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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.

Employee Training Methods and Techniques

10 Best Employee Training Methods and Techniques

by with No Comment BusinessNews & Updates

Introduction

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

1.  E-Learning

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

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

2.  On-Job Training

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

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

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

3.  Instructor-Led Training

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

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

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

4.  Role Playing

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

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

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

5.  Coaching

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

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

6.  Peer-to-Peer Training

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

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

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

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

7.  Gamification

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

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

8.  Case Studies

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

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

9.  Mobile Learning

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

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

10.  Collaborative Training

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

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

Conclusion

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

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

HR

What are the roles and responsibilities of the HR Generalist?

by with No Comment Business

The Human Resources department assists companies to hire and retain talent, empower them with new skills, and receive consistent payments commensurate to the job. Each role in the HR department might have different roles and responsibilities. In the HR hierarchy, if an HR professional performed a variety of duties, then he may be called a HR Generalist. In this article, we discuss the roles and responsibilities of an HR Generalist.

What is an HR Generalist?

The HR Generalist is a position in the HR department that is supportive of an HR manager and a few HR Specialists. It is an entry-level position that provides hands-on assistance for handling daily tasks.

The Role of an HR Generalist!

The HR Generalist works with the HR manager or HR Specialists to organize training programs for employees, and recruiting procedures including interviewing and shortlisting candidates, administering salary payments, and benefits, handling leave and attendance, and enforcing company policy and procedures.

The HR department relies on the HR Generalist to handle human resource operations on a day-to-day basis. This requires the generalist to have diverse abilities to handle administrative and strategic responsibilities in the HR department. The HR Generalist is the focal point of contact for employees’ queries and other HR-related activities. The job of the HR Generalist is to ensure that all HR operations run smoothly and effectively so that the entire organization gets maximum value.

This requires the HR Generalist to wear multiple hats in a day. At one period of time, they would be engaging with the employees clearing their doubts and misconceptions, and at other times they would be with the top management discussing strategies or with the HR Manager onboarding new employees into the organization.

Responsibilities of an HR Generalist

People Management

An HR Generalist has to support the top management in decision-making activities related to the employees. This would involve applying HR best practices and devising strategies in line with the company goals and objectives. These activities will ensure steady company growth and will also support employee well-being.

Managing HR-related processes

The HR Generalist has to manage the HR-related processes such as employee relations, performance, recruitment of new employees, fixing compensations and benefits, succession planning, and training and development. They are responsible to support the HR Specialists in the above-mentioned processes.

Handling employee grievances and discipline

Managing employee relationships is an important task of the HR Generalist. The HR Generalist has to manage employee grievances and maintain discipline. Providing advice on employment legislation and keeping the company up-to-date on all the employment rules and regulations. Furthermore, they are entrusted with the job of maintaining cordial relations with all stakeholders, both internal and external.

Leveraging employee-related analytics

An HR Generalist has to leverage employee-related analytics and reporting techniques to understand the indicators of employee management. With this data, they should be able to provide solutions to employee-related issues. Using these analytics they should be able to understand the right time to hire and identify employee attrition rates.

Support the Recruitment process

The HR Generalist should support in talent acquisition and recruitment process by identifying the required candidates, connecting them with the HR Manager, conducting interviews, and shortlisting the candidates. This activity is followed by conducting reference checks, issuing offer letters, and onboarding the selected candidates.

Arranging Training and Development processes

In consultation with the HR Manager and HR Specialists, they have to arrange and participate in training and development sessions to empower the employees and strengthen the employee management process.

Skills, Competencies, and Qualifications of an HR Generalist

An HR Generalist requires certain specific skills, competencies, and qualifications to succeed in the job. What are they?

Sound knowledge of business processes

An HR Generalist requires the ability to develop clear HR policies and procedures that are synchronous with the objectives and goals of the organization. They should be capable of identifying and interpreting business trends and practices and applying the same in their day-to-day activities. In addition to this, they should be able to devise strategies for the business with the needs of both internal and external customers in mind. This will enhance customer satisfaction and personalize the customer experience.

Ability to analyze data

Being able to critically analyze data is an important skill. An HR Generalist should be skillful in using HR metrics, scorecards, KPIs, and dashboards and be able to take informed decisions. They should be able to create business value through the effective use of this data.

Mentorship and support

An HR Generalist should possess the skill to make the employee feel at home. They should provide mentorship and support to the employees and help resolve issues that crop up from time to time. The goal is to develop an inclusive work culture that is aligned with the values of the organization.

Managing Labour Relations

Managing Labour relations is a much sought-after competence by the employer. A prospective HR Generalist candidate should possess a strong technical grasp of labour laws and regulations and be able to maintain a cordial relationship with the employee bodies such as trade unions. They should also be capable of adhering to the company’s labour policies, procedures, and programs and take insightful decisions.

Optimizing the workplace

An optimized workplace contributes to significant improvement in employee productivity and performance. An HR Generalist should be aware of the ways to improve workplace efficiency. They should also be able to identify and understand the needs of the employees at the workplace and enhance the employee experience.

Soft Skills

Apart from technical knowledge, an HR Generalist should also possess soft skills to ensure success. Communication skills, interpersonal skills, listening skills, teamwork, conflict management skills and the confidence and resilience to handle issues are key to success. These soft skills enable HR professionals to optimize their technical skills and deliver positive results. This will not only enhance productivity as an HR but will also make a positive impact on the employees.

Qualification

Most organizations require candidates who have at least a Bachelor’s degree in Human Resources Management or a related subject. However, candidates with Master’s degree are preferred in certain organizations. The HR Generalist post is not an entry-level role, and candidates are required to have relevant experience which normally is 2-5 years.

If a candidate needs to stand out in the crowd then an HR Generalist Certification is recommended.  However, any candidate with the required qualification, experience, skill, and competence mentioned here above will make a mark in the industry.

Conclusion

The HR Generalist role involves multiple abilities. On the one hand, they have to ensure the smooth running of the business operations and on the other, they have to manage employees and create a harmonious workplace. In other words, an HR Generalist is a professional with expertise in multiple areas of Human Resources.

GetifyHR, one of the premier outsourcers of Payroll processing and HR Management has been providing its services to a large number of clients across the country. With our highly innovative, cloud-based package we have been able to provide excellent services to our clients in preparing accurate payslips, maintaining employee leave and attendance, and keeping the company fully compliant with all the Statutory Compliance rules and regulations. We can be of real assistance to HR Generalist by providing the most accurate MIS reports through our highly sophisticated package.

Salary Structure

Understanding Salary Breakup, structure, and salary components

by with No Comment Business

Salary is the fixed amount of money paid to an employee by the employer in return for services rendered by the employee. The employer and or his/her HR teams have to put in their minds and arrive at the salary to be paid to each employee. They need to have a clear grasp of the working conditions, their importance, and the contributions towards social welfare schemes, taxation, allowance, and such other components.

How is salary structure determined?

For the employer and his/her HR teams, deciding on the right salary can be a very tedious task. A lot of factors have to be considered to determine the right salary for an employee. These factors are:

1.  Educational Qualification and Experience

Educational Qualifications and Experience play an important role in not only the selection process but also in determining the salary structure for an employee. The higher the Educational qualification and experience the higher the pay.

2.  The Industry

The industry is also an important determinant in fixing the salary. Two individuals employed in two different industries but with the same designation may draw different salaries. The reason for this is that one industry is much larger than the other and the job function may be more critical to a particular industry.

3.  The Location of Employment

The location of employment is important because based on the location, the cost of living varies and this will naturally have an effect on the salary structure. The compensation in an urban location would be higher than the compensation in a rural location. However, due to the surge in work-from-home or remote work, the compensation may be more aligned with role-based rather than to location-based.

4.  Skill sets that are in demand

Skill sets that are in demand are a key determinant in deciding the compensation to an employee. Any skill set that has a wider role within an organization commands higher value and this translates to higher compensation.

What are the common components of the Salary Structure?

  1. Cost To Company (CTC)
  2. Gross Pay
  3. Net Pay

I.  What is Cost To Company (CTC)?

Cost to Company (CTC) is the annual expenditure that a company incurs on an employee. This would depend on the salary and other variable components. CTC is calculated by adding the components like Basic salary, and the additional statutory benefits that employees receive such as EPF, ESIC, HRA, Travel Allowance, Food allowance, Gratuity, Bonus, etc. In other words, CTC is the cost of hiring and sustaining an employee in the company. However, the CTC amount is not the actual amount that an employee takes home at the end of each month.

CTC = Gross salary + Benefits
Components of Benefits
  1. Employer EPF
  2. EPF Administrative Charges
  3. EPF EDLI Charges
  4. Employer ESI
  5. Gratuity
  6. Food Coupon
  7. Mediclaim Premium
1.  Employer EPF

The Employees’ Provident Fund is an employee welfare scheme administered by the Employees Provident Fund Organization (EPFO). Under the scheme, both the employees and the employers contribute towards the Fund every month. This is a platform that provides an opportunity for employees to save a part of their salary as a long-term investment. The employer contributes 12% of the basic salary every month towards the Fund. An equal contribution is made to the fund from the employees’ side also. From the employer contribution, 3.67% goes towards EPF, and a portion is contributed towards ESI and related funds.

2.  EPF Administrative Charges

The EPF Administrative charges are made from the contributions from the employer’s end towards EPF.  From the contribution of 12%, 0.50% is contributed towards EPF administrative charges with effect from June 2018.

3.  EPF EDLI Charges

The Employees Deposit Linked Insurance (EDLI) scheme is a part of the EPF and EPS schemes.  All employees who subscribe to the PF scheme are automatically enrolled in this scheme.  The employee contribution towards this fund is 0.50% (subject to a maximum of ₹ 75.

4.  Employer ESI

Employees State Insurance (ESI) is an insurance scheme administered by the Employees’ State Insurance Corporation (ESIC).  From the employers contribution of 12% of salary, 3.75 % is contributed towards the ESI Fund.  The scheme is applicable for all employees whose salary is ₹ 21,000 or less.

5.  Gratuity

Gratuity is a benefit received by the employee from the employer for the services rendered by the employee at the time of leaving the job or on retirement. To be eligible to receive gratuity, an employee has to be in service for 5 or more years. The amount is deducted by the employer every year and hence will get deducted from the CTC.

The Formula for calculating Gratuity is as follows:

Gratuity = n x b x 15/26

Where n = number of years of service, b = basic salary + DA,

When companies adopted CTC concept, every cost was converted into percentage.  Thus 15 days wages is approximately equal to 4.81% and this is indicated in the CTC sheet.  The ratio 15/26 is fixed and its value is 0.577 for the year and when calculated for a month is  0.577/12 x 100 which works out to 4.81.

6. Food Coupon

Food Coupons are food vouchers provided by companies to their employees to purchase food items and non-alcoholic beverages from designated shops.  The food coupons are tax-exempt vouchers up to a limit of ₹ 50 and are mostly used by salespeople and other employees who work in the field.

7.  Mediclaim Premium

Mediclaim is a basic type of health insurance designed to provide policyholders with financial support during medical emergencies for self and family.  They cover the cost of treatment when an employee is hospitalized.  In Mediclaim the coverage amount is limited and based on the plan that is opted for.  The Insurance company reimburses the expenses incurred by the policyholders for treatment.  The premium has to be regularly paid to avail the benefits of Mediclaim

II.  Gross Salary

Gross Salary is the amount calculated before the deduction of taxes or any other deductions. Gross salary includes the Basic salary, dividends or bonus, and overtime amounts.

Gross Salary = Fixed Earnings + Variable Earnings

Every allowance will be subject to taxation, which will have an impact on the company. The company would pay the tax out of the employee’s wage.

Components of Earnings
  1. Fixed Earnings
  2. Variable Earnings
I.  Fixed Earnings
  1. Basic Salary
  2. Dearness Allowance (DA)
  3. House Rent Allowance (HRA)
  4. Leave Travel Allowance (LTA)
  5. Conveyance Allowance (CA)
  6. Medical Allowance
1.  Basic Salary:

Basic Salary is the primary component of the salary structure and forms the largest component of the CTC. It is the fixed part of the salary package and constitutes between 40-50 percent of the CTC. As per the “New Code of Wages” that is to be implemented by the government, the minimum basic component should be 50% of the salary.

Basic salary is fully taxable, therefore, keeping it too high will not only increase the tax liability of your employee but will also increase the contribution towards EPF and ESI.

On the contrary, by keeping it too low, you may increase the risk of not following the Minimum Wages norms set by the respective state governments.

2.   Dearness Allowance (DA):

Dearness Allowance can be defined as the cost of living adjustment allowance which the government offers to public sector employees as well as pensioners in the public sector.

DA is the component of the salary applicable across India. Since DA is related to the cost of living, it has been linked to the Consumer Price Index.  Hence, the DA varies based on location implying that it is different for employees working in the urban sector, semi-urban sector, and rural sector.

3.   House Rent Allowance (HRA):

House Rent Allowance is a benefit for employees who live away from their place of work and need to live in rented accommodation. The HRA depends on the cost of living in that particular location. The amount that can be claimed as a tax deduction under HRA cannot be more than 50% of your Basic salary in a Metro or 40% of your Basic salary in a non-metro.

4.    Leave Travel Allowance (LTA):

Leave Travel Allowance is a benefit provided to employees to travel within the country. LTA is normally reimbursed to employees after they undertake their travel. An employee can claim tax benefits on the Fare expenses incurred by his-her family during the travel. The tax benefit applies to only Fare expenses and no stay or food expenses are covered.

Only travel within India is considered for the benefit. The benefit applies only to dependent family members of the employee.

5.   Conveyance Allowance:

An employee is liable to receive travel expenses for travel from residence to workplace and back. The to and fro expenses are reimbursed as conveyance allowance. With the introduction of standard deductions, the exemption on Conveyance Allowance has been removed effectively from April 2018.

6.   Medical Allowance:

Medical allowance is a fixed allowance that is paid to employees, regardless of whether they have submitted the bills to claim these expenses or not. These are offered every month with the view to promoting staff health and supporting their medical expenses incurred in a financial year. Similar to Conveyance Allowance, the exemption on Medical allowance has been removed with effect from April 2018.

The employee can also claim Medical Reimbursement, which is a tax-free component reimbursed by the employer as the employee’s portion of medical costs

II.  Variable Earnings
  1. Gratuity
  2. Bonus
  3. Incentives
  4. OT
  5. Extra Days
1.  Gratuity:

Gratuity is a part of the salary that is received by the employee from the employer for the services rendered by the employee at the time of leaving the job or on retirement.

To be eligible to receive gratuity, an employee has to be in service for 5 or more years. The amount is deducted by the employer every year and hence will get deducted from the CTC.

2.  Bonus:

A bonus is an amount provided to an employee as a lump sum once a year based on the individual performance of the employee or the overall performance of the company. The Bonus percentage ranges from 8.33% to 20% of the Basic salary and is based on the decision arrived at between the Unions and the management.

3.   Incentives:

An Incentive is a reward that an employer gives to employees for achieving better results for the company as a whole.  The incentives can be in the form of monetary compensation that is given in addition to salary.  Incentives can also be in the form of a gift, a free product, paid time off or an additional share of stock

4.   Over time (OT):

Overtime is the extra hours that an employee works beyond the scheduled hours of work.  It is also the pay that an employee receives for working those extra hours.

III.  Net Salary or Take-home-salary

Net salary or the actual salary that you take home is the salary after deduction of tax (TDS) and other deductions as per the company’s policy.

Net Salary = Gross Pay – Deductions

Deductions
  1. Employees Provident Fund
  2. Employees ESI
  3. Tax Deducted at Source (TDS)
  4. Professional Tax
  5. Labour Welfare Fund
  6. Loan or Salary Advance
1.  Employees’ Provident Fund (EPF)

The Employees’ Provident Fund Orgnization administers the Employees Provident Fund scheme. Under the scheme, both the employees and the employers contribute towards the Fund every month. This is a platform that provides an opportunity for employees to save a part of their salary as a long-term investment. The employee contributes 12% of the basic salary every month towards the Fund. The entire contribution goes towards EPF.  The amount accumulated in the fund can be withdrawn in an emergency or upon retirement.

2.  Employees’ ESI

Employees State Insurance (ESI) is an insurance scheme administered by the  Employees’ State Insurance Corporation (ESIC).  From the employees’ contribution of 12% of salary, 0.75 % is contributed towards the ESI Fund.  The scheme provides for during medical emergencies to the employee or his/her dependents. The scheme is applicable for all employees whose salary is ₹ 21,000 or less.

3.  Tax Deducted at Source (TDS)

For salaried employees Income tax is deducted and remitted to the IT Department. This is known as Tax Deducted at Source (TDS) and the same is deducted every month from the salaries of the employees. The employer deducts and remits the amount to the department.

4.  Professional Tax

Professional Tax is the tax levied by the state government on salaried employees and professionals like doctors, lawyers, and chartered accountants. The amount fixed for Professional Tax varies from state to state. The employer deducts this amount from the salaries and remits to the concerned department.

5.  Labour Welfare Fund

Labour Welfare Fund is a contribution made by salaried employees for the benefit of the labor class. The fund amount that is deducted varies from state to state where they are applicable. Both the employee and the employer make contributions toward the fund. The employer’s contribution is twice that of the contribution of the employee. The payments are normally made every 6 months.

6.  Loan or Salary Advance

Loan or Salary Advance is paying an employee a portion of his/her salary in advance to meet a medical emergency or other unforeseen emergencies.  A portion of the salary that is due is paid in advance and the same is recovered in installments from the salary dues of the subsequent months.  These loans are usually interest free.

Conclusion

For both the employee working in an organization and for the employer it is very important to clearly understand the salary structure. A proper understanding of the Salary Breakup and the Salary Structure will help you to clearly understand where your money is invested. This will help you to plan your financials better.

GetifyHR, one of the top-notch outsourcers of Payroll processing and HR management has established a name for itself as a company with excellent service and professionalism.

With a high-performance Payroll module developed on the Cloud, we have been helping clients across the country to run a flawless payroll process at the same time keeping the company fully compliant with all the statutory rules and regulations. Supported by an experienced professional team we will be able to guide our clients to design a salary structure that is perfect for the conditions available at the workplace, one that will keep both the employer and employee fully satisfied. Contact us today for a wholesome solution to all your payroll and statutory compliance needs.

Checklist to assist businesses to step into the New Financial Year

How to prepare a checklist to assist businesses to step into the New Financial Year?

by with No Comment BusinessNews & Updates

The closing of the financial year and the opening of the new financial year are significant timelines for the growth of an organization. The financial year ending is a great opportunity to look within and to analyse and assess the performance of the business, a time to take stock and make your plans for the new financial year to come.

These activities, taking stock, analysing, and planning can be overwhelming tasks at times, but they are the key to running a successful business venture. This is also the time to re-assess your goals and to take corrective measures to enable the achievement of these goals in the forthcoming financial year. The best way to achieve this is by closely scrutinizing your finances and reassessing your financial practices. This is the time to prepare your checklist for the new financial year. This will help you to streamline your workflow and give you the head start to make the new financial year a successful one.

Financial year-end Checklist for businesses!

  • Prepare Key financial statements/documents
  • Conduct statutory Audit
  • Renew all the licenses and registrations
  • Reassess your goals and prepare for the future
  • Review your business and marketing plans
  • Consider financing options for expansion
  • Assess employee performance
  • Self-evaluate
1.  Prepare key Financial statements/documents

Apart from paying the Advance Tax, the key financial statements must be accurately prepared to ascertain the financial position of the company. The key financial statements are the Balance Sheet, the Profit and Loss A/c, and the Cash Flow statement. These financial statements provide the details of the Assets and Liabilities of the company, the Profit or Loss, and the Cash flow position of the company.

Overall they allow you to calculate the current ratios, debts, and profit ratios for that particular year.

2.  Conduct Statutory Audit

A statutory Audit is a must for any business that is registered as a Private Limited Company. All the Books of the Company have to be audited before the financial year-end. However, for businesses that are registered as a partnership firm or LLP having a turnover that is below 40 lakhs then, a Statutory audit is not required.

3.  Renewal of Licences and Registrations

Every business owner is required to keep track of all the licenses or Registrations that they have taken for the conduct of their business. Normally, these licenses/registrations are to be renewed every year, especially before the end of the financial year. This activity has to be taken care of by the end of the financial year.

4.  Reassess your Goals and prepare for the future

The goals that you have set for the business have to be first analysed. List out the goals and try to assess whether you have met those goals. If not, analyse and find out the reasons that you could not achieve your goals. Identify the areas that you have failed. Reassess the goals in light of your strengths and weaknesses. A SWOT (Strengths, Weaknesses, Opposition, and Threat) assessment will greatly assist you in providing better insights and allow you to make critical changes in your business goals and activities.  These insights will help you to plan for the year to come.

5.  Reassess your Business and Marketing plans

The end of the financial year is the ideal time to reassess your Business and marketing plans. This will enable you to review your short and long terms goals and make changes accordingly. It will enable you to review your sales and marketing budgets and get proper insights into better business strategies. This activity will also enable the business to review the market potential and the competition and would also throw light on new business opportunities.

6.  Consider additional finance option

If business expansion is one of the changes you envisage or if you need higher cash flow for the new financial year, then it would be worthwhile to consider additional finance options. The additional finance could be for development projects or adding to the company’s assets like purchasing a vehicle, machinery, or other types of equipment.

You can consult with your Bank for business loans, an overdraft, or a business credit card. The choice would depend on your circumstances. If there is an option to avail of a government grant you can proceed with that option. Crowd funding is also an option that you can explore as it is very commonly used nowadays to promote business, especially for start-ups.

7.  Assess Employee Performance

Employees are a vital cog in any business organization. Keeping the morale of the employees high is important and maintaining their loyalty is vital for growth. For this, you need to review your compensation and benefits structure and make sure they are in line with the industry and your business values. The compensation and the benefits that you offer have to be competitive enough if you are to hold on to your efficient employees and improve employee retention.

Companies that maintain such promotional paths reap significant gains in the loyalty and longevity of their employees. If you are looking to foster job satisfaction and loyalty among the employees you have to not only provide incentives but also be ready with a strong growth path that would empower the employees and boost their morale. This apart, planning a vacation with the employees, especially during the lean periods is another way to maintain job satisfaction among the employees.

8.  Self-evaluation and improving leadership

The earlier nine points in the checklist dealt with the performance of the company and its employees.

This checklist is incomplete if it does not have a point about evaluating the leadership and the leadership team. Every company should take time to reflect on its own leadership and the leadership team.

Objectively evaluate the performance during the year that is going to end. Find out the areas where there were shortcomings. Identify the areas that you think need improvement. This could be in the areas of time management, communication with employees, work culture, employee performance review, your understanding of business financials, business acumen, and your knowledge of the industry.

With this information, you will be able to implement a self-improvement plan for the new financial year. This will enable you to schedule time for yourself to not only learn and improve your business leadership skills but also encourage your leadership team to improve performance for their growth and the company’s growth.

Conclusion

Preparing a checklist for the new financial year is a must for any business. This will help you to objectively reassess the performance of the company and provide insights to make necessary changes wherever required to promote greater growth. This activity will help you to prepare better for the forthcoming financial year and guide you to improve your all-around performance.

This is also the time for certain companies, especially those that have challenges in preparing accurate payroll and handling all Statutory compliance issues, to introspect and decide whether they need to get expert assistance in handling their Payroll and HR management. GetifyHR has been a leader in outsourcing Payroll and HR management and has the expertise and technology to handle this critical task with a great degree of accuracy and sophistication. Well, we will be able to handle the financial year-end pressures and ensure a smooth transition to the new financial year with the least bit of stress. Stay 100% compliant with GetifyHR!

 

late commers

How to avoid/reduce latecomers in the industry/establishment?

by with No Comment AdvertisingBusiness

Employers expect employees to be punctual in their work. Being punctual goes a long way in establishing greater workplace harmony and paves the way for establishing a better employer-employee relationship. Factors like excessive traffic, late running of trains or buses, or some unexpected family issues can sometimes make employees come late to work.

When these are not regular it is a non-issue but when coming late to work is habitual, then it becomes a serious issue and has to be nipped in the bud. Chronic lateness affects the workplace atmosphere and will contribute to significant time and cost implications that will have a negative effect on the company’s growth.

Being late regularly costs the company in payroll and has a negative effect on productivity. If this late coming remains unchecked it will set a bad example for other employees who may also be encouraged to start coming late for work. In this article, we offer tips to deal with habitual latecomers.

1. Frame proper ground rules

Establish a set of rules on coming late to work and communicate this to all the employees.

The policy should include:

• Employer expectations on the working time and the importance of starting work at the scheduled time.
• Avoid un-informed or non-approved late arrivals during work as this will disrupt the work atmosphere.
• Clearly define the consequences of arriving late to work.
• Decide on how to compensate for the time missed out by working extra during later working hours?
• The procedure for reporting late to work should include the details of the higher-ups who should be notified about coming late to work and when.

2. Take action immediately

When you identify a pattern of habitual late coming, don’t postpone speaking to the employee. The earlier you begin a dialogue with the habitual offender the better.

3. Talk to the employee and make your expectations clear

Sit with the employee and clearly explain what your expectations are and the consequences of coming late to work habitually. Present the facts and try to identify the reasons for the habitual late coming.

4. Set self-improvement goals

Once the discussion is over and you have explained your expectations and the consequences encourage the employee to set self-improvement goals. This should help the employee to break the habit and be on time or on the contrary you can suggest a reduced lunch break to compensate for the lost time.

5. Check for changes and show appreciation

Follow up on the discussion by encouraging the employee to overcome this habit of tardiness. Show that you care for his well-being and be appreciative of improvement in their habit. Appreciation sets the path for greater improvement and this may help to solve the problem.

6. Maintain a record of all discussions and interactions

Maintaining a record of the interactions with the employee will ensure that there are no miscommunications and leaves no room for any misunderstanding at a later date. Documenting the discussions and the steps taken to identify and correct the issues and the changes in the employee’s performance can be pinned to the employee’s HR file.

7. Enable automatic shutdown of the swiping machine after a particular period.

This is a very strict method used in some establishments. Activate automatic closure of the Swiping machine after the normal login time plus the grace time given for logging in has to be. If an employee reaches the workplace after the grace time, he has to get approval from the Manager/Supervisor and will be then allowed inside the premises using their password. This strict measure will ensure discipline.

8. Implement a ‘Send Home’ policy

Here the habitual latecomer is sent home when he or she arrives late for work. Warnings about earlier tardiness should precede this action. This will enable the employee to make a serious effort to reach on time as there is the fear that he or she would be sent home and would be marked absent.

Normally a grace period, say 15 minutes is given to every employee. If the employee doesn’t arrive within this grace period then he/she will be asked to go home. This ‘go home’ policy is a very effective tool in curbing the issue of coming late to the office.

9. Link punctuality with performance reviews.

Linking punctuality with performance reviews can also address the issue of habitual late coming. Performance reviews are important as it sets the tone for climbing up the ladder. Therefore, if your performance review is positive then the chances of moving up the ladder are greater. If you are a habitual latecomer it will reflect in your performance review and this in turn will negatively impact growth within the establishment.

10. Have a policy with a flexible work schedule.

Having a company policy that allows for a flexible work schedule is another option to handle the issue of habitual latecomers. For example, you can have a policy in place where the habitual latecomer is allowed to come late with the condition that this time is compensated during the day’s work schedule. This will help to avoid loss of working hours due to late coming. However, the problem with this policy is that when you allow it to one employee you should be prepared to allow it to others also.

Conclusion

Habitual latecomers harm the workplace and they may adversely affect the growth of the establishment. Therefore, it is in the interest of the employer to find ways to reduce this activity so that there is greater harmony in the workplace. The measures explained above will go a long way in reducing the issue of habitual late coming and set the tone for better employer-employee relationships.

GetifyHR, one of the leading outsourcers of payroll and HR management in this region has been able to guide our clients in successfully handling the issue of latecomers. Our solutions have enabled a large section of our clients to focus on core business activity thus enhancing growth. We are here to reduce the stress attributed to payroll and HR management.

January 23 is the right time to outsource your Payroll to GetifyHR!

January 2023 is the right time to outsource your Payroll to GetifyHR!

by with No Comment BusinessNews & Updates

When is the right time to outsource your Payroll? Well, this is the question that has put business owners in a real dilemma. On the one hand, they have to be right with the timing and on the other hand, they have to be right with the choice of the perfect outsourcer. A difficult task indeed for any establishment whether big or small.

Payroll processing is one of the most important non-core activities and will remain so in the future. Its importance has manifested in companies opting to outsource the process with the view to not only bring greater accuracy but also to keep the company fully compliant with all the Statutory Compliance rules and regulations. By doing so establishments have been able to create greater harmony in the workplace and have been on the right side of all tax and compliance laws.

The goal of every establishment is to achieve greater growth and as it grows the greater the need to have a perfectly working system to handle all compliance issues. This is not an easy task and one way to keep things moving smoothly is by outsourcing this process to a service provider. By outsourcing payroll, companies will be able to prioritize core business processes and strategies to guide the business toward its goal.

In this article, we will discuss the ideal time to outsource the payroll process to an external service provider and why GetifyHR would be the best choice to undertake the process.

When to Outsource your Payroll?

The beginning of the year is the ideal time to go live with your payroll processing. While this may not be the beginning of the financial year followed in India, which is from 1st April onwards, we at GetifyHR would recommend the month of January to go live with payroll processing through a service provider.

This is the time when employees normally resign and move on to greener pastures. Hiring new hands and retraining them is a task that most establishments shun and the sensible solution is to perfect the payroll processing activity so that you can avoid hiring employees for both the core activity and to exclusively handle the payroll process.

When you start your payroll process through an outsourcer during the month of January, you have a clear 3 months to complete the parallel runs and perfect the system. This allows the time to verify and correct all employee records and reports and streamline the demands of statutory compliance.

This will enable you to start the new financial year on a clean slate and give you adequate time to straighten all loose ends and see that you are starting the process perfectly.

The benefits of outsourcing the payroll!

Let’s briefly delve into the benefits of outsourcing your payroll processing to an external service provider. Payroll processing remains the most popular area among the non-core processes that organizations tend to outsource and their benefits are many.

1.  Leads to lower Upfront Investment

One of the most important benefits of outsourcing Payroll is that it leads to lowering the investments upfront.  Outsourcing helps in reducing the investment on costly hardware and accessories as the package relies on high-end cloud technology; therefore you can do away with costly hardware onsite.

2.  Maintain accurate records

Having a perfectly running payroll that generates highly accurate payslips and all related records remains the top requirement of every organization. Payroll generated with errors can create great disharmony in the workplace and throw all activities out of gear. This will inevitably affect the growth of the organization. Outsourcing assures you of a perfectly running payroll process that will help you to maintain highly accurate records, and this will go a long way in promoting workplace harmony and enhancing growth.

3.  Comprehensive Payroll Support

Outsourcing the Payroll ensures comprehensive payroll support. This means that all requirements of payroll and HR management are seamlessly handled so that your month-end stress is drastically reduced.  The high level of integration that these packages achieve enables smooth and comprehensive payroll operations. All the modules are perfectly integrated thus reducing the need for frequent key-ins.

For the management the biggest need is to have access to an array of highly useful MIS reports as and when required, and this is what you get when you outsource. Armed with these reports, the management will be in a position to take timely decisions that would ultimately lead to greater growth.

Data security is a vital factor when you are handling sensitive employee data. In-house payroll processing may not be secure enough and the leak of sensitive data is always a possibility. When you outsource the process to a service provider, you can greatly reduce the possibility of a leak of sensitive data. Outsourcers have a robust security system in place with proper backup and multiple server locations to ensure a high level of data security.

4.  Leveraging expertise to ensure compliance

Experts with deep knowledge of all payroll and compliance norms man outsourcing service agencies. By outsourcing you are shifting the onus of keeping the organization compliant to a team of highly efficient individuals. Outsourcing the payroll and HR process will enable companies to minimize compliance and regulatory risks. This will ensure that the company is compliant at all times.

There are a few more reasons why you should outsource your payroll to an external service provider. However, we shall take a detour from that topic and focus on why you should outsource to GetifyHR.

Why GetifyHR?

GetifyHR is one of the leading Payroll and HRMS outsourcing companies based out of Coimbatore. With a vast clientele spread across the country, we have been providing excellent service across states and platforms.

Our vision is to make GetifyHR one of the leading outsourcers in the industry. Simplifying the rather complex Payroll and HR operations has been our goal and this we have achieved through our commitment and dedication to providing the very best to our clients.

Ours is a highly efficient and fully functional module that can manage these complex operations in any organization. This is a high-end module using the latest cloud-based technology. The module fully automates the payroll and HR processes and empowers employees with a highly efficient self-service module. The important features of our module are briefly described hereunder.

Payroll Module

This is a module that simplifies the rather cumbersome and complex payroll process. The module is highly customizable and is fully integrated to maintain all the requirements of Payroll processing and HR management.

This includes generating highly accurate Payslips and the relevant reports, handling all statutory compliance requirements, and maintaining employee Leave & Attendance, and Recruitment. The module ensures the generation of accurate payslips and on-time disbursement of salaries every month. All reports required to keep the company compliant are readily available and it is only a matter of remitting the deductions to the authorities.

These activities can be performed without a hitch every month seamlessly and smoothly.

The module ensures accurate calculation of salaries and timely disbursement every month. This will pave the way for greater harmony within the workplace.

  • Salaries can be disbursed by cash, or cheque or can be directly transferred to the employees’ bank accounts
  • The payments can be released either Batch wise or Bank wise
  • Track the status of all cash and cheque payments.

Statutory Compliance Module

This module helps you to save precious time that you would have spent keeping yourself updated of the changes in compliance rules. The changes in EPF, ESI, and other labour laws are immediately updated in the system.

Similarly, changes in tax slabs are updated as and when announced so that the employees do not lose the benefit.

In other words, GetifyHR frees you from the burden of updating the changes in statutory rules and regulations and creates a stress-free month-end operation.

GetifyHR’s outsourcing module allows you to perform the following tasks:

  • Calculate PF deductions and generate ECR
  • Compute ESI
  • Calculate state-specific Professional Tax component
  • Calculate TDS and generate the returns
  • Generate Form 24Q, Form 16 and Form 12BA
  • LWF calculations and deductions
  • Bonus calculations.

Excellent Reporting

Our Payroll module provides access to more than 150 MIS reports. You can customize the reports for your specific needs. Additionally, payroll analytics provide insightful details that help you to take the right decisions at the appropriate time. The reports include…

  • A large array of MIS Reports
  • Reports and Forms for Statutory Compliance requirements
  • Reconciliation and other reports specific to the Accounts department.

Conclusion

The right time to outsource the Payroll and HR operations and make your choice of the right outsourcer is an onerous task for any business owner. Choosing the right time is best left to the management as they know their situation better than anyone else. However, we have suggested January to be the ideal time purely taking into consideration the beginning of the financial year. Taking such a decision would enable the user to be ready to go live beginning in April when the new financial year begins. But again the choice is best left to the management.

Choosing GetifyHR to outsource the Payroll process is again the ideal choice considering that we enjoy a sound reputation in the industry. We rank among the top outsourcers in the country with a large number of satisfied customers spread across the country. The user-friendly interface and varied functionalities incorporated in this package will not only provide accurate payslips and insightful reports but will also enable immediate updation of changes effected in compliance rules and regulations. We are here to simplify the task and amplify your vision towards greater growth.

Holidays list to labour office

When do we need to declare the Holiday List to the Labour Officer?

by with No Comment BusinessNews & Updates

Introduction

We are closing in on the last few days of an eventful year. The excitement of celebrating Christmas and welcoming the New Year has never diminished and never will. But one set of people is busy formulating the New Holiday List for the forthcoming year.

Yes, HR managers in companies, both large and small are engrossed in preparing the holiday list for filing with the concerned Labour Officer at the end of the year.

Holidays are declared under the Negotiable Instruments Act, 1981. Though they apply to all government departments and more particularly Banks, all establishments in the public and private sectors irrespective of the laws under which they are formed have to adopt these holidays. It is mandatory to adopt a pattern of national and festival holidays in the country. In addition to these, there is the option of granting restricted holidays to employees.

National Holidays

The three National Holidays observed in India are Republic Day (Jan. 26), Independence Day (Aug. 15), and Gandhi Jayanthi (Oct. 2), however, in some states, May 1 (Workers Day) is also declared as a National Holiday. On these days all establishments irrespective of what law they come under should necessarily remain closed. If for some reason the establishment needs to function on these days, they need to get prior approval from the concerned authority. In case employees work on national holidays, then they are entitled to get double wages for the day. The laws regarding national holidays are subject to Central legislation, and some states have made provisions to claim compensatory leave or pay double wages for working on those days.

Festival Holidays

Festival Holidays are based on local festivals and, therefore, may differ from state to state and also could depend on the company policies. The number of holidays would differ from state to state based on the festivals celebrated in that particular state.

Restricted Holidays

A restricted holiday is an optional public holiday that can be availed by a particular set of employees celebrating a special occasion. On a National or Festival holiday, the entire establishment is closed, whereas; on a Restricted Holiday only a particular group of employees avail of the holiday.

A Restricted Holiday enables the organization to serve its customers with a fewer number of employees.

Employees on the other hand get the benefit of claiming paid leave of absence on 2 or 3 restricted holidays during the year. These restricted holidays are marked as optional in the holiday list and are valid only for the specific days mentioned therein.

Declaring the Holiday List

The employer has to submit the finalized Holiday List to the concerned authority for approval in the form as stipulated in each state. In Tamil Nadu, one has to get approval from the Asst. Inspector of Labour/Labour Inspector/Labour Officer.  The details of the forms required for submission/acceptance given hereunder pertain to the state of TamilNadu.

The List Festival Holidays has to be submitted to the Labour Officer in Form No: I.

A notice in Form No: II has to be exhibited in the establishment and a copy has to be submitted to the Labour Officer.  The form should specify the period within which objections or suggestions of the employees referred to in sub-rule (3) will be received.

Where the employer or a majority of employees or any trade union representing a vast number of employees desires a change in the festivals, they may apply to the Labour Officer in Form IV, in duplicate indicating the changes.  The Labour Officer will communicate these changes to the employer in Form III in duplicate. The employer has to display a copy of this communication on the notice board within 7 days of receipt.

The employer should submit a statement under sub-rule (1) of rule 5 in Form V to the Labour Officer indicating the National and Festival Holidays allowed for that calendar year.  The last date for submission of this form is 31st of December every year.  The employer has to display a copy of this statement in a prominent location on the premises.

In all 9 holidays have to be declared in a year (3/4 national holidays and 4/5 festival holidays). The number of holidays would vary from state to state as each state has its festivals and policies on approving holidays. The employer should submit the finalized Holiday List in the stipulated form to the authorities before 31st December of each year for approval.

Conclusion

Preparing the Holiday List and Leave entitlement of employees is a complex task that needs a lot of thought and effort. A lot of effort goes into framing the company’s leave policy and the HR team would be hard-pressed to achieve this task. GetifyHR has years of experience in framing such leave policies for organizations spread across the country and is also adept in formulating National Holiday and Festival Holiday lists across multiple states. Our Payroll and HR management module facilitates simplifying this task and makes it easier for handling the Holidays and Leave eligibility of employees. Associate with us now for seamless handling of all Payroll Processing, Statutory Compliance issues and Leave and Attendance management.