Category: HR

In this overly competitive world, where every day is a race against time, finding a job has become a whole lot tougher. Having the right kind of guidance and support during job search can be beneficial, and it also guides the candidate to go in the right direction. Employers use recruitment agencies to help them in hiring a potential candidate for any specific job opening. So, being in touch with recruitment agencies can help the candidate and the firm connect and understand each other’s needs and requirements and be beneficial for both of them.

What is a recruitment agency?

So, let us start with understanding what exactly a recruitment agency is? Do not confuse between a recruitment agency and an employment agency! This is a common mistake done by many potential job seekers. Though they are almost the same thing, recruitment agencies serve the employers while employment agencies help the job seekers. Firms generally hire recruitment agencies to help them identify the potential candidates for a job vacancy and thus ensure that there is a perfect fit between the candidate, the job role and the firm. They directly work in the interest of the companies to offer the best candidates for their job openings.

A recruitment agency will always be on the lookout for suitable candidates. Their main line of work after getting an intimation from the company that it is looking for a candidate includes optimizing the CVs of all the candidates enrolled with them and then shortlisting the best CVs according to the role. After shortlisting the candidates, they provide a comprehensive guide on how to prepare for the process and thus ace it. The primary role of recruitment agencies is to make the entire hiring process a streamlined one and thus providing the perfect candidate to the firm for an opening.

What are some of the different kinds of job positions that can be filled by recruitment agencies?

There are different kinds of job positions that a company might open, and so different kinds of candidates are required for those kinds of roles. So, some of the major types of jobs that a recruitment agency can help fill are:

• Temporary: Here, the project has a specific starting date, and end date and the candidate is hired only for a specific assignment and not as a permanent hire. Some job roles that fall in temporary hire are labour workers in warehouses, manufacturing plants etc.

• Temp to hire: Here, the candidates are generally hired by the firm as a temporary hire, but after the employer gauges the abilities of the employee, they can make the employee permanent. The most common type of job position filled by the recruitment agencies which includes the work of a sales representative, delivery persons, operators etc.

• Direct Hire: Here, the recruitment agencies act as the recruiter for the firm and hire permanent, full-time employees for the organization, thereby saving the firm’s cost and labour. Any job roles of the permanent kind are included in this category.

How do recruitment agencies work?

Hiring any candidate is a tiresome job that includes a huge amount of hard work and labour, and market scouting. Recruitment agencies exist to ease this load off the firms. There may exist many specialized recruitment agencies, but their core working process remains the same.

1. The first and foremost step includes getting an intimation from various firms that they have a job opening and are looking to hire from outside to fill up that position.
2. The first and foremost step includes getting an intimation from various firms that they have a job opening and are looking to hire from outside to fill up that position.
3. The first and foremost step includes getting an intimation from various firms that they have a job opening and are looking to hire from outside to fill up that position.
4. The first and foremost step includes getting an intimation from various firms that they have a job opening and are looking to hire from outside to fill up that position.
5. The first and foremost step includes getting an intimation from various firms that they have a job opening and are looking to hire from outside to fill up that position.
6. The first and foremost step includes getting an intimation from various firms that they have a job opening and are looking to hire from outside to fill up that position.
7. The first and foremost step includes getting an intimation from various firms that they have a job opening and are looking to hire from outside to fill up that position.

Why should employers use a recruitment agency for their hiring process?

A recruitment agency provides lots of benefits to the employer as well as the employee. So, some of its benefits are:

• Top-quality candidates: Hiring candidates through recruitment agencies will always give access to high-quality candidates as they are highly scrutinized, interviewed and polished by the recruitment agencies before they are sent to the companies for hiring. The candidates are also the right fit for the role, so the process of hiring also becomes easier.

• Client-focused approach: Many recruitment agencies have a policy that if the firm hires no candidate, then they charge no money from the employer. So, they focus on doing their job to the best of their abilities to provide the firm with the kind of candidate that they are looking for.

• Universal reach: Not all job seekers are enrolled within any recruitment agencies. So, connecting with those candidates, optimizing their CVs and gauging their abilities is something that recruitment agencies are good at, and thus they have a universal reach for all the clients.

• Market knowledge: Being in this field day in and day out makes the recruitment agencies quite adept with all the current market trends and demands! So, they can provide insights and knowledge regarding the particular sector to both the employers and employees.

• Speedy hiring:  A recruitment agency with its database of potential candidates and their network speed up the recruitment process. They serve as the middleman between the company and the candidate and thus reduce the time required for the hiring process.

• Specialist recruitment knowledge: Many firms specialize in hiring candidates for a particular job role or sector. Thus, these agencies can help provide knowledge regarding the recruitment process to the company that they may lack.

• Best at their jobs: The best reason to hire a recruitment agency is that they are best at their jobs and this is what they do! They fill the gap between the people looking for a good hire and the people wanting a job. So, it is best to leave the job to someone who knows what they are doing.

Recruitment agencies have huge benefits. They close the gap between the job seekers and the companies, thereby aiding them both. Connecting with the recruitment agencies can help reduce efforts, time and can reap great outcomes. So, yes, recruitment agencies do work, and they work better than the hiring process carried out by the firms themselves. So, if you are a firm on the lookout for a new hire or a job seeker on the job hunt, connect with a recruitment agency today!

An age-long debate as to which is better? A specialist -who is the master of a particular field or a generalist who is the jack of all trades but master of none! Though each has its advantages and disadvantages and can be pitted against one another, choosing one also depends on job role and requirement. Hiring the right talent is of utmost importance for a company so that they can not only address the tasks provided to them but can also overcome challenges and perform better. So, which profile is better in today’s competitive, dynamic and interconnected world? Let us have a look.

What is a generalist?

A generalist has a broad range of skill sets and is not confined to the walls of some specific knowledge. They can analyse things from a broader perspective and can look at things from various angles that a specialist cannot do. Generalist is someone who has a little knowledge about all the domains and might help you provide a balanced opinion on the issue at hand. Generalists can multitask and also work cross-functional.

What are the pros and cons of a generalist?

A generalist also has many pros and cons attributed to it. From having little idea in all domains to having no in-depth knowledge about any particular thing, a generalist harbours all these qualities.

So, some of the strengths of a generalist are:

• Multitasker: Having a wide range of skills, a generalist can quickly put them to use and work on multiple things simultaneously. Navigating through a list of different tasks efficiently is a generalist’s forte, and this skill comes in handy in sticky situations.

• An easy set of transferable skills: Since generalists do not have subject matter expertise on any one subject, their skills can be easily transferred to different domains and can work on diverse projects very quickly. This is the reason they are very well suited for leadership roles.

• Navigate through uncertain situations: With the skill to face varied challenges at different times, a generalist remains calm in the face of uncertainty and can deliver efficient results when faced with one. Thus, they remain productive and can motivate other employees to follow suit.

• Solve a broad range of issues and offers flexibility: The ability to work with different domains as and when required makes a generalist flexible. Knowing all the domains gives them the ability to solve a vast range of issues.

• Provide alternate solutions: In a client-facing role, they can easily modify solutions based on the client’s needs and demands and provide solutions from different perspectives.

Some of the weaknesses of a generalist are:

• Which is the key skill: Since generalists have so much knowledge to dabble with, they often lack having a key area of expertise. When the company isn’t sure about a generalist’s key potential, it becomes tricky to promote them to leadership roles.

• Short-term skillset: Not having in-depth knowledge about any particular domain, no need arises for them to remain updated with the current trends. Thus, they possess a short term skill set that often becomes outdated.

• Longer training times: They are easily flexible, but if a project requires them to have detailed knowledge regarding a particular domain, they take longer training sessions to deliver the detailed kind of work required.

• Risk of losing a job: Hiring a short-term specialist rather than keeping a generalist for a more extended period seems like a viable idea from the firm’s point of view. Thus, generalists suffer from the risk of losing their jobs.

What is a specialist?

On the flip side of the coin lies the specialists. As the name suggests, they are the subject matter experts in their chosen fields. Having in-depth knowledge in a particular area is a specialist’s forte and with the trend increasing towards companies becoming more specialists, hiring a specialist seems like a better deal. In simple words, a specialist is a person who hones a particular skill and is superb at it. They focus all their energy on developing that special skill and be updated with the trends and happenings in that specific domain.

What are the pros and cons of a specialist?

Becoming the subject matter expert also comes with its own sets of advantages and disadvantages.

So, some of the pros to being a specialist are:

• Expertise in a particular domain: Specialists may not have a range of skill set, but they specialise in one set, and they are the best at it. They are much better equipped to provide a sound solution for any issue in their area of expertise and easily handle challenges thrown at them.

• Streamline work processes: Along with the knowledge, specialists also have a huge amount of experience of doing the same work again and again, and thus they tend to make lesser mistakes, work more efficiently and streamline their entire work process.

• Higher salary and more dependency: Since specialist’s roles are clearly defined, firms generally have a smaller number of specialists on board, and thus they tend to charge more for the kind of work they provide, and thus the entire firm depends on them to perform all those specialised work in their particular field.

• Solves high-level issues: Generalists can only solve small problems of every domain, but to provide a solution for some high-level issues, it’s a specialist’s job. They are much better at providing such solutions based on their expertise.

Specialists are also prone to cons. They are:

• Limited abilities: If any other work apart from their skill set is provided to them, it can be a huge challenge. They are generally hired for a particular set of tasks, and anything other than that can be a burden to them and the company.

• Not suited for multitasking: Asking a specialist to move in between projects simultaneously, which does not fall under his/her area of expertise is a big NO. Thus, they lack a very important quality of multitasking and thus cross-domain functioning.

• Not easily adaptive to changing situations: Being set in their ways of working and approaching problems, a specialist often finds it difficult to adapt to changes. So, this is a drawback of working with specialists.

• Risk of non-cordial relationships with the workforce: Specialists are generally unable to answer questions outside their purview of knowledge, which can irritate their co-workers. They may come off as having very limited knowledge and not being able to get much on the table.

So, whom to choose?

No firm can thrive only with a workforce of either generalists or specialists. The correct answer to this question is an optimum mix of both in the workforce, which will help to facilitate a diverse range of tasks. Choosing one and rejecting the other is highly dependent on the task at hand and the kind of skills required to get the work done. Seeing today’s competitive world, a hybrid model must be followed where people who are inclined to be both must be hired and given a chance as these people will have knowledge regarding many domains and can provide the expertise of a specialist too.

“Global mobility”, as the word suggests, means the movement of employees of any firm anywhere around the world, physically. Current times are the time of globalization. Whether big or small, all companies are expanding in all directions so that they can also test international waters and reap its benefits. When the world is becoming more and more connected with each passing day, global mobility is not just a strategy but also a way of survival and thriving for companies. It has its advantages, challenges and benefits, as it has now become a way of living for firms.

What is global mobility?

Global mobility is the ability of any firm’s workforce to work easily while going from one country to another and delivering and thereby succeeding in professional and personal lives. A fairly recent strategy, which all the companies have not completely adopted, but if successfully implemented, can open doors for unlimited opportunities for the firms. For companies to have a global workforce, they can have employees who live permanently in another country, frequently travel to different companies or have short-term and long-term contracts with companies. Asking an employee to move to an international location for a project also comes under global mobility. Moving an employee to a foreign location is a big challenge, but companies have to ensure that the process is smooth flow.

What are some of the factors that the company needs to consider for the preparation of its global mobility strategy?

Shifting employees to a foreign jurisdiction is never an easy task, so there are certain critical factors that the company must look into before venturing into a global mobility strategy. They are:

• Immigration details that include work permits, visas, residence permits and many more

• International HR can help the employees with processes like onboarding, grievances, appraisals, everyday issues

• Relocation matters, which include residence and schooling options for the employee’s kids

• Income tax laws and social security obligations both of the home location and host location, which is of utmost importance

• Employment laws of the host country, which includes contracts, projects, assignment letters

• Payroll matters like payment structure, the currency of payment, tax structure, location of payroll and many more

• Benefits and pension communication between the company and the employee

• Teaching about the culture of the host country so that the employee becomes familiar with the local business practices

What are the advantages of a global mobility strategy for your firm?

Since global mobility is a strategy that is widely adopted by many firms in current times, it surely has a lot of advantages. Some of them are:

• Employee development: By opening the doors of the firm for employees to foreign lands, the firm provides an opportunity to the employees to enhance their skills and experience working in foreign lands, which proves beneficial both for the company and the employee.

• Increased employee engagement and productivity: With most employees feeling that a chance to move abroad is a reward provided to them for their hard work, global mobility increases employee engagement in the company’s matter which directly increases their productivity.

• Enhanced employee retention: Global mobility is seen to directly correlate with the employee retention rates of a firm. As global mobility is an investment that a firm does on its employee, the employee feels that the management is looking into the internal talent pool to fill up the key positions. Thus they see a bright future in the firm.

• Speedy entry into new markets: In today’s competitive landscape, entering into new markets before competition makes a foothold there. The gathering of data and exploiting new opportunities as soon as they arise are critical factors for survival, and global mobility helps in just that.

• Cost-cutting: Proper planning of the global mobility strategy can help the firm save a huge amount of costs from saving on tax compliances worldwide to relocation savings.

• Global talent management: A global mobility strategy helps the firm provide proper exposure to top talents to help them develop their skills to serve the company long-term.

• Valuable data exchange: Obtaining correct data from various sources, analyzing them and then using it to the best of the company’s abilities is one of the most important benefits of a global mobility program.

What are some of the challenges that a firm faces while effectively managing a global mobility strategy?

Although a global mobility strategy is important, it comes with its own set of challenges too. Some of these are:

• Expectation mismatch: Most employees expect to move to high-end countries and expect a lavish lifestyle once they shift there, but none is willing to move to small cities. So, there is a mismatch between the company’s needs and the employee’s expectations.

• Leave management: With employees all over the world, providing leaves according to local holidays and regulations is a tiresome job. This causes mismanagement, and consistency is required to make every employee at ease.

• Flexibility vs work done: Owing to foreign regulations and conditions, mobile workers need flexibility but beware, this flexibility must not ruin their zeal to work and increase the cost of expatriation to the company.

• Diversity: Having a diverse background may not be a good sign everywhere. Not every place is tolerant of people of all kinds of ethnicity, gender, nationality and sexuality. So, this can be a challenge in having a mobile workforce.

• Bureaucracy: Dealing with all the paperwork, privacy laws, security issues, cost overruns and many more.

How can a firm effectively manage global mobility?

Global mobility can be a pain for companies, so some of the ways which can ensure an effective mobility strategy are:

• Strategic choice of employees: Selecting the employee who has assumed leadership roles in the past, the experience and professional maturity of the employee should be the criteria to choose people for mobility programs.

• Clear communication: For a mobility strategy to work, there must be clear communication between the employee and the HR handling the entire process so that they both are on the same page and thus least amount of fall out occurs.

• Flexibility: To make the most out of the international stint of the mobile employee, the company must remain flexible and adapt to certain needs of the employee.

• Streamlining the entire process: A clear plan detailing the important tasks to be done when an employee goes abroad can help save a lot of money and must be planned.

Global mobility is difficult, but it is the need of the hour if the company wants to be on top of its game. Having huge benefits, the mobile workforce is the call of the future, and thus good planning must be done to incorporate it into the firm’s strategy.

Salary, Remuneration, Compensation, etc. is the only thing that brings a huge smile on the face after a month-long of hard toil. Deciding upon an appropriate salary is an art of negotiation between the employer and the employee that has to be done tactfully from both sides. Salary negotiation is the most awaited phase of the employment process and it generally arises in 2 important stages. One during the hiring stint, which decides the first salary structure of the new joinee and the next comes at intervals many times during the employee’s appraisal stage when the salary needs to be revised and accommodations need to be done to pay the employee based on his/her hard work. There are certain tips that HR needs to keep in mind while going through a salary negotiation process.

What is salary negotiation?

A job offer comes with a predefined salary package. Not everyone might be satisfied with the kind of pay offered to them. So, talking with the recruiting partner (generally the HR), to adjust the salary offered based on their skill set, capabilities, needs and expectations are called salary negotiation. The window for salary negotiation is between the time the job is offered to the time the candidate accepts the job and after a successful salary negotiation, which is a process where none of the negotiators should feel that they are devalued, the firm feels excited to welcome the candidate to their family.

What are some of the strategies that HRs can use to successfully negotiate salary during the hiring process?

The most critical negotiation step comes during the hiring process when the candidate is a new joinee and is just about to join the firm. The HR must have a carefully worded negotiation process which must include the following strategies to have a successful negotiation:

• Have salary ranges for different job roles: A firm comprises different jobs which are of different importance and criticality. So, having salary ranges according to the job levels which is verified according to the industry standards and publishing it beforehand, will provide a lower band and a ceiling for the joinee to negotiate salary.
• Be clear with the candidate from the beginning: The best way to successfully handle a salary negotiation is by being clear from the start and do that the first question that the HR should ask is what is that the candidate desires in a compensation package and then the HR can use this to successfully culminate a negotiation.
• Additional monetary benefits: Try to create a compelling offer by adding additional components as joining bonus, performance pay, stock-based compensation. Adding these to the salary structure leaves less space for negotiation by the employee.
• Understand the person’s needs and add non-monetary benefits: Not every candidate might run after huge salary figures. Having a fair idea about the compensation structure that the candidate has in mind and thus creating a structure that includes health insurance, travel benefits and many more, is a suitable strategy to negotiate salary in terms of both monetary and non-monetary benefits.

What are some of the salary negotiation considerations that the HRs should keep in mind during hiring?

Some of the considerations that the HRs must keep in mind are:

• What is the job level that is being offered to the applicant?
• Economic conditions affecting the industry
• Economic conditions affecting the job market
• Salary levels as compared to market average
• Skillset offered by the applicant
• Importance of the role offered
• Scarcity of the skills offered by the applicant
• Appraisal and promotion practices in your company

How can HR negotiate salary during the appraisal process?

The appraisal is that time of the year where employees wait a year long to have a conversation with HR about their work and how the company plans on rewarding them in return for their hard work. It also includes feedback to the employees on how they can improve and thus provide maximum returns to the company. So, during this process, many employees expect that they might be receiving salary hikes and thus round 2 of the negotiation process begins. These are some ways how the HR can deal with this:

• Have a discussion: Discuss the situation at hand, try to reach a solution calmly rather than turning it into an argument.
• Provide an appraised structure based on research: Taking into consideration the employee’s performance and the prevalent market standards, provide an appraised salary structure.
• Pay may be slightly higher for retaining employees: A tactic to retain top performers is by paying them slightly higher than the market average which in turn will be advantageous for the firm in the long run.
• Provide additional perks rather than monetary ones: Providing certain extra benefits like increased leaves and others may help in concluding the salary negotiation process.

What are some of the salary negotiation considerations that the HRs should keep in mind during the appraisal process?

Some of the considerations to be kept in mind during the appraisal process are:

• How well is the candidate paid before the appraisal
• Considerations of other factors like cost of living of the place
• Company’s budget for a pay rise
• Prevalent rate of inflation
• Company’s previous trends of salary appraisals
• Company’s performance in the previous fiscal year
• How many extra responsibilities to be transferred to the employee
• The employee’s performance in the past year and how much of a valuable asset he/she is to the firm

What are some of the tips that HR must have in mind before going for a salary negotiation process?

Salary negotiation can be a daunting task both for the employer and the employee. Making it a fair process so that both sides feel that they reached a common conclusion is a must. So, some of the tips for HR to follow before going for salary negotiation are:

• A mutual decision has to be reached; it is not about winning.
• Have correct information regarding the previous salary structure received by the applicant in his/her previous firm.
• Have defined ranges, only between which salary negotiations can take place.
• Apart from the monetary part of the compensation structure, there are limits on the non-monetary aspects too.
• Do not go overboard, even to accommodate a skilled candidate.
• If the salary is non-negotiable, make it clear to the candidate while making the job offer.

There is a huge responsibility on the shoulders of HR while undergoing the negotiation process. The entire future of the firm along with the cost structure of the firm can change if HR makes one wrong decision. So, a lot is at stake for the firm. So, a calm and sensible salary negotiation will ensure that the company does not lose a valuable, superior candidate.

Every company operates intending to grow into something huge one day. Thus, expansion of the workforce is the direct result of it. Inclusion of diversity has become the fundamental goals of almost all firms, and they tend to work towards it diligently. Global expansion is the solution but implementing it has its hurdles. Having a global workforce is beneficial in many aspects, but it requires an HR strategy that must be suited globally which includes immigration policies, why people used to migrate to different cities, global mobility rules, managing worldwide talent and how to make an inclusive strategy. In this competitive world, every company requires a talented workforce to help them achieve their long-term goal. Winning this global talent war is an additional task that the company needs to do to retain the top talent and build a strong workforce.

What is a global workforce?

Hiring a global workforce or global talent is the need of the hour. Hiring people from all around the world is called a global workforce. Hiring people internationally increases the possibility of attracting and retaining the best quality talent from around the globe and thus increases the company’s shot at maintaining diversity. Shortage of skills in specific areas can also turn you to hire globally where there are plenty of skills available.

What is the need for a global workforce?

Having a global workforce, expanding internationally comes with many benefits. Let’s take a look at them:

• The most important benefit is that it helps strengthen the diversity factor in firms and thus opens doors for alternate ways of thinking.

• New hires from different parts of the world bring in expertise and learnings of different locations and thus provide valuable insights regarding operations in different parts of the world.

• Global hires provide a new way to enter potential new markets and thus take on the first-mover advantage.

• Helps to understand the local customs and business practices that aid in capturing the market.

• Helps in diversifying the company’s markets into untapped areas, thereby securing revenue stability in case anyone particular sector experiences some downturn.

• It also helps the company increase its brand value, thereby having the prestige of calling itself an international company. Thus, it helps in improving the reputation of the company.

What is global mobility?

In earlier times, people used to migrate from rural areas to urban areas in need of work. As the rural areas lacked opportunities and exposure, people from all age groups used to move to urban areas in search of jobs so that they could help their families better. Industrialization in the early 19th century opened up gates with varied job opportunities and in need of a massive amount of workforce. Many people used to toggle between rural and urban landscapes to support their families as well as fulfil the needs of their job roles. In today’s times, people shifting from their country of residence to other countries for work requirements is called global mobility.  

In today’s scenario, companies need to send their talents to different parts of the world to look over their business. Workforces cannot just work from the confinements of their own country. They need to have global exposure to understand the different aspects of their work and thus learn and grow. This is called global mobility. Handling international expatriates is a mighty task, and clear HR strategies must be in place to help them smoothly through the process. Preparing the workforce for a mobile future is a demanding task that every company needs to fulfil by preparing policies, having a clear strategy and having immigration policies in place.

What is workplace immigration?

Hiring a global workforce implies that talents don’t have borders. To hire international talent, employers must have an electronic, national and an integrated employee eligibility verification system. People working in different countries other than their country of nationality are called immigrants, and the process of going from one country to another for work is called workplace immigration. HRs must keep a documented record for employee’s immigration, and HR acts as the facilitator too.

No individual who is not legally permitted to work in the U.S. can take any job there. Employment and immigration rules in the U.S. are too strict, and thus companies have to be vigilant in hiring U.S. candidates for work or for sending their workforce to the U.S. Immigrant workers are provided with several protections as illegal discrimination against immigrants is on a rampant rise in today’s world. So, they need to be protected under the law.  

What are certain things that employers must know about workplace immigration?

There are specific facts that employers must know to help them formulate good global workforce strategy and immigration laws. Some of these are:

• The most commonly used employee-based immigration visa is the H-1B – The H-1B visa is the work permit that allows all foreign people to go to the U.S. and thus have employment with American companies. The foreign national should work in speciality fields where a U.S. based worker is not to be found. The visa is sponsored by the employer and is valid for 3 years, which can be extended.

• Applying for visas are costly – Applying for visas are expensive and are generally borne by the company. That is the reason hiring a global worker is a matter of long-term strategy for the firm. Careful consideration and planning must be in place before hiring international people as it is a costly affair. One wrong decision and the company can lose millions.

• The government puts a cap on the number of approved H-1B visas per year- The Government approves only 65000 H-1B visas every year. Due to the ongoing war for talent acquisition, the government receives much more H-1B visas than it can approve, and thus the visas are distributed by lottery systems.  

• In times of a good economy, the U.S. has more job openings than the unemployed people there – the U.S. has a vast labour force, but it is not more than the number of openings in the U.S. So, hiring globally can help bridge this demand-supply gap.

• The workplace immigration process is time-consuming – Lengthy timings, the complexity of visa paperwork and the uncertainty of visa approval are some of the challenges in hiring a global workforce. Most of the HRs find this to be too lengthy but also worth their efforts.

The global workforce is the need of every firm to help their organization in reaching the pinnacles of success that they have aimed for. A strategic decision by choice is also a fruitful one. Hiring and retaining the correct talent is the aim of all organizations and is the need of the hour to stay ahead in the competition.

 Corporate and networking go hand in hand. One cannot go without the other. The more one networks, the bigger is that person’s corporate circle is. And you know who is called the people’s person in the corporate world? Oh, Yes! You guessed it correctly. It is the HR! The person who works acts as the bridge between you and management, the person who is always there to listen to your woes, the person who takes care of any employee-related issue, that person is at the apostle of networking and must use their skills to network with other HRs of different companies too.

What is the importance of networking for HRs?

Getting involved in networking with other HRs is a great way to keep up with recent trends, new opportunities, share and learn best practices with your fellow HR members. Networking into your HR fraternity can help tap into some specialized skill set, gather market data, plan for new strategic alliances for the organization and also help to pursue new business leads. HR networking is an important weapon under the skill set of HRs, and its importance can be measured by the following factors:

• Network with people who will help you to fulfil your purpose, whatever the purpose may be, which is a long-term strategy in the sense that they become your allies for a longer period and can help you later too

• Evolving with times is the need of the hour, so making strong connections digitally is equally important as making connections in person

• It helps in the scouting of potential clients as well as employees for the organization who can be hired as soon as an opportunity turns up

• It also helps in maximizing the firm’s potential

• A good network helps in building the firm’s reputation and also gather advocates for the organization’s credibility  

What are some of the ways HRs can use to network?

Branching out to people is always a good idea, which is the basis of networking every

HR must follow. Some of the ways HR can use to network with each other are:

• Participate in #Twitter chats

Twitter has become a top-rated tool where all HR professionals from around the world gather and share their experiences and thoughts. This widespread practice has also given rise to Twitter chats and hashtags like #HRhour. This includes some questions based on new topics each week, and people can use their platform to share insights and gain knowledge. Joining these groups and participating so that people notice you are a great way of increasing the network.

• Become a part of various LinkedIn groups

As everyone knows, LinkedIn is the largest networking website in today’s world. Millions of people use LinkedIn every day to expand their contact list and use it to get to know more people. Similarly, HRs can also become part of various HYR groups that are there on LinkedIn and can use it to interact and understand other people of their fraternity. Here, people can chat one-on-one, communicate in groups, share their ideas, have healthy debates and can keep up-to-date with new happenings in the HR world.

• Visiting various HR Conferences

What better way than meeting fellow HR professionals in a conference which is organized just for HR people? It is like an ocean that needs to be explored to satisfy the hunger of networking with fellow mates. There are many specially organized conferences, especially for this purpose. For an extroverted HR, this is the kind of place that he/she will love and will love to exercise the opportunity of meeting so many new people all under one roof! Not only for mingling, but these conferences are also generally organized to make all the top-level HRs aware of the recent developments in the HR universe and how they can be exploited to bring accolades to their firms. Some of the well-known conferences that are organized every year are HR Summit and Expo, Dubai, FAHR conference, Dubai, ATD Conference and Exhibition, Dubai and many more.

• Become part of other HR dedicated events

There are many small events organized for a smaller group of HR people where networking can be a bit easier. Events like workshops that are focused on a specific topic lasting only for a few hours may help provide a cosy environment for striking up conversations and socializing with your fellow mates. The perfect location to build up your network where some part of the day is used up for the event and the other half for forming new connections.

• Networking through professional courses

There are many courses that HR needs to equip themselves with to face the daily changes. So, while doing the study, healthy discussions, group tasks, query resolving are great ways of forming bonds and getting to know fellow HR individuals. Bonds generally formed outside the corporate structure tend to have a familial touch to it and thus tend to last longer. So, a great place to start the networking game.

Networking is the bread and butter of corporate life. Acing this skill will help you go a long way and will help in making your corporate journey a smooth ride. Everyone must hone this skill. HRs must take this very seriously as some future decisions of the firm might also rely on this networking skill. So, what other ways can you think of that HRs can use to broaden their network?

Good employees form the backbone of any firm. They form the building blocks upon which a successful organization stands. Employees can make or break any organization. So, good hires, identification of great talent, nurturing them, giving them a chance to grow and thus retaining them is crucial for any firm. In this overly competitive environment, where no one leaves any stone unturned to help their organization achieve their business goals and reach the pinnacles of success by poaching good employees, retention of top talent within any firm is of fundamental importance.

A great retention strategy is an ongoing process that starts from the moment a candidate is recruited. From hiring the right person with the right amount of skill set, aligning the company’s vision, mission and goals with the person’s ideology, guiding him/her the correct way from the beginning along with perks and benefits, providing opportunities along its way, valuing the candidate and making him/her the integral part of the firm are some things that constitute a good retention strategy.

 What are some of the ways to retain top performers?

Some of the ways that can be used for retaining top performers in a firm are:

• Recognize the employee’s worth and its value to the company: Top performers in any field want to be recognized and appreciated for their hard work and their contributions to the task-at-hand. Few words of encouragement can work miracles for them and thus give them the boost to put in their 200% in the next project. They appreciate that their hard work is valued and is not going unnoticed. Continuous praise will increase their productivity and return.

• Providing honest reviews, constructive criticism to the employee: A great talent will not just want appreciation, but will also be willing to learn whenever mistakes occur. So, providing honest reviews not only gives them a clear idea about their positioning but also provides them with the areas where they can improve to top their games. It will help them to see this feedback as a growth opportunity where they can improve.

• Providing the employee clear guidance and path for career progression: Guiding the employee from the beginning, allowing and encouraging him/her to learn new skills, to keep up-to-date with new trends, providing a clear guide as to how their career can progress in the organization in the future can help in employee retention.

• Taking care of the employee’s happiness and well-being: A happy employee will work wholeheartedly for the company and provide maximum positive returns. An employee who is satisfied with the work culture is more likely to stay in the company longer. So, providing a good work culture, taking care of your employee’s happiness is something that can provide much information regarding an employee.

• Allow the employees to participate, seek their inputs and allow them to share their ideas: An employee knows that he/she is considered important when they are allowed to share their ideas, their opinions are asked. It makes them feel included and they think that they are also an important part of the firm and will provide great, fresh ideas.

• Employee’s growth is of paramount importance and thus investing in their growth is necessary: Top-performing individuals are driven by their desire to grow be it personally or professionally and they like to flourish in an environment that helps them to do so. So, creating opportunities for their growth and allowing them to embark on such journeys helps in the retention of top performers.

• Provide them with new responsibilities and help them grow their skill set in all horizons: Giving a new set of responsibilities to any candidate is an indication that the person is ready to take on a new mantle and has the abilities to ace them. When provided with new responsibilities, the candidate also feels motivated seeing that the organization has trust in his abilities and is trusting him/her with new projects. Allow them to mentor new candidates which also serves as a test for them as to how they are as team leaders. This provides them with a feeling of accomplishment and thus motivated them for a positive career progression with the company.

• Allow for flexibility: A rigid working schedule is mandatory for a workplace, but some kind of flexibility like flexible working hours, mobility, remote working options and many more, needs to be there in case of emergencies. Anyone will appreciate an environment where needs are understood and cared for. Nowadays, most of the workplaces are adapting to flexible working hours, which the employees love and they are likely to stick around longer in firms that provide them what their heart desires.

• Give the top performers the liberty to function on their own, treat them as fellow partners: No one likes to be micromanaged. Give the employees the freedom to do things their way, have faith in their abilities, treat them as important personas and trust them. Retaining top-level candidates means the company wants them to promote to positions of power one day, give them the freedom to deliver what you expect from them.

• Provide the right kind of benefits, perks and monetary motivation, i.e.; reward them: Benefits and perks go a long way in keeping the employees happy and motivated. Attractive healthcare packages, paid leaves, flexible working hours, higher packages, vacations, attractive bonuses are some of the options to keep the employees interested in the long haul. Nowadays, providing various kinds of stock options to the employees are also favoured, which makes the employees part-owner of the company. Providing continuous appraisals, based on the work done by the employees also serves as a great motivator.

• Communication is the key to healthy and long-term relationships: Open and transparent communication is the bedrock for fostering good relationships with your employees. Encouraging an open atmosphere where all the employees can speak, share ideas, communicate freely, have a fun environment with light banter and transparent goals, makes an ideal atmosphere for retaining top talent.

Retention of top performers is important for an organization to achieve its business goals and thus it is a long-term strategy. Good workplace culture tops the strategic checkpoints for retention of employees. A good workplace breeds good employees who are more productive. So, in this competitive landscape where retaining a good workforce is a growing challenge, firms must carry out regular methods to retain them and thereby think about their long-term goals. There goes a debate which says, offering cash benefits is not a very effective way to retain top performers, what are your views on this?

A clear pay structure is one of the first important things that any company should have on its to-do list, which requires a lot of scouting and analysing. Proper market research on the different kinds of job roles, the kind of responsibilities that it entails, required skills of the employees helps in creating a pay structure template. A good remuneration plays a central role in employee satisfaction, which can be enhanced by providing them benefits of various kinds, which is a very tough goal. Post-retirement benefits in the form of EPF are included in every company’s payment structure which is mandated. ESI works to provide health insurance benefits for the employees, but it suffers from its own limitations. Let us have an elaborate look at these topics.

What are some of the steps that the company must go through to develop a pay structure?

• Establishing value for each job position: Through market research of competitive firms, what other firms are paying for similar job roles, establish a value for each job role in your company by benchmarking other similar jobs and analysing their data.

• Measuring the market position of the company: Comparing the company’s salary level with the average of the market’s pay level to understand some of the basic questions in terms of affordability, attracting and retaining of employees.

• Have a clear budget for the salary payout: A defined budget is a very critical step that every company must have from the very beginning. Internal budget constraints and external market factors will pose as opposing forces in reaching a satisfactory pay structure.

• Define compensable leverage for the employees: This is the increase in salary rate when the employees are promoted compared to the market rates of promotion in similar positions.

• Start allocating and final adjustments: A series of hit and trial methods to reach the appropriate salary ranges for different job profiles based on the market data collected and analysed to reach a final pay structure.

• Management approval and Communicate: After getting the management’s final approval for the salary ranges of different profiles, the pay structure is then communicated to all the staff.

What are the different kinds of pay structures?

• Individual pay rates/ranges: The most common form of pay structure, where the employees are told about their fixed salaries beforehand, and thus the company also has an exact estimate of their payout, their hiring potential. This is a rigid structure where the employees can have the only progression of their salaries if they are promoted. Contrary to this, the individual pay range provides a band of salary range that different employees in different job profiles can expect.

•  Broadbanding: Dividing the employees according to their pay grades. There are different pay grades for different managerial job roles and executive job roles. This system includes maximum and minimum pay, with incremental stages between them, where the employees start at the minimum and then, based on her/his performance, get the increment.

• Pay Spine: A simplified pay structure, where the spine is made up of pay points from the lowest entry-level salary to the executive level salary, and each pay point is defined with the fixed predefined salary and incremental levels in a particular position.

• Job Families: A versatile pay structure, where the transition is based on the employee’s knowledge, skill, loyalty, experience. Here, similar roles are grouped, and each role is separated based on knowledge and seniority.

Do you know the most important components of a salary structure in India are?

• CTC or the Cost to Company: It includes all the components such as HR, bonus, basic salary, PF, etc.

• Basic salary: It constitutes 35-50% of the total wage, based on the designation of the employee and the fixed amount that is paid before any deduction or increase.

• Gross salary: The salary just before any deduction like taxes.

• Net salary: The final takeaway salary after deducting the TDS, also called the in-hand salary.

• Allowances: Different remuneration that is paid to the employees over a year, where these allowances can be taxed partially, completely, or not taxed at all. Some of these are Dearness allowance, House Rent Allowance, Medical Allowance, Leave Travel Allowance, and many more.

• Gratuity: A lump sum amount paid by the company to the employee that is retiring.

• Employee provident fund: An employee-benefit scheme where both the employer and the employee puts a certain fixed amount of money, from where a fixed amount of deductions can be made after retirement mostly.

• Professional tax: The tax levied on employee’s salary by the state government, which is a maximum of Rs. 2500.

• Perquisites: Generally non-monetary, these are certain benefits that the employees enjoy over and above their salary based on their position within the company.

What is an Employee provident fund, and how is PF calculated?

This focuses on post-retirement schemes and benefits. EPF is compulsory for Indian organisations under the “The Employees’ Provident Fund and Miscellaneous Provisions Act 1952”. A minimum of 10%-12% of the basic salary of the employee is deducted and deposited in the employee provident fund. In case the employee is a woman, she needs to pay only 8% of her salary to the provident fund for the first 3 years thereafter, which becomes 10%-12%, whereas the employer still needs to contribute 12%.

The employee can voluntarily contribute more than 12%, but the employer is under no obligation to match it. Here, the employer’s contribution is limited to a maximum of Rs. 1800, i.e., 12% of 15000, so even if the employee’s salary is more than 15000, the maximum that the employer can contribute is Rs. 1800.

The statutory compliances associated with PF contribution are that the contribution made by the employer is divided into two parts. Employee provident fund (EPF), which is 3.67% of the 12% contribution, and Employee Pension Scheme (EPS), which is 8.33% of the 12% contribution.

For example, if the employee’s salary is Rs. 10000

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What is Employee State Insurance(ESI)?

A contributory fund, where both the employee and the employer contribute to form a healthcare insurance fund for the employee. Employees’ State Insurance Corporation manages them as per the rules mentioned in the Indian ESI Act of 1948. This scheme provides both cash benefits and healthcare benefits to the employees. Anywhere 10 or more people are employed eligible for ESI.

Eligibility: All the employees who have a monthly income of less than Rs. 21000 are eligible for ESIC contribution. Employees having a daily average earning of up to Rs. 176 are also exempted. ESI is calculated on gross salary.

The employee contributes 0.75% of his/her gross salary, whereas the employer contributes 3.25% of the gross salary, and the employer submits the total contribution within 15 days of the last day of the month.  

For example, let the gross pay of the employee be Rs. 10000.

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Now, the contribution periods are divided into two groups of 6 months each.

• 1st April to 30th September, for which the cash benefit period is 1st January to 30th June of the following year.

• 1st October to 31st March, for which the cash benefit period is 1st July to 31st December.

Now, if the salary of any employee increases beyond the maximum limit of Rs. 21000 in between the ongoing contribution period, then the contribution for the remaining months are calculated on the new amount, till the end of the contribution period, and after that if the salary still surpasses the maximum limit, the employee is not eligible for ESI.

Pay Structure Template

The most basic salary structure of any company encompasses:

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So, pay structures are of utmost importance to any organisation and serve to attract, nurture and retain good employees in the long run. It shows that the company values the employee’s hard work and rewards the employees handsomely.  

HR is an indispensable part of any organization. It is the most important wing that keeps every aspect of a firm connected and thus ensures that the business is running smoothly and efficiently. From every employee’s go-to person during the time of distress, to be the person who resolves any mishaps happening in the office, HR is the answer to all the problems. Employees are the backbone of any organization, but who keeps the employees happy and satisfied with their work? Yes, you guessed it correctly! It’s the HR! So, a happy HR equals a happy workforce equals a happy organization equals growth and success for the firm. So, HR’s contribution to any firm’s success is immense.

HR’s importance in any firm ranges from strategic planning to the bottom-line workers. Thus, HRs provide an all-around contribution to the organization. So, let us zoom in on certain areas, where HRs contribute to aid in an organization’s success.

1. HRs plays the key role in hiring and thereby securing a good workforce for the company:

HR works closely with the hiring managers and they play an important role in the company’s hiring process. They conduct the entire process and make sure that the company hires the best candidates suited to its needs and requirements. Scrutinizing the candidate to make sure he/she will be an asset to the company is just one of the many beneficial aspects of HR.

2. HR also aids recruitment and Onboarding of candidates:

From declaring the job applications open to scrutinizing the CVs, to releasing the shortlists, to interviews and finally hiring someone, an HR does it all! Even after the recruitment process winds up, HR is responsible for the smooth onboarding of new hires, making sure that they are accustomed to the company’s policies and practices.

3. HR makes sure that the new joiners receive the best development and training session:

All the new hires undergo training and development sessions to introduce them and make them proficient in the kind of work that they are supposed to perform. HRs supervise the entire training process so that employees are proficiently trained for leadership and management roles to be taken up in the future and can lead the firm in the right direction.

4. HRs help in keeping the employee satisfaction levels high in an organization:

Everyone knows that a happy workforce is a sign of a healthy firm and a healthy firm is more prone to be successful in the future. So, it is HR’s job to make sure that the employees are satisfied in the organization and thus maintaining a good employer-employee relationship. They conduct surveys, focus group discussions, and interactions to make sure that the workforce is happy. All the discussions related to the employee’s compensation are also handled by HR.

5. HRs control the budget of an organization:

The HR team of any organization helps the firm to strictly work in its allocated budget by reducing excessive and unwanted spending. They devise ways by which cost cuts can be implemented so that the company can save money which will be helpful for the company in the long run. Negotiating salaries, benefits, and packages also comes under HR’s purview and they make sure that they efficiently use their negotiating skills.

6. HRs also aid in the strategic management of the firm:

HRs help in improving the bottom line of an organization by inducing its knowledge regarding how the workforce helps in the success of an organization. Many HRs specialize in strategic management too and thus take part in the company’s corporate discussions regarding which projects to take on and how to act further based on current trends going on in the market.

7. HRs makes the firm a tech-driven one:

Every aspect of a firm is being replaced by technology. So, technology is the new bread and butter for every firm. HRs identify and therefore implement the various technological needs of the employees by making the firm more tech-savvy and thus contributing to its success. Some of the digital tools adapted by HRs are online learning platforms, online payroll software, surveys for the development process, and many more.

8. HRs play a major role in a company’s growth:

HRs play the role of strategic advisor in case of any mergers, acquisitions, expansions, and even downsizing. It also helps in succession planning so that companies can work smoothly even if some unexpected situations arise. Conducting talent reviews and thus identifying potential in-house candidates can help planning for leadership roles in advance.

9. HRs are the go-to person for resolving a conflict:

Workplace conflicts are a common affair, but this should not have an impact on a company’s performance. So, even before it becomes a huge issue, HR sweeps in and saves the day. Thus, resolving conflicts helps to motivate employees and imparts a positive zeal on the workforce to work harder and thus provide better returns to the firm.

10. HRs moderate company’s as well as the employee’s performance:

Performance management is one of the key roles of the HR team. After acquiring the right talent, it is HR’s responsibility to check on the employee and deliberately provide active feedback related to his/her performance so that they can improve it continuously. This ensures that employees are not stuck in jobs that they don’t want and thus their skills and abilities are not wasted. Thus, exploiting an employee’s abilities to their full potential so that the company can reap benefits from it is the way HRs contribute to the firm’s success.

There are reasons why HRs are called the employee’s best friend. A company is what its employees portray it to be and managing the employees efficiently is HR’s job. A good HR team is every company’s top priority as they help in making the most out of the employees by using the right resources. Thus, a successful company depends on a strong HR team and must value all the insights provided by them which will help them in growing and succeeding.