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

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