training experience for employees by capitalizing on their skills, ideas, and knowledge. It encourages a shared learning culture by building a work atmosphere where team members are constantly collaborating. This type of training reduces time investment and costs and promotes knowledge retention.

Conclusion

In conclusion, employee training is a crucial investment for organizations seeking to stay competitive in today’s dynamic business environment. By incorporating a combination of all these training methods, companies can ensure the development of a highly skilled workforce capable of driving success.

Investing in employee training is not just an expense; it is a strategic advantage that propels companies toward growth and innovation. We at GetifyHR have been fully supportive of all these activities and many more at our client locations to enhance the performance of their employees and create a strong and committed workforce that propels growth.

EDLI Benefits

EPF Act – Family Cover through EDLI and its benefits!

Introduction

The Employees Provident Fund Organization (EPFO) is one of the two main Social Security schemes under the Government of India, the other being Employees State Insurance (ESI). The EPFO comes under the aegis of the Ministry of Labour and Employment and is responsible for the regulation and management of Provident Funds in the country. The EPFO manages and administers the Employees Provident Fund (EPF), Employees Pension Scheme (EPS), and Employees Deposit Linked Insurance (EDLI).

EDLI

All the members of the EPFO are covered under the insurance scheme known as EDLI or Employees Deposit Linked Insurance. In this article, we explain the key features of the scheme, eligibility, and benefits of the scheme.

The EDLI scheme was launched in the year 1976 to provide insurance cover to members of the EPFO. Through this scheme, the family of a member gets financial assistance in the case of the death of the member while in service. The insurance cover will depend on the salary drawn in the last 12 months of employment before death.

Under this scheme, there is no exclusion.

EDLI Contribution

The employees and employers contribute to the EPFO scheme and this contribution is split among the three schemes namely, Employees Provident Fund (EPF), Employees Pension Scheme (EPS), and Employees Deposit Linked Insurance (EDLI). There is no contribution from the Employees towards the EDLI scheme, whereas, the employee contribution is 0.5% of the Basic salary + DA, subject to a maximum of Rs:75/-. Eligibility kicks in only when the member has continuously worked for 1 year and is an active member of the EPF.

EDLI Calculation

The average salary drawn by the deceased member during the 12 months before death is taken for calculation of the EDLI benefit. 35 times the average salary in the last 12 months is taken for the calculation, subject to a maximum salary that is capped at Rs:15,000/-. The calculation is as follows:

35,000 x 15,000 = Rs: 5,25,000/-

To this amount, an additional bonus amount of Rs:1,75,000/- is added taking the total amount payable to Rs:7,00,000/-.

Eligibility to claim the EDLI Benefits

The insurance benefits can be claimed by the family members, legal heirs, and nominees of the member.

– Member of the family nominated by the member under the EPF scheme

– In case a nomination has not been made, all the members of the family except major sons, married daughters with major sons, and married granddaughters.

– In case there is no family and no nomination, then legal heirs.

– In the case of a minor, the guardian/family member/legal heirs.

Forms Required

To claim the insurance, the nominee, legal heir, and family member have to apply in EDLI Form 5 IF. The claim form has to be filled separately by each claimant and if the claimant is a minor, the guardian has to fill the form on his/her behalf.

The form has to be filled offline and has to be submitted to the regional EPF Commissioner’s Office along with the Death Certificate issued by the Employer, mentioning the date of death of the member. The Form should also mention the mode of fund transfer.

How to claim EDLI benefits?

  • The member should have been an active member of EPF at the time of death.
  • Form 5 IF has to be filled and submitted to the EPF Commissioner to get the insurance benefit.
  • The form has to be signed and certified by the employer.
  • Where there is no employer, the form has to be attested by any of the following officials:

– A gazetted officer

– The District Magistrate

– Member of Parliament or MLA

– President of the Village Panchayat

– Chairman/Secretary/Member of the Municipal or District Local Board

– Postmaster or Sub-Postmaster

– Regional Committee of EPF or Member of CBT

– Manager of the Bank in which the account is maintained.

Documents required for claiming EDLI

    • Death Certificate of the Member
    • Guardianship Certificate if a person other than the natural guardian files the claim on behalf of a minor family member/nominee/legal heir.
    • Succession Certificate in case the legal heir makes the claim
    • A copy of the canceled cheque of the Bank account to which the payment has to be made.
    • Where the member was last employed under an establishment that is exempted under the EPF Scheme, the employer of such establishment should furnish the PF details of the last 12 months under the certificate part and also submit an attested copy of the Member Nomination Form.

The EPF Commissioner is liable to settle the claim within 30 days failing which he is liable to pay interest @ 12% per annum from the stipulated date to the actual date of settlement.

The EDLI Scheme under the EPF Act provides critical support to the family members of a member who has died while in service. The family members, nominees, and legal heirs are eligible to get a maximum of ₹ 7,00,000 in the event of the death of the member in service. This is a great boon to the family at a very critical juncture.

GetifyHR has been able to provide strong support to clients across the country through its Payroll and HR management outsourcing module. This has provided our clients with a strong edge and helped them to improve the overall performance of the company. Through this outsourcing module, the entire gamut of Payroll processing and HR Management are handled seamlessly and efficiently. This has not only enhanced the performance of the company but has also ushered in a more harmonious work atmosphere.