Gig Economy is on the rise with IT skills requiring professionals to work on project for shorter duration. As reported by Livemint, the IT flexi staffing market in India, worth $3.04 billion in 2016-17, is expected to grow 14-16% annually to become a $5.3 billion industry by 2021, [Source: Indian Staffing Federation Report].
Most of the skills that are turning into jobs were not grouped as a job so far. Tenured jobs are giving way to gigs.
As experts to the HR Compliance and Audit how would you manage this for an employer? The emerging skill groups do not have a clarity in terms of jobs. They are mostly work-based than designation or even salary-band based roles! Hence, which are the areas critical to Compliance that an employer must care for while hiring the Flexi-Employee?
Would the retirals be managed by the employee? If so, how ? How would the benefits be managed?
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Voonik , an online fashion brand has deferred the payments for its 200 employees by 3 months. As reported by Money Control, Voonik’s CEO and Co-Founder Sujayath Ali said those who will quit the company will get a month’s salary as the severance package. He added the company “is currently one or two months away from EBITDA (earnings before, interest, tax, depreciation, and amortisation) profitability.
Subir Chatterjee, Compensation and Benefit Head says, ” Help me to understand this better. The founder deferred the salary to achieve EBIT? So far I know salary is part of operating expenses, don’t they have to book the salary as future liability? Operating Earning comes much before EBIT.”
Pratik Vaidya, MD Karma Management added, “Very few organisation understand the value of human capital & asset rather than treating as Operating expense. Audited Companies that defer salary and other incentive payables & sheepishly roll back in future when their employee leave”.
Subeer Bakshi, CHRO Bajaj Allianz reflects, “Agree that it’s going to be problematic, but it’s a well-intentioned alternative to lay-offs. That’s laudable, and I hope the employees buy in!”
What impact would this have on HR compliances to be maintained in the company. How would the EPF contribution, ESIC if any, other Retirals and tax deduction be managed by the employer in such a situation?
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Have you ever build a company entirely on your own, right from the scratch ? Does your story includes restarting , yet carrying your strengths from one venture to another?
When you look back at your journey, do you too find the dots connecting? Yes, you have a long way to go and that’s what the dots are guiding you to?
How were you as a child and how did that shape you? Were you an extrovert or an introvert? Will, I guess I was an ambivert and still remain so! Did the small incidences from your life shape your behaviour, choices and your life?
Did your lows and highs have a similar story that can match many around you? If you have taken the road less travelled, did it feel different or obvious for you?
If you had to summarise in three points what would it be? For me, its
- Being ever-amazed
- Hard work, of course !
I was honoured to have been invited by Sampath Iyengar, Chief Visibility Officer at The Indian Networker, talking about who I am, my journey as a professional and few lessons that I picked on the way.
It was great fun as Sam kept asking witty question I was least expecting, putting me to my wit’s end!
Interestingly few areas of my life that probably even I ignored, came up while talking to Sam. I must add, loved reflecting, in such a witty and a joyous way!
Let me know if your story sounds similar ! I am waiting to hear that.