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NEW WAGE CODE IN INDIA: Impact on Salary and Compliance explained.

May 11, 2026

by getifyhr with No Comment Business Labour Act News & Updates

Introduction

Labour Laws refer to the legal framework that regulates and controls the relationship between employers and employees. These laws govern various aspects of employment such as wages, working hours, leave policies, health and safety measures, social security, and Industrial relations.

Independent India has a highly complex framework of Labour Laws. The first major Act to be introduced was the Factories Act of 1948. This Act regulates the working conditions in factories and includes safety and health measures, working hours, and leave policies. Other Key labour laws include the Industrial Disputes Act, the Payment of Wages Act, the Minimum Wages Act, the Employees state Insurance Act, and the Employees’ Provident Fund and Miscellaneous Provisions Act.

Over the years, successive governments have continued to introduce new Labour Laws and amendments to update existing ones to be in consonance with existing economic and social conditions.

The 2nd National Commission on Labour (2002) had recommended that the existing Labour Laws should be broadly grouped into 4 Labour Codes. Based on these recommendations, the Ministry of Labour and Employment, Government of India, had introduced 4 Bills in 2019 to provide a simpler and more coherent system to regulate and control the relationship between the employers and employees.

The Bill consolidates 29 existing labour laws into 4 Labour Codes, and these are:

The Code on Wages, 2019
The Code on Social Security, 2020
The Industrial Relations Code, 2020
The Occupational Safety, Health and Working Conditions Code, 2020.

Through the enactment of the 4 Labour Codes, 1228 sections were amalgamated into 480 sections, and 1436 rules were reduced to 351. 31 multiple Returns have been replaced by a single electronic return and the number of forms have reduced from 181 to 73, and the Registers to be maintained by the employers have reduced from 84 to just 8.

In this article, we explain the features of the Code on Wages, 2019, and highlight its impact on salary and compliance.

The Code on Wages, 2019

The Code of Wages is a well formulated effort to regulate wages and bonus payments in all forms of employments be it any industry, trade, business, or manufacturing industry. The Code on Wages, 2019 amalgamates 4 existing Acts, namely, the Payment of Wages Act, 1936, the Minimum Wages Act, 1948, the Payment of Bonus Act, 1965, and the Equal Remuneration Act, 1976.

The main focus of the Code is to balance the rights of employees and facilitate ease of compliance for employers. It safeguards the interests of employees through universal minimum wages, ensuring dignity and timely payment of wages. The Code supports women employees through equal pay and representation, thus fostering inclusive participation. These measures will generate greater employment and promote workplace equity, and give a boost to productivity and labour welfare, thus strengthening economic growth, generate employment and promote workplace equity.

Minimum Wages and National Floor Wage

One of the most important changes is the universalization of Minimum Wages and the introduction of the National Floor Wage. As per the Code, all employees have a statutory right to Minimum wages. The Central Government will fix the National Floor Wage based on the minimum living standards, and the State Governments can set the Minimum Wages. However, no state government can set a minimum wage that is below the National Floor Wage.

Floor Wage and Compliance

The National Floor Wage not only stabilizes labour costs by creating a universal wage baseline for organizations across multiple states, but also ensures simplified compliance. By ensuring that no state can set its Minimum Wage below the floor level, it reduces regional wage disparity and compliance risks of tracking multiple fragmented state laws. These changes allow companies to standardise their national payroll structures and HRMS Logic, thus simplifying administrative tasks and providing a clear and strong foundation for financial planning and cost projections across multiple locations.

Equal Pay for Equal Work

One of the important features of the Code is its support for women workers by ensuring equal pay for equal work. This will ensure that there is discrimination among employees on the basis of gender (including Transgender identity) in matters relating to wages for the same work or work of a similar nature. This obligation has been extended to all genders in respect of conveyance allowance, house rent allowance, and any remuneration payable under an award or settlement.

The Code not only promotes workplace quality, but also mandates that overtime work must be compensated at a rate of at least twice the normal rate of wages, thus providing a uniform standard for all workers.

The Mandatory 50% Rule

One of the most important provisions in the Code on Wages is the mandatory 50% rule. The Code stipulates that the core statutory components of pay, i.e., Basic Pay, Dearness Allowance, and Retaining Allowances, must constitute 50% or more of the total Cost to Company (CTC). This means that the excluded components of remuneration, such as House Rent Allowance (HRA), Conveyance Allowance, Overtime Allowance, retirement benefits including PF & NPS, and other Tax-friendly Allowances, must not exceed 50% of the employees’ total remuneration (CTC).

The 50% rule is a mandatory provision that restructures the salary by ensuring that the core salary component (Basic Pay, DA etc) are at least half of more of the total take home salary (CTC). The effect is two-sided. On the one hand, the monthly take-home salary is likely to decrease marginally because statutory deductions like PF increases as they are calculated on a higher basic pay. On the other hand, the employees’ future savings and security shows significant increase as the higher basic Pay boosts mandatory PF contributions, thus generating a substantially higher Gratuity payout on retirement, resignation, or termination.

Payment of Wages – Timeline

The employer is mandated to pay wages to all employees within the timeline fixed for each period. This will enable all employees to receive their wages on time, thus providing wage protection. The wage payments have to be digitized through a Bank account & Electronic mode. The employer is required to issue wage slips to the employees as per the time fixed for each wage period. The same is tabulated below:

Wage Period	Payment Schedule
Daily wage basis	At the end of the shift
Weekly wage basis	On the last working day
Monthly wage basis	Less than 1,000 employees Before the expiry of the 7th day of the succeeding month 1,000 or more employees Before the expiry of the 10th day of the succeeding month

The responsibility of paying all dues rests with the employer, and in case of a claim relating to non-payment, the onus is on the employer to produce the proof.

In case of resignation or retrenchment, termination, or becoming unemployed due to the closure of the unit, wages shall be paid within 2 working days.

Payment of Wages

The employer cannot make any arbitrary deductions from the wages of employees except those that are specifically authorised by the Code. Under the Code, an employee’s wages can be deducted on the following grounds:

Fines imposed.
Absence from duty.
Towards accommodation provided by the employer.
Towards recovery of Advances/Loans given to the employee.
Towards Income-tax or other statutory levy.

The total amount of deductions shall not exceed 50% of the employee’s total wage in any wage period. In case the authorized deductions exceed 50%, it cannot be deducted in full in that wage period; instead the excess amount must be recovered in the subsequent pay periods as prescribed by law.

Compliance

The Code incentivizes organizations by reducing compliance burden and transaction costs. Terms like “Wages”, “Worker”, “Employees”, “Employers”, “Establishments”, “Appropriate Government”, etc have been given a uniform and common definition.

Some important Definitions

Wages: All remuneration by way of salaries, allowances or otherwise that is payable to a person by the employer in respect of his/her employment, subject to all terms of employment being fulfilled.
Establishment: A place where any industry, business, trade, manufacture or occupation is carried on and includes Government Establishments.
Workers: Any person (except an Apprentice) employed in any industry to do any manual, skilled, unskilled, operational, technical, clerical, or supervisory work for hire or reward. The term also includes working journalists and sales promotion employees.
Employee: Any person employed on wages by any establishment to perform any skilled, semi-skilled or unskilled, manual, operational, supervisory, managerial, administrative, technical pr clerical work for hire pr reward.
Employer: A person who employs others directly or through any other person, or on his behalf or on behalf of any person, one or more employees in his establishment, and where the establishment is carried on by any department of the Central or the State Government or Local Authorities, the head of department, the chief executive of the local authority.
Appropriate Government: Refers to an establishment carried on by or under the authority of the Central Government, and includes railway, mines, oil fields, major ports, air transport, telecommunications centre, banking and insurance company, or a corporation or other authority established by a Central Act or CPSU’s/Autonomous bodies established by the Central Government.

The Code incentivizes businesses by reducing compliance burden and transaction costs.

By bringing uniformity in the common definition of frequently used terms, it has reduced complexity in compliance.
The number of authorities in the tripartite boards has been reduced, and this will be implemented only through 1 Rule instead of 8 different rules that exist at present.
The options for filing and maintenance of registers, returns, and forms electronically and prescribing one template for the registers, returns, and forms instead of multiple ones at present make compliance hassle-free.

The Code brings cultural changes in the Inspection system to reduce corruption & arbitrariness and infuse transparency.

The Inspector-cum-Facilitator is not only entrusted with the job of inspecting and imposing fines, but is also tasked to provide information and advice to the employers.
The introduction of web-based inspection schemes enables calling for information under the Code electronically for inspection and conferment of jurisdiction of inspector-cum-facilitator based on randomized selection of inspection.
The Code mandates Inspector-cum Facilitator to provide prior opportunity to the employer to rectify and comply with the provisions of the Code by way of a written direction before initiating prosecution. On compliance, the Code stops initiation of prosecution proceedings against the employer. This provision is meant to assist employers who have committed an offence under the Code for the first time and is not applicable to repeat offences.

Bonus Determination

Employers are mandated to pay Bonus to every employee who draws wages up to a limit set by the appropriate government and has worked for at least 30 days in the accounting year, i.e., the year commencing on the 1st day of April.
The annual minimum Bonus will be at least 8.33% and maximum up to 20% of the wage earned by the employee.
The Wage Code has not prescribed any threshold for the applicability of statutory bonus provisions, and appropriate governments are empowered to prescribe such thresholds. For an organization with multiple branches in more than one state, this may create compliance issues as each state may prescribe different thresholds. However, employers are to maintain the status quo and continue with the statutory bonus coverage as is existing till a new threshold is announced.
Termination of service on the ground of sexual harassment is now identified as an additional ground for disqualification from the statutory bonus.

Cognizance of Offences

The Appropriate Court shall take cognizance of any offence punishable under this code only on a complaint made by..
- - Authority/Official of the appropriate government or
  - By any employee or
  - A registered Trade Union or
  - An Inspector-cum-Facilitator
No court inferior to that of a Metropolitan Magistrate or Judicial Magistrate of the First Class shall try the offences under the Code.

Penalties – Power to impose Penalties

The appropriate Government will appoint officers not below the rank of Under Secretary, who will impose penalties for the offences.
The Officer is authorised to hold an enquiry and to summon and enforce the attendance of any person acquainted with the case to give evidence or to produce any documents.
If on such enquiry, the Officer is satisfied that the person has committed an offence, then he may impose such penalty as he deems fit.

Standardized Penalty Provision

The Code has standardized penalty provisions, introduced the concept of “graded penalty,” and has enhanced penalty provisions, especially the fine amount manifold. This is done to act as a strong deterrent and is expected to improve compliance and the effective application of the provisions.

S.No	Type of Offence	Penalties
1	First offence: Pay the employee lesser that the amount due under the Code	Punishable with fine which my extend up to ₹ 50,000/-
2	Repeat offence: Similar to 1 above within 5 years from date of the commission of the first significant offence	Punishable with imprisonment for a term which may extend to 3 months or with fine which may extend to ₹ 1,00,000/-
3	First Offence: Contravenes any other provisions of the Code or any rule made or order passed or issued there under	Punishable with fine which may extend to ₹ 20,000/-
4	Repeat Offence: Similar to 3 above within 5 years from the date of the commission of the first or subsequent offence	Punishable with imprisonment for a term which may extend to 1 month or with fine which may extend to ₹ 40,000/-
5	Offences on non-maintenance or improper maintenance of records in the establishment	Punishable with fine which may extend to ₹10,000/-

Maintenance of Records, Returns and Notices

The Code mandates that every employer of an establishment shall maintain a register of persons employed, muster roll, wages, and other provisions as prescribed in the Code.
Every employer shall display in a prominent place on the Notice Board an abstract of the Code on Wages, category-wise wage rates, wage period, day or date, and time of payment of wages, and name and address of the Inspector-cum-Felicitator.
Every employer is mandated to issue wage slips to all employees.

Conclusion

The Code on Wages is a well-intentioned piece of legislation that has been widely accepted by the industry. The Code aims to balance the interests of the employers and employees. India’s economic growth and development are inextricably tied to the productivity and well-being of its workforce.

As the nation continues its economic march upwards, the importance of progressive labour laws that safeguard the workers’ rights while fostering a conducive business environment cannot be overstated. The Code on wages is a decent attempt to replace the obsolete provisions of the earlier laws. The Code will help in removing the multiplicity of definitions and authorities. Compliance is maintenance of records and registers, filing of returns, and display of notices will be substantially reduced through this legislation. The cost of compliance is expected to reduce, and it is hoped that it will eliminate any litigation based on a complex definition of wage, worker, employee etc.

The provisions of the Code inspire confidence in the business community and for all workers, as it will help in bringing all workers under the ambit of the law. There will be a lot of challenges in the coming days as the respective state government has to address the issues and bring their own laws in consonance with the Code of Wages. Implementation may pose challenges, but the fact remains that the Code on Wages is a piece of legislation in the right direction and in accordance with the changing times.

We at Getify are fully geared to assist all our clients in implementing the new Code on Wages. As a highly tried and trusted Payroll Processing & HR Management service provider, we can streamline your entire payroll process to be in alignment with the new rules and regulations.

PMVBRY – Guidelines for calculating incentives under the Scheme.

May 8, 2026

by getifyhr with No Comment Business News & Updates

Introduction

The grand vision of “Viksit Bharat @ 2047” is hoped to be achieved by the Employee Linked Incentive (ELI) Scheme under the name. The “Pradhan Mantri Viksit Bharat Rosgar Yogana” announced by the Government of India in the Union Budget 2024-25. As you are aware, this scheme will complement the National Manufacturing Mission announced in the Union Budget 2025-26 by providing a boost to the ‘Make in India’ initiative. The main objective of this scheme is to increase the contribution of the manufacturing sector to India’s GDP from 16% to 25% by 2025.

In this article we will dwell on the eligibility, benefits and the guidelines for calculating the incentives under the scheme.

1. Part A of the Scheme – Eligibility of Employee under Part A:

All First timers are eligible to receive the benefits under the scheme subject to the establishment being covered under the EPF & MP Act, 1952. All First timers drawing gross wages up to ₹ 1,00,000/- at the time of joining the establishment registered with the EPFO will be eligible to receive the incentives under Part A of the scheme, subject to filing of ECRs with contribution for 6 continuous months.

First Timers employed in establishments which are part of the seasonal industry as defined under the EPF & MP Act, 1952 can be considered as eligible if the ECRs are filed over 6 months during a period of 12 months irrespective of continuity, and if the First timer is employed in the same establishment for the entire period.

Exempted establishments should provide details of all employees, including the First timers for whom the contributions are being deposited in their PF Trust, along with the filing of ECRs without contributions to EPFO.

The First timer in an Establishment is eligible to receive the 2^nd instalment of the incentive under Part A of the scheme when all the 12-month ECRs have been filed within a period of 18 months from date of joining the establishment.

2. Calculation of Incentives:

Under Part A, the First timer can receive an incentive that is equivalent to one completed month EPF wage, subject to a maximum of ₹ 15,000/-.

The incentives will be paid in two instalments. The first instalment will be half of the average EPF wage for 6 continuous months subject to a maximum of ₹ 7,500/-. This instalment will be paid after filing of six completed months’ ECR’s along with the contributions. The second instalment will be invested in an appropriate saving instrument/deposit account for a period to be specified by M/o L & E in due course. The First timer will be eligible to receive this part of the incentive only after completion of the Financial Literacy program and filing of 12 completed months’ ECR’s along with contribution by the establishment.

Part B of the Scheme:

The benefits under Part B will be paid to the employers in respect of the First timers and Re-joinees subject to fulfilling the threshold criterion.

Incentive Amount and Periodicity

The incentives to employers under Part B will be paid for 4 years for manufacturing industry and 2 years for others at the following rates in respect of employment generated over and above the baseline fulfilling the threshold level. Where the baseline is less than 50, at least 2 additional employments are required for eligibility, and where the baseline is 50 & above, at least 5 additional employments are required for eligibility.

The incentives to employers will be as under:

EPF Wage slabs of Additional employees	Benefit to the Employers in ₹. (Per additional employment per month as per prescribed criteria)
<= ₹ 10,000*	Up to ₹ 1,000
₹20, 000 to ₹ 1,00,000**	₹3,000

* Where the employees get EPF wages less than ₹ 10,000, the incentive at the rate of 10% of EPF wage will be provided.
*Incentives will be paid to new employees with EPF wages up to ₹ 1,00,000/- at the time of joining the establishment.

These incentives will be paid to all eligible establishments in lump-sum payments every six months, after filing for six completed months ‘ECR’s based on eligibility of the employer and employees. Further, these benefits will be provided in respect of those first-timers and Re-joinees who complete 6 months of employment with the same employer.

In case the employer is not eligible as per the threshold criteria, the benefits will not be provided, and there will not be any extension to the incentive period.

Eligibility of Establishment under Part B

The eligibility of the establishment will be determined based on the threshold criteria as detailed below:

During the first 6 months of joining the scheme, the average number of employees in the establishment as per the ECRs filed for that period should be more than or equal to the Baseline plus the threshold limit.

Between the 7th and 12th month, the average number of employees in the establishment as per the ECRs filed from the 1st month up to the last month should be more than or equal to the Baseline plus the threshold limit.

From the 13th month onwards the average number of employees in the establishment should be more than or equal to the Baseline plus the threshold limit as per the ECRs filed from 1st month up to that month.

If any establishment registered with the EPF & MP Act, 1952 has pending inquiries under Section 7A/7B/7C of the Act and Para 26-B of EPF scheme; the incentives under Part B will be with held. Also establishments against whom a FIR has been filed by EPFO for fraudulent practices or where inquiries relating to irregularities under the ABRY Scheme or any other scheme are pending or has been decided against the establishment, then the incentive will be with held.

Discontinuation of the Incentives

The Payment of Incentives under the scheme will be discontinued under certain conditions:

In case the First timer leaves the employment on his own volition or otherwise.
In case of any eventuality, like death, etc, of the beneficiary.
If the establishment winds up.
In the event of any misrepresentation or fraud.

Mode of Payment

The incentives will be disbursed within 45 days, once the ECRs are filed and contributions paid as per the periodicity as defined under the respective Part of the scheme.

The incentives to the establishments shall be disbursed as Direct Benefit Transfer to the PAN-linked Bank Accounts of the Establishment. In case a group of establishment under the same PAN are eligible for the incentives, then payment will be made to a single PAN-linked Bank account nominated by the group.

The incentives to the employees shall be paid through (Aadhaar Bridge Payment System) Direct Benefit Transfer to their Aadhaar-seeded Bank accounts.

In case the employees’ bank account is pending for Aadhaar seeding, then the payment shall remain suspended. However, the incentive would continue to accrue during this period and, once the bank account is Aadhaar-seeded, the payment, including arrears, would be released as per the scheme guidelines.

Other features of the Scheme

Rounding Off: All calculation to arrive at the Baseline, threshold, and average strength of employment may be rounded off to the nearest integer.

Penalty for fraudulent activities: Legal action may be initiated against establishments found indulging in fraudulent activities or availing incentives based on fictitious data or documents or otherwise. The Ministry of Labour and Employment will issue a comprehensive Penalty clause to this effect.

Communication strategy & Advocacy: A nation-wide multimedia outreach strategy using social media, traditional media, webinars, workshops etc., will be adopted to give wide coverage to the scheme. For better advocacy of the scheme, the outreach will be done in multiple languages.

Monitoring and Evaluation

Monitoring

For purpose of monitoring the scheme, an inter-ministerial Steering Committee will be constituted by the Ministry of Labour and Employment. The Steering Committee would provide recommendation on wide ranging functions of the scheme. The Steering committee is scheduled to meet at least once every quarter or as decided by the Chairperson.

An Executive Committee under the Chairpersonship of CPFC will also be constituted by the Ministry of Labour and Employment. To ensure proper implementation of the scheme, the Executive Committee will meet every month.

Evaluation

Based on the recommendations of the Steering Committee, a third party mid-term evaluation of the Scheme shall be undertaken for necessary course correction after one year of the start of the scheme.

A third-party end-term evaluation of the scheme shall be conducted three months prior to the closure of the scheme to assess the outcome of the Scheme. The incidental costs of this evaluation will be met from the Administrative charges allocated for the Scheme.

Administration and Grievance Redressal of the Scheme

The scheme shall be administered by the EPFO under the overall supervision of the Ministry of Labour and Employment. EPFO shall provide an online facility to stakeholders to lodge grievances related to the scheme. A Call Centre for PMVBRY will also be set up to assist stakeholders.

Financial Outlay of the Scheme

The Government has earmarked ₹ 99,446 Crores for the scheme, and this includes Administrative charges of ₹ 248 crores. EPFO aims to create 3.5 crore jobs during a 2 year period through this scheme.

Taxation

The incentives received under the scheme are taxed as they are subject to the provisions of the Income Tax Act, 1961.

Audit

The CAG will conduct a statutory audit of the Scheme, whereas, the Internal Audit Wing (IAW), M/o. L & E will conduct a non-statutory Audit. Concurrently, an internal Audit will be conducted by EPFO.

Conclusion

The “Pradhan Mantri Viksit Bharat Rosgar Yogana” is the Employee Linked Incentive (ELI) Scheme announced by the Government of India in the Union Budget 2024-25. The PMVBRY scheme not only incentivises both the employers and employees, but is a measure that focuses on creating a more inclusive and dynamic job market. The scheme hopes to significantly enhance the financial relief to employers especially SMEs, thus providing the right impetus for them to grow and hire, and will also support workforce expansion and formalization.

Getify, is fully equipped to provide all stakeholders of our continued support in fully utilising these initiatives to foster growth and job creation, and to ensure a thriving and sustainable business in the long term. As one of the leading Payroll processing and HR management companies in the region we can assure all our clients of our professional support in benefitting from this scheme.

How to Calculate Salary Hike Percentage Accurately? Formula and Example

May 26, 2025

by getifyhr with No Comment Business News & Updates

An employee is a vital cog in the wheel of business, and their commitment and dedication is crucial for the success of the venture. Employee retention is, therefore, crucial, and to this end, the employer has to pay their employees fairly to gain their loyalty and commitment. One important activity that keeps the employees satisfied and committed is regular salary hikes announced by the company.

What is a Salary Hike?

A salary hike is an upward adjustment of the employee’s salary package and this is usually given by the employer based on factors like employee performance, experience, inflation, or fluctuation in the job market. For an employee, a salary hike is an important achievement in his or her career and recognition of the contribution to the company’s growth.

A pay hike provides them with the opportunity for professional growth and increased financial stability. The cost of living increases consistently every year due to inflation and a salary hike is one way of ensuring that employees can maintain their purchasing power and way of life through rising prices.

How to calculate Salary Hike Percentage?

The Salary Hike Percentage Formula is a simple and straightforward arithmetic calculation to arrive at the Salary Hike percentage. The following simple steps will guide you through this process.

Step 1 Determine the salary you are currently offering.

The current salary is the salary that you pay before the hike.

Step 2 Note down the new salary after the hike.

This is the salary that you will pay after the announced salary hike.

Step 3 The Current Salary has to be subtracted from the New Salary

When you subtract the Old Salary from the New salary you get the increase in Salary amount after the hike.

Step 4 Calculate the Salary hike percentage

Divide the figure obtained in Step 3 by the current salary and then multiply the result by 100 to get the hike percentage.

The salary hike formula is relatively simple and follows basic arithmetic operations. The formula is:

Salary Hike Percentage = New Salary – Current Salary/Current Salary x 100

The New Salary is the amount that the employee receives after the hike.

The Current Salary is the amount that the employee is currently receiving.

This Annual salary hike formula enables employers to quantify the percentage increase in salary and gain insight into the impact of the hike on the overall compensation. This will help them to evaluate job offers, negotiate salary adjustments or assess the effectiveness of performance reviews.

Example of Salary Hike Percentage Calculation

Let’s now look at an example:

Suppose the employee’s current salary is Rs:65,000, and is offered a New salary of Rs:71,500 after a performance review.

The formula is:

Salary Hike Percentage = Announced New Salary amount– Current Salary/Current Salary x 100

= 71500 – 65000/65000 x 100

= 6500/65000 x 100 = 10

The Salary Hike is 10 %

Let us now calculate Salary Hike Percentage from the CTC (Cost to Company).

CTC include heads like Basic Salary, DA, benefits, bonuses, and other perks. If the employer hikes the salary based on CTC, the same formula can be used to arrive at a hike percentage.

Example : Old CTC = 7,80,000

New CTC = 8,58,000

Hike amount = New CTC – Old CTC = 8,58,000 – 7,80,000 = 78,000

As per Formula: 78000/780000 x 100 = 10 %

How to calculate Salary Hike on Hourly Wages?

If the employees are being paid on an hourly basis, you can calculate the percentage of wage hikes using the same formula.

Old hourly wage = Rs: 200

New hourly wage = Rs:230

Wage Hike Percentage = New hourly wage – Old hourly wage/Old hourly wage x 100

230 – 200/200 x 100 = 15%

However, this will be useful for organizations that employ freelancers, contract workers, and other employees with hourly wages.

You can also calculate salary increments and their percentages using a salary hike calculator that comes bundled with certain payroll packages.

Why do employers hike salaries?

To motivate

A salary hike helps to foster a positive workplace culture and ensures job satisfaction. It motivates employees to continue to work and contribute positively to company growth. These increments are one of the ways of informing the employees that the company appreciates their contribution to the company. Companies that offer reasonable salary hikes and other financial incentives have lower attrition rates and can retain their employees for a longer period.

To recognize and reward the performers

Consistent performers are recognized and rewarded for their contribution to company growth. A salary hike is one form of this reward that acknowledges their hard work, dedication, and valuable contribution, and encourages them to maintain high level of performance.

Supports the rising cost of living due to inflation

Inflation pushes up the cost of living periodically. To offset this, companies offer salary hikes to employees to enable them to maintain their purchasing power and enhance their way of life.

Encourages career growth

A salary hike indicates that the employee is moving up the career ladder and is performing better. This, therefore, encourages career growth.

Assists in Financial Planning

With a higher salary, it becomes easier for the employee to plan for the future and save money. This will encourage him to be more loyal to the organization.

What factors help employers to decide on a salary hike?

This is a question that is on the minds of employers or HRs all across the industry. The decisions that the employers or HRs take is vital to how they interact with the employees and get their work done. The following factors are taken into consideration to decide on salary hikes:

Budget of the Company

The budget of the company plays a major role in deciding on salary hikes. If the company has a funds crunch, it can opt to pay increments to a limited number of employees. This means only those who have performed well will receive a salary hike.

The Experience Level of the Employees

Experience is a vital factor in deciding on paying a salary hike. The priority of most employers is to give raise to experienced employees, especially those who take effort to guide their colleagues or help recruits with training.

Qualification and Expertise

The qualification and expertise of an employee plays a crucial role in receiving a salary hike. An employee with the required qualifications and expertise for the job is the ideal choice for a salary hike.

Maintaining Average Pay Standards

Employers may research the average salary standard in similar roles in the industry to consider given yearly salary hikes. Most companies try to match current trends by paying their employees well.

Employee Performance

This is one of the most important criteria for salary increments. Most organizations value their high performers and recognize their efforts through rewards in the form of salary hikes or incentives. Performance tracking solutions are used to track employee performance throughout the employment career.

Conclusion

Salary hikes are not just a numerical increase in the take-home salary of an employee; they symbolize an organization’s acknowledgment of an employee’s contribution and are, therefore, a strategic tool for boosting morale and productivity. While the decision-making process is influenced by various factors, performance remains a vital factor in any salary hike.

Employees can greatly appreciate the salary hikes by understanding the factors that have influenced the employer in giving such hikes. This will help them to plan their future course of action accordingly. A pay hike is just a stepping stone towards career growth and financial stability. Employees should balance immediate gratification with long-term career goals.

GetifyHR, a tried and trusted Payroll Processing and HR Management service provider, can streamline your entire payroll process and empower your workforce. Where you require a more streamlined approach to managing your salary details, you can consider using GetifyHR’s comprehensive HRMS solutions.

Which Payroll Processes are the most time consuming and how to streamline them?

March 10, 2025

by getifyhr with No Comment Advertising Business

Payroll is the process by which the net pay of an employee and includes the benefits that you provide to each employee or group of employees and the deductions that must be made depending upon the salary. This is a complex process that requires a high degree of accuracy to avoid problems that may affect the growth of the organization.

Streamlining this process and ensuring accurate and timely payment of salary is vital as any inaccuracies will negatively impact the morale of the employees and affect productivity. Adhering to the various laws and regulations such as labour laws, EPF and other statutory compliance requirements is critical. Non-compliance with these rules and regulations can lead to serious legal issues that may lead to financial consequences.

The onus is on the management to see that the employees are happy and the company is fully compliant of all the statutory rules and regulations. To achieve this you will need a perfectly working Payroll system that can generate accurate payslips and maintain all employee related records up-to-date and accurate. In this article we delve into the most time consuming process in the Payroll and on how the entire process could be streamlined for ensuring smooth functioning.

Steps to process Payroll
Which Payroll Processes Are the Most Time-Consuming
How to Streamline Them?
How GetifyHR Helps You??

1. Steps to process Payroll

The entire Payroll Process can be dived into 3 stages, namely, Pre-Payroll stage, Actual Payroll processing stage and Post-Payroll stage.

1.1 Stage I – Pre-Payroll stage

1.1.1 Choosing the right Payroll system

Choosing the right Payroll system is critical for the smooth working of the process. Payroll process is a complex process that requires utmost care and effort to function smoothly. There are three basic payroll systems that you can choose from and they are:

Manual Payroll
Payroll using in-house Software
Outsourcing Payroll

Manual Payroll: Manual Payroll is processing the payroll manually either on paper or on a spreadsheet. This is a time consuming process and requires dedicated effort. The possibility of manual errors is high.

Payroll Processing using specialized Software: Fully customized Payroll Software are now available that offer everything from basic payroll operations to highly complex operations that include time tracking and even human resource services.

Outsourcing Payroll: Here the entire payroll process is outsourced to an external agency that performs the entire operations with the use of high end technology. The entire gamut of payroll processing right from inputting data to handling the rather complex statutory compliance requirement is handled by the outsourcer.

These three Payroll systems have their own pros and cons and a thorough study based on your requirement has to be undertaken before you make the choice. Factors like the number of employees, work hours, employee benefits, and the complexity of the Statutory Compliance requirements for your state have to be fully studied before deciding on the type of system you prefer.

1.1.2 Create a Payroll Policy that suits your workplace.

Take time to review the existing labour laws, working hours and overtime laws, and other details pertaining to employment. The payroll policy should also include the schedule for Pay dates, the mode of payment of salaries, the deduction & withholding and the benefits payable to the employees. A comprehensive study of all aspects should be made before finalising the payroll policy.

1.1.3 Gather Employee information.

Ensure that all the details pertaining to each employee is collected. Information regarding each employee’s personal details, social security details, tax filing records and details pertaining to employee health insurance, retirement savings etc have to be collated. The disbursement of salary whether by cash, cheque or direct deposit have to be defined and accurately maintained.

1.1.4 Handling Employee Updates

All the changes that have taken place during the salary period have to be updated. This would include the salary revisions, changes in deductions and tax structure and also include details of all new joining.

1.1.5 Input Validation

Once all the inputs have been received, you have to validate the data and ensure that no active employee is left out and conversely no inactive employee records are included for salary payment.

1.1.6 Tracking attendance work hours

If you are manually performing the payroll process, the paper time cards would be available and you have to add up hours, check for errors and update the data to your payroll records. Those using a Payroll processor have to verify and approve the time sheets that are available and update the system.

1.1.7 Handling Employee Leave

For manual operations, the Leave details of all employees would be available on paper and these have to be updated. For those using a Payroll software the details would be already existing in the system.

1.1.8 Processing Employee Benefits

These have to be calculated manually and the data has to be updated before you start the actual payroll generation. The employee benefit details will be available in the system for those using Payroll software. These records have to be updated before running the actual Payroll process.

1.2 Stage II – The Actual Payroll Process

Once all the updates have been made and the data validated, then you can go ahead with the actual Payroll process. On completion of the payroll process the Payslips are generated that gives the Net Pay after deduction of relevant taxes and other statutory deductions. The Payslips can be distributed to the employees along with their salary dues in the method adopted by the company.

1.3 Stage III – Post-Payroll Process

The Post-Payroll process is the final stage in the Payroll process and has the following sub-stages:

1.3.1 Salary Disbursement or Payout

This stage involves the disbursement of salaries to t he employees either by cash, cheque or direct deposit as the case may be. The company has to ensure that sufficient funds are available in the Bank Account to meet the payments. The Bank has to be informed about the payment and a statement has to be issued providing details such as Employee ID, Bank A/c. No. and the amount of salary etc. For those using a Payroll Software that has the Employees Self Service (ESS) module, the payslips can be published and the employee can login to their account and access the payslips.

1.3.2 Statutory Compliance

During this process all the statutory deductions like EPF, ESI, TDS, PT etc that have been deducted during the Payroll process are remitted to the respective government accounts. Payment dues are made via challan and the frequency will be according to the type of dues. Once these payments have been made the returns/reports are generated and filed with the authorities.

1.3.3 Accounting the Payroll

Salaries make up a significant part of the expenses incurred in a business. These expenses have to be properly accounted for and reconciled so that the company maintains accurate and complete financial records and ensure full compliance with all statutory and tax regulations. Keep track of all the expenses related to Payroll including salaries, overtime wages, bonuses and benefits. This will enable the management to get an accurate overview of the total payroll cost and help with budgeting and financial planning.

2. Which Payroll processes are the most time consuming?

The Payroll process in its entirety is a highly complex activity that has to be performed with great care and expertise. All the activities involved in payroll are complex processes that only vary in the degree of complexity. However, among these activities the most time consuming and complex processes are the following.

2.1 Tracking Attendance work hours

2.2 Payroll Adjustments

2.3 Processing Employee Benefits

2.4 Manual Payroll Calculations and Salary Revisions

2.5. Tax Collections and Statutory Compliance

2.1 Tracking Attendance work hours

Tracking Attendance work hours is one of the most time consuming tasks in Payroll processing. Calculating employee hours, overtime, deductions and taxes is a difficult task when handled manually. Accurately tracking employee hours is a challenging task, more so for remote or part-time employees. The process is not only tedious, but is also prone to errors. This can lead to discrepancies in the pay slips that will result in employee dissatisfaction leading to disharmony in the workplace. Where the employee strength is very low, tracking work hours will be effective but when the workforce strength is high it is prone to errors.

2.2 Payroll adjustments

Payroll adjustments refer to any change in the employees’ regular pay. The changes can be a temporary or permanent increase or decrease of an employee’s pay. Either way, it is important to perform this process accurately for wages and hour compliance. This is a complex process as any change in employment status, change in salary or wages, overtime wages, change in wage work hours and change in benefits and allowances will have its effect on the entire payroll process. Any change would naturally reflect in the compliance requirements and therefore, it is vital that these are handled carefully to avoid non-compliance with the statutory requirements.

2.3 Processing Employee Benefits

The benefits to Employees include providing health insurance and other key benefits. Normally the HR department is entrusted with the job of administering this process. A typical employee benefit administrator is entrusted the task of developing a benefit program, coordinating with the benefit provider, facilitating the enrolment of employees into the program and assessing the eligibility of employees for the benefits.

The most common types of employees’ benefits include

Health Insurance Coverage
Retirement Plans – 401(K)
Disability Insurance
Paid time Off
Parental Leave
Wellness Programs

This is complex process that requires efficient handling through a dedicated team.

2.4 Manual Payroll Calculation and Salary Revision

Manual Payroll Calculations are based on the frequency of payment and their hourly wage. In an employee is working your company for Rs:250/- per hour on a frequency of biweekly payment, then he will get 40 hours/week x 2 weeks = 80 hours x 250 = 20,000/- as gross payment. If the employee has worked overtime, it is paid at 1.5 times the workers regular pay rate. Supposing he has worked for 10 hours overtime per week then the calculation would be 10 hours x 2 weeks = 20 hours x 375 = 7,500/- (gross overtime wage).

The Payroll calculation of a salaried employee is paid for each working period. Since the salary is fixed it is easier to manually process the salary. Salary revision is the process of reviewing and changing the compensation and benefits package of employees within the organization. The process involves adjusting employees salaries based on various factors such as performance, market trend, cost of living and company budget.

These changes should be informed to the employees and the relevant changes must be made in the payroll calculations during the scheduled pay period. The process has to be performed with utmost care and accuracy as any mistake would be reflected in the payslip generated. Any mistake in the process would dampen the morale of the employees and pave the way for disharmony in the workplace.

2.5 Tax Calculation and Statutory Compliance

Tax calculations and Statutory Compliance are two vital factors that have to be carefully handled while processing the payroll. The Tax and Compliance calculations include:

Income Tax – TDS
EPF and ESIC, LWF & Payment of Gratuity
Labour Laws

Income Tax – TDS

Tax Deducted at Source (TDS) is one of the most important statutory regulations that every business has to adhere to. The purpose of the regulation is to collect Tax from the source of an individual’s income and these include salaries, interest and commission.

Individual Assessees were given the option of following the Old Tax Regime or the New Tax regime (23-24). However, in the budget announcements for the year 24-25, a New Tax Regime has been introduced that has made some changes from the earlier New Tax Regime 23-24.

The relevant Tax slabs for all the three tax regimes, Old Tax Regime, New Tax Regime 23-24 and New Tax Regime 24-25 (AY 25-26) are detailed below:

Old Tax Regime for Individuals

Taxable Income	Incometax Rate
Upto ₹ 2,50,000	NIL
₹ 2,50,001 to ₹ 5,00,000	5% above ₹ 2,50,000
₹ 5,00,001 to ₹ 10,00,000	₹ 12,500 + 20% above ₹ 5,00,000
Above ₹ 10,00,000	₹ 1,12,500 +30% above ₹ 10,00,000

New Tax Regime FY 23-24

Taxable Income	New Tax Slab Rate – FY 23-24 (AY 24-25)
Upto ₹ 3,00,000	NIL
₹ 3,00,001 to ₹ 6,00,000	5% on income exceeding ₹ 3,00,000
₹ 6,00,001 to ₹ 7,00,000	₹ 15,000 + 10% on income exceeding ₹ 6,00,000
₹ 7,00,001 to ₹ 9,00,000	₹ 25,000 + 10% on income exceeding ₹ 7,00,000
₹ 9,00,001 to ₹ 10,00,000	₹ 45,000 + 10% on income exceeding₹ 9,00,000
₹ 10,00,001 to ₹ 12,00,000	₹ 50,000 + 15% on income exceeding ₹ 10,00,000
₹ 12,00,001 to ₹ 15,00,000	₹ 90,000 + 20% on income exceeding ₹ 12,00,000
Above₹ 15,00,000	₹ 1,50,000 + 30% on income exceeding ₹ 15,00,000

New Tax Regime FY 24-25 (AY 25-26)

Taxable Income	New Tax Slab Rate – FY 24-25 (AY 25-26)
Upto ₹ 3,00,000	NIL
₹ 3,00,001 to ₹ 6,00,000	5% on income exceeding ₹ 3,00,000
₹ 6,00,001 to ₹ 7,00,000	₹ 15,000 + 10% on income exceeding ₹ 6,00,000
₹ 7,00,001 to ₹ 9,00,000	₹ 20,000 + 10% on income exceeding ₹ 7,00,000
₹ 9,00,001 to ₹ 10,00,000	₹ 20,000 + 10% on income exceeding ₹ 9,00,000
₹ 10,00,001 to ₹ 12,00,000	₹ 50,000 + 15% on income exceeding ₹ 10,00,000
₹ 12,00,001 to ₹ 15,00,000	₹ 80,000 + 20% on income exceeding ₹ 12,00,000
Above₹ 15,00,000	₹ 1,40,000 + 30% on income exceeding ₹ 15,00,000

EPF and ESIC

The Employee Provident Fund is a social security scheme administered by the Employees Provident Fund Organization. EPF is a contribution towards the welfare of the employee and requires both the employer and employee to contribute a certain percentage of the Basic pay + DA. As per the Act, both the employer and employee have to contribute 12% of Basic Pay + DA towards EPF. Every organization that 20 or more employee has to comply with the EPF regulation.

Employees’ State Insurance (ESI) is a social security measure administered by the Employees’ State Insurance Corporation (ESIC). ESI helps employees to overcome unforeseen circumstances including medical expenses, maternity leave or disability due to mishaps at the workplace. ESI is mandatory for establishments employing 10 or more employees and for employees whose earning is less than ₹ 21,000 per month.

Every eligible establishment has to remit the contributions towards EPF and ESI to the concerned department along with the required returns within the stipulated time frame.

Labour Welfare Fund

Labour Welfare Fund was enforced to provide the employees a means to improve their working conditions, for social security and to raise their standard of living. The Labour Welfare Board of each state determines the amount and frequency of contribution and these differ from state to state.

Payment of Gratuity Act

The Payment of Gratuity Act, 1972 stipulated that the employer has to pay Gratuity to their employees for the services rendered by him during the period of employment. Any employee who has completed a minimum of 5 years of service in an organization is eligible to receive Gratuity.

Labour Laws

An array of Labour Laws have to be adhered to by all companies and these include The Payment of Wages Act, 1936, The Minimum Wages Act, 1948, The Payment of Bonus Act, 1965, and The Maternity Act, 1961.

The Payment of Wages Act, 1936

The Payment of Wages Act ensures prompt payment of wages with the accepted time frame. The preferred payment mode is by cash or cheque. Bank transfers can be made only after consent from the employee. These rules may vary from state to state.

The Minimum Wages Act, 1948

The Minimum Wages Act was enacted to prevent the exploitation of employees by fixing a minimum wage rate. The minimum rate may vary from state to state and depends on certain common factors like cost of living, wage period (hourly, weekly or monthly) and job type.

The Payment of Bonus Act, 1965

The Payment of Bonus Act provides payment of Bonus to employees in an organization that employs more than 20 people. The Bonus is calculated on a percentage of the employee salary and would depend on the profits made by the organization. Employees who have completed 30 working days and have earned ₹ 21,000 or less (Basic + DA excluding other allowances) are eligible to receive Bonus.

Maternity Benefit Act, 1961

The Maternity Benefit Act was enacted to provide protection to women employees during the maternity period. Any women employee who has worked 80 days within a 12 month period is eligible to receive maternity benefit. The employee can avail maternity leave for 26 weeks. Prenatal leave can be availed for up to 8 weeks. The payment during this leave period is based on the average daily wage applicable during the period of absence.

How to Streamline the Payroll Process?

Streamlining the entire process will depend on the payroll system that you choose. As mentioned earlier, the three payroll systems are Manual Payroll, Payroll using in-house Software and Outsourcing Payroll.

Manual System can be efficient when the workforce is limited and is manageable by a small team that has sound Accounting knowledge. They may or may not use Spreadsheets for their calculations. However, there is a great probability of errors creeping into this process and the final outcome may not be always accurate. These errors may have some effect on the entire workforce and may pave the way for disharmony. As mentioned above when the workforce is limited this system may be beneficial, whereas, if the workforce is large and the attendance tracking is done manually, there is the possibility of discrepancies creeping in that may lead disenchantment with the management. This will negatively affect the growth of the organization.

Payroll using In-house software is an efficient way to handle your payroll. You may opt for either Ready-made software which has its limitations or go in for customized software that will be able to handle all your requirements. A fully customized Payroll Management software will be able to capture work hours accurately and automatically record the working hours, define time offs, breaks and overtime. All the other complex tasks can be performed with ease and a great degree of accuracy.

Once the Payslip is generated, all the related reports/returns can also be viewed and printed. The relevant payment of salaries to employees and the remittance of dues to the concerned authorities can be made along with the required returns. Once the payroll activities are fulfilled, it is only a matter of generating the Payslips and all the required reports/returns are available at the press of a button.

Most of the current software is fully automated and integrated. This will eliminate the need for manual intervention and simplifies data input and validation of output. The entire payroll process is streamline to maximize efficiency.

However, the drawback is that errors may happen at the time of data entry which may have its effect on the final outcome. Also any change in the Statutory Compliance rules and regulations does not get automatically updated. This requires manual intervention and the onus is, therefore, on the HR team to keep this aspect fully updated.

The most efficient system is to outsource the entire Payroll processing to a professional Payroll outsourcer. This may be costly, but over a period of time the accurate performance would far outweigh the cost incurred. The main advantage of payroll outsourcing is that it eases the compliance burden and provides peace of mind. At best payroll outsourcing removes the burden of maintaining an in-house processing team and gives you the convenience and sophistication of a professional payroll management system that is error-free.

By outsourcing, all core payroll tasks are handled with ease and all payments are made on time and accurately. The biggest advantage is that you are 100% compliant with all the statutory rules and regulations.

How GetifyHR can help you?

GetifyHR is one of the leading outsourcers of Payroll Processing in the region. Based out of Coimbatore, Tamilnadu, we have been providing highly professional service to a large number of clients across Indi. We provide a high-end cloud-based, seamlessly integrated package that streamlines Payroll Processing, HR Management, Attendance & Leave Management, and Statutory Compliance rules and regulations. An association with GetifyHR will help you to achieve tangible benefits by ensuring cost and time savings, thereby improving productivity and the performance at all service levels.

By outsourcing to GetifyHR, you will be able to generate Payslips at the scheduled time without any hitch. The payslips will be available to the employer and the relevant payments can be released to the employees once it is endorsed by the management. At the same times all the statutory dues to the concerned departments can be remitted along with the relevant returns. On completion of the process, the following reports will be prepared and accessible to the employer.

Payroll summary
Allowances and Deductions Reports
Attendance reports of all employees
Employee Leave report
Employee Overtime report
All statutory reports relating to EPF, ESI, TDS and Professional Tax.

All management reports will be generated and these will be made available to the clients as and when required.

In addition to this we offer a full-fledged Employee Service Portal. The Portal enables the employees to apply for leave, view the Payslips, declare investment details that reflect TDS exemption, keep track of all the circulars and notices issued by the management, view contribution and deduction details. View expenses/reimbursement claim details etc. A Mobile App is also available that helps employees to view certain details from their mobile phones.

All these and more facilities are available to the clients. Being a modular package, you can choose to start with regular modules and add on other modules as you grow in confidence with the performance of the package. GetifyHR assures its clients the very best of services at all times.

The Ultimate Employee Onboarding to Offboarding Checklist

August 5, 2024

by getifyhr with No Comment Business

Any firm that wants to successfully navigate the trip from first interest to final farewell must have an efficient employee lifecycle. A well-organized onboarding procedure gives new hires a feeling of community, opens doors, and positions them for success. On the other hand, a smooth offboarding procedure guarantees a happy exit and upholds the reputation of your business. With an emphasis on onboarding, offboarding, training, and employee well-being, this extensive resource covers best practices for managing the employee lifecycle.

This extensive blog post is your go-to resource for information on managing the employment lifetime. We’ll go into best practices for onboarding and offboarding employees, as well as the significance of training and employee well-being throughout the process.

Employee Onboarding: A Hearty Welcome Awaits

Onboarding new hires involve more than just paperwork. Making a good first impression and putting new personnel on the right track for long-term success are keys.

Here is a thorough check list to guarantee a smooth employee onboarding procedure:

Before Participating:

Extending an Offer and Taking the Position: Provide a formal offer letter that details the start date, benefits package, salary range, and position. Send out a welcome bundle containing information for the first day, company gifts, and required paperwork.
Prior to Embarking Tasks: Assign assignments like finishing background checks and getting acquainted with the company’s regulations.

Employee Onboarding Checklist

Employee Information
Academic Certificates
Previous Employment Certificates
Income Tax Papers (IT Statement) of previous employment and inform the employees to add their previous employment while declaring their investments
Signing NDA (Non Disclosure Agreements)
Sharing Appointment Letters
Induction of job role
Sharing HR Policies, Company Policies, Code of Conduct, etc

To ensure compliance and seamless onboarding, gather the following documents:

Employee Information

Full name, birth date, address, phone number, email address, emergency contact details, and social security number or similar.

Goal: Keeping correct personnel records, guaranteeing efficient communication, and handling emergencies all depend on this data.

Academic Certificates:

Attain certified copies of transcripts, degrees, diplomas, and any pertinent professional certificates.

Goal: Confirming an employee’s educational background helps to uphold the caliber and reputation of your staff by ensuring they meet the requirements for their role.

Previous Employment Certificates:

Experience certificates, letters of recommendation, and any other records attesting to prior employment history.

Goal: By verifying a candidate’s professional development, work history, and abilities, these records help employers decide whether or not they are qualified for the position for which they are applying.

Income Tax Papers (IT Statement) of Prior Employment: Copies of the most recent IT statements, Form 16, and any other pertinent tax records from prior employers.

Goal: Accurate tax compliance and calculation depend on these documents. Tell staff members that in order to guarantee correct tax deduction and benefits, they should submit information about their prior job when declaring their investments.

Signing Non-Disclosure Agreements (NDAs):

Signed NDAs that specify the conditions under which information will remain confidential.

Goal: NDAs are essential for safeguarding confidential business data and intellectual property. Ensuring that all new recruits sign these agreements contributes to the protection of trade secrets and confidential company information.

Exchange of Appointment Letters:

An official letter outlining the position, duties, pay scale, perks, start date, and any other relevant employment conditions.

Goal: By defining the terms of work, appointment letters act as a formal agreement between the employer and employee. By doing this, miscommunication is reduced and it is made sure that everyone is aware of the terms and circumstances of the job.

Job position Induction:

Details to Provide: A thorough induction program that covers the main duties, performance standards, and an outline of the position as well as preliminary training plans.

Goal: New hires need inductions to help them get adjusted to their responsibilities. A comprehensive employee onboarding process facilitates comprehension of job responsibilities, helps individuals align with organizational objectives, and expedites productivity and team cohesion.

Disseminating Company Policies, code of conduct, and HR Policies:

Information to Provide: Detailed documentation detailing the company’s ethics, code of conduct, health and safety regulations, HR policies, and any other pertinent procedural documents.

Goal: By making these materials available, employers may make sure that new hires are aware of the behavioral norms and operational requirements of the business. This helps workers understand their rights and duties and fosters a consistent and fair work environment.

By diligently collecting and sharing these documents, you can ensure a smooth and efficient employee onboarding process that sets the foundation for a successful and compliant employment relationship.

First Day:

Greetings of Welcome: Give a hearty welcome to the new hire and introduce them to important team members. Give a brief summary of the goals, core principles, and organizational structure of the business.

Workstation Configuration: Ensure that the new hire’s desk is equipped with all the devices and tools they require.
Introduction of the Manager: Call a meeting to go over objectives and goals with the direct manager.

Offboarding Employees: A Compassionate Farewell

Employee offboarding is just as important as onboarding, despite the fact that it is occasionally overlooked. A well-run offboarding procedure guarantees a seamless transition, upholds goodwill, and protects the company’s resources and expertise.

Predominant Offboarding Checklist includes:

Knowledge Transfer
Revocation of Data and Access
Return of Business Assets
Conducting an exit interview
Final Pay & Benefits
Communication of Farewell

A polite and professional employee offboarding process can be ensured by adhering to the following guidelines:

Knowledge Transfer:

To ensure that ongoing projects continue smoothly, make it easier for the departing employee’s replacement or other team members to acquire the knowledge they need. This includes sharing important contacts, recording procedures, and providing an update on the state of ongoing projects.

Purpose: Ensuring a comprehensive knowledge transfer keeps important institutional knowledge safe, maintains productivity, and helps avoid work disruptions. To make sure nothing is lost, make sure the replacement has received and comprehended the knowledge transfer.

Revocation of Data and Access:

Specifics: Cut off users’ access to email accounts, databases, and other systems used by the organization. Get login credentials for all company software and apps, as well as disable logins.

Goal: Removing access stops illegal use of business resources and guards against any security breaches of important data. It’s essential for preserving security and safeguarding confidential information.

Return of Business Assets:

Information: Collect all items that were given to the employee by the company, including laptops, cell phones, access cards, badges, keys, and any other supplies or equipment.

Goal: Ensuring the return of company property keeps inventories under control and guards against the loss of priceless equipment. It also guarantees that the leaving employee does not have any proprietary materials with them.

Conducting a Farewell Interview:

Specifics: To get input on the employee’s experience, the reasons behind their departure, and suggestions for enhancements, conduct an exit interview. Talk about the problems they had, how satisfied they were overall, and any suggestions they had for the business.

Goal: By revealing information on employee churn, exit interviews aid in pinpointing problem areas and can draw attention to matters that may require attention in order to improve staff retention.

Furthermore, if the worker is willing to reevaluate their leave, talk to them about their alternatives for a resignation withdrawal.

Final Pay & Benefits:

Specifics: Make sure that the outgoing employee’s last salary and related benefits are appropriately computed and disbursed on schedule.

Goal: Complying with legal requirements and keeping good relations with the departing employee are two benefits of making timely and precise final payments. It exhibits professionalism and gratitude for the employee’s input.

Farewell Communication:

Details: Let the team know that the worker is leaving, and make sure to thank them in public for their efforts. To show your appreciation and wish them luck in their future pursuits, organize a farewell party or send an email to the entire staff.

Goal: Expressing gratitude to the departing employee, fostering a courteous and upbeat work atmosphere, and helping

Additional Offboarding Considerations

Offer of Reemployment: Consider offering reemployment opportunities under specific conditions.
Assistance with Statutory Benefits: Help employees secure their statutory benefits to ensure a smooth transition.

Q&A:

Addressing Concerns about Employee Onboarding to Offboarding

What is the ideal duration for the onboarding process?

The duration varies based on role complexity, organizational culture, and industry. However, a well-structured onboarding process can range from a few weeks to several months.

What inventive ways can you involve new hires in the onboarding process?

Incorporate social events, team lunches, and mentoring programs to build connections and enhance company spirit. Gamify training modules to make learning more engaging.

What are some offboarding-related legal considerations?

Ensure compliance with local labor laws, including notification requirements, final pay calculations, and data privacy regulations.

Is keeping in touch with past employees advantageous?

Absolutely! A robust alumni network can provide future job opportunities, brand advocacy, and referrals.

How might technology make the onboarding and offboarding of employees more efficient?

HR software solutions can automate processes like completing paperwork, delivering training, and managing exit interviews.

How GetifyHR Can Assist With the Onboarding and Offboarding Process for its Clients

GetifyHR offers comprehensive payroll outsourcing services integrated with HR solutions to manage the complete employee payroll lifecycle—from joining to relieving. Our services include processing payroll, managing attendance and leave, and handling statutory compliance. By automating onboarding workflows.

Through the management of exit interviews, coordination of knowledge transfer, and tracking of returned company assets from a single platform, GetifyHR expedites the offboarding process. Through the use of questionnaires and pulse checks to collect employee input and improve the work experience, our performance management and feedback solutions assist in goal-setting, progress monitoring, and ongoing feedback provision. Furthermore, in order to pinpoint areas for development and optimize HR procedures, we produce informative reports on employee onboarding, offboarding, and performance data.

Conclusion

From employee onboarding to offboarding, a clearly defined employee lifecycle fosters a productive and engaging work environment. Investing in a structured onboarding process, supporting employee training and well-being, and ensuring a seamless offboarding experience can help businesses develop a loyal, effective, and high-performing workforce. Remember, a satisfied employee is a productive employee!

Are you prepared to streamline your employees onboarding and offboarding process? Speak with GetifyHR today to discover how our HR solutions can assist you.

The Role of Human Resources in Corporate Structure in India

July 10, 2024

by getifyhr with No Comment Business

The process of improving the effectiveness and efficiency of an organization by synchronizing the people, processes, and culture with the goals and strategies is known as Organizational Development. The role of Human Resources in Organizational Development is focused on the people in the organization. This would include chalking out the policies and procedures for selecting, supporting, and developing manpower within the organization.

The key elements to achieve this task include needs assessment, recruitment and retaining talent, training and development, employee engagement, compensation and benefits, performance management, risk management, and compliance. The points shared in this article are HR policies in India that every organization has to follow.

1. Needs assessment

Assessing the manpower needs of the organization is a vital task entrusted to the Human Resources team. This involves identifying the skills, knowledge, and capabilities required by employees to meet the activities of the organization. The HR is entrusted with the job of identifying gaps in the performance of the employees based on the analysis of the current state of the organization.

2. Talent Acquisition

Talent acquisition is the prime function of any HR department. Identifying the workforce capabilities and analyzing whether the performance matches the goals of the organization is vital for the growth of the company. HR managers have to ensure that the employee levels match the demand and create strategies for employee retention.

The HR department has to perform the entire task of recruiting the right candidate for the job needs. Right from screening the applications and resumes to interviewing, and shortlisting the candidates, the HR team has to be on its toes to acquire the right talent. Performing background checks, onboarding the new employees, and explaining the compensation, and company policy is an important aspect of this task.

Importantly, HR is responsible for retaining talent which can happen only when there is mutual trust, respectful treatment, satisfactory compensation, job security and opportunities for growth. The HR is responsible for giving this assurance.

3. Employee Engagement

In their eagerness to achieve growth, the management may fail to engage properly with the employees. The onus is on the HR team to set up two-way communication and engagement between employees and senior management. This is the only way to build trust and maintain a vibrant company culture that unites everyone around shared goals and values. The HR has to create a positive work environment, and for this, they have to encourage open communication, listen to employee concerns, and foster harmonious relationships between employees and the management.

The HR can build better rapport with the employees and create trust between the top management and the employees by engaging in the following activities:

Getting regular feedback and listening to the concerns of employees.
Recognizing individual or group achievements.
Sharing successes and failures.
Communicating new company policies, decisions, and strategic goals.
Mediating conflict and reducing tensions between employees.
Organizing company-wide get-togethers.

4. Training and Development

Training and Development is a vital aspect to maintain healthy relationships between the management and employees. It is the process that helps in enhancing and enabling the capabilities of employees to build on their strengths and confidence for them to deliver more effectively. Training and Development offer ample opportunities for employees to learn new skills and further improve existing relent. This can have a positive effect on employee morale and enhance productivity, increase growth opportunities, and reduce turnover rates. When the employees feel that their organization is investing in their growth they are more likely to enhance their performance and adhere closely to the company culture.

5. Compensation and Benefits

Designing, implementing and administering the organization’s Compensation and Benefits to the employees based on the nature of work is an important aspect that is handled by HR. The process includes determining the appropriate salary levels, calculating bonuses, designing incentive plans, and selecting and managing health insurance plans and other benefits for employees.

6. Compliance Issues

Statutory Compliance is a vital aspect of any business, and being compliant with all these rules and regulations is a must if the organization has to grow. It is, therefore, important that these rules and regulations formulated by the government are strictly complied with by the company. The development and implementation of policies and procedures will depend on these rules and regulations, especially those related to labour and employment.

7. Performance Management

Performance Management is a process undertaken by the HR to help employees grow and advance within the organization. They achieve this task through the use of assessment tools, coaching, and counseling, and by providing regular feedback on performance. The employees are set performance goals and their progress is tracked and evaluated. Performance management programs help to ensure that the employees are meeting the performance standards expected of them.

8. Policy Development

Every organization should have a set of policies and procedures that govern employee behaviour and align it with the company culture. Policy development is the process through which such policies and procedures are planned and implemented. These could include policies related to areas such as human resources, workplace safety, data security, ethics, and compliance with applicable rules and regulations.

9. Creating a Safe and Inclusive Work Environment.

Providing a safe and inclusive work environment to the employees is the responsibility of the HR. They have to plan and implement policies that promote diversity and inclusion and ensure that there is no discrimination on any grounds in the organization. They should also ensure full compliance with the health and safety regulations. The main purpose here is to foster a culture of respect and equality, where every employee feels valued and included. The onus is on the HR to improve workplace ethics.

10. Succession Planning

As the name implies, this process involves identifying and developing the leaders of the future within the organization. Succession Planning involves implementing programs to groom employees with high potential for leadership roles to ensure that capable and qualified persons are posted to key positions. This process involves analyzing the current and future requirements of the organization and developing strategies to attract fresh talent and retain & develop existing talent.

11. Strategic Planning

Achieving the goals and objectives of an organization depends on the strategic planning undertaken by the management. Strategic planning involves creating and implementing HR strategies that are in tune with the organization’s broader objectives. In the context of HR, activities such as recruitment, compensation and benefits, employee engagement and development, etc., are some of the areas included in the process.

12. Risk Management

HR’s role in Risk Management is limited to identifying and mitigating potential risks arising through a wide range of issues related to the workforce, namely employee turnover, performance, and compliance. The HR department has to be on its toes to identify higher employee turnover, slack in performance, and legal issues arising out of non-compliance. These potential risks could negatively impact the growth of the organization and, therefore, the role of the HR in identifying and taking corrective measures is high.

Conclusion

The Corporate structure in India provides opportunities for people to make their choice by the number of people involved in the business, the funds to be infused, the size of the business, plans for expansion, and whether they are looking for borrowings from financial institutions and the general public. Individuals or groups of people can opt for any of the structures to start their business. However, due to the complexity involved in starting and administering a business, it is advisable to consult a lawyer, an auditor, or a professional before making the choice. GetifyHR, one of the premier Payroll and HR Management Outsourcing companies in India is well qualified to assist people in making the right choice.

The Human Resources department has a huge role to play in the growth of an organization that has a large workforce. Companies with a very small number of employees normally make use of their managers to handle the employees as there is no need for a separate HR department. In companies that have a large workforce, HR’s role and importance cannot be gauged by just the points that we have raised in the earlier paragraphs. The HR’s role is invaluable and any attempt to downplay this importance may have a negative impact.

GetifyHR, an expert in the field of HR Management issues especially in handling Statutory Compliance requirements has been at the forefront in guiding clients to be fully compliant with all rules and regulations. Our expertise has been widely appreciated by our clients across India. We are fully equipped with a professional team of experts to guide prospective clients to make the right choice of corporate structure and to support their HR teams in handling the employees.

Corporate Structure in India

July 4, 2024

by getifyhr with No Comment Business

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

June 28, 2024

by getifyhr with No Comment Business

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.

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

May 13, 2024

by getifyhr with No Comment Business

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.

Top 10 Proven Ways to Spot Lack of Employee Engagement

March 23, 2024

by getifyhr with No Comment Business

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.