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?

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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+