Gig Economy and HR Compliance

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?

Join the discussion in here: Comply4HR

Deferred payment at Voonik: HR Compliance

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?

join us for more on this => Comply4HR

How long would you wait for that job offer?

“So I applied for a job in late November and had three interviews throughout the month of December. They all went really well and I was even referred to by a well respected employee of the company. I was in contact with the HR coordinator throughout the process and said she will have more information for me before the holidays (Christmas and New Years). Unfortunately I never heard back. So I emailed her after the first week in January and she apologized and said she was out of the office…fine, no big deal. But then she said she will have something for me at the end of the week. So about two hours went by and she then tells me she got off the phone with corporate and she won’t have anything until the end of the month, but if I can wait they will have “good news” for me. I was a little disappointed because I now have to wait another 3 weeks, but I really want the job so I told her that I’m very interested in the position and I’m willing to wait. 

So the end of the month comes and still no response. I emailed her again kindly asking if there is an update and she emailed back saying they will have more information later in the week or early next week. It’s now early next week and I still haven’t heard from the company.

Are they stringing me along or should I just keep being patient?”

The answer looks straight into our eyes! When you are being communicated and yet not offered the role, it says more about the decision making capabilities of the firm. Every Job Opening have a closing date mentioned on it. The Hiring Manager are well aware of it. No job remains opens endlessly. Any requirement is supposed to be closed within 45-60 working days, at the most.

Gone are those days when companies could hire for to build the internal resource pool. No talent in the current economy can remain unbilled for long. Hence, every requirement have a monetary return mentioned on it. Any delay in closing the Job Offer can extend the monetary impact, leading to a loss. The preference remains on getting the talent billable as early as possible.

The disparity in views among the hiring managers can lead to an absence of clarity in communication. It can arise from various situations right from being able to decide on which candidate to hire to when to close the offer. Ideally, Business Managers prefer interviewing newer candidates till the final week, whereas HR Managers tend to close it early.

Last but not the least reason for holding a role is the Business Manager back-trackking on the role, even after informing the candidate to resign from their existing jobs. This is the worst phase where no Hiring Manager wants to be. However, uncertain Business Units tend to raise a job requirement and close it abruptly without hiring any candidate. This kind of experience affects the brand of the employer. Few firms may extend an offer with different role to retain the candidate. But then, thats the prerogative of few!

As a candidate, it’s hard when you have been waiting for a role and it never reaches you. That’s the risk you need to mitigate while switching jobs. Don’t place all your eggs in one basket. Explore few options before you resign and then zero down on the role. Eliminate employers with fuzzy communication, no matter how much you may want the role or how good it may sound initially! A strong job requirement gets closed as early as possible. This says a lot of about the company culture too. Any employer who creates a ‘Candidate Experience’ during hiring would care for their careers too! Money remains the highest motivator, till you realise the need for values. The deal breaker gets crystal clear when you know whom to trust your career with!

Wishing you a great career ahead!

If you have any HR Query or any query on Future of Work, please write to me in here. Looking forward to learn more while finding solutions for you.

Nabomita is the Founder to Nabomita.com. She is the Top 100 Women Achiever Awardee, awarded by Government of India , TEDx Speaker, Quoted on ForbesUS, one of the Top 20 HR Influencer in Social Media as declared by SHRM India and one among the Top 100 Technology Influencer in India. Connect with her on @nabomita_smiles , Facebook Page and Google+

Out of these 3 Job offers, which one should I choose?

“I’m currently at a crossroads between 3 job options and don’t know what to do! I’m working as an HR Coordinator in a top pharmaceutical company making pretty decent money for the role. However the role is a temp position and I want a permanent role with benefits. There will be a recruitment opening up within the next two months and I’m thinking of applying but I’m not too interested in recruitment, I have done it before and I would do it again but I would prefer something more diverse. The only reason I am considering applying is because I love the company I currently work for and would probably get a small bump in compensation. A full time role at my current company would also come with X amount, a year in tuition reimbursement which I want since I want to do my master’s degree. 

My second option is Employee Relations Analyst which would pay what I’m currently making but it’s 30 minutes longer of a commute and X/2 amount a year max in tuition reimbuirsement. This position seems interesting since I am very interested in ER but I don’t know if analysing data all day is what I would enjoy doing.

Lastly, the third option is an HR Associate role at a Forbes 10 company which pays 9,000 less than what I’m currently making but they pay 100% for your health insurance, comes with bonus and has unlimited tuition reimbursement. However the role would be supporting one other person in HR, it would only be 2 people in that particular office which seems ok but I’m concerned about future room for advancement. However, this would include ER, benefit administration, and more of a generalist role since I would be dealing with many aspects of HR which I like.

I don’t know which to choose or proceed with, recruitment role which I’m not too excited about but good pay and good benefits at the company I’m with, the ER analyst role which I’m sort of excited about and make the same as I’m doing now but longer commute, or work for a REALLY good company making 9,000 less with amazing benefits and an HR Team of two??

I have been in HR for 3 years and want to be sure the next role will be a good stepping stone into my career.” 

The choices are clear. Every role offers an option that can be easily compared to the other. However, the choice made now will define the future. It’s not merely about the next few years of employment, but also funding the Post Graduate Degree.

Even though the first option offers you the greatest salary, it is evident from your words that you don’t wish to work in Recruitment. Hence it doesn’t make any sense to consider that.

It seems evident that you wish to take up the second option. The longer commute and half the salary offered in comparison to the first employer doesn’t pose a problem as you want to work as ER. However, if you fail to enjoy that role, this choice might completely backfire! On the top, any cap on the tuition reimbursement needs to be considered very strongly, as it would increase the monetary burden at your end!

Salary as a parameter can be considered only for a short term. In case of the long term, it’s all about the brand and the support for the education. The job offer accepted now, needs to be the stepping stone for a better job placement once you receive the Post Graduation Degree. Hence, the third option with the Forbes 10 Company remains the best option.

Every brand brings in a professional exposure along with a standard environment, which frames the maturity and efficiency. You have worked for last three years, you are in the right stage to groom and optimise your potential further. You will gain an access to a great work environment, the alumni, and live the joy of contributing to the company’s success!

Even though you are doubtful about your growth in this role, it still is a better offer as it will pay unlimited tuition reimbursement! The 9000 less in the pay won’t matter for long , as they offer a bonus, which might take care of the deficit! The growth factor might not pose a question after the Post Graduation, as you will have the choice to look for a change.

A strong brand with a Generalist Role, would offer you a sound experience to land the next best job that you apply for. On the top, you won’t have any Education loan. I guess this seals the deal offering the best of both the worlds.

Rest I leave it for you to decide ! May the best job find you. Good luck !

If you have any HR Query or any query on Future of Work, please write to me in here. Looking forward to learn more while finding solutions for you.

Nabomita is the Founder to Nabomita.com. She is the Top 100 Women Achiever Awardee, awarded by Government of India , TEDx Speaker, Quoted on ForbesUS, one of the Top 20 HR Influencer in Social Media as declared by SHRM India and one among the Top 100 Technology Influencer in India. Connect with her on @nabomita_smiles , Facebook Page and Google+

What it takes to build an empowered community

Why were the communities built ? Did someone actually start the trend right in the beginning of time? Or were they formed because human beings are social by nature! We are driven by goals which often echo as a common goal, when like minds come together. A group of people doesn’t form a community till there is a common thread of thoughts, willingness and purpose, that binds them together. Tribes were formed for survival. But each tribe developed an unique culture through the practices, the group involved. In time, communities moved beyond every boundaries and semantics with the internet changing the game. Online portals were initially formed for interest , then moved to need , hence emerged the ‘Community of Product’ and ‘Community of Practices’. When millions of people joined in to contribute to a discussion, the term ‘Crowdsource’ lost itself to the value created. Contributions driven by the need to help others, even without an identity which became an order of the day. Offline communities had a purpose to serve with the members interacting through regular meet-ups. Corporates initially used communities to build loyal consumers but moved to social and green world, responding to the environmental changes. Are there any other pattern through which communities have evolved? Let’s find out what builds a community!

On 4th of March The Mentorprenuers organised Women Power 2nd Edition at IIT Bombay. I feel honoured to share that I was invited to moderate the panel on ‘Growth Hacking in Business: Building Empowered Community. The speakers to my panel were Revathi Roy, Founder DeeDee and Vira cabs, Riddhi Doshi Founder Lajja, Neha Kare Founder UniMO and Neha Aggarwal Community Outreach Baby Chakra.

It was interesting to note how these offline and online communities were formed and why. Revathi Roy shared, she loved to drive and felt the need of women drivers even when it was unheard of. Hence, her service started way back in 2007, making her a pioneer. She built the community of close knit drivers who came from the social background with little and bare minimum income. For her it was an ordeal to convince them and then train. However, looking back she holds a numero uno position with the largest numbers of trained and professional women drivers. She went through challenge when the policy on driving license was suddenly changed last year. But then, she used it to turn the tide for the best. She used the gold mine of the trained drivers to build Hey Didi or Deedee as it is called now. Here she offers last mile delivery with the same women drivers. She offered everyone a two-wheeler on a loan with no collaterals attached. The amount was deducted from their salaries. In case you are wondering why this service is important, well we have cases where the delivery boys were either attacked or attacked the lone living women! Here’s an advertisement to support the point on how such women drivers and last mile delivery by women is making the world safe!

 

Next we had Riddhi Doshi , sharing why she built Lajja. For her it was important women speak up about the sexual issues that are shunned. She built Lajja where women feel safe to speak up and have the experts to guide them. It was very brave of her, given the conservative background she had. But then, that became the driving force why she was determined to build a community where women finds a voice!

Neha Kare, founder UniMo had a similar story to share on why she built the community which includes both the online and the offline model. She felt the need for the community of Mothers who required a support system with their peers to remain intellectually and emotionally active. Motherhood often comes with women being drained of every attention towards themselves. Hence, Neha created this million strong group where Women come forward to find ‘Me-Time’ through activities such as Bappa-thon where they cleaned up the sea-beaches a day after the idols were immersed in water. Her activities are directed towards building a responsible system where Mothers can use their time to change the world.

Neha Aggarwal, shared Baby Chakra was built purely to provide a support to the Mothers who look up on the internet for every information , products and services for their babies. In today’s world with nuclear families growing by manifolds, the mothers rarely find anyone who can guide them with exact information, right when they need it! Hence the online portal with the live discussion forums and experts answering them remains the best solution.

Will Maternity Bill affect hiring women?

With barely two days to the Amendment to the Maternity Bill , we have raging debates in the media with Deccan Chronicle and Scoopwhoop raising the burning questions. Will this put a check on hiring women? Would taking six months off from the work, make a women talent irrelevant?

Canada and Norway offers 50 and 44 weeks as Maternity Benefit respectively. Did that stop the employers from hiring women? Census reveals that by 2014, women made up almost half (47%) of the entire Canadian workforce! Same for Norway, where the women workforce make upto 47% in public and 26% in private sector according to a study released in 2008! Since the number of jobs and talent entering the workforce have increased, can we expect a bigger number by now? But then these are countries other than India. So let’s take a look at what is going to challenge hiring Women in the workforce:

  1. It’s anybody’s guess that the employer would hesitate from hiring a woman in the child-bearing age because of the added cost.
  2. The needs of a six-month old baby would be only slightly less than a three-month old one.
  3. So suppose the man is getting at least half as many offs as the woman is getting, won’t the employer be less biased against women?

Here’s my question to the employers. If you choose not hire women to save on your six-months salary, will that help your attrition cost too? Given the fact that women, especially when they start a family looks for stability, hence are way more loyal to men who would job-hop at the drop of a hat, would that still make hiring women costly? As an employer does it makes sense to hire a competitive talent who won’t resign for the next few years, for the conducive environment that you are building? More importantly, doesn’t the men in the same firm remain productive just because their wives were taking care of the child at home? And somehow the employers hiring those women are readily bearing the cost!

Secondly, the needs of the baby cannot be categorised so broadly. We live in a world where there are nuclear families. Not every woman can hire a nanny or house help to take care of the baby as she is away. Compared to earlier days, the support-system is down to the parent who needs to meet every demand for raising a child. How does then it makes sense to narrow the timeline for an infant? Especially in a country where mall nutrition in babies does not remain specific to any economic group.

Finally, were men waiting for the bill to be passed so that they can wash off their hands from the responsibility of an infant-care? In a country where ‘Dads changing nappies because Moms need to attend a business meeting’ is a luxury to few, how much does this Bill change the behaviour?

Back in the days, where the IT Parks suddenly tightened the rules on women security, there were similar doubts raised towards hiring women. Did that stop the number of women in the workforce grow? Similar costs were calculated down to every dime with the increase in hiring security personnel and adding video cameras for round the clock surveillance. Every challenge brings in a new solution, such as rise in the number of women cab drivers since the Uber incident.

What fuelled the change where fears met solutions? Did we hear the rise in the telecommute way back in 90’s? Inspite of the adoption of this work design, the resistance remains as the companies can afford huge work spaces to accommodate every employee. FaceTime and cubicle will remain in vogue till we have socio-economic changes disrupting them.

The Bill clearly mentions the option for Telecommute. However, that is being ignored largely, as the adoption of such systems will take time to become a norm. In the view of emerging work format, how does the Bill look like in the future? Would it allow a women to plan her career and family in parallel? If a woman needs to remain out of workforce for a declared duration, does that allow her to be up-skilled and plan for greater responsibilities? It would call for sponsoring such growths within the company. Is n’t the woman who is taking a break for child care, a wife to a man who could remain productive to his employer, just because she was at home?

Cyclic unemployment is norm, thanks to the repeated business cycle changes that we have experienced. This goes same for men and women. Losing a job due to diminishing revenue or policy changes no longer stops a career. Even men have to up-skill, relocate and network to find a new job! Companies have openly acknowledge hiring talent out of workforce.

In case such measures are not enough to meet the employment required, we have Gig Economy offering interesting jobs to build a promising portfolio.

Every benefit offered turns into a hygiene factor even before we know. How soon would this 26 weeks turn into a norm with no one even discussing about them, we will wait to see!

If you have any HR Query or any query on Future of Work, please email me nabomita@nabomita.com . Looking forward to learn more while finding solutions for you.

Recommended reading: Maternity Benefit , Diversity  , We Are Equal , Future of Work

Maternity Benefit Bill Amendment : A dream come true for Women in the Workforce !

Lok Sabha passed the Maternity Bill yesterday. This is a major leap for the nation where the women workforce is increasing by manifolds. With this amendment, India trailblazers, Canada and Norway with 50 and 44 weeks respectively!

The landmark initiative by Ministry of Women and Child Development, Government of India offers the best gift to working women in India. The labour force participation rate (LFPR) in India is around 40%, but for females, it is only 22.5%. The gap in male-female LFPR is such that the LFPR for rural women above 15 years is only 35.8%, while for rural males it is more than double at 81.3%, according to a 2015 research paper by the government policy think tank NITI Aayog. Women and Child Development Minister Maneka Gandhi called it a “momentous step” and thanked her colleagues for supporting the Bill. She further said that, “I am very, very happy that we have made history today. This will help thousands of women and lead to much healthier children.”

This bill essentially includes these following points:

  1. The number of weeks for the Maternity Leave gets increased from 12 to 26 weeks for the first two children post which it would be 12 weeks.
  2. Every organisation with 50 or more employees or 30 women, will need to have a Creche
  3. Women are offered 4 visits to Creche daily during working hours.
  4. Maternity leave of 12 weeks to be available to mothers adopting a child below the age of three months as well as to the “commissioning mothers”. The commissioning mother has been defined as biological mother who uses her egg to create an embryo plant.
  5. The employer may permit a woman to work from home if it is possible to do so.
  6. Every establishment will be required to make these benefits available to the women from the time of her appointment.

Read the complete amendment in here

Maternity Benefit Bill Amendment 2016

If you have any HR Query or any query on Future of Work, please email me info@nabomita.com . Looking forward to learn more while finding solutions for you.

Nabomita is the Founder to Nabomita.com. She is the Top 100 Women Achiever Awardee, awarded by Government of India , TEDx Speaker, Quoted on ForbesUS, one of the Top 20 HR Influencer in Social Media as declared by SHRM India and one among the Top 100 Technology Influencer in India. Connect with her on @nabomita_smiles , Facebook Page and Google+

Recommended reading: Diversity , We Are Equal  , Future Of Work

Photo credit: Ministry of Women and Child Development

Why should your pay remain a secret?

‘Pay Secrecy’ one of the best kept secret by the HR , which the world comes to know otherwise!

We have tons of research to support how it adversely affects your performance when you get to know how much your undeserving co-worker is getting paid. Is that the only truth ?

Does secrecy breeds trust or transparency? Why as an employer would you want to hide when you have a policy for equal employment and promote equal pay? Is the information of how much an employee draws worth sharing openly within the company or even public domain? In the times of Glassdoor and Payscale, how secret is your pay to your employees?

We can understand the ugly situation of explaining every employee why one is paid more than other, inspite of in-equal education or experience is sticky. More importantly your view of weighing a potential may not remain equate how your employees measure them. But shouldn’t that remain self-explanatory in a result-driven world?

How did Whole Foods manage to make the information salaries open? That too since 1986? They managed to let every employee view how they are stacked up and not loose them? Or run into low-productivity? Why are the talent working in their company behaving differently and not raising a storm in a tea cup with their questions on entitlement ?

In India, Public Sector organisation have grades declared with the pay range. Talents joining such an organization have the exact information on how the hikes would work for them and their peers. Even the timeline to all such hikes remains declared.

When Buffer declared their salaries on the web the number of job applicants grew effortlessly. SumAll followed the lead, with the firm creating transparency within the 40 member team.

With Gig Economy growing through platforms that allow a talent to bid for the gig, how far does the pay remains a secret? When end-result is the only measure, shouldn’t pay remain obvious? If merit is the only edge, how difficult is it to explain potential?

If you have any HR Query or any query on Future of Work, please email me info@nabomita.com . Looking forward to learn more while finding solutions for you.

Recommended : Future of Work , If Bots are taking away your jobs should they pay your taxes too