Salary Hike

How to Calculate Salary Hike Percentage Accurately? Formula and Example

by with No Comment BusinessNews & 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?
  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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:

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

Payroll Processes are the most time consuming

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

by with No Comment AdvertisingBusiness

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.

  1. Steps to process Payroll
  2. Which Payroll Processes Are the Most Time-Consuming
  3. How to Streamline Them?
  4. 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.

Employee Onboarding to Offboarding

The Ultimate Employee Onboarding to Offboarding Checklist

by 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.

HR Role

The Role of Human Resources in Corporate Structure in India

by 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

Corporate Structure in India

by 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

Five Powerful Ways to Honor and Commend Employee Achievements

by 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

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

by 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.

Blog

Top 10 Proven Ways to Spot Lack of Employee Engagement

by 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.

Life Certificate

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

by with No Comment BusinessLabour Act

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

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

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

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

How it Works?

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

How to Register?

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

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

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

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

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

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

Conclusion

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

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

HR Work culture

How Human Resource activities can boost Work Culture?

by with No Comment BusinessNews & Updates

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

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

What is Work Culture?

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

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

What is the Importance of Work Culture?

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

Factors that help in developing work culture?

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

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

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

Competitive Compensation:

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

Team Building Activities:

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

Promote Recognition:

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

Collecting Feedback:

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

Prioritize Welfare Programs:

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

Improve Communication:

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

Training and Development:

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

Accept New Technology:

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

Employment Engagement Survey:

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

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

Conclusion

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

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