It’s 2021, How Advance is your HRM Solution?

HRMS solutions, like all other technologies, go through a technology lifecycle. In today’s world, HR departments are becoming self-contained entities in businesses all around the world. Human resources are no longer restricted to payroll processing and paper clips, as it is progressively evolving as an organization’s fundamental house.

For a business to get the most out of its HRMS technology, it is critical to keep it up to current at all times. This is because outdated HR technology or systems will inevitably lead to your company’s demise!

Features of HRMS Solution

The following are the most significant factors to consider while selecting an HRMS platform:

1. Management of Employee Information 

HRMS solutions should include personal information, employment and income history, banking and tax information, insurance plans, time off requests, disciplinary history, performance comments, and any other custom fields important to the company. This ensures that all of your employees’ information is integrated into the main database, making monitoring and reporting much easier. Employee self-service portals should also be available with HRMS systems.

2. Staffing and Recruitment

HRM software that is comprehensive will help with all human resource tasks throughout the employee lifecycle, starting with selection and recruitment. With automated HR system features, it may expedite the recruitment process for HR managers. Businesses may easily advertise job openings on different websites and social media platforms, and even write job descriptions using HRIS software. As applications come in, an applicant tracking system (ATS) can immediately accept (or reject) prospects based on specified criteria as they arrive.

3. Personnel Management

Employees are evaluated by HR features after they have completed the interview procedure. Performance evaluations provide information on staff productivity, customer happiness, and more once they’ve been employed. These tools can provide automated feedback, or HR departments can use the software’s analysis to conduct their reviews. Based on the technology, employee performance feedback may be available to the workforce via a dashboard or another type of interface. This eliminates the need to send email notifications to employees about their ratings or hold time-consuming performance review sessions.

4. Management of Benefits

Monitoring employee benefits, such as health insurance and 401(k) contributions, is an important part of any HRMS system. The features of your human resource management software should make benefit workflows and information easier to access. Furthermore, allowing employees to enroll in benefits through HRM reduces errors and unnecessary effort. 

5. Accounting and Finance

The paying of employees is one of the most critical obligations of a human resource department. By deploying an HRMS system, your organization can streamline this crucial HR task and ensure that all employees are properly reimbursed. Base salary, bonus programs, commissions, and stock and long-term incentive management are all managed through a variety of systems. Compensation management is a feature of several HRMS packages that makes financial planning easier for your firm.

6. Attendance and Time Management

HRM systems can include features such as shift scheduling and attendance tracking to guarantee that staffing requirements are met. These human resources management systems allow employees to be scheduled across departments, locations, and projects. In addition, several HRM platforms send out notifications to employees when schedules change or staffing levels are insufficient. Payroll and time tracking are much easier with electronic timesheets. Time off management solutions is used to manage paid time off, disability leave, maternity/paternity leave, and other absences.

7. Learning and Professional Development

A learning management system (LMS) that is coupled with a human resources management platform may include instructional content pre-loaded or allow users to submit their customized courses.

8. Accounting 

Financial planning and invoice management are aided by accounting elements in an HRM system. HR budgeting and forecasting capabilities help to concentrate and integrate financial data. These HR software capabilities make it easier to create accurate budgets and run what-if scenarios for human resource-related expenses. Billing is made easier by automating accounts payable and receivable.

9. Technical Specifications

Standard technology-related characteristics like deployment options and mobile capabilities, as well as ongoing management options like security, governance, and user support, are examples of technical components of HRMS software that your organization will require in an HRM system. When analyzing this category, it’s critical to take into account your company’s existing technical know-how and infrastructure.

Components of HRM Solution

An HRMS has five components. The most basic component of an HRMS is payroll, benefits, and workforce management, which are activities and processes for managing large numbers of hourly employees.

  • Hiring new staff.
  • Shift planning
  • Keeping track of attendance.
  • Keeping track of sick days and absences.
  • Recording the amount of time spent working.

Streamline Talent Management

Other systems are designed to assist HR departments in managing their personnel, or the company’s actual employees. This can encompass a variety of responsibilities, such as: 

  • Hiring new staff.
  • Onboarding.
  • Orientation.
  • Management and evaluation of performance.
  • Professional development and training.

An HR representative may be able to establish a job ad online, monitor incoming applications, and track prospects through the hiring process using a system in some situations.

Induction documents, such as filling out payroll information and other paperwork, are increasingly being relegated to online forms, allowing HR staff to focus on more critical activities rather than having to be physically present to do some of the basics. Other components work to evaluate performance indicators and provide professional development to keep top performers once exceptional employees are on board.

Encourage Employee Participation

To engage their employees and create interaction inside the business environment, several HR departments may expand their HRMS tools by employing social media and internet applications. Employees can communicate with each other using various methods.

  • Work together on projects.
  • Gain a better understanding of the company’s brand.
  • Make employment referrals for qualified pals.
  • Take part in company surveys to gauge job satisfaction.
  • Make announcements about the company and policy changes.

Comply with legal requirements

Using an HRMS component specifically designed to keep track of periodically changing regulations, HR departments can stay on top of their mandatory record-keeping and reporting duties. When background checks, licenses, or continuing education requirements need to be updated, automated maintenance notifies the HR department, ensuring that the organization is functioning in compliance.

Examine Current HR Trends in the Workplace

Key executives can use programs that track the efficacy of HR initiatives and recruitment approaches to figure out what works and what doesn’t when it comes to attracting new talent to the organization. They can also evaluate compensation levels across industries and make necessary modifications.

Examine Current HR Trends in the Workplace

Key executives can use programs that track the efficacy of HR initiatives and recruitment approaches to figure out what works and what doesn’t when it comes to attracting new talent to the organization. They can also evaluate compensation levels across industries and make necessary modifications. Data gathered from a changing workforce also aids management in gaining a better understanding of turnover trends, such as why people leave and how to increase employee retention.

Payroll Management System

A payroll management system is software that allows you to easily and automatically handle all of your employees’ financial data. With the versatility in the function of human resource management it falls under immediate predicament to incorporate a payroll management system through which the adequate management of the salaries of employees is kept in perfect records. The crucial organization of the salary structure by the Payroll Management makes it the People’s choice for advanced Human Resource Management. 

Scope of HRMS in the Present Day

In today’s world, HRM has a very broad and ever-expanding scope. As the landscape has evolved, all organizational systems have become a part of the global community. New strategies for recruiting, paying, training, and developing human resources have been made possible by groundbreaking behavioral science research. The scope of HRMS has significantly grown as a result of these advancements. The Indian Institute of Personnel Management defines HRMS as a discipline that investigates the following dimensions: 

(a) The Human Resource Dimension or Labor Dimension:

Manpower planning, recruitment, selection, placement, induction, transfer, promotion, demotion, training, layoffs, development, retrenchment, pay and remuneration, and so on are all covered by HRMS.

(a) Employee Welfare: HRMS is concerned with the overall well-being of employees. HRMS is responsible for ensuring that working conditions and the workplace are pleasant. Employees are provided with adequate lodging and transportation. Medical assistance is available in the event of a work-related injury.

(c) The Organization-Employee Connection Dimension: This dimension is concerned with the organization’s connection with its employees. HRMS engages with employee unions, talks with them, and negotiates the conditions of their employment contracts with them. HRMS also manages employee issues at all levels and conducts disciplinary procedures against damaging personnel.

What is the Future of Work? HR or AI

AI is currently one of the HR department’s most major concerns. As we approach towards the second half of 2021, every organization understands that integrating AI into the HR department will drastically improve the lives of both employers and employees.

Before you finally know about what best is the future of work, read on to now about the role of AI in HR, its impact, its advantages and disadvantages and a few case studies on it.

Role of AI in HR

AI has the potential to change employee experiences in a variety of ways, from recruitment to talent management, by processing vast amounts of data quickly and accurately. Artificial Intelligence aids in the automation of the majority of back-office transactional work, allowing for faster service delivery. AI-based HR interventions have the potential to significantly increase employee productivity while also assisting HR practitioners in improving employee performance and experience. HR solutions with artificial intelligence can analyze, forecast, and help important stakeholders in making decisions.

How AI will affect HR?

AI will affect HR in the following ways;

1. Recruiting new employees

The talent acquisition process is the most apparent application of AI in HR. It saves manpower by screening candidates, managing databases, scheduling interviews, and responding to job seekers’ questions.

AI-based chatbots can narrow down the list of potential candidates to only those aspirants that fit the job description. It will then schedule interviews and hire the top applicants.

2. Staffing

On the first day after the hiring process, the AI-integrated system will present the new employee to corporate information. Algorithms can be used in software for a variety of purposes, including:

  • Outlining the job description, responsibilities, and benefits.
  • Contacts within the firm who are relevant and vital.
  • Responding to common queries posed by new staff.
  • Verification of documents
  • Requests from devices, and more.
3. Training and Education

Employees can be taught and trained in their respective disciplines using AI-integrated technologies. Based on their job requirements, AI will assess the employees’ talents and offer films or study programmes. 

Decision-Making with Cognitive Support

Apart from their work contributions, the Human Resource department is responsible for an employee’s mental and emotional well-being. Before and after a client call, AI-enabled technologies will take over the work of detecting and analyzing employee mood. HR can then determine whether the employee requires a break or can continue working.

Governance

Because AI improves employee productivity, it may also be used to train leaders to be more effective in their roles. AI-enabled tools will poll the leaders’ team members and evaluate their responses in order to create a tailored coaching module for them.

Managers can also utilize online dashboards to see how their management stacks up against their peers. It will assist them in determining the efficacy of their approaches and how to enhance them.

Administrative responsibilities

Repetitive administrative chores can be automated with AI-based technologies. It can help with HR strategy, employee management, policy and practice analysis, payroll management, and more. It has the ability to automate workforces, analyze company compliance, and develop litigation tactics.

Advantages of AI in HR Departments

When it comes to the benefits of incorporating AI into a business, there are a lot of them. 

1. A System That Is Well Organized and Modernized

By streamlining the recruitment process, you may save time and money. By collecting and evaluating a large amount of data, it will increase the effectiveness and efficiency of candidate selection. Chatbots, for example, can be configured to ask candidates certain questions before the interview even starts. Incompetent applicants can then be removed much more quickly.

2. There Are Fewer Human Prejudices

Gender, age, race, and other biases are easily solved by artificial intelligence. Ai is like the unbiased judge that isn’t prejudiced towards the candidate and doesn’t have any stereotypes about them. Such technologies assess a candidate’s capability only on the basis of their knowledge and skillset. 

3. Enhanced candidate experience

Artificial intelligence technology such as chatbots and virtual assistants can significantly improve the candidate experience. By providing a route for your applicants to communicate with your organization, you will offer them with the experience they seek and encourage them to choose your firm over others. 

4. Allows you to put money into other areas of your business.

Because AI has given your HR department more free time, it can now focus on other things. While AI takes care of the hiring process, you can concentrate on other aspects of your business, such as the workplace and corporate culture.

Disadvantages of AI in HR Departments

Artificial intelligence techniques utilized by HR departments, like anything else, have a flip side. These negatives may outweigh the benefits for certain businesses, while they may be inconsequential for others.

1. Overly reliant on specific keywords

At the moment, AI is overly reliant on certain keywords. When it rummages through the stacks of applications, it searches for terms and phrases that will assist it in selecting the best candidates for the job. Those who know how AI works, on the other hand, can easily outwit and deceive it by include these keywords in their applications and appearing eligible for the roles.

2. A lower level of human participation

Sometimes just looking at an application isn’t enough to tell if someone is right for the job. When looking for the perfect applicant, the organization may have specific goals in mind, which a system may or may not be able to follow. 

3. Decreased precision and dependability

AI is still in its infancy, and it is far from perfect. Artificial intelligence is not something you can entirely trust, and not everything AI technologies deliver is completely accurate. You can also programme the tool poorly or fail to consider all of the elements, resulting in misinterpretation of candidate applications.

4. It necessitates the development of new talents.

Incorporating AI technologies into your HR department necessitates your employees’ development of new skills, which not everyone is prepared to undertake. It will take time and money to improve your employees’ skills, and not every organization is eager to do so. 

AI In HR Case Studies

1) Through RChilli, gr8 People got good talent.

Issue: The Company’s main goal was to provide recruiters with high-quality applicant referrals. They wanted a way to extract candidate data from resumes into fields for skills, education, experience, qualifications, and contact information, among other things.

The Quick Fix:

• The resume parser from RChilli allowed the organization to parse resumes in any document format, including pdf, rtf, doc, docx, and html.

• Bulk upload made parsing resumes on a big scale a breeze.

• Real-time parsing aided recruiters in making speedy applicant recommendations.

Effect: As a consequence, the following events happened at the company:

  • A flexible and reliable system.
  • Recommendations for talented people who are both qualified and relevant.
  • Both candidates and recruiters found the application procedure to be more user-friendly.

2) FirstJob uses chatbots to improve recruitment efficiency

Issue: As an online recruitment agency, FirstJob’s recruiters were consumed with monitoring their talent pool and were unable to attend to interviews or close offers.

The Quick Fix:

  • They added Mya, a chatbot, to their system.
  • Mya has the ability to communicate with multiple candidates at the same time and ask them pre-screening questions

This chatbot responds to candidates’ queries and informs them when a job opening is filled, thereby automating half of a recruiter’s labour.

Effect: As a consequence, the following changes have occurred at the company:

  • A 38 percent boost in recruitment capacity.
  • The qualifying procedure can be automated up to 75% of the time.
  • A 150 percent boost in the employment engagement process.        
  • Nearly 75% Automation of the qualifying process was achieved.
  • An increase in job engagement process by 150%.

3) HireVue Assists Unilever in Recruiting Top Talent

Issue: Unilever needed 4-6 months to find 800 people out of 25,000 applicants. The team was using the old method of screening candidates over the phone and conducting human assessments. It had been a while since such a dramatic change had occurred!

The Quick Fix:

  • HireVue added video interviews to help candidates have a more engaging experience.
  • Assessments can also filter out roughly 80% of the talent pool.

This is done by analyzing data points like nonverbal communication, facial gestures, and so on.

Effect:

The ultimate result is phenomenal:

  • A 90% reduction in hiring time and
  • A 16 percent rise in the number of persons recruited from varied cultures.
  • Annual cost savings of £1 million.

Final Thoughts

Technology, when implemented correctly, can be the future of any company’s work culture. So, in response to the question, “What is the Future of Work?” what is the most suitable response? Which is more important: human resources or artificial intelligence? It’s likely that the future of work will combine Human Resources with Artificial Intelligence.

Every step of the recruitment process, from selecting the ideal candidate to onboarding them, can be made more effective and frictionless with the help of a professional HR team and Artificial Intelligence.

As a result, it is critical that businesses recognize the advantages of incorporating AI into their operations in order to improve productivity and efficiency.

5 Productivity-boosting benefits for Remote employees

Introduction

Employees throughout the world, including many who had never worked from home before, have been forced to do so as a result of the COVID-19 pandemic.  A number of these remote-work agreements were imposed abruptly, pushing employees and supervisors to face a new work environment while also dealing with personal anxiety and public health issues.

Working remotely, particularly during this stressful, uncertain circumstance, can leave employees feeling confused, lonely, demoralized, and agitated if it is not done intentionally by both workers and management.

So before we get to know about the five remote work productivity tips for remote employees and why remote work is better, let us read onto know how to motivate your remote employees as an employer or what are the tips for managing remote employees and what is the best way to manage remote employees.

How to motivate your remote employees

Employee participation and empowerment are critical to any company’s success, especially when it transitions to a remote work environment. You can encourage your remote staff by providing the tools they need to execute their jobs, cultivating a culture of trust, adopting a growth mentality, and maintaining open lines of communication.

Here are some guidelines for managing remote employees, and as an employer, you may decide which method is ideal for you;

1. Provide the most up-to-date, right tools for remote workers

Insufficient resources will prevent a team from completing and submitting their work on time. The lack of technical tools also causes the employee’s workflow to be disrupted. When an employee works remotely and does not have access to the IT staff, communication challenges become even more serious.

To execute their jobs efficiently, remote workers require email, a reliable internet connection, time tracking tools, remote communication tools (like Slack), video conferencing tools (like Zoom, Google Meet, Microsoft Teams, Google Hangouts), project management, and tracker tools (Jira, VersionOne, or Pivotal Tracker), a direct messaging platform, and a mechanism to exchange and download information. It is also recommended to provide HR software like People Choice HRMS. To express your appreciation for an employee’s hard work, give them a month’s subscription to an internet streaming service (Netflix, Amazon Prime, etc.).

2. Provide health-related advantages

In terms of employee desire, health benefits are always at the top of the list. Give your staff the benefits of a health insurance plan that covers the Corona Virus to keep them engaged. If you’re willing to go the extra mile, cover their insurance as well as their families. This will demonstrate your company’s adjustment to new times while still being considerate of its employees.

Make sure your staff receives health packages regularly throughout these unforeseeable times. A stepping stone could be a monthly basket with hand sanitizer, masks, and gloves or a vaccination drive for the employee and his/her family. Show that you care.

3. Employee feedback should be valued

Give importance to what your employees have to communicate. Listen to their demands and do your best to meet them (if those are within reason). Your staff should not feel as if they are being ordered around; instead, they should feel as if they are being heard. As a result, ask them for important feedback on employee happiness to disrupt the one-way flow of assignments. Constructive feedback is essential for keeping your staff motivated and engaged since it helps connect expectations and objectives with performance while also demonstrating that you care about their job. Please be careful to give positive feedback when appropriate.

4. Communication, Trust, Bonding

Make a habit of scheduling video calls regularly. Don’t limit yourself to work-related issues while on the phone. Also, inquire about your employee’s reactions to the situation. Tell them that you will be reachable to them at all times.

Make an effort to form a bond with your staff that extends beyond deadlines. As much as possible, try to delegate. Also, use a little humor in your communications if it’s appropriate for the workplace. A little wit can go a long way toward building team spirit and keeping lines of communication open.

5. Promote the formation of a growth attitude

A development mentality is when you recognize that no matter where you are in your profession, you have room to progress. Instilling growth mindset ideas in your remote workforce encourages them to seek out new training programs and offers up new options – both personally and professionally. You can also initiate a program of employee recognition.

Remote work productivity tips for an employee

Here are few remote work productivity tips for an employee;

1. Create and keep to a schedule

Working remotely gives you greater scheduling flexibility than if you worked in an office. You will not only be able to create your timetable but you will also be required to do so. Establish a routine. We often consider a routine to be a limitation at best and a murderer of creativity at worst. Sticking to a routine, on the other hand, can be highly beneficial for a telecommuter. It will be more difficult to stay productive and motivated without one.

2. Prioritize your tasks

It can be tough to prioritize projects and arrange your workflow without the hierarchical structure of a traditional office. Develop self-control. There is no general solution for organizational skills, so you’ll have to figure out what works for you. To-do lists can be really useful. Stay in touch with your teammates (and supervisor) no matter what you decide.

3. Select the appropriate tools to do the job

Having the appropriate tools on your side might help you maximize your telecommuting productivity. Comfortable, sleek, and efficient workstations are essential. Don’t stockpile more than you need.

4. Define your limits.

When you telecommute, it’s easy to get lost in your work, which puts you in danger of burnout. To avoid this scenario, it’s critical to strike a healthy work-life balance. You must leave work behind when you take a break or finish your regular chores. Set up routines on your communication devices to seem as “do not disturb.” Don’t forget to set up a clocking-out procedure to end your day on a professional note.

5. Self-care is important

When you work from home, it’s critical to look after yourself, which typically involves keeping an eye on your energy levels. Don’t be afraid to stretch, roll out a yoga mat, or jump on your stationary bike for fifteen minutes when you need a break.

Moving on let us read about the benefits of remote working for employees.

Why is it beneficial to work remotely?

Employees can benefit from working remotely in the following ways:

1. Versatility and liberty

Remote workers value their independence. They can schedule their days to fit both their job and personal lives as long as they do the required tasks on time. It can help to have the flexibility to attend doctor’s appointments, watch the kids’ basketball game, or accompany elderly parents shopping. Furthermore, remote working allows you to customize your workplace or workstation. Because it is more comfortable, many people are more productive in their setting. Moreover, to concentrate, some people need to work in complete stillness. Working from home, in particular, allows for more creative thinking and productivity.

2. Time and money savings

It might be costly to commute to work. Working from home can help you save money on travel and food, which can add up quickly. Furthermore, because modern technology allows teams to video call on the intranet, working remotely saves time going to and attending meetings.

3. Healthy life and prosperity

Working in an office and commuting to work every day isn’t the healthiest way to spend one’s time.The benefit of working remotely is that you don’t have to interact with another person (which is especially important in the light of Covid-19). Remote working can also help with mental health because it reduces stress and allows you to work in your surroundings. Pleased employees are more productive and motivated, which leads to higher-quality work. Working remotely, in essence, allows you to reach the desired work-life balance.

Final Thoughts

As an employer, every team is different, and what works for one organization to boost productivity may not work for another. Attempt to upgrade your remote setup regularly. To acquire new ideas, go to remote work events. The further you explore, further, you’ll discover what works best for your team.

Dealing with HR Compliance like a Pro!

The need of becoming professional and knowledgeable HR is growing more and more important as businesses attempt to become more efficient and productive. Any organization that wants to be successful in the long run should engage its faculty and try to resolve any concerns. Not to add, they should endeavor to remedy the problem as quickly as possible; else it will hurt the business. As a corollary, HR compliance is an important factor. Before we read about the HR compliance issues, its importance and role of HR compliance specialist, let us first know what HR compliance signifies.

What exactly does HR Compliance imply?

HR compliance refers to a company’s commitment to comply with the employment law’s operating requirements. This has an impact on the systems, policies, and documentation. It also means that employees are entitled to all benefits stipulated in their employment contracts.

Regardless of where they are located, all institutions must adhere to employment legislation, norms, and regulations. To do this, HR must take a proactive approach to ensure that the system complies with all regulatory requirements. This entails overseeing all health and safety laws daily.

HR compliance ensures that employees receive their contractual and statutory employment benefits. This also involves fair recruitment rules, anticipating and addressing workplace prejudice, and ensuring that employees are paid what they are due. HR compliance requires keeping up with any changes in employment laws, gender pay reporting, and requirements for hiring international personnel.

Importance of HR in Compliance

What is the significance of HR compliance? HR compliance is critical since ignoring legal requirements is either illegal or unethical. Not to mention, this can lead to labor disputes or tribunal claims. Allowing a worker to work during the first week following childbirth is deemed a criminal law violation in some situations.

However, ensuring that all of an organization’s legal obligations are met can be difficult. To achieve compliance, HR must be properly resourced to fully comprehend the organization’s duties and be able to identify areas where additional action and/or skills are needed.

Furthermore, in the highly regulated world of human resources, it’s easy to feel overwhelmed by the numerous compliance reports and laws. It is critical to follow all HR regulations, as failure to do so could result in severe penalties and repercussions for an organization. As a result, HR compliance is more crucial than ever.

The following are a few of the perks of HR compliance:

  • First and foremost, it ensures that the company complies with the Labor Standards Act’s standards, which govern overtime compensation and the minimum salary for most professions.
  • Second, this ensures that the company or its employment practices aren’t the subjects of pending litigation.
  • As a result, it ensures that the company administers benefit programs and compensation effectively, even though compensation laws are continually changing.
  • Finally, through an interactive model, this assists employers in understanding and meeting compliance duties. Execution on time; audit trails; and automated notification

HR compliance issues

Every day, employers face issues, some of which, if not managed effectively, might have a substantial impact on their organization. These issues are frequently lumped within the compliance category for HR and benefits professionals.

At MKT Software, we catch pace with compliance and regulatory developments so that our clientele and business professionals are aware, equipped, and able to deal with any challenges that occur as a result of changes in laws and regulations. Here are some of the most important HR compliance issues to keep in mind.

1. The Fair Labor Standards Act (FLSA)

The Fair Labor Standards Act (FLSA) is a federal law that protects workers from (FLSA). This law requires employers and employees to pay a minimum salary, work beyond, and are over the age of 18. Employers, HR professionals, and benefits professionals must all comprehend the complexities of this regulation.

Creating a payroll or record-keeping error has consequences for the employee, but it can also impact you, the company, in lawsuit penalties.

2. Laws Governing Maternity Leave

The FMLA (Family and Medical Leave Act) is a federal law that permits eligible employees to undertake up to 12 weeks of leave without pay each year without fear of the consequences. While the FMLA is most often linked with maternity leave, it also extends to employees who have serious medical issues.

3. Workplace Bullying

Workplace discrimination can be tough to manage even for the most experienced HR and benefits professionals. HR directors must traverse the arena not only for their employee’s safety and well-being, but also to ensure compliance with legal and regulatory norms. Several states are working to increase workplace compliance and awareness.

A lot of jurisdictions now require harassment prevention training at work to promote compliance and knowledge within the workforce.

4. Workplace health and safety

There is still a lot of discussion about health and wellness programs in the workplace. It’s particularly evident in contemporary multi-generational employment, where salary and compensation expectations are progressive including health and wellness perks.

List of HR Compliance

The existing legal environment is characterized by uncertainty. In most circumstances, a law is only discovered after it has been broken, resulting in harsh penalties. Compliance Management is necessary if you want to stay out of trouble with the law.

Here’s an overview of the most important HR legal obligations;

  • The 1923 Workmen’s Compensation Act,
  • The 1926 Trade Unions Act,
  • The 1936 Payment Of Wages Act,
  • The 1946 Industrial Disputes Act,
  • The 1946 Industrial Employment Standing Orders Act,
  • The 1948 Minimum Wages Act,
  • The 1948 Factories Act,
  • The 1948 Employees’ State Insurance Act,
  • The 1952 Employees Provident Fund & Miscellaneous Provisions Act,
  • The 1959 Employment Exchanges(Compulsory Notification Of Vacancies) Act,
  • The 1961 Apprentices Act,
  • The 1965 Payment Of Bonus Act,
  • The 1970 Contract Labor (Regulation & Abolition) Act,
  • The 1972 Payment Of Gratuity Act,
  • The 1976 Equal Remuneration Act,
  • 1979 Inter-State Migrant Workmen (Regulation of Employment & conditions of service) Act,
  • The 1986 Child Labor (Prohibition & Regulation Act),

Each of these must be submitted at different times during the year and in diverse types.

Who is now in charge of maintaining HR compliance?

An HR Compliance Specialist’s job is to guide, strategize, and implement policies and schemes to meet compliance requirements. He or she is responsible for monitoring and running the organization’s wellness programs, as well as supervising and managing safety and health programs in compliance with existing corporate policies and any regulatory restrictions.

An HR compliance specialist’s job includes developing and implementing methods and strategies (training, policy memorandums, etc.) for informing employees about the Company’s health and safety programs, expectations, and obligations that relate to their responsive employment. It also comprises giving employees with compliance training and advice on topics including accidents, injuries, illness, leaves of absence, and return to work after a leave of absence.

Employee leave notices and requests are also handled by HR compliance professionals, who also interact with them as needed. They also ensure that proper leave of absence documentation is generated, obtained, and kept under legal standards.

Prior to actually authorizing a return to work following medical leaves of absence, they conduct an assessment based on the data received from health care providers, the department’s ability to supply special adjustments and/or comply with productivity constraints, understanding of associated physical and mental specifications for performing essential job responsibilities, and relevant law constraints.

Before employing an employee, an HR compliance specialist must conduct a background check (including checks of motor vehicle records and criminal history) under the Fair Credit Reporting Act (FCRA).

They also aid in the investigation of work-related accidents, injuries, illnesses, and “near misses” to determine the core causes and patterns, as well as to offer remedial actions or policy and procedure modifications to avoid recurrence.  Anti-discrimination regulations, wage and hour legislation, family and medical leave, and Child Labor Regulations (CLR) are all things that an HR Compliance Officer should be aware of.

Conclusion

It is not an option, but rather an obligation, to follow the numerous HR regulations. Nonetheless, how you handle compliance issues will determine your company’s fate. Even when you take the correct procedures, avoiding compliance concerns that drain your HR department’s productivity can be difficult. As a result, collaborating with a payroll software supplier such as People Choice HRMS is one of the greatest ways to eliminate distractions and streamline HR compliance procedures.

What is CTC meaning in Salary and how is Basic Pay Calculated?

Are you wondering what is CTC meaning in salary and how is basic pay calculated? Don’t worry, understanding CTC isn’t rocket science. We have simplied the explanation so that you can have a clear understanding of CTC.

Organizations today don’t just pay salaries; they have created a new notion known as CTC which consists of various components. Employers’ services to their employees have become rather amazing and motivating as a result of this approach. Moreover, understanding all of the components of employees is a little difficult, but organizations are required to invest in all of them.

So what is the meaning of CTC in salary?

CTC full form is Cost-to-Company and in its most basic form, Cost-To-Company can be described as a word for a company’s entire wage package supplied to an employee. CTC is a total of an employee’s monetary and non-monetary expenses. India and South Africa are two examples of countries that adopt it.

It should be noted that an employee’s CTC is never equal to his or her take-home pay. There are several components of the CTC that are not included in the take-home pay.

CTC is simply calculated as follows;

Gross Salary + PF + Gratuity = CTC

Or 

CTC = Direct Benefits (Gross Salary) + Savings Contributions (PF) +Indirect Benefits (Gratuity)

Where Gross Salary = Basic Salary/Basic Pay + HRA + Other Allowances.

CTC per month means the total amount of money a business spends on an employee over the course of a month and its components include Basic Pay, Provident Fund, various allowances like Dearness Allowance/DA (which is usually given for government employees and not given by private companies), Conveyance Allowance, House Rent Allowance/HRA, Medical Allowance, Vehicle Allowance, Telephone / Mobile Phone Allowance, Special Allowance and reimbursements, Incentives or Bonuses.

Annual CTC meaning refers to the total amount of money a business spends on an employee over the course of a year. Annual CTC components include gratuity, annual bonus, annual variable pay, etc.

Expected CTC meaning implies a term used to describe what a candidate wants from the company in terms of compensation whereas Current CTC meaning refers to an employee’s entire cost to the organization, which includes things like salary, taxes, bonuses, and other benefits.

Then what is Basic Pay or Basic Salary and how is it calculated?

The amount of money earned regularly is referred to as a person’s basic pay or basic salary. It is a portion of one’s compensation package that cannot be changed. This is the most important portion of the remuneration system, accounting for 40-45 percent of the total compensation or CTC. So it is calculated as;

Basic Pay or Basic Salary= 40 % or 45% of CTC

For example, if an employee has a CTC of 4 lakh rupees per annum or 33, 300 rupees per month, then his basic salary will be 13, 320 rupees per month or 1, 60, 000 rupees per annum (these numbers are calculated by considering 40% of CTC).

The numbers would change slightly if the basic salary is calculated as 45 percent of CTC, as it varies from company to company.

The employee’s position, as well as the industry in which they work, affects the basic salary. It is vital to highlight that the amount of money earned by an employee working overtime has no bearing on his or her basic salary.

An employee’s basic salary will not be increased if he or she obtains an incentive bonus during the year. As a result, unless an employee negotiates with her or his employer, the basic salary does not alter.

Because basic salary is always taxed, it should not exceed 50% of the total cost to the organization. It should not, however, be maintained too low (below 40%) as this will result in a reduction in the other components of the compensation.

According to experts, personnel at the junior level often get a larger basic salary than those at the senior level. In such as case, those at the seniority level can ask for more CTC incentives.

However, most of the employees do not know how to make the most of the CTC incentives available. It is important to make an effort to raise the direct benefits component as much as feasible when bargaining. Here are a few suggestions:

  • Instead of a pick-up or drop-off service, request tax-free transportation allowances.
  • Inquire about a food allowance and the possibility of converting your subsidized food expenditures to it.
  • If the organization provides ESI benefits, inquire if the health insurance can be converted to medical reimbursements.
  • Inquire about health insurance for family members.

Furthermore, as an employee, you should also know what an in-hand salary or take-home salary means. The net amount of income received by an employee after taxes, benefits, and other voluntary contributions have been deducted from their paycheck is known as in-hand salary or take-home salary.

Moving on, as an employee you should also know about Employee Provident Fund and how to withdraw PF offline.

Employee Provident Fund

EPF is a retirement savings plan that allows you to build wealth while working for a private or government firm. This money pays interest and can be used to fund a portion of your post-retirement life or other objectives. Contribution to your EPF needs to be made by both you and your employer, under this scheme. The total is put into the Employee Provident Fund Organization’s account (EPFO). And on this sum placed with EPFO; you continue to earn a certain rate of interest each year.

According to the law, the EPF deduction must be 12 percent of your basic pay. For the first three years, if you are a woman, you just have to contribute 8% of your basic pay. You can claim the entire sum at the time of retirement or two months after changing your job.

How to withdraw PF balance offline or how to claim PF offline:

The processes to withdrawing your PF balance offline are as follows:

  1. To withdraw the PF balance offline or from a bank account, an individual must fill out Form 19. It can be obtained from the regional office or the EPF website.
  2. Then, in the application, fill in the required fields with the needed data.
  3. Also, any gazette officer, postmaster, notary public, or magistrate officer’s signature must be attested.
  4. Along with the application, a letter stating the cause for withdrawing the PF balance must be attested.
  5. Submit the withdrawal application to the office’s regional officer later.
  6. Within three months after applying, you will be able to get the funds.
  7. Every year, you will receive the full amount deducted from your account, plus a high interest rate of approximately 8.75 percent.

So, what’s the deal with EPF? In addition to providing excellent interest rates, the EPF is one of the best retirement planning tools available. In terms of taxation, it is exempt. It’s also a low-risk instrument because it’s backed by the government, has a pension, and is a highly handy way to save. After all, you won’t be doing much. You complete out some paperwork, and your HR or payroll department handles the rest.

You may think of EPF as a debt mutual fund Systematic Investment Plan, but with a lot less risk and no capital gains tax. Overall, the EPF may go a long way toward ensuring that you have a comfortable retirement fund provided it is well managed.

Conclusion

With so many critical elements included in a CTC, calculating the exact amount and processing the salaries for each of the employees can create a burden on the organization’s HR payroll team. Automating the payroll process with best-in-class software solutions not only takes off the burden from the HR team but also gives them the time to utilize in creating productive strategies for the company.

MKT software leverages state-of-the-art technologies to automate advanced payroll processes. It also ensures that the salaries are disbursed per the compliance laws, saving the company from the embarrassment of unwanted penalties.

If you want to embrace the new age payroll solutions from MKT Software’s People-Choice HRMS, get in touch with us, NOW!

What is Payroll Management System?

Businesses spend a lot of time hiring, educating, and retaining enough employees to run their operations. This shows how valuable employees are to any kind of business. The payroll process is hence one of the most important operations. Employees need to understand that they would be paid regularly and on time. Payroll, regardless of the size of the organization, is vital to maintaining employee morale and ensuring financial stability. So what does payroll mean? Payroll is the sum of all benefits that a company must pay to its staff for a certain period or on a specific date. From the viewpoint of an accounting system, both payroll and payroll taxes are governed by certain laws.

Then what does payroll management mean or what is payroll management meaning? In a phrase, payroll management is a process or a method that refers to the handling of the financial statements of a company’s employee. Information on the employee’s wages, incentives, promotions, deductions, and net compensation will be included in this method, i.e. payroll management process.

Payroll management or payroll processing is usually a time-consuming and difficult operation. This is particularly true for small companies without a payroll manager on staff.  Payroll management can be handled by an entire department in larger businesses. On the other side, medium-sized enterprises may discover that outsourcing their payroll needs is more efficient and cost-effective. The entire process involves three stages; Pre-payroll, Actual payroll, and Post-payroll operations and are taken care of either by the:

  1. HR manager or
  2. By a payroll management system or
  3. By an outsourced payroll agency.  

In the first case, a payroll manager or HR manager must prepare payroll for every employee meticulously apart from also being responsible for the wellbeing of every employee and for making facilities more convenient. There are still activities that need to be completed by an HR manager, as well as the need to keep track of shifts in withholdings, contributions to social security funds, and so on.

As a result, a payroll manager or the Human Resources department is under a lot of strain. But with the help of a payroll management system, it is no longer necessary for a payroll manager to measure an employee’s attendance and salary. Any of the HR manager’s duties will be relieved as a result of this.

So what is a payroll management system?

A payroll management system is software that allows you to easily and automatically monitor all of your employees’ financial records. Employee wages, deductions, other conveyance, net compensation, bonuses, and pay-slip generation are all managed by software.

A Payroll Management System can rescue your HR and your business!

Yes, it does! Here’s how; payroll errors (caused manually) are no longer a problem when a Payroll management system is used. Manually performed complicated computations can be automated with payroll software. Payroll Management Software can handle the entire payroll system with maximum efficiency and accuracy. Your employees would benefit from the payroll management system because it provides them with structure and continuity. It also provides them with a dedicated grievance redress mechanism.  Moreover, a payroll management system is a great option if you have trust issues with an external agency for outsourcing payroll.

How Can I Tell if a Payroll Management System Is Good?

It’s like looking for a needle in a haystack when it comes to finding a good Payroll Management system. A strong or a good Payroll Management system should assist a company in the following areas:

1. Enhances Compliance

Estimating company taxes and filing reports can be complicated and failing to meet deadlines can result in significant fines and penalties. Payroll management systems offer enforcement information and reminders. The program is updated regularly, ensuring that businesses have the most up-to-date information on improvements in tax laws and other regulations. Managers and employers may set up the software to automatically produce reports and file taxes, so all they have to do now is give their approval.

2. Deductions and Net Income are calculated

Payroll software measures deductions such as taxes, benefits, and retirement contributions after an employee’s gross salary are calculated. A check is drawn or a direct deposit is made into a designated bank account after the deduction amounts are automatically subtracted. Some payroll software applications may be set up to add reimbursements for mileage, travel costs, and other employee expenses automatically.

3. Creates tax forms

Payroll software takes some of the stress out of tax season by automatically generating all of the tax forms that employees, contractors, and businesses require. Even in the best of circumstances, calculating and filing taxes can be difficult. When you have workers in several states, all of which have different tax rates, it can easily become an HR nightmare. Using a People Choice HRMS will assist your HR department in staying on top of tax rate discrepancies and adjustments, which may vary by zip code or state.

3. Effortlessly maintains records

Keeping records on a manual system can be tedious and time-consuming, and it necessitates a lot of storage space for files and paperwork. Payroll software makes keeping records simple and saves files electronically. Staying organized is easy since old files can be accessed or removed at the touch of a button. Moreover, it saves valuable time since time is money. 

4. Employee Self-Service is possible

Employee self-service options can make it simpler for human resources managers in larger organizations, even though they aren’t necessary for smaller businesses. Employees may view personal details such as salary history, deductions, hours worked, benefits, and time-off requests through self-service.

Apart from all the above benefits, a good Payroll Management system should ideally be able to;

  • Assist in the development of correct and timely invoices and quotes,
  • Send notifications or report about any discrepancies,
  • Allow timely payments,
  • Be able to run on the cloud, if needed,
  • Can communicate in multiple languages,
  • Should be accessible on the internet 24/7 from any part of the world,
  • Have single-sign-on features and a simple-to-use dashboard,
  • Enable data protection and access permission control to the highest standards and also
  • Prevent misclassifications. 

Things to consider before choosing a Payroll system

The budget of your company

First, assess the company’s size and determine how much you can spend on payroll processing. Knowing your budget and your company’s size classification will help you narrow down the list of payroll software providers. Small businesses that do not expect rapid growth may want to consider investing in less costly payroll software that handles simple payroll functions.

Reputations and capabilities of Vendor

Second, evaluate the products of potential vendors and read some of their existing customer feedback. Payroll software systems that are combined with other elements of planning and human resources management can be beneficial to large or rapidly growing businesses. Consider how many workers the payroll program will accommodate, as well as the possibility of expansion. Request samples if they are available and see for yourself how simple the program is to use and how well it suits your company. Make sure the program is produced by a well-known company rather than a new or insecure one.

Check for security features when selecting a payroll system

Password-protected security protects the business from messing with data and possible data breaches. The system should, in theory, have positive security feedback and ratings. Any security-related questions you have should be answered by vendor representatives.

Compatibility and flexibility offered by the Payroll Management Software

The next factor to consider is whether the software is stable and versatile. Payroll Management software that integrates with your other business systems and scales with your company is essential. Examine the system’s integration features to make sure it’ll work with any HR or financial applications you are currently using.

Visibility of reports and history

Finally, you will want a payroll management system that allows you to maintain power while still allowing you to access reports and historical data. Although payroll processing software is less prone to errors than manual systems, malfunctions and glitches are still possible. It can be useful to be able to manually check and correct details at times.

Conclusion

You might find plenty of payroll management software’s when your search the internet for Payroll management software in India. A few of the good, standard Payroll management software’s in India include ADP, Keka, HR-one, WalletHR, greytHR, Zoho Payroll, etc. Our payroll management software from MKT, People Choice HRMS is all-in-one enterprise management software with excellent solutions for every aspect of enterprise management. So it’s not just Payroll management software, it is more than Payroll management software, making it very budget-friendly. Enquire about our software soon!

Benefits of People Choice Attendance Management System

Companies use a variety of methods to track employee work hours, including classic punch card systems, keeping an attendance register or book, timesheets (using excel), a punch in-punch out Biometric system, and now the current demand, driven by the covid epidemic is for a touchless, facial recognition Biometric system. However, since a majority of employees are working from home or are refraining to work from the office to ensure safety or due to the periodic lockdown, a web or mobile attendance management system is the need of the hour, urgently. Here in comes an employee attendance management system such as People Choice Attendance Management System to save your business productivity!

Attendance tracking is critical to your company’s profitability, dependability, and reputation. Managing every employee’s attendance is fine art, especially when it comes to limiting your company’s productivity loss due to an employee’s absence. Incentives and recognition, effective employee involvement, and open communication are all important components of a successful attendance management approach.

People Choice Attendance Management System is one of the inbuilt functionality of People Choice HRMS. It has many benefits that shall be explained further but first let us know about its features and here are all of them:

  1. Attendance Regularity:  Our unified attendance solution allows them to easily control their employees’ attendance. This is capable of automating all of their attendance-taking tasks.
  • Attendance Report:  Get daily, weekly, and monthly attendance reports, including short hours, late hours, attendance summary, employee clock-ins, and more.
  • Employee Swipes: Employees can punch in and out daily using a biometric machine, a web portal, or a mobile app
  • Overtime: With a single click, you can track overtime hours, generate a report, and compensate for overtime using a fully integrated payroll system.
  • Bio-metric and Mobile App Integration: Integrate with a mobile app and several biometric machines to automatically collect real-time attendance data.
  • Multi-Location: To create a centralized report, gather attendance data from many locations, and sync it automatically on a single server.
  • Attendance Policy: Organize an attendance policy for your company to enforce timeliness with auto attendance rules for late arrivals, short shifts, and no-shows.
  • Shift & week off: Create varied hours, punch rules, and weekly offs for distinct staff groups, as well as holiday calendars.

Now that you know about the eight features of the People Choice Attendance Management System, it is time to know about its many benefits such as;

1. Precision

Humans are prone to making mistakeseven when offered computational tools. Manual data entry errors are unavoidable and costly, therefore automated attendance management solutions provide accurate time records. As a result of this reliable data, accurate performance and payroll statistics can be provided. People Choice Attendance Management System is 100% precise. Trust our many happy clients!

2. Monetary Policy

Have you ever considered how attendance management solutions could help you save money? It helps businesses save money by eliminating inaccuracies in time reporting, buddy punching, absenteeism, tardiness or lateness, time misuse, and overpayment. In fact, according to research conducted by the Axsium Group, major businesses can save up 1, 18, 400 Rupees per employee by employing automated attendance management systems. People Choice Attendance Management System can just do this for your business because we believe money is very precious.

3. Value for Time, Efficiency, and Productivity

Manually tracking and controlling attendance can be time-consuming, difficult, and costly. Processing paper sheets and time cards, creating schedules, authorizing leave and overtime, and manually payroll creation takes a lot of time. People Choice Attendance Management System gives the HR manager additional time in the office since it keeps track of employee hours and automatically integrates data into your payroll system. The time and effort saved, together with the excellent quality of the data, helps with resource optimization, resulting in increased production and profitability.

4. Insights / Transparency

Would you like a rapid snapshot of all employee or group absences, both planned and unplanned? Well, People Choice Attendance Management System can help you with this. You may generate precise reports on hours worked, absence, overtime, and a monthly summary report for any data/groups within the organization with only a few clicks. With the centralized data, any customized report may be generated, increasing visibility and transparency inside the organization. A manager can also use the graphical versions of the report to rapidly and readily comprehend attendance data. Employers can proactively examine and adjust rules on leave, hours, workplace culture, performance, compensation, and more with a single, reliable attendance data hub, allowing them to evolve in their operations.

5. Adaptability

Employees work from the office, from home, or in remote places in today’s global, well-connected world. Organizations may simply measure employee time utilizing a range of clocking solutions, such as cellphones, internet networks, swiping technologies, biometric terminals, or desktop readers, with our People Choice Attendance Management System.

6. Workflow Management That Isn’t a Pain

An integrated attendance management system such as People Choice HRMS can improve data visibility and streamline payroll, leave, and performance assessment processes. Notifications/alerts are automatic, and the manager can approve requests for early departures, overtime, and other requests without having to communicate with anyone. Manual scheduling is no longer a daunting task. An automatic attendance management system can help manage calendars, assign tasks, and keep track of shift swaps with just a few clicks. It can also help with the workload, resource, and budget forecasting.

7. Setup/ Integration

Based on the nature of your business and policies, you can select attendance management solutions that best suit your needs. Some solutions can interact with any third-party attendance gear (swipe, biometric) and gather GPS-based attendance using mobile applications. With time tracking and attendance monitoring solutions, you may develop personalized attendance regulations based on your organization’s needs. Each attendance shift can have its configuration, with options to establish attendance cycles, mark-in/out regulations, leave deductions, and optional holidays.

8. Safety and Security

The majority of attendance management systems are designed with high-security systems and architecture in mind. Biometric solutions, in particular, are extremely dependable and secure and can help prevent time theft, buddy punching, and administrative costs associated with forgotten PINs and stolen ID cards. These solutions are especially useful in firms where security is a top priority.

9. Adherence to the Law and Regulations

Erroneous records can cost your company a lot of money in overtime payments, as well as breaking labour rules, resulting in costly legal defense and fines. In the spirit of fairness, regulations oblige companies to track attendance and offer adequate remuneration to their employees for any additional hours worked. People Choice Attendance Management System complies with all the laws and regulations.

10. Tracking in real-time

Real-time attendance tracking and automated payroll inputs are both possible with cloud-based attendance management. This aids in the management of alternate payment plans and ensures that all data is available in real-time. Managers can use “planned vs. actual” reports to make real-time adjustments to work schedules and direct staff activities.

People Choice Attendance Management System is the ideal tool because it possesses all of the desirable characteristics that employers want when acquiring an attendance tracker for their businesses. Empower your employees and improve your company’s productivity with our software, People Choice Attendance Management System!

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