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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:

 [wptb id=10003]

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.

On-site daycare facilities are a growing trend in many workplaces. It is a benefit that is provided by the employer for employees who are balancing both professional and personal lives. This facility serves as a boon for new parents, who can look after their child, even while working. This facility has an age-bar to this. This facility can be provided by the employer at a nominal fee or even free. This is an initiative carried out by organizations to retain their top talent, who are also working parents, and serves as an aim to integrate both their personal and professional lives.

What is an on-site daycare facility?

In this ever-evolving world, where people are working tirelessly to provide themselves with a comfortable life, working parents often find it difficult to handle their newborn while working. So, onsite daycare facilities serve as a solution to this problem. Onsite childcare facilities provide affordable, top-quality childcare facilities for children of working parents within the workplace itself! Having onsite facilities not only reduces absenteeism amongst employees, increases their morale, but also increases their productivity. It serves as a measure that says to the employees that the organization values them and thinks about how to aid them.

Why should companies provide onsite daycare facilities for employees?

Having an onsite daycare facility within an organization makes it more appealing, increases its brand value, serves as additional perks for the employees, and also helps the firm in achieving its long-term goals. So, some of the reasons as to why should companies provide an onsite daycare facility for employees are mentioned below:

• It is something that a current lot of job seekers demand

Young millennials and gen Z are on a job hunt in today’s time. Though they may not be parents yet, they seem to have done a good amount of future planning and an organization that provides childcare facilities is on top of their lists. So, it helps the employer in attracting good talent.

• It is a great way to show that the employees are a valuable asset to the firm

Having an onsite facility sends a clear message to the employees that both their professional and personal lives are valued by the company and they are doing as much as they can to help them in acing both. This in turn motivates the employees to perform better and repay the trust that the company has shown in them.

• It boosts employee’s morale, dedication and thus increases their productivity

By reducing the separation anxiety that new parents have, automatically increases their concentration on the job at hand by helping them stay more focused without any stress of whether their young one is properly looked after or not.

• It offers flexibility to the employees

Having onsite daycare facilities also provides flexibility to the employees in their way of working, where they can check on their younger ones as and when required and work accordingly. This also instills trust, autonomy, and kindness among the employees.

• It promotes equality of gender in the workplace

Onsite daycare is not only for women employees but also for male ones. More and more fathers are enjoying becoming hands-on parents and helping their partners during the early stage by taking care of their new ones. Also, with increasing women in the workforce, taking care of their needs, also in senior roles, helps to retain them.

What are some of the advantages of providing a daycare facility?

Onsite childcare facilities have tons of advantages both for the employer and the employee. Some of the advantages for the employer are as follows:

• Enhances employee loyalty: Providing an onsite daycare facility is a great way to show the employees that the company values them and thus the employee becomes loyal to the firm. It also makes an attractive benefits package to attract more employees.

• Serves as a performance asset: Studies have revealed that having onsite facilities increases employee concentration and in turn increases returns to the firm. So, it acts as a performance booster for employees.

• Improves the brand name of the firm: Providing a daycare facility at the workplace is a thoughtful initiative and helps the firm to increase its brand value by taking such steps by creating a happy and caring work environment.

• A socially reliable firm: Taking such a step, projects the company’s image as a socially responsible firm, which gives great importance to the work-life balance of its employees.

• Increased recruitment and retention: Providing daycare facilities increases retention rates of employees by making them feel valued and since it is becoming the topmost needs of job seekers, it also enhances the talent pool from which employees can be hired.

• Tax credits: By providing onsite daycare facilities, firms can also claim tax credits.    

Advantages of onsite daycare facilities for the employees are:

• Working parents generally do not have time to look after the child all day, so it provides an easy solution at the workplace.

• Being in the workplace, parents do not face separation anxiety and can have a better balance.

• Parents can go and visit their young ones anytime they desire.

• Onsite facilities are comparatively less costly and are included in the employee’s benefits package.

• Getting a place in the firm’s onsite daycare is easier as compared to some outside daycare.

• Onsite daycare schedules are generally synced with the business schedules and thus they have fewer hassles.

What are some of the cons of having an onsite daycare facility?

An onsite daycare facility has many advantages, no doubt, but it comes with some cons as well. So, the disadvantages of having a daycare facility in the workplace are:

• Cost of building a daycare system: Building a childcare facility requires a huge amount of investment in licensing, additional space requirements, hiring of staff, daycare certifications, and toys and equipment to take care of the babies.

• Distraction to the parents: Having their child with them on the premises, the parents might continue to worry about them all the time and may lose focus and not be able to give their 100% to the projects they were working on.

• Discrimination between employees: People using the facility for their single child might feel discriminated against people who are using the facility for their 2 or 3 children as the benefits may not be evenly distributed.

Childcare facilities at the workplace are for the betterment of the employees. Having an onsite childcare facility is becoming more and more important even from a strategic point of view. Even the employees feel valued and they want to forge long-term relationships with the firms. It provides emotional stability to the working parents and thus they tend to perform better at their jobs. The cons are there too, but the pros have a major lasting impact and will provide the workplace with a better environment to work in.

Finding the right fit for your organization is a difficult yet satisfying process. Employees that will add value to the firm, enhance the returns, make the workplace productive, and improve the team dynamics are always welcome. But if the new joinee lacks these important skills, it is a very risky investment for the firm. The only way to ensure this is to have a thorough background check of the employees before joining so that few other aspects of the employee’s personality can be explored and the candidate can be groomed accordingly. The correct way to do the background check is through legally compliant third-party providers, where it can be done at two points over the employee’s stint in the organization.

Beginning of the article

Background checks not only provide information on whether the person will be a valuable asset to the company but also provides information regarding the person’s past employment details, criminal records, credit history, any information that can have a direct impact on the person’s employability with the said firm. 

Background checks are of 2 types. The first is called the “pre-employment background check”, where the background check is done on new employees, before they join the firm, to make sure that all the details furnished by the employee are correct. The second kind of background check is done during the employee’s tenure at the office. This generally happens if some kind of concerning facts regarding the employee has come into the foreground, or if it is listed in the company’s official policies.

Do employee background checks have any benefits?

Companies hire third-party service providers for doing these checks, they spend a lot on this procedure, so definitely background checks have their perks. Some of these evident benefits are:

• The optimal fit between the job position and the employee: Having a correct idea about the person’s personality gives the employer the confidence that they are hiring the correct person for the job. For example, a person with a good credit rating and financial scoring can be a better fit for the finance role as compared to a person having none of these.

• Say NO to bad hires: A bad hire costs a lot to the company, so background checks help the company in reducing that.

• Reduction in legal costs and liabilities: Companies can reduce their insurance costs and any kind of lawsuits by hiring reliable people, not having any past criminal records.

• Reduction in employee attrition: The company carefully does background research and then only hires people who are a good fit for the firm where their interests align, thus reducing employee attrition.

• Workplace safety: Checking the criminal history of the potential joinee, correct decisions can be taken whether to hire that person or not, thus reducing workplace violence or theft.

What are some of the things that are included in employee background checks?

The employer, if introducing a third-party service, for the hiring process, the employee must be informed beforehand, and written consent of the person in question must be taken, before starting the entire process. The Fair Credit Reporting Act (FCRA), sets the rules for conducting the background research and the entire findings must be documented as a report. The process of background check is comprehensive and some of the must include in a background check are:

• Education details: To verify whether the education details for school, college, master’s degree are true or not, this forms one of the most primary boxes that need to be ticked during a background check.

• Criminal records: One of the most important things to maintain the safety of the workplace, required for jobs about security. All local, national, international records are checked.

• Past employment verification: For validating the employee’s past job experiences, his/her workplace behaviour, past achievements, skill-set harboured by the candidate.

•  Credit checks: Reviewing a person’s credit history, gives an overall view regarding loans, payment history, unpaid bills, bankruptcies, and many more. This becomes extremely important for candidates who want to secure jobs in some financial segments.

• Driving records: This gives information regarding the mobility of candidates, suspensions, and driving history.

• Drug screening: Careful research on the drug history of the candidate (use of illicit drugs) will help maintain a much safer and productive environment.

•  Sex offender list: An important area to look upon to maintain a safer work environment.

•  Medical records: Having a clear understanding of the employee’s medical limitations is an essential part of offering the job to the candidate.

How to do background checks?

Some rules must be in place before the organization goes for a background check of its employees or recent hires. So, some of the mandatory steps in going forward with this procedure are:

•  Have a consistent company policy regarding the entire procedure: Having a well-documented policy regarding the procedure reduces confusion and the entire process goes on smoothly and also all the legal requirements about the entire procedure become clear.

• Getting legal advice and checking with the company’s insurance: Not all information is to be unearthed while doing a background check, so this can land the firm in some legal soups. So, to avoid this, the firm must always contact a lawyer that can guide the firm in the right direction and help avoid such sticky situations.

• Notify the applicants/employees before going on with the procedure: The employee must give written consent for some kind of background research that the company does and thus this also gives the candidates a fair warning and can also help in eliminating certain candidates who know that they will get disqualified once the background check process is in place.

• Use third-party background check services that are FCRA compliant: The FCRA provides clear, written rules of what can and cannot be included in a background check, and thus hiring third-party services that are FCRA compliant is a safer bet.

• Conduct the background check and do not form some kind of prejudice regarding the applicant beforehand.

• Be extremely cautious with the entire process and review the findings: Do not take the process to be a boring mundane routine task and do the process diligently. Even after getting the results, try to get to the bottom of it and not just make up biases in the mind.

• Give the applicant the chance to clear up the misunderstandings: Not all the information obtained in the background research is correct, give the applicant the chance to clear if any such misunderstanding occurs, and thus it can help the company to save up on a great employee.

• Save the records: It is pertinent that the company stores the background reports of all the employees for 1 year so that it can serve as tangible proof in case any applicant asks for their report.

It is correctly put that the workforce is the backbone of a good organization. Doing comprehensive background research is a must for every company to raise good and retain good talent, improve the work culture and thus get the maximum return. With informed hiring decisions, any company can reach the pinnacles of success and achieve its business goals.  

The job market is extremely competitive. Organizations are always striving for acquiring the best talent from the pool of candidates to be the best fit for their job. Getting the right fit for a job can be a complex and time-consuming task. What is needed for its success is a competent authority who knows the technical know-how not only of the hiring process but also of the various engagement and retention-centric activities related to the employees.

This brings us to the significance of HR leaders. HR leaders, in today’s times, are not only responsible for hiring the employees and retaining them but they also have an overall organizational significance. HR leaders can be anyone in the department belonging to any level of the work hierarchy. They can be entry-level recruiters, tactical level motivation managers, strategic level employee relation specialists, so on and so forth. 

Through statistics and observational study, it is found that effective HR leaders have proven to be one of the most important assets to ensure high productivity in the organization in this time of stringent competition. At a point where finding and retaining the perfect skill-set for the organization while also maintaining cost-effectiveness is one of the biggest significances of an HR leader.

As the necessary mention of suitable skill-set surfaces over and over again, the concept of hiring automatically becomes important. Whenever we mention hiring, the first word that strikes our mind is recruitment. And most obviously so. While it is needless to mention that a competent and skilled recruiter is detrimental to finding the right person for the right job, it should always be noted that a talent acquisition leader is also of specific utility to any organization.

A talent acquisition leader happens to be one of the most important HR leaders that an organization in today’s scenario requires. Hence it becomes important to have a comprehensive understanding of who a talent acquisition leader is, what are his key skills, and what is of utmost value to the organization.

A recruiter and a talent acquisition leader co-exist and work in interdependency to fulfill the HR needs of a company. Recruitment can both focus on the long-term as well as short-term goals of an organization. Talent acquisition on the other hand specifically focuses on the long-term needs and goals of an organization. Besides, the process of talent acquisition aims to target very particular skill sets that add value to the mentioned organization.

Let us have a quick look at who a talent acquisition leader is.

WHO IS A TALENT ACQUISITION LEADER?

A talent acquisition leader is someone who heads a continuous and ongoing hiring process in an organization. This hiring process goes on irrespective of the existing vacancies in the organization. A talent acquisition leader makes sure that the broader organizational perspective is taken into account. This means that the talent acquisition manager specifically works to meet the long-term goals or the long-term needs of the company. This includes looking for specific skill-sets that cater to organizational needs.

It is a fierce marketplace where the hiring scene is increasingly aggressive. In a situation like that, the work of a talent acquisition leader is not only important to an organization. It is also very competitive and intense. The talent acquisition leader always has to be on the grind for spotting and acquiring the best talents that suit the particular needs of the organization. In a position where companies struggle with talent management, the role of a talent acquisition leader is unsubstitutable. 

NEED OF A TALENT ACQUISITION LEADER

A talent acquisition leader has multifaceted advantages to a company. It spots the best talent, helps attain long-term organizational goals, and also helps a great deal in economizing on time. The needs and job descriptions of a talent acquisition leader are vast and diverse. 

1. The TA leader is responsible for planning, developing, and maintaining a productive and attainable talent acquisition strategy for the company.
2. He/she should devise a strategy so economic that it saves time and is also cost-efficient.
3. He/She should investigate the current needs of the employees.
4. The TA leader should also identify the long-term needs of the company and which skill-sets align with them.
5. He/she should devise not only a productive but also a sustainable plan.
6. He/she should be in charge of setting up branding activities by involving the current employees.
7. A talent acquisition leader should plan employee referral programs.
8. He/She should be in complete charge of sourcing the candidates from all sources available.
9. Devise end-to-end solutions for a successful selection process.
10. Create a model to track and review employee grievances in addition to addressing them.

KEY SKILLS OF A TALENT ACQUISITION LEADER

A successful talent acquisition leader should have several skills that make him good at his job. Since the TA leader works closely with the human resources of the organization, he/she should primarily be a people person. This is to say that the person has to be believable, gullible, and a good listener. If the employees do not see the TA leader as one of their own, the rate of success of talent acquisition becomes relatively low.

A talent acquisition leader has to hone his/her skills and these skills are not mandatorily inherent. Most of them are polished by experience and knowledge. However, possessing these skills is extremely important to be a successful talent acquisition manager.

Communication skills

Talent acquisition is a people-centric job and hence the ability to communicate effectively through verbal, written or non-verbal communication is of utmost importance. A TA leader is a bridge between the employees and the organization. Hence he/she should have the ability to effectively communicate, and negotiate with the employees. Communication skills include inter-organizational communication, communication through social media as well as body language, and non-verbal cues.

Active-listening

Active listening is an advanced skill that talent acquisition leaders must possess. This is highly significant for face-to-face conversations or situations where decision-making is involved. In a fast-paced world like this, employees and candidates have a fragmented presence. Active listening will allow the TA leader to join the dots and figure out information that does not meet the eye.

Broader Perspective

A talent acquisition leader should always be long-sighted. Being a manager who attempts to fulfill long-term goals, the TA leader should always take the whole picture into account before planning strategies. He/she should be far-sighted enough to look beyond the immediate vacancies and needs and create an effective talent pipeline.

Interpersonal Skills

Building a good candidate experience is of utmost importance to present-day employers. Good candidate experience does not only improve the employer branding but also largely helps in employee retention which is again, one of the biggest goals of talent acquisition. Hence, the TA leader’s interpersonal skills come in handy. This means that he/she should be able to create a good and positive rapport with the employees. Good interpersonal skills also pertain to effective communication and gullibility.

Empathy

No wonder AI is swiftly taking over the traditional workplace. No matter how technically advanced and accurate that is, it still lacks the human element. That on the lacking side worsens candidate experience. An empathetic talent acquisition leader ensures that the candidates feel that their real challenges and issues are being heard and taken into account.

Analytical Skills

In a world that has become primarily data-driven, having analytical skills is extremely important to a talent acquisition leader. Having said that, it is noteworthy to mention that analytical skills are not just the ability to read data. It is also the ability to process and analyze this data to implement it effectively.

WRAPPING UP

Standing in 2020, when companies need the best talents to keep their productivity at pace, a talent acquisition leader is one of the most important positions in an organization. Honed with social skills, emotional intelligence, and analytical knowledge, a talent acquisition leader can be detrimental to a company’s success.

By Gestalt, the whole is greater than the sum of its parts. Talent Acquisition Leaders look at that whole to continue their work.

To get more such information and insights about HR, click here. 

Human Resource Information System is one of the widely used software packages in the HR scenario. It has streamlined the entire HR procedure and brought varied aspects of HR under one roof. Needless to say, HRIS is the present and future of human resource management.

Here we will cover a few aspects of HRIS ranging from its meaning, its importance, its types, and its use in organizations. This will be a comprehensive guide to all the basic know-how of HRIS and how organizations can implement it for higher productivity.

What is an HRIS? – Human Resource Information System

Human Resource Information System is defined as a software package or an online solution that is used to manage employee and organizational data. It is used to store the data, track the data as well as manage the data. HRIS is used to store sets of data and retrieve them as and when necessary. 

HRIS is an HR automation software that applies to all functions of human resource management. It is a database for storing employee data. This contains information such as the contact details, the address details, the work permit, the social security numbers, etc. HRIS pertains to functions such as recruitment, applicant tracking procedure, employee management, compensation management, leave management, so on and so forth.

In short, HRIS can be considered as an intelligent database that stores all employee information makes it easily accessible, thereby automating the HR functions.

TYPES OF HRIS

As already mentioned the HRIS software does not only pertain to one kind of task. It applies to people functions, procedure functions as well as policy functions. This gives rise to four major types or varieties of HRIS with their respective subsets. Read on to find out.

Operational HRIS

Operational HRIS primarily deals with recurring and regular HR functions. At the operational level, the primary work of HRIS is to collect various employee data and store it. The systems under operational HRIS are as follows:

●      Employee Information System is a database for all employee information ranging from their age, sex, religion to background history, work experience, social security number, etc.

●      A position control system that gives detailed information about the current positions in an organization, with the employees assigned to it, the job title, and also the positions that need to be filled.

●      The applicant selection system helps the HR personnel in the evaluation, screening, and onboarding functions of candidates post recruitment.

●      Government Reporting and Compliance Information Systems keeps track of all government regulations and compliances about the organization and its employees.

Tactical HRIS

Tactical HRIS is primarily used at the managerial level and not at the operational level. It aids upper-level managers in the organization in facilitating the decision-making process. The subset functions under tactical-HRIS are as follows-

●      Job analysis and design information system– It cumulates all the internal and external organizational information to create job descriptions and job specifications. The internal information includes those from supervisors, workers, etc. The external information includes those from labor unions, competitors, market research, etc.

●      Recruitment Information System- Every recruitment procedure requires a plan. This plan includes information about the organizational needs, the positions that need to be filled as well as the skill required. Recruitment Information system aids in these functions as well as streamlines information regarding employee transfers, pensions, job preferences, etc.

●      The compensation Management system deals with the benefits and compensations meted to the employees. This function is also tactical as it can help in increasing productivity through various incentive plans.

●      The training and development system aims to streamline the training process to meet the needs of the specific job roles that are previously determined by operational HRIS.

Strategic HRIS 

The subset functions under strategic HRIS are described below :

●      Information system supporting workforce planning- This is used in long-term strategic decisions of the organization such as market expansion, construction in new locations, diversifying the product line, etc. These need comprehensive data about the workforce which is exactly what the system facilitates.

●      Information system supporting labor negotiations – The human resource team completing the negotiating needs to be able to obtain numerous ad hoc reports that analyze the organization’s and union’s positions within the framework of both the industry and the current economic situation. 

Comprehensive HRIS

The other HR functions produce several files like employee files, information files, position files, skills inventory files, etc. It gets a difficult task to skim through all of them to find out the desired results. Comprehensive HRIS, therefore, cumulates all these files to create a comprehensive database that can be accessed for retrieving information required in HR planning.

IMPORTANCE OF HRIS

HR automation is the future that we are currently looking at. The automation of HR by HRIS has proved beneficial to modern-day organizations in more ways than one. It has multi-dimensional benefits starting from cost-effectiveness to increased productivity. The implementation of HRIS has changed the scenario of HR operations and hence is of utmost importance to any organization. The reasons are as stated below :

• Clear Definition of The Goal

The analytical approach of HRIS makes the definition of organizational goals very clear. Both the long term and short term goals are not just merely planned by the strategic level, it is planned by an analytical algorithm.

• Reduction In Cost

The human resource of any organization is a huge field. Hence, data has to be stored in the account of employee data, position data, compensation data, etc. It does not only require a lot of paperwork but also incurs a huge deal of cost to the organization. HRIS streamlines this operation thereby economizing on the cost.

• Easy Retrieval of Data

When any information is required, scrolling through huge tons of information is time-consuming work. It also results in diminished accuracy and delays the retrieval of such data. HRIS being a systematic and comprehensive database makes retrieval of data easy and timely.

• Better Decision-Making

Hence HRIS induces analytics in the decision-making process, it makes the decision-making process more accurate and data-oriented. It leaves no room for bias and human error and the analytical approach also speeds up the decision-making process.

• Appropriate Training Programs

Training programs are detrimental to the long-term and short-term productivity of the organization. Operational HRIS facilitates laying down the exact needs of the organization in terms of skill-sets and workforce planning. That allows tailor-made training programs for the organizational needs and hence further paving way for better productivity.

SUMMING UP

HRIS doesn’t seem to be a luxury for organizations anymore. It seems to be a need. With the proper utilization of this software, organizations can effectively streamline all of their processes to attain greater productivity at lower costs. However, complete dependence on HRIS will take away the human element from HRIS which it so direly needs. But, with a proper balance of the human effort as well as the analytical HRIS, organizations can see heights of productivity that have been long unknown.