Employee Benefits – Dutch Uncles

Bumble Inc. Offers A Much-Needed Break!

Aakash Sharma — Sat, 26 Jun 2021 05:35:04 +0000

The American social media company Bumble Inc. has given its employees a week off from work to relieve and relax from the stress of the pandemic. The decision, unique and positive as it is, has been praised universally across social media by industry leaders and entrepreneurs.

Bumble founder-CEO and recently turned billionaire businesswoman Whitney Wolfe Herd has taken the action “having correctly intuited the company’s collective burnout”. The company announced in April that all Bumble employees would have a week’s paid leave and be completely offline as part of the vacation in June 2021.

Company’s Collective Burnout and Pandemic Stress are Reasons behind the Break

As the pandemic forced people to refrain from going to their offices, schools and other public spaces, the line between work and ‘the personal’ got blurred amidst innumerable online meetings. This has raised concerns about fatigue and exhaustion globally. While many businesses have thrived in the pandemic year, their workers have never been more exhausted and dismayed.

A Microsoft Corp study has recently found that 41% of workers may quit their tech-savvy, high demanding jobs in the United States this year. Workers are demanding changes as employers risk losing workers if they don’t bend for the right causes.

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Like everyone else, our global team went through a very difficult time during the pandemic," said Rosanna Sachs, a spokeswoman for Bumble.

As vaccination rates rise and restrictions ease, Bumble is focusing on calming the nerves of its teams around the world by letting them focus on themselves for a week.

Bumble’s Business Growth has been Massive

Bumble has grown rapidly than many other companies over the last year. Its rapidly growing users and stock market debut are proof enough of its busy success. During the first quarter of 2021, the number of paid Bumble and Badoo, another Bumble Inc. owned platform, users increased by 30% as compared to the same period last year.

Can businesses in India follow the same road as Bumble’s?

With restrictions largely lifted in the United States due to reduced cases of and mass vaccination against the coronavirus, companies are taking a variety of approaches to retaining employees and increasing productivity. Some want a full return to the office, while others are offering a more flexible approach.

Paid vacation for Bumble employees coincides with a trend in which executives are convincing employees that their well-being is important to them. Apple Inc. is adopting a work-from-home hybrid strategy this year, and Twitter has announced that many of its employees will be able to work from home indefinitely.

While the above-mentioned companies are leaps and bounds ahead of a majority of Indian businesses, the messaging from their actions is worth following suit. Even though the pandemic is far from over in India, a large number of companies call employees to offices as soon as the restrictions are lifted by the government. Such practices of calling employees to offices amidst the pandemic make them extra vulnerable. Their stress levels increase due to the risk of contracting the virus.

Businesses must chart out a pragmatic way for keeping themselves up and running, while simultaneously leaving some space for their employees who have been facing the double brunt of work and pandemic for over one and a half years. That indeed is the most sustainable way to go forward.

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EPFO Updates to Ease the Impact of Second COVID-19 Wave

Aakash Sharma — Fri, 04 Jun 2021 08:35:04 +0000

In a repeated relief measure announced by the government, further withdrawals from EPFO are being allowed to counter the ongoing second wave of the COVID-19 pandemic. The government first decided to enable lump-sum withdrawal during the pandemic to counter the financial difficulties in March 2020 as part of the Pradhan Mantri Garib Kalyan Yojana (PMGKY), a COVID-19 relief program.

Employees’ Provident Fund Organisation (EPFO) has allowed contributors to withdraw a non-refundable deposit from their savings under COVID-19 relief measures. This is the second time the EPFO has approved such an aid measure due to the ongoing crisis.

How much PF can be withdrawn, and from where can the aid be availed?

Whether employed or self-submitters, Provident Fund subscribers can take out non-refundable amounts from dearness allowances and basic wages for three months or up to 75 per cent of the amount payable to employee credit. EPF members may request a lower amount than stated in the plan.

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The Ministry of Labour and Employment informed that EPFO has settled more than 76.31 million COVID-19 advances and paid Rs 18,698.15 crore.

To process and access complaints, EPFO has implemented an automated grievance process controlled by the e-system. EPFO’s eligible Know Your Customer (KYC) members can request instant withdrawal of their funds. EPFO can reduce the claims settlement cycle to just three days with the automatic payment method as against the legal obligation to settle claims within 20 days.

Aadhaar Mandatory for PF under New EPFO COVID 19 Relief Rules

The ministry has mandated that the Aadhaar number be provided by employees and unorganised sector workers who wish to register, receive benefits or wait for payment under various schemes as per section 142 of the Social Security Code 2020.

Aadhaar is also required for non-organised sector labour organisation databases, including migrant workers. However, the agency did not rule out providing services under various social security schemes if Aadhaar was not submitted.

EPFO has notified employers that from 1st June, if PF accounts are not linked to Aadhaar, then the ECR (electronic challan-cum-return) will not be filled. Employees can still contribute to their PF account, but they will not deposit their employer’s share.

Who Will Benefit from the latest EPFO updates?

EPFO services can be used by any person employed by EPF registered organisations or by private and independent PF depositors who pay the amount themselves. This facility is mainly for those people whose monthly salary is less than Rs. 15,000. Official figures show that EPFO has approved over 7.63 million COVID-19 down payment claims and has paid a total of Rs. 18,698.15 crores since the facility became available.

High demand and expected figures suggest that rising costs have also resulted in heavy losses to workers, mainly due to the COVID-19 pandemic and inflation. This new move will benefit the people of India who are now financially affected by COVID.

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4 Day Work Week: Adding Another Day to The Weekend

Anju Nambiar — Tue, 18 May 2021 03:33:54 +0000

Taking into consideration the unpredictable time and its indications Oyo announced a progressive work arrangement for its employees. It rolled out a 4-day working schedule. Ritesh Agarwal, the founder of Oyo in his tweet declared May 2021 will be a 4-day work week month for Oyo’s employees.

How did it all start?

The trend for a 4-day work week came about when the Labour Ministry of Government of India proposed new labour codes in February this year. They proposed to provide flexibility to Indian companies in choosing a 4-day work week model. The proposal came at the correct time when employers were battling mental and physical health implications of employees working from home amidst the pandemic phobia. The second wave of the Covid-19 further wafted the flames of this trend, making Oyo the lead contender of the 4-day work week trend.

Oyo and Swiggy made these human resource management change, which was progressive in light of the devastation caused by the pandemic’s second wave. Both Swiggy and Oyo have specifically made these arrangements for the month of May to boost the morale of employees struggling amidst the health scare, safety, and security concerns of their loved ones. Companies both big and small are experimenting if a 4-day work culture will deliver the desired business along with the efficiency and professional benchmarks. Needless to mention if this model yields success, it may soon be the inherent perk of working with a start-up. On the same side-lines Indian technology giants are considering the May timeline and may extend the four-day week until the end of the year. At present Oyo is providing Wednesday off as a mid-week breather, whereas Swiggy is giving their employees a choice to decide which 4 days in the week they want to work.

Start-ups following this trend

Zerodha (Stock Broking Firm)

Stock broking platform Zerodha has announced that their employees will no longer be communicating about work post 6 pm be it on chat or conference calls.

Myntra (Fashion e-commerce)

Myntra gave its employees unlimited wellness leaves as well as 14-day ‘care leaves’ for tending to sick children or old parents.

Swiggy

‘Swigsters’ (Swiggy employees) belonging to the Grade 1-6 category will receive their salaries for the month of May well in advance. They will also receive a special ‘nutrition support payment’ if a family member tests positive for the coronavirus.

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If the trying times don’t abate or if employees can achieve stability and productivity through this measure, start-up giants may consider extending this trend or may become a permanent business requirement.

Benefits of a 4-day work week

Relief during trying times

Start-ups offering a 4-day work week can prevent their employees from going through ‘burnout’ and can alleviate their mental stress.

Improved employee efficiency

1 day off in the week along with a 2-day weekend will make employees more focused and productive since they will get ample time to spend with their loved ones. It will also take off from the anxiety of having to deal with sick and suffering friends and family who are hit by Covid-19.

Improved performance

A 4-day work week will reduce multitasking among employees which will implicitly boost their productivity in a work from home model.

Sailing through the peak of the second wave

We are in the mid of May, and we are witnessing the peak of the second wave of Covid-19 in India. During such a life-threatening time, a 4-day work week will help employees to keep their grit and focus on coping with the ongoing financial, mental, and emotional crisis.

Improve work-life balance

The fine line separating work and personal life was completely disrupted for employees after Work From Home came into the picture. A 4-day work week will improve their quality of life and bring a balance between personal and professional life. It will also protect them from irregular work hours and uncertainty in career growth. Overall ensuring happy employees, and a happy workforce implies happy customers!

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In the Recent Months Which Startups Are Buying Back Companies Stocks?

Anju Nambiar — Wed, 12 May 2021 03:35:05 +0000

A development which has steadily been picking up pace is that the Indian start-up ecosystem has been announcing ESOP (Employee Stock Option Plan) buybacks, one after the other. ‘The Employee Stock Ownership Plan Liquidity Offer 2021’ is highlighted now because most start-ups are facilitating such liquidity programmes to help their staff weather the second wave of the Covid-19 pandemic.

What is ESOP?

ESOP is essentially an employee benefit plan exclusively made available for key roles within an organisation. It’s a program where employees are given a share within the company. Employees associated with the company for a long time as well as decision makers are mostly a part of this programme.

Why are startups considering ESOP buyback exercise?

It’s common knowledge that the domestic economy has taken a beating and any recovery has been stamped out once again this year. Start-ups have seen fit to buyback company stocks from their employees to reward them. Employees are being granted an alternate opportunity for wealth creation. Start-ups are determined not to let their employees’ motivation dwindle due to the bleak circumstances.

Companies in the spotlight

Udaan

The first start-up in the spotlight is Udaan which is doing a buyback exercise for employee stocks worth INR 165-175 Cr. An online B2B Marketplace, Udaan is extending eligibility for the buyback to its active employees who held vested stocks as on the 31st of March 2021.

CRED

The next start-up in the spotlight is CRED which recently concluded its ESOP buyback programme. CRED did the buyback for all its employees, even those that were no longer associated with the company. CRED’s buyback happened during its Series C funding round in November of last year during which time their employee ESOP liquidation was valued at INR 9 crores. The eligibility criteria was extended to employees holding vested stocks and they were able to sell up to 50% of their vested ESOP shares.

Acko

The next start-up worth mentioning is Acko (Bengaluru-based Insurance start-up whose employees could liquidate 40-100% of their vested ESOPs. The eligibility criteria covered employees who were associated with Acko for 3 years. Acko’s ESOP buyback was valued at $2M and 40 employees benefited from the programme.

Other start-ups in the spotlight include PhonePe, PayTM, Zerodha. There’s also Browserstack, and Zetwerk (manufacturing start-up) in the long list of start-ups who’ve been buying back company stocks.

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CRED’s buyback happened during its Series C funding round in November of last year during which time their employee ESOP liquidation was valued at INR 9 crores.

What’s in it for me?

Start-ups are doing ESOP buybacks as a way to ensure that they retain their technology talents during the pandemic. Corporates are in need of skilled engineering professionals and the pandemic has created a dearth, although a lot of engineers have lost jobs. Overall, it’s a mess and start-ups want to ensure that they don’t lose valuable employees amidst the disruption caused by the pandemic.

ESOPs are a way to provide salary bonuses to employees in exchange of vested ESOP share prices. The money received through ESOP sales becomes part of the employees’ income and giving employees this additional wealth is highly essential during these uncertain times. ESOP buybacks increase the start-up valuation along with the increase in the ESOP pool valuation. Since they often occur in conjunction with an external strategic or fundraising round.

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What is an Employment Agreement?

Roopali Kotwal — Thu, 06 May 2021 07:35:04 +0000

As you step into an entrepreneurship journey, you would need a team to support your dream and to build an organisation. You would need people to work with you so, hiring people with the required skill set will be the next course of action. Now, how do you ensure that a cordial relationship between two parties i.e. you as an employer and the employee/employees (individuals you hire) is established and a mutual trust is formed? How would you want the new recruits to work in your organisation? What is expected from an employee and what will they get in return and on what terms and conditions? The answer to all these questions is by having an employment agreement in place.

Employment Agreement: What it means?

Keeping a track of a verbal conversation regarding the association of an employer with an employee could be troublesome in the long run while building a community. Hence, the requirement to follow a standard way to build trust and understanding between the two parties i.e. the employer and the employee, a formal process of signing a document is created. With the help of a legal team, an employment agreement/contract is designed that states the expectations of the employer from an employee and the benefits and the wages that will be provided to an employee with the terms and conditions to be followed to avoid any dispute during the course of employment or later on. In short, a mutual agreement and expectation is set between both parties before the commencement of the employment. Thus, an employment agreement/contract defines the relationship between the employer and the employee through a written and legally binding document.

Employment Agreement: Who can enter?

An individual of stable and sound mind and reasoning is capable of entering into an agreement/contract. It is also important to understand that the agreement/contract is legitimate if it has not been created under any misrepresentation or undue influence. Thus, an individual with a sound mind willing to work can enter into a contract with the employer (that can be a corporate, non-profit organisation etc.).

Employment Agreement: Why is it required?

Employment agreement is the sole document that protects an employee or safeguards his/her legal rights. The document provides clarity and builds trust and mutual understanding between both the employee and the employer The rights and obligations of both parties are clearly defined in an employment agreement.

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The agreement or contract is legitimate if it has not been created under any misrepresentation or undue influence.

What are the mandatory clauses or terms and conditions?

Below are the clauses or terms and conditions which are mostly covered in an employment agreement or in an employment contract:

Designation

The designation or position at which the employee shall be working in the organisation is a part of the agreement/contract.

Date of Joining (DOJ)

DOJ is the date of commencement of the employment in the organisation.

Place of work

This section explains the location of employment. If an employee is required to work remotely or from a specific location in India as per the work requirement.

Remuneration/Salary and Bonus Eligibility

The agreement must contain the annual gross salary to be paid to the employee. This is an obligation of employment to prove remuneration for the services or work that will be performed by the employee during the employment period. However, adding a joining bonus or a minimum bonus amount based on employee performance or any incentives completely depends on the company policy.

Probation Period

With the probation clause, an employer gets time to review the decision if the hired employee is a right fit, understand the company culture code and is able to perform/behave as desired or meets the requirement of his/her role. Thus, a probation period of one month, three months or six months at times is enough for both the employer and employee to settle. And, if a replacement is required, the notice period process can be simplified as employment could be terminated from either side by giving a minimum notice period that us usually around 15 days or 1 month in probation period instead of 2 or 3 months’ notice period applicable for a confirmed employee.

Working Hours

This section defines how many hours an employee would need to put in for work on a weekly or monthly basis. This is usually designed by the HR team keeping in mind the requirement of the organisation and most importantly, following the labour law to ensure no employee is exploited. In fact, even the employee also justifies the salary received with the amount of time he/she dedicates at work.

Leave or Paid Time Off (PTO)

The number of paid days off at work are covered under the leave policy that is uniform for all its employees.

Duties

This clause does not always list the detailed job description or assignment; the employee will be working upon. However, it provides an insight into the possible work assignment that employee will take up post joining the organisation.

Dress Code

Having culture and setting an expectation for dressing code as per the company culture is important. So, setting the precedence since inception is a good idea especially if the work demands a formal dress code and a policy around it to adhere to.

Fringe Benefits

The employment contract or agreement may or may include all the fringe benefits such as health and dental insurance and retirement or pension benefits. The contract or agreement usually covers the health insurance provider and the beneficiary details. For instance, dependent spouse or dependent parents.

Notice Period

This is one important clause to ensure a minimum notice period is given by the employer to the employee and vice versa at the time of leaving the organisation or termination of the employment for any reason.

Amendment and Termination

Termination is a key clause and an essential part of the contract. The clause states the right of the employer to modify and terminate the employment as per the agreed notice period clause until there is a conflict of interest or any inappropriate behaviour based on ‘no tolerance company policy’. No tolerance activity performed by an employee can lead to his/her immediate termination. The termination of the employment can also happen when the employee volunteers to quit the organisation for his/her personal reasons by serving the minimum notice period as mentioned in his/her agreement or contract.

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The detailed clauses or terms and conditions not only protects the interest of an employer but also, mitigates the risk of unnecessary legal complications which may develop due to unclear documentation or intimation to the employee at any given point of time.

Indemnification

The process of compensation for any harm or loss by one party to another is indemnification. For instance, recovery amount of any training cost upon joining or any relocation expenses paid by the employer if an employee leaves before a minimum period of time or as desired by the organisation.

Intellectual Property Rights

Intellectual property created by the employer at their premises is an asset and belongs to the employer. For instance, huge cost and effort for training is incurred by an organisation. Hence, they have full right to save their intellectual property rights by all means.

Non-compete Clause

The clause limits the employee to open a similar business or to join any competitor for a limited time period after leaving the organisation. Also, the addition of this clause depends on the type of employment and the company business.

Non-disclosure and Confidentiality

As per the contract, the employee is legally bound to ensure no confidential information such as trade secrets, financial information and client details etc. are shared with any third person or with the competitors. This is one of the mandatory clauses in an employment agreement.

Employment Agreement: Why clauses are important?

No one wants to get into any legal hassle while running a company or wanting to scale their company business. Thus, the detailed clauses or terms and conditions not only protects the interest of an employer but also, mitigates the risk of unnecessary legal complications which may develop due to unclear documentation or intimation to the employee at any given point of time.

Offer Letter and Employment Agreement. Are they different?

Absolutely, an offer letter and an employment agreement/contract are different. There is a difference in legal validity. Offer letter contains the basic information like DOJ, location, salary but isn’t legally binding. However, an employment agreement is a legally binding contract between both the parties i.e. employer and employee. And, the agreement/contract must be signed by both parties to show consent on the stated terms and conditions.

Conclusion

The important note for an employer is that focus should not be only on filling up the vacant position or for an employee the idea should not be limited to get a job. Both parties should understand the agreement. Infact, acceptance of the agreement before the employment officially starts is an important factor to establish trust, provide clarity and consent between the employer and the employee. The legal binding protects the interests of both parties with proper documentation i.e. employment agreement/contract that contains essential terms and conditions enforceable in the court of law.
Entrepreneurs who are just starting off with their small new businesses must also understand the gravity and importance of building this trust with the employees they are going to hire. It is crucial to follow the latest employment laws/labour laws in India to ensure legal compliance. And, ensure to always run the contract through the legal department in case of any concern or changes required. The employment contract can be for an indefinite period of time but with clear termination and notice period clause or for a definite period of time with applicable law and Jurisdiction in case of any dispute that may arise particularly if an overseas employee is being hired and is working remotely for an employer in India.

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Start-ups focus on employee wellbeing during second wave of the coronavirus pandemic

Anju Nambiar — Wed, 05 May 2021 11:05:03 +0000

Start-ups are taking Covid-19 head on. Several start-ups have stepped up efforts to create a safety net on their employees during the killer second wave of the pandemic sweeping across India. The focus of these start-ups has been to provide help and assistance where it’s needed the most – their employee fraternity. From creating Covid-19 funds for employees, providing employee wellbeing benefits and financial support for Covid affected employees and their families, start-ups seem to be doing more for their employees than the Government is doing for its people.

Precise employee wellbeing benefits offered.

Start-ups are providing financial assistance to cover covid-related expenses. Funds are being raised to extend physical and mental health care as well as insurance cover. Salary advances are being handed out and arrangements are being made for vaccination drives for employees and their families.

Home medical equipment like Oxygen Concentrators is being stocked for team members, their families, and communities.

Several Covid-19 related employee benefits are being rolled out whereby corporates and start-ups are offering to bear the expenses of vaccinations and are organising vaccination camps on their premises.

Start-ups are also expanding the umbrella of coverage for Covid-19 in their group insurance plans. Employees are getting extra time off to connect with mental health services.

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Start-ups are providing financial assistance to cover covid-related expenses. Funds are being raised to extend physical and mental health care as well as insurance cover.

Start-ups in the spotlight

Paytm is the first start-up in the spotlight which has purchased home medical equipment for the families of team members. Impetus Technologies has initiated an in-house, free, cooked meals service for their employees suffering from Covid-19. CapitaLand India is a real-estate firm working to inoculate their employees by arranging vaccination drives.

Oyo is the next start-up in the spotlight which has prioritised employee wellbeing during the second wave of the pandemic in India. They have come up with new policies starting from vaccination cost reimbursements for employees and their kin. They are doing much more for their employees under preventative wellness exercises to keep them safe. Oyo employees will benefit from free annual health checks, online consultations, 24×7 counselling services, and more.

What’s more, Oyo is setting aside INR 25000 for families of employees who are home quarantining. The company will be reimbursing expenditures on RT-PCR tests, pulse-oximeters, thermal scanner, administration of oxygen, and more.

Byju’s on the other hand has established a CEO fund of INR 20 Cr. Specially for bearing Covid-related medical expenses for employees and family.

What’s in it for me?

Start-ups are doing all they can to contribute their bit towards India’s death rattle against Covid. It seems like Work from Home will be the permanent norm henceforth, since most start-ups who had reopened offices have gone back to the remote work format.

All businesses are extremely precautious about ensuring that their staff follows all Covid-19 protocols. In-office staffing is almost nil, and employees are being persuading to not leave the safety net of their homes during these trying times.

Start-ups no longer need to think about investing office spaces since the hybrid workplace model is here to stay. Real estate and travel expenditures can be wisely and judiciously utilised for extending employee wellness benefits and preventive measures so that employees can comfortably and safely work from their homes.

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What Are the Employee Benefits in Private and Public Organisations?

Roopali Kotwal — Fri, 23 Apr 2021 03:30:27 +0000

Benefits in any form will delight and make an individual to definitely lookout for what’s there for him/her before taking up an offer or buying any product/service in the market. When we talk about employee benefits, it is certainly more than the salary which one would get upon joining a particular organisation. And, why they should not be there as you are going to spend more time and energy at the workplace than at home.

The standard work day has a minimum work requirement of 9 hours in any private or a public/government sector that shall include the rest time while at work. At times, the work goes beyond 9 hours as deliverables at work demand more time and attention. So, it’s kind of fair to expect and know what perquisites (perks) or benefits one would get post taking up a role in an organised sector where employment terms are fixed for the skilled labour. The job is regular with fixed working hours with the employer being a government organisation, a start-up or an established multinational company (MNC)/private organisation.

What are Employee Benefits?

Anything above and beyond the monthly take home salary or wages, that an employee gets from an organisation shall be classified as ‘Benefits.’ In other words, any indirect and non-cash compensation paid to employees is ‘Employee Benefits.’

Why are Benefits offered?

Recruitment is a time consuming process. After all, you have scanned uncountable Resumes to fill a particular role or a critical position. The process isn’t complete without having the employee on-board. At times, the employees may leave the organisation during the probation period which varies from 15 days to 3 months or at times after years switch across companies due to better job offers and better security outside the organisation. Of course, the probation period is for both the employee and the employer to see the fitment of the employee in the culture code, organisation’s set up and check the initial behaviour and adherence to protocols and the initial performance pace. But, it is critical for an organisation to ensure that they don’t lose their new employee to competition due to inadequate employee benefits for the full time employment. So, ensuring a proper strategy for employee benefits becomes crucial.

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It is critical for an organisation to ensure that they don't lose their new employee to competition due to inadequate employee benefits for the full time employment. So, ensuring a proper strategy for employee benefits becomes crucial.

Employee Benefits: Types

There are several types of benefits which an employee could get but broadly they can be categorised as:

Employee Stock Ownership Plans (ESOPs)

Usually, trending in start-ups in India and across the world as a part of compensation, ESOP is a way to reduce attrition and offer a stake to the employees in the organisation. All big MNCs such as Accenture and Genpact and even the start-ups have the ESOPs. However, at a selected category of employees based on their ability and impact on the organisation. They usually get ESOPs at a reduced value than the market share price. In start-ups, ESOPs are offered to attract the best talent without having to pay huge salaries. Thus, making the employees and the executive a shareholder in the company by subscribing to the shares at a future date and at a predetermined price.

Health Insurance

Medical costs for any treatments can be huge so a company usually ties-up with the vendor to provide it as a benefit to the employees. A minimum premium amount in the salary of an employee is added. And in case of any emergency the hospitalisation expenses as listed in the paperwork are covered by the organisation.

Accidental Death Coverage/Life and Disability Insurance

Companies as a benefit provide life insurance, disability insurance (disability while performing the duties) and an accidental death allowance as financial compensation to the dependant/beneficiary. In the case, of a married employee, the dependant or beneficiary is the spouse and if unmarried, they are dependant parents.

Concessional family coverage

Some companies also provide an option to add the parents as dependant even if the employee is married by paying a minimum premium amount.

Employee Benefits in Public Sector

Child Care Leave

It is generally granted to women employees for a maximum period of two years during the entire service. The age of the child has to be less 18 years to avail the benefit.

Housing facility

The government sector or public sector still provides the housing facilities on application and approval basis to the education institute staff, government officers and gazetted officers.

Work Travel and Stay

Business trips are usually covered by the private organisation as the employee travel requirement is for work. So, the accommodation and stay arrangement is usually taken care of by the companies.

Maternity Leave Policy

26 weeks of Maternity leave for women employees to take care of the new-born is a law and a benefit to female staff.

Paternity Leave policy

15 days of paternity leave upon the birth of the child can be availed by the male employees.

Gratuity

Provided in case, an employee completes the service period of 5 years in an organisation.

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Because of the changing trends in lifestyle, millennials (Generation Y) is very focused on healthy lifestyle but long working hours may be straining. Hence, a lot of start-ups provide the basic gym equipment and facility to its employees.

Employee Benefits in Private Established Organisation and Start-ups

Apart from Maternity, Paternity leaves, Gratuity and Work travel and Stay Facilities, an employee working in a private organisation gets the following benefits:

Accommodation Stay

7-15 days’ stay at company guest house or company accommodation for out-stationed employees.

Relocation Allowance

Intercity/Interstate movement for the Job offered. New employees get the benefit of relocation allowance where the charges for broken packages during relocation is covered.

Work from Home

This benefit is one of the important factors for an employee to stick with the company as it gives the flexibility to balance work-life. It is more of a necessary factor for any to join an organisation.

Joining Bonus/Statutory Bonus

Joining and Statutory Bonus ensure the shortlisted candidates take up the offer and stick with the company for long.

Employee Discount Program

Corporate employees get exclusive discounts for products or services or Food and Beverage items at some selected place as a part of the program. Some companies also provide meal coupons to employees that also helps them to save some tax.

Crèche Facility

Crèche facilities are a great relief for a working parent and having the kid in the close vicinity to check upon in between if required gives a mental freedom to work efficiently at the workplace.

In addition to the above, you shall notice the below listed benefits are more prominent in start-ups:

Gym at Workplace

Because of the changing trends in lifestyle, millennials (Generation Y) is very focused on healthy lifestyle but long working hours may be straining. Hence, a lot of start-ups provide the basic gym equipment and facility in addition to the other standard services in any private organisation.

Flexible working hours and Sleeping Room

Working in start-ups definitely gives flexible working hours. However, the work sometimes demands long hours so to ensure employees get proper rest, a sleeping room or bunker is set up for employees to take rest and rejuvenate.

Corporate Wellness

Apart from the insurance policies, an organisation big or small/start-up plan for a healthy environment for their employees. Thus, dedicated wellness programs are conducted from time to time to avail the benefits along with Health Care facilities, emergency medical room with a doctor’s visit and periodical physical and eye check-up facilities are available through different camps programs.

Notice-Period Buy-out

Private companies including start-ups provide this benefit to buy out the notice period in case he/she is required to join the new organisation asap. Hence, the compensation to the previous employer to break the contract is taken care of by the new organisation.

Should high performers get more Benefits?

To be fair, one would want to get compensated well for something which they are really expert at. After all, they have showcased their higher skill set in the previous job and performance reviews that reflect in the incremental process from time to time. You would want to pay better for better work to keep the motivation high. You would not want to lose a potential employee or an existing employee who really adds value to the organisation. So, you take care of such cases with a differentiating factor for what they have achieved, will possibly achieve and in turn benefit the organisation with higher productivity.

Conclusion

Any one joining a start-up would expect these above stated facilities now as they are simply the necessities. An employee may want to stay in the job for long term when these basic necessities are taken well care of by the companies.

As a business owner or an entrepreneur, you don’t want to fall behind in attracting the right talent and retaining your existing workforce so why not take the opportunity especially in corona times to ensure the best of the benefits to the employees to keep them involved, motivated and of course to make their work experience from home as productive as possible. Providing offerings or continuing the offerings like the allowances for the internet, furniture, and even power backup inverters is a big relief and great benefit for the employees across the private sector and the start-ups.

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New Wage Code 2021- How are businesses going to be affected?

Aakash Sharma — Sat, 27 Mar 2021 12:35:04 +0000

The new definition of wages in India under the New Wage Code 2021 could impact the cash payments that employees take home. The new labour regulations, including the revised wage definition, are expected to come into force on April 1, 2021.

New Wage Code 2021: What is the new definition of wages? Why was it necessary?

The central issue is the new definition of wages issued by the Indian government. It includes all bonuses, be it salaries, allowances, HRA contributions, pension fund (PF), etc., but these may not exceed 50% of the employee’s basic salary. This means that even if companies don’t redefine the compensation framework, they have no choice but to revisit their company remuneration policies again. A large part of the salary is technically defined as the base salary, and the rest is excluded.

According to the new wage law, the allowances that are privy to an employee should not exceed 50% of the cost to the company (CTC). This means that the base salary of each employee must be at least 50% of the CTC. After the new rules come into force, employers who do not pay employees 50% of their CTC as a base salary will have to change their policies.

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The central government will soon announce new rules under the new labour law that will directly affect workers' wage structure in the country.

How will the New Wage Code 2021 affect businesses?

Indian companies hope the government can postpone implementing new labour laws or at least clarify them before April 1st. Otherwise, employees’ salaries that have to be transferred at the start of the new fiscal year will be significantly reduced.

Corporations are still facing the adverse effects of COVID-19, and the pandemic is not over yet. NASSCOM expects the rule to go into effect in May or June, depending on government-industry interaction. In general, labour laws are very much needed. But, as is the case with any new law, these are the initial stages and involve a lot of uncertainty.

Under the cost to company (CTC) model, companies are likely to increase the share of the salary that goes towards employees’ PF. And, it will be at the expense of other allowances leading to lower take-home salary.

Long-term benefits are uncertain

In a slightly positive outlook for the new definition of wages, long-term benefits like post-retirement payments and leave encashment can increase, mainly when applied retrospectively. This means good news for employees but more responsibility for companies. Companies will have to take on more responsibility in collecting the payments and contributing towards the extra funds for employee benefits.

However, the government has not clarified how the change in definition applies to these long-term benefits. The central government will soon announce new rules under the new labour law that will directly affect workers’ wage structure in the country. It will affect the employees’ cost-to-company (CTC) and the employers’ wage bills.

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What is HR innovation? Why is it the need of the hour for Human Resource Management?

DU Desk — Mon, 01 Mar 2021 10:35:04 +0000

“HR innovation” is the new buzzword in town, and rightly so. A few years ago, hardly anyone would have believed that the whole world will switch to working remotely barring the essential services sectors. With flexible working hours, work from home and virtual meetings becoming a norm, it’s only fair to expect a trickle-down effect in every other arm of an organisation.

Simply put, HR innovation deals with innovation in the discipline of human resources. This could be innovation around executing fresh ideas, methods and technologies in order to satiate the demands of both the organization and its employees. It also includes being pre-emptive of the future trends and adapting to a fast-changing world. In the post-COVID world, HR innovation is a necessity now more than ever. It’s a world where human resource management will have to adopt itself for a much flatter organisation where AI and robots will take over most laborious jobs.

The global human resource management (HRM) sector is expected to reach $30 billion by 2025. Thus it is safe to assume that the business of creating innovative HR solutions is only going to boom. Another data point that will change the way HR has traditionally operated is the fact that by 2020, millennials could make up to 70% of the workforce in many countries. This is another reason why HR will need to foster and develop technology progressions to meet employee expectations and business needs. And the only way to achieve this goal faster is by adopting innovation into the industry. HR is an industry where traditionally employees have been overburdened with the complicated processes of managing the lifecycle of every employee but the industry is experiencing a resurgence and is becoming relevant now more than ever, especially in the post-COVID world.

Post-COVID HR

Human resource management played a huge role in helping companies navigate into a fully digital model of work. There’s a reason why human beings are called the masters of change. Things will never be the same in the post-COVID world and the pandemic has escalated the process of HR innovation for many companies. It is high time that companies invest in learning and re-skilling for the digital-first industries. Judicious planning for workforce enhancement is imperative. There is an innate need to transform the HR to empower digital workplaces to prepare for the uncertain times ahead.

This is not the time to mull over the disadvantages of AI replacing human jobs but how the same technology, coupled with big data can be used to increase the value and efficiency of the functioning of an organisation. Technologies like Internet of Things, Big Data and Artificial Intelligence are already helping in automating most HR processes, resulting in leaner and more efficient teams.

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By 2020, millennials could make up to 70% of the workforce in many countries. Hence, HR will need to develop technology progressions to meet employee expectations and business needs.

HR 4.0

Industry 4.0, which refers to the fourth major industrial revolution, needs HR 4.0. If Industry 4.0 is all about a major transformation in the way companies approach manufacturing, HR 4.0 is going to be about increased efficiency in the process of human resource management. For Industry 4.0, one still needs to discover better technology to cater to the demands of the ever-changing world but for much of the current HR-related activities; the technology required is already in place. It’s a matter of time when it will be adopted and applied. The HR can no longer afford to be redundant, bureaucratic and manual.

There are many advantages of adopting HR 4.0. It will help the HR be more collaborative, help in process optimisation, increasing strategic power in human resource management, easier decision making, increased productivity, identification of best talent in the market, error and manual work reduction and maintain costs.

Ways of HR Innovation

Organisations all over the globe are recognising the need to use data in HR activities like recruiting methods, identifying gaps in skill sets, and act as a bridge between the demand and supply of talent across the board. Predictive Analytics technology and consumer experience intelligence is going to be at the helm of ushering innovative HR functions. This will involve reimagining conventional employee engagement tools to not only make the employee experience a competitive advantage but also understand that large scale implementation of employee experience technologies is connected to the business outcome too.

One of the major challenges, however, will be cybersecurity. With an increase in the use of data, cybersecurity will be an important investment when it comes to overcoming issues of data confidentiality and employee privacy. As Anupal Banerjee, Chief Human Resources Officer at Tata Technologies puts it, having a secure remote infrastructure has never been more important. Companies with large remote workforce may open themselves up to Ransomware attacks. Large employers must set up strong cybersecurity practices soon.

HR innovation is not only about the HR department, but everything related to the interaction between organizations and their people. There are different ways in which HR innovation can be used to implement new ideas, methods, and technologies to better meet the ever-evolving requirements of the organization.

Job Adverts

Job ads are probably one of the first things that can be digitised. Thanks to augmented writing technology, it is now possible to predict whether a job advert will get an intended outcome or not. The technology uses machine learning and predictive analytics to show all kinds of permutations and combinations when it comes to predicting the suitability of a particular job advert. This can lower an organization’s cost per application and reduce its time per hire.

Chatbots

Sourcing, screening and scheduling of candidates can easily be done using natural language processing (NLP) capabilities that many chatbots possess. Recruitment chatbots can mimic human conversations during the recruiting process. This can help recruiters focus on other administrative tasks and streamline the hiring process while chatbots can take care of things like asking screening questions, answering FAQs, etc. Chatbots can also analyse and organize people-centric data for seamless attendance management and payslip generation.

Selective Hiring

Many pre-selection technology tools enable organizations to hire selectively. This can help organisations avoid the task of manually going through thousands of applications for initial selection. This will help organisations sift through applications and narrow down on the ones that truly add value. Pre-employment assessment software has come a long way doing all the heavy lifting and can save a huge amount of time in the hiring process. Applicant Tracking Systems (ATS) can be used to streamline the process of scanning resumes.

Inclusive Culture

There is a huge opportunity for HR to re-evaluate their current practices to form a more inclusive and diverse workplace culture. Organizations are increasingly expanding diversity hiring targets to focus on inclusion around gender, ethnicity, culture, age, and LGBT-identifying individuals. Technology can definitely help in this regard as well. AI can help to remove unconscious bias during the recruiting and interviewing process. It can do a better job than humans of avoiding unconscious bias by ignoring information such as names, universities, locations, and dates previous positions etc. In an ideal hiring process, this can help eradicate all unwarranted bias during the hiring process.

Gamification

Gamification is slowly creeping into all elements of HR. It is a relevant tool that can not only assist during the interview process but also help in the skilling, learning and development of the employees. Companies like Accenture and Deloitte are already doing it. They are using gamification to build make-believe workplace challenges right from the recruitment stage.

Mental Health Awareness

Technology can go a long way in ensuring the mental wellbeing of employees. Gone are the days when overwork was glorified. Stress and anxiety issues are the number one cause of unproductive time and performance issues. And in the long term, it will be more profitable for an employer to invest in innovative ways of promoting mental health awareness and HR can play an important role in making sure this happens. A mental health coach can help them to create specific goals and help them both personally and professionally.

Personalisation

Personalisation is becoming an increasing priority for employees across the globe. This is something that owes its existence and popularity to the consumer world. It is high time that HR professionals also recognise the benefits of personalising staff satisfaction. Boutique agency Bain and Gray’s co-founder Emily Bain recognised the importance of personalisation in HR a long time ago. “In April this year, we went a step further with our personalised perks drive, by launching an innovative benefits scheme for our candidates called the ‘The Card’ – an exclusive members-only loyalty scheme that rewards our highest-earning executive talent with a range of partner offers and innovations,” she said. This is a great way to ensure productivity and personalised perks.

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With an increase in the use of data, cybersecurity will be an important investment when it comes to overcoming issues of data confidentiality and employee privacy.

HR Innovation: A Long-term Investment

HR innovation can be seen both as a process and as an outcome. This is why it is the need of the hour for human resource management. There can be numerous other ways over and above the ones discussed here in which innovation in HR can take place in present-day organisations. Companies should consider that investing in innovation will bear fruitful results going forward. It is imperative that HR leaders understand the importance of innovation in industries today. Innovating will also enable organizations to differentiate themselves and look at innovation as a part of the new role of the HR. In the beginning, it may seem like a bit of an overhaul in the organisational practices but in the long-term this will only help streamline the entire process.

Google’s 20% Project is a great example. This project allowed their engineers to work on their pet projects 20% of their paid working time (that is one day a week). It seemed like a radical innovation in Google’s work design but it turned out to be a great enabler in improving motivation and performance, retaining current employees and attracting new talent. The first step for HR innovation is to identify a requirement or an opportunity for innovation by HR professionals and not just do anything for the sake of it. It should be clear why they want to do it. It is important to note that every HR change comes with risks such as the risk of investment, implementation failure, and failure to deliver desired outcomes. There has to be a good reason why organisations feel the need to invest in innovative HR practices. Hey need to have a good understanding of associated risks and investments.

From digitising HR activities like job adverts, chatbots, selective hiring, inclusive culture, gamification, mental health awareness and personalisation, one needs to understand that it’s a long-term investment and has to be patient with it. The bottom line is, benefits from a diverse, engaged and a mentally, physically, and financially motivated workforce are immense. As more and more companies are adopting innovative HR practices, it will provide a greater choice for employees. It will also help eliminate unhealthy workplace cultures which is never beneficial for neither the employer nor the employees.

Thus, HR solutions that benefit employees are obviously on the rise. The growing market is abound with solutions that promote employee engagement, diversify companies, rethink sexual harassment training, expand corporate wellness solutions, and employ AI to improve HR operations. This will go a long way in ensuring that employees feel at home even while they’re at work. This will go a long way in creating a thriving, productive and motivated workplace culture. It is the need of the hour for companies and HR executives to recruit, hire and retain top talent and that can only happen if their policies are innovative, unbiased, and employee-friendly. In order to attract and retain such a diverse and competitive talent, they will have to increase their spending on innovative HR solutions and therefore push for state-of-the art human resource management programs to ensure better productivity at a much cheaper investment. There’s no better time for human resources to be more digital-savvy than it is today.

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How Conflict Management Can Benefit You

Kiran Kennedy — Sat, 16 Jan 2021 10:10:56 +0000

It is true what science says about human behaviour – when it comes to conflict, we either respond with fight or flight. It is in our nature to respond on the toss of a coin. Most of the time, we do not even think about it, we just react. While this may be ideal in the grand scheme of what nature intended for our survival, it does not always work in the long run, especially in the workplace. What if science is wrong when it comes to the workplace? What if workplace conflict can be a good thing? Conflict management is the art of finding the middle ground in work-related conflict. Instead of trying to tackle the conflict to the ground and squash it, you might want to consider trying to use it to your benefit. Let us have a look at how it can be best navigated.

What Is Conflict Management To Begin With?

Conflict management is the art of resolution. It can take many forms and paths but the end goal is always the same – to minimise disputes and maximise efficiency within the workplace. There is a high demand for good management skills and interpersonal communication skills in conflict management because you are not so much commanding as you are mediating.

Now, conflict does not automatically mean that you have a negative work environment or that it is bad for the company by any means. Yes, in some cases things can get personal and very unhealthy but if you find that there is an individual pushing back against the norm it is usually because they feel there is a better way to work and that they are feeling unheard.

If your employees question the norm, it means you have a lot of proactive thinkers who are readily engaging the company on what should be. This is a good thing as it indicates that they feel confident enough to raise the issue in hopes of it getting solved.

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Conflict in the workplace does not necessarily have to be a bad thing. It can be a path to growth and mutual understanding.

How To Use Conflict To Your Advantage

The key to conflict management is to use in the right way. Workplace conflict can be a tool for productivity and innovation. Here are a few ways in which conflicts can be used efficiently:

Finding better solutions

Ever heard of healthy competition? When two or more people in an organisation are working on a certain project at the same level, each might have their own idea of what the best course of action may be. This will lead to creative differences and a drive to find the best approach. This process can expose the pros and cons of each approach and isolate the best option. Healthy competition essentially opens the door to exploring different avenues. The more ideas are explored and pursued the more innovation happens.

Constructive criticism

It is not always easy to hear someone challenge your ideas or give a less than positive feedback of your work. Instead of interpreting it as an offence, it is an opportunity to use that feedback to make improvements. Different people will have different views and that is a good thing. Seeing something through another’s perspective helps widen your horizons and this translates into a better quality of work.

Improve work relationships

Trial by fire tends to make people come together. You gain a newfound respect for the other person despite your differences. In order to find a common ground to stand on you first need to start from opposite ends of a certain opinion. Eventually it helps employees realise the bigger picture and self-resolution becomes an active part of the work atmosphere.

Job satisfaction levels rise

Back to the constructive criticism point from earlier. Once that mindset of accepting constructive criticism sets in, employees will no longer resent the friction that is bound to arise time and time again in the future. As long as they know that the management is looking out for them and keeping their interest at heart, they will not resent the conflicts that arise on a regular basis. The less the resentment, the more at ease they are in the workplace and the higher the job satisfaction levels will be.

Inclusivity becomes the new norm

Everyone wants to make their place of work a diverse environment these days, but diversity comes at a price. Different people are bound to have vastly different ideas and perspectives and this is sure to lead to friction. So, if diversity is truly a goal for your organisation, then be prepared for conflict. It falls to the manager to curate the conflict in such a way that it allows for growth and productivity. This is where conflict management plays the most important role – being a mediator.

A good example of how you could get a dialogue started to curate the conflict would be to hold weekly meetings for everyone. Do a thorough review, one-on-one, so that the employees are more willing to open up. After that, slowly transition into a group discussion, make everyone feel heard and suggest solutions.

When To Involve The Experts

Involving the HR

Most conflicts can be solved with a one-on-one discussion with the manager or with the person with whom there is an issue. Though there are some instances where even the manager will need some help resolving the situation. In those kinds of situations, the manager should involve HR into the conflict management process.

HR should get involved if the situation seems to be getting too personal and straying from the path of constructive criticism. Personal attacks, threats of harm, bullying and things of that nature are unacceptable in any work environment. This could lead to a drop in the morale of the organisation or even the employees quitting.

It should be noted that hiring is no easy task and takes a lot of time and money from the company’s side. In some extreme cases, the employee could resort to legal action which does not bode well for your organisation’s reputation. Once that respect is lost it is near impossible to gain back.

Involving a third-party

Sometimes, even HR needs help to reign in the conflict. There are many organisations and uniquely qualified individuals that can offer such services and help resolve the conflict on behalf of the company. This list of parties can include attorneys, mediators, motivational speakers and so on. It all depends on the situation at hand.

The most common instance where you would need an outside party is when the HR department lacks the time or training to handle a certain situation. This could include bullying, physical abuse and threat of severe legal action or recurring patterns of misdemeanour. In cases like that outside mediators could approach this from several different angles including workshops, talks, team-building activities or consultation. It all depends on their assessment of the situation.

Even though you have access to these kinds of solutions the point should be to try and resolve any and all conflict in-house. That is what the manager is there for, to navigate and understand where the common ground is. More than a manager they are a guide. Here are a few steps to take that will help guide employees to some sort of mutual understanding:

Establish the ground rules

Any conflict should be a controlled one in the workplace. Set up channels for employees to communicate their grievances through. Make it clear what is acceptable and what is not. Criticism and complaints are valid expressions but hate speech and abusive dialogue is not.

Get the dialogue going

Ask the employees involved to state clearly what their personal issues are and the changes they want to see in the work environment. Try to keep the conversation focused on the issue rather than on any one specific person. Avoid targeting at all costs.

Brainstorm solutions

Listening is a big part of this step. Everyone will have an opinion as to what can be the best solution and it is the mediator’s job to make sure everyone is heard. List out all the solutions and discuss with those concerned which one works best for them. If it is a feasible option for the company to implement in the long-run, then it is worth considering.

Resolution

Get the conflicting parties to shake hands or talk it out or apologise to each other. The point is to bury the hatchet and keep moving forward. Long-standing grudges do no one any good when it comes to work productivity.

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Conflict resolution can take many forms and it all depends on the scenario and your ability as a leader to read the situation.

Some Conflict Management Styles With Examples

Compromising

Finding the middle ground is often the best solution to conflicts. Both parties feel like they have been heard and their perspectives have been accepted to some capacity. It presents a situation of mutual understanding and builds working relationships. The only way it can be successful is when there is a mutual agreement on the solution. A forced compromise breeds resentment and becomes a redundant attempt at resolution.

Accommodation

This method is about knowing when to pick your battles and letting go where you can. Some issues are not worth so much effort that you have to stand and fight to be right every time. Sometimes it is okay to let go and let the other person have their way. This method is used if you want to avoid dragging out the conflict and you just want to maintain the peace. This is best used in scenarios where the issue is small and should be handled quickly.

A manager who utilises this method can be viewed as an easy-going person who is very approachable. This opens the door to more free dialogue and conflict resolution down the road.

Avoiding

It has less to do with ignoring the issue and more to do with giving everyone some breathing room when things get too heated. People can be reassigned to another project or department and teams can be shuffled. Whatever the move, it is good to ensure a cool-down period is in place so the situation can be revisited with clear heads.

This method should be used sparingly, however, as postponing the issue for too long can cause resentment to fester and cause more problems in the future.

Competing

No, it is not a competition to see who is more right. It is rather a practice of ruling with an iron fist. One side stands firm, usually the company or the management, and does not give way to others’ opinions or demands on account of there being no time or room in the present situation to try new things.

Change is always a necessity but not always a possibility. This method is great for shutting down conflicts quickly but morale and job satisfaction will take a hit.

Collaborating

Similar to compromising, this style focuses on getting all parties on the same page and working together to find a solution that works for everyone. The only difference is that in compromising both parties have to let go to a certain extent to find the middle-ground, whereas in collaborative resolutions, it is all about finding a solution where no one has to lose anything. It is more along the lines of trying to merge two perspectives into one so that the solution can be achieved.

Whatever the method you choose to implement, at the end of the day, it comes down to how good a leader you are. Read our article on ‘leadership’ to find out what it takes to be an exceptional leader.

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