CORE HR DOMAIN

Manpower Planning
Manpower Planning which is also called as Human Resource Planning consists of putting right number of people, right kind of people at the right place, right time, doing the right things for which they are suited for the achievement of goals of the organization. Human Resource Planning has got an important place in the arena of industrialization. Human Resource Planning has to be a systems approach and is carried out in a set procedure. The procedure is as follows: 1. 2. 3. 4. 1. Analysing the current manpower inventory Making future manpower forecasts Developing employment programmes Design training programmes

Analysing the current manpower inventory- Before a manager makes forecast of future manpower, the current manpower status has to be analysed. For this the following things have to be noted Type of organization Number of departments Number and quantity of such departments Employees in these work units Once these factors are registered by a manager, he goes for the future forecasting.

2.

Making future manpower forecasts- Once the factors affecting the future manpower forecasts are known, planning can be done for the future manpower requirements in several work units. The Manpower forecasting techniques commonly employed by the organizations are as follows: Expert Forecasts: This includes informal decisions, formal expert surveys and Delphi technique. Trend Analysis: Manpower needs can be projected through extrapolation (projecting past trends), indexation (using base year as basis), and statistical analysis (central tendency measure). c. Work Load Analysis: It is dependent upon the nature of work load in a department, in a branch or in a division. d. Work Force Analysis: Whenever production and time period has to be analysed, due allowances have to be made for getting net manpower requirements. e. Other methods: Several Mathematical models, with the aid of computers are used to forecast manpower needs, like budget and planning analysis, regression, new venture analysis. Developing employment programmes- Once the current inventory is compared with future forecasts, the employment programmes can be framed and developed accordingly, which will include recruitment, selection procedures and placement plans. a. b.

3.

Design training programmes- These will be based upon extent of diversification, expansion plans, development programmes,etc. Training programmes depend upon the extent of improvement in technology and advancement to take place. It is also done to improve upon the skills, capabilities, knowledge of the workers.

Importance of Manpower Planning

1. Key to managerial functions- The four managerial functions, i.e., planning, organizing, directing and controlling are based upon the manpower. Human resources help in the implementation of all these managerial activities. Therefore, staffing becomes a key to all managerial functions. Efficient utilization- Efficient management of personnel becomes an important function in the industrialization world of today. Setting of large scale enterprises require management of large scale manpower. It can be effectively done through staffing function. Motivation- Staffing function not only includes putting right men on right job, but it also comprises of motivational programmes, i.e., incentive plans to be framed for further participation and employment of employees in a concern. Therefore, all types of incentive plans becomes an integral part of staffing function. Better human relations- A concern can stabilize itself if human relations develop and are strong. Human relations become strong trough effective control, clear communication, effective supervision and leadership in a concern. Staffing function also looks after training and development of the work force which leads to cooperation and better human relations. Higher productivity- Productivity level increases when resources are utilized in best possible manner. higher productivity is a result of minimum wastage of time, money, efforts and energies.This is possible through the staffing and it's related activities ( Performance appraisal, training and development, remuneration)

2.

3.

4.

5.

Need of Manpower Planning

Manpower Planning is a two-phased process because manpower planning not only analyses the current human resources but also makes manpower forecasts and thereby draw employment programmes. Manpower Planning is advantageous to firm in following manner: 1. 2. 3. 4. 5. 6. Shortages and surpluses can be identified so that quick action can be taken wherever required. All the recruitment and selection programmes are based on manpower planning. It also helps to reduce the labour cost as excess staff can be identified and thereby overstaffing can be avoided. It also helps to identify the available talents in a concern and accordingly training programmes can be chalked out to develop those talents. It helps in growth and diversification of business. Through manpower planning, human resources can be readily available and they can be utilized in best manner. It helps the organization to realize the importance of manpower management which ultimately helps in the stability of a concern.

REF: Management Study Guide, as available at: http://www.managementstudyguide.com/manpower-planning.htm

RECRUITMENT & SELECTION PROCESS

RECRUITMENT Placing the RIGHT PERSON in RIGHT PLACE at RIGHT TIME. Vacancy is known in two situations (generally): An employee leaves and there is a vacancy created Business Growth The vacancy is intimated to the HR department by the concerned technical department. Ensure that judgement of abilities, experience and qualifications is made against the requirements of the position in question. 1) Defining the Requirement - Decide what vacancy you have. If you need to fill a new role quickly you might find it helpful to adapt one of the models provided here: Task analysis - Draw up a detailed list of tasks that the person will have to do. This helps in determining the qualities and qualifications genuinely required for the job. Job description - Produce an outline of the broad responsibilities (rather than detailed tasks) involved in the job. Person specification - Decide what skills, experience, qualifications and attributes someone will need to do the job as defined in the task analysis and job description.

2) Selection - Select your candidate being objective and unbiased. Choose the person who best fits your person specification. Short listing: Review applications on the basis of the person specification. Ensure that you select for interview those who match the specifications, regardless of age, sex, race etc, and that the specifications are not themselves discriminatory. Interviews: Interview your short-listed candidates remembering that your job is not only to assess the best candidate for the job, but also to create a great impression of your organization.

3) Candidate assessments - The interview will provide you with some information but check it out before offering a job. Ask the candidate to show you examples of previous work, do a presentation, a case study, some tests or full assessment. Tests can be done before the interview or after the interview. It depends on the number of candidates being interviewed and the type of job. You must have the specific permission of the applicant to do so, particularly if you wish to contact their current employer. If you need them quickly, try phoning. 4) Making a Job Offer - If you think you have found the right candidate, its time to make the job-offer. 5) Induction - Help your new recruit to settle in quickly and become productive as soon as possible.

The Recruitment Process: The recruitment process begins when you know you need someone new in the Department, either because an existing staff member has left, or because there is new work to be done. It doesn't finish until after the appointment has been made. The main stages are identified in the below flow chart Identify Vacancy Prepare Job Description and person Specification Advertise Managing the Response Short-listing References Arrange Interviews Conduct The Interview Decision Making Convey The Decision Appointment Action

PRE-INTERVIEW

# Preparation of recruitment /selection document for the position # Advertising Preparing advertisement Media selection Positioning # Response handling Initial interview online or telephone Short-listing for interviews Interview arrangement Sending emails or calling short listed candidates Interview details to the short listed candidates # During Interview HR interview Technical interview Conducting tests [Aptitude / Mathematical / Analytical etc.] Initial final list of candidates. Reference check (if required)

POST-INTERVIEW # Email or Telephone call to unsuccessful candidates # Technical Manager approval for a start up date. # Email or Telephone call to successful candidates # HRM prepares a letter of appointment

JOINING FORMALITIES
Please find below the joining

formalities followed in our company.

1) Employee Personal Profile (in which an employees need to fill all his personnel and professional details) 2) Confidential Disclosure Agreement 3) ESI / PF / Bank forms 4) Health Questionnaire (since ours is a Health care company, it mandatory to fill this form) 5) Insurance form (For Employee Group Insurance) 6) ID Card request form 7) Mail ID and Domain Login ID request Form And we will be collecting the following documents from the new joinee 1) Photos 2) Relieving letter and last 3 months pay slip from the previous employer. 3) Form 16 from the previous employer 4) Photo copy of Previous experience proofs 5) Photo copy of educational certificates 6) ID Proof and Address Proof 7) Medical Certificate Then we will be briefing about the companys History, Its Mission & vision, the Organization structure and the HR policies, Rules & Regulations, etc. Then we will introduce the new joinee to his department and put him on floor.

CHECKLIST FOR JOINING

Copy of CV Application Form Academic testimonials (10th, 12th, Graduation) Technical Certifications (If Any) Passport size color Photographs 5 Nos. Identity Proof/PAN Card Residence Proof Certified copy of resignation letter Last 2 months salary slips of previous organization Clearance letter from the previous organization Previous organizations Experience certificates Landline No and official email ID of last company Contact no of immediate supervisor in last company PF nomination & declaration form- Form.2 ESI Nomination and Declaration Form Form-1 (If Applicable) Tax declaration form Form 16 from last employer Passport/Visa Details

For HRD use only

Bank Acct No. (ICICI) Emp. ID Card Access Card Email Add. (Official) Mobile (If Applicable)

_____________________________ _____________________________ _____________________________ _____________________________ _____________________________

Laptop (If issued) _____________________________

INDUCTION

Induction means making the new joinee feel comfortable, taking him through the company
vision,mission,different branches with the help of ppt as well as introducing him to the key people in the org. Recently I am also preparing Induction Programme for my Organization. I have finalized following contents which might help you. ABOUT THE XYZ GROUP ABOUT THE TOPIC DEFINITION & OBJECTIVE OF INDUCTION INDUCTION PROCEDURE INTRODUCTION TO COMPANY EMPLOYEE BENEFITS INTRODUCTION JOB DUTIES Further you can add more sub points 5.1 INTRODUCTION TO COMPANY 5.1.1 HISTORY OF COMPANY 5.1.2 NAME AND TITLE OF KEY EXECUTIVES 5.1.3 ORGANIZATION CHART 5.1.4 DEPARTMENT AND RESPECTIVE HEADS 5.1.5 PRODUCTS OF COMPANY 5.1.6 BIG CUSTOMERS OF COMPANY 5.1.7 EMPLYEE STRENGTH 5.1.8 TURN OVER OF COMPANY 5.1.9 ISO (QUALITY ENVIRONMENT) 5.2 EMPLOYEE BENEFITS 5.2.1 PUBLIC HOLIDAYS 5.2.2 MEDICLAIM POLICY 5.2.3 GROUP PERSONAL ACCIDENT POLICY 5.2.4 TRANSPORTATION FACILITY 5.2.5 GUEST HOUSE FACILITY 5.2.6 EMPLOYEE DEVELOPMENT 5.2.7 EMPLOYEE RECREATION 5.2.8 RETIREMENT BENEFITES

5.3 INTRODUCTIONS

5.3.1 TO SUPERIORS 5.3.2 TO SUBORDINATES 5.3.3 TO COLLEAGUE 5.4 JOB DUTIES 5.4.1 JOB LOCATION 5.4.2 JOB TASKS 5.4.3 JOB OBJECTIVE 5.4.4 RELATIONSHIP WITH OTHER JOBS

You can choose the points as per your requirement

A formal induction programme should provide following information: * Brief history and operations of the company. * The companys organization structure. * Policies and procedure of the company. * Products and services of the company. * Location of department and employee facilities. * Safety measures. * Grievances procedures. * Benefits and services of employee. * Standing orders and disciplinary procedures. * Opportunities for training, promotions, transfer etc. * Suggestion schemes. * Rules and regulations.

TRAINING & DEVELOPMENT

Training is an act of increasing the knowledge and skills of the employee for doing a specified job Need/Importance of Training 1. Increased productivity 2. Higher employee morale 3. Less supervision 4. Less wastage 5. Easy adaptability 6. Reduced turnover and absenteeism 7. Employee development Steps in Systematic Training Plan Determining Training NEEDS Establishing Training Policies Setting goals & Objectives of Training Preparing Training Budget Deciding about the Training Venue Methods & techniques to be deployed in Training Determining Methods of Evaluating Training

Steps in Systematic Training Plan. Determining Training NEEDS Organizational Analysis Objective Analysis Resource Utilisation Analysis Environmental Scanning Organisational Climate Analysis Task or Role Analysis Manpower Analysis

Establishing Training policies Setting goals & Objectives of Training

1. Operational objectives 2. Performance objectives 3. Instructional objectives 4. Reaction objectives 5. Personal growth objectives 6. Innovation or change making objectives 7. Preparing Training Budget 8. Deciding about the Training Venue 9. Methods & techniques to be deployed in Training 10. Determining Methods of Evaluating Training

Training Methods (On the job, Off the job & Electronic)
On-The-Job-Training I s the most universal form of employee development.

1. Job Instruction Training (JIT) 2. Coaching 3. Mentoring 4. Position /job Rotation 5. Apprenticeship 6. Committee Assignments Off-The-Job-Training The trainees have to leave their workplace and devote their entire time to the training.

1. Vestibule training (a training centre is set up and actual ob conditions are duplicated or stimulated in it.) 2. Apprenticeship training 3. Classroom training/lecture method 4. Internship training

5. Conferences 6. Role playing 7. Programmed learning/programmed instructions

Electronic Training Computerized and internet based tools have revolutionized the training process.

1. Audio-Visuals 2. Computer based training 3. Electronic performance support systems (EPSS) Distance and internet based training

Training budget analysis:

Benefit of cost ratio = Training Benefit (eg. 500) = 1.428 Training Cost (eg.350) Net Benefit = T.Benefit (500) T.Cost (350) = 150 RoI = Net Benefit = 150 = 0.428 = 42.85 or 43% = 350

Training Cost

RoI : Return On Investment

Evaluation Hamblins Five levels of Training evaluation 1. Reactions 2. 3. 4. 5. Learning Job Behaviour Organization Ultimate Value`

Difference between training and development: Training Nature Tangible in nature. Training is more specific, job-related information. Development Intangible in nature. Development is more general in nature, especially at the top level management level. Development is important to adapt to new technology and changing patterns in organization. Development deals with human skills. It is directed at managerial personnel to acquire conceptual and human skills. Greater emphasis on OFF the Job methods. It is more frequent and continuous in nature.

Importance

Training is important because technology is improving and changing. Training deals with nonhuman skills. Training is normally directed at operative employees and relates to technical aspects. Greater emphasis on ONJOB methods Training is less frequent; it is carried out mostly at induction and every succeeding stage of the job. Mostly the supervisors impart training Training is of more relevance at junior-levels.

Skills Directed towards

Methodology Frequency

Who imparts

Supervisors, external experts and self undertake development. Development is of higher relevance at middle and senior levels.

Relevance

Cost involved Duration

Imparting is less expensive Training courses are designed mostly for short term.

Imparting development is more expensive. It involves a broader longterm education for a long run term.

PERFORMANCE MANAGEMENT SYSTEM

PURPOSE To institutionalize the Performance Management System by developing an integrated process of objective setting, assessment and evaluation that will support individual employee, departmental & organizational growth and help create a performance driven culture. APPLICABILITY This policy is applicable to all the employees of Verdant Telemetry & Antenna Systems Private Limited. OBJECTIVES To provide a framework for systematic planning of Performance Objectives at the beginning of the year. To ensure that individual objectives are aligned to the organizations goals. To ensure an objective and scientific evaluation of employee performance. To identify gaps in performance and take necessary actions to ensure the achievement of organizational and individual goals. To define a proper career planning process. To provide inputs for determining the Compensation, Rewards & Recognition.

THE PERFORMANCE MANAGEMENT SYSTEM PROCESS FLOW

Vision, Mission Values & Goals

Career Development & Rewards

Organizational Annual Business Plan

Assignation of Final Rating

Specific Organizational Objectives

Review or Measurement of KRA achievement

Functional Objectives

Definite Individual Objectives

Key Result Areas (KRAs)

COMPONENTS OF PERFORMANCE MANAGEMENT SYSTEM

1. Performance Planning & Objective Setting 2. Performance Assessment 3. Career Development 4. Rewards

PERFORMANCE PLANNING & OBJECTIVE SETTING

Performance Planning is an important part of the Performance Management System as it makes the objectives of business and individual performance clear and simple. It also aligns individual goals to organizational objectives at every level in the Organizational Hierarchy. Performance Planning starts with the finalization of business and functional objectives, which flow from the vision and mission of the organization. Individual objectives and KRAs are then finalized for the financial year through consultation and mutual agreement between the appraisee and the appraiser by 1st of April of the new financial year.

PERFORMANCE ASSESSMENT

Performance Assessment is done in an objective and scientific manner as explained below at the end of the financial year before 31st March.

COMPONENTS OF PERFORMANCE ASSESSMENT FORM

Key Result Areas: They are the important strategic areas in an employees job profile that needs to be quantified and measured so that the organization can ascertain that the individual performance is directed towards the achievement of the business objectives. The KRAs should be simple, specific, measurable & time bound and the number of KRAs should not exceed five. Target: In this column the target to be attained for each KRA needs to be captured. For example, if one of the KRAs of a Junior Engineer RF Design is generating a Drawing design; his target is to generate the design as per the work requirement each time he develops a new design. Measure: The yardstick/index that would enable the performance to be measured needs to be captured. Taking the same example above the measure for assessing whether the Junior Engineer RF Design has generated the design as per the work requirement is the Work Specification Document. Weightage: Each KRA needs to be given a weightage depending on its importance in the individual employees job profile. The total weightage of all KRAs should amount to 100%. Time Line: The column for Time Line should depict the accurate time duration available for achieving the particular KRA. That is, is it to be completed in 3 months, 6 months or by the end of the financial year. Target Achieved: The actual target achieved need to be captured in the column. Final Score: The Appraiser would calculate the score for every KRA (Score = Target Achieved/Target * Weightage). The score for each individual KRA is totaled to obtain the Total Score Note: Section A needs to be filled at the beginning of the Appraisal Cycle & signed off by both the Employee and his Appraiser. Section B needs to be filled at the time of the Performance Assessment and once the Total Score is calculated both the employee and the Appraiser need to sign off the Assessment Form.

INTEPRETATION OF FINAL SCORE:

The score needs to be interpreted and the final rating needs to be arrived at based on the rating scale given below:

Final Rating

Outstanding Performer

Excellent Performer

Good Performer

Average Performer

Final Score

100% & Above

99% - 85%

84% - 70%

Below 70%

METHOD: The method of filling the Performance Assessment Form is illustrated with an example of a Junior Engineer RF Design who has three Key Result Areas in his Job Profile.

Section A
Sl. No 1 Key Result Areas Target (t) 100% as per the design specific ations 100% Measure Weightage (w) 40% Time Line Time specified for each project

Section B
Target Achieved (ta) 90% Final Score (ta/t*w) 36 (90/100*40)

Generating Drawing Design

Work Specification Document

Proper documentation of design approved for production

Whether documentation is available for all the designs developed

40%

Till Mar 09

95%

38 (95/100*40)

Production/Project Planning

100% completi on on time

The timeline provided for each project completion Total Score

20%

Time specified for each project

100%

20 (100/100*20)

94

The employees total score is 94%. Hence the final rating of the employee as interpreted from the Rating Scale is Excellent Performer.

CAREER DEVELOPMENT Inputs from the Performance Review exercise can be used for planning the career development of the individual. To ensure the growth of an individual, development strategies like training, coaching, mentoring, job rotation & job enlargement may be deployed. To achieve career enhancement, areas for development needs to be identified with focus on the current as well as future job responsibilities of the employee. Promotions will be based on the performance rating and the potential for moving into the next level. REWARDS Rewards can be monetary & non monetary. Non Monetary rewards are the awards, recognition that the employee receives for his performance. Monetary rewards are the salary increments the employee receives. The quantum of increment an employee gets every year depends on the rating that he/she has received for his/her performance in the last financial year. For each rating a particular % of increase in the salary is fixed after the Performance Assessments are completed. This % of increase is decided based on the market trends that currently exist. The higher the rating the higher percentage of increment the employee receives. GUIDELINES FOR APPRAISAL Every individual should receive ongoing feedback during the year and a formal annual performance assessment/appraisal. During the assessment sessions the Appraiser should create an open and approachable environment in which a two-way discussion can be made possible with the Employee. The Employee on his part should be willing to give and receive proper feedback during the assessment session. Performance assessment discussion should cover how the year that went by was for the Employee, what he has achieved, how was it done and what the way forward is for the Employee. Both Appraiser and the Employee should have all the facts and data to support the Employees KRA performance achievements ready with them during the appraisal discussions so that any ambiguity in the target achievement can be cleared immediately and the final score can be calculated to the satisfaction of the Appraiser and Employee.

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COMPENSATION
Compensation is the methods and practices of maintaining balance between interests of operating the company within the fiscal budget and attracting, developing, retaining, and rewarding high quality staff through wages and salaries which are competitive with the prevailing rates for similar employment in the competitive markets. It is the cornerstone of an effective talent management strategy. Compensation strategies can affect many facts of the business. Such as; Improved employee morale and retention Increased employee engagement and productivity Strengthened governance and compliance with company vision and mission

Compensation Model
The Compensation model should be closely knitted with following three elements i.e. Management Strategy Compensation Plan Design Performance

Management Strategy:
This relates to the basic existence of any organization its objectives and goals i.e. vision and mission of the enterprise, for which human resources are hired, and the organization pays to its employees to keep them motivated for accomplishing those set objectives in a cost effective manner.

Compensation Plan Design

Job Analysis
Job Analysis is a process to identify and determine in detail the particular job duties and requirements and the relative importance of these duties for a given job. Job Analysis is a process where judgments are made about data collected on a job. Job Analysis can be used in compensation to identify or determine: skill levels compensable job factors work environment (e.g., hazards; attention; physical effort) responsibilities (e.g., fiscal; supervisory) required level of education (indirectly related to salary level)

Job Description:
The output from analysis of a job is used to develop a job description and its specification. Together, they summarize job analysis information in a readable format and provide the basis for defensible job-related actions. They also identify individual jobs for employees by providing documentation from management. It identifies the tasks, duties and responsibilities of a job. It describes what is done, why it is done , where it is done, and briefly, how it is done .

Job Evaluation
The methods and practices of ordering jobs or positions with respect to their value or worth to the organization. Contents: Ranking Classification Factor Comparison Point Method

Market Wage Surveys

The goal of labor market wage surveys is to find data from employers with whom the organization competes for employees. Once the data has been collected, it must be analyzed. The simplest analysis involves comparing the going market rate and approximating this rate within the organization's own pay structure.

Methods of Wage Surveys

Generally three methods are employed for wage surveys; Personal Interviews Mailed Questionnaires Telephone Inquiries

Pay Structure
The basis for most pay programs is a pay structure - a hierarchy of jobs with pay ranges and/or rates assigned. Pay structures are designed so that the greater the worth of a job (determined by internal or external equity), the higher the pay grade and range. At PP, pay program has certain objectives. The principal ones are as follows: Internal equity. External equity (or competitiveness), Individual equity, Process equity, Performance or productivity incentives, Maximum use of financial resources, Compliance with laws and regulations, and Administrative efficiency

Retention involves five major things:

1) COMPENSATION: Compensation constitutes the largest part of the employee retention process. The employees always have high expectations regarding their compensation packages. Compensation packages vary from industry to industry. So an attractive compensation package plays a critical role in retaining the employees. Compensation includes salary and wages, bonuses, benefits, prerequisites, stock options, bonuses, vacations, etc. While setting up the packages, the following components should be kept in mind: Salary and monthly wage: It is the biggest component of the compensation package. It is also the most common factor of comparison among employees. It includes, o Basic wage o House rent allowance o Dearness allowance o City compensatory allowance Salary and wages represent the level of skill and experience an individual has. Time to time increase in the salaries and wages of employees should be done. And this increase should be based on the employees performance and his contribution to the organization. Bonus: Bonuses are usually given to the employees at the end of the year or on a festival. Economic benefits: It includes paid holidays, leave travel concession, etc. Long-term incentives: Long term incentives include stock options or stock grants. These incentives help retain employees in the organization's startup stage. Health insurance: Health insurance is a great benefit to the employees. It saves employees money as well as gives them a peace of mind that they have somebody to take care of them in bad times. It also shows the employee that the organization cares about the employee and its family. After retirement: It includes payments that an Employee gets after he retires like EPF (Employee Provident Fund) etc. Miscellaneous compensation: It may include employee assistance programs (like psychological counseling, legal assistance etc), discounts on company products, use of a company cars, etc.

2) GROWTH: Growth and development are the integral part of every individuals career. If an employee can not foresee his path of career development in his current organization, there are chances that hell leave the organization as soon as he gets an opportunity. The important factors in employee growth that an employee looks for himself are: Work profile: The work profile on which the employee is working should be in sync with his capabilities. The profile should not be too low or too high.

Personal growth and dreams: Employees responsibilities in the organization should help him achieve his personal goals also. Organizations can not keep aside the individual goals of employees and foster organizations goals. Employees priority is to work for them and later on comes the organization. If hes not satisfied with his growth, hell not be able to contribute in organization growth. Training and development: Employees should be trained and given chance to improve and enhance their skills. Many employers fear that if the employees are well rained, theyll leave the organization for better jobs. Organization should not limit the resources on which organizations success depends. These trainings can be given to improve many skills like: Communications skills Technical skills In-house processes and procedures improvement related skills Customer satisfaction related skills Special project related skills

Need for such trainings can be recognized from individual performance reviews, individual meetings, employee satisfaction surveys and by being in constant touch with the employees. 3) ENVIRONMENT: It is not about managing retention. It is about managing people. If an organization manages people well, employee retention will take care of itself. Organizations should focus on managing the work environment to make better use of the available human assets. People want to work for an organization which provides Appreciation for the work done. Ample opportunities to grow. A friendly and cooperative environment A feeling that the organization is second home to the employee Organization environment includes. Culture. Value. Company reputation Quality of people in the organization Employee development and career growth Risk taking Leading technologies Trust

Types of environment the employee needs in an organization: Learning environment: It includes continuous learning and improvement of the individual, certifications and provision for higher studies, etc. Support environment: Organization can provide support in the form of work-life balance. Work life balance includes: o Flexible hours o Telecommuting o Dependent care o Alternate work schedules o Vacations o Wellness Work environment: It includes efficient managers, supportive co-workers, challenging work, involvement in decision-making, clarity of work and responsibilities, and recognition. Lack or absence of such environment pushes employees to look for new opportunities. The environment should be such that the employee feels connected to the organization in every respect. 4) RELATIONSHIP: Sometimes the relationship with the management and the peers becomes the reason for an employee to leave the organization. The management is sometimes not able to provide an employee a supportive work culture and environment in terms of personal or professional relationships. There are times when an employee starts feeling bitterness towards the management or peers. This bitterness could be due to many reasons. This decreases employees interest and he becomes de-motivated. It leads to less satisfaction and eventually attrition. A supportive work culture helps grow employee professionally and boosts employee satisfaction. To enhance good professional relationships at work, the management should keep the following points in mind.

Respect for the individual: Respect for the individual is the must in the organization. \ Relationship with the immediate manager: A manger plays the role of a mentor and a coach. He designs ands plans work for each employee. It is his duty to involve the employee in the processes of the organization. So an organization should hire managers who can make and maintain good relations with their subordinates.

Relationship with colleagues: Promote team work, not only among teams but in different departments as well. This will induce competition as well as improve the relationships among colleagues.

Recruit whole heartedly: An employee should be recruited if there is a proper place and duties for him to perform. Otherwise hell feel useless and will be dissatisfied. Employees should know what the organization expects from them and what their expectation from the organization is. Deliver what is promised.

Promote an employee based culture: The employee should know that the organization is there to support him at the time of need. Show them that the organization cares and hell show the same for the organization. An employee based culture may include decision making authority, availability of resources, open door policy, etc.

Individual development: Taking proper care of employees includes acknowledgement to the employees dreams and personal goals. Create opportunities for their career growth by providing mentorship programs, certifications, educational courses, etc.

Induce loyalty: Organizations should be loyal as well as they should promote loyalty in the employees too. Try to make the current employees stay instead of recruiting new ones. 5) SUPPORT: Lack of support from management can sometimes serve as a reason for employee retention. Supervisor should support his subordinates in a way so that each one of them is a success. Management should try to focus on its employees and support them not only in their difficult times at work but also through the times of personal crisis. Management can support employees by providing them recognition and appreciation. Employers can also provide valuable feedback to employees and make them feel valued to the organization. The feedback from supervisor helps the employee to feel more responsible, confident and empowered. Top management can also support its employees in their personal crisis by providing personal loans during emergencies, childcare services, employee assistance programs, counseling services, etc. Employers can also support their employees by creating an environment of trust and inculcating the organizational values into employees. Thus employers can support their employees in a number of ways as follows: By providing feedback By giving recognition and rewards By counseling them By providing emotional support

Employee retention would require a lot of efforts, energy, and resources but the results are worth it. The top organizations are on the top because they value their employees and they know how to keep them glued to the organization. Employees stay and leave organizations for some reasons. The reason may be personal or professional. These reasons should be understood by the employer and should be taken care of. The organizations are becoming aware of these reasons and adopting many strategies for employee retention. Employee Retention Strategies The basic practices which should be kept in mind in the employee retention strategies are: Hire the right people in the first place. Empower the employees: Give the employees the authority to get things done. Make employees realize that they are the most valuable asset of the organization. Have faith in them, trust them and respect them. Provide them information and knowledge. Keep providing them feedback on their performance. Recognize and appreciate their achievements. Keep their morale high.

Create an environment where the employees want to work and have fun. Employee Retention in the New Millennium Today's labor force is different. Supervisors must take responsibility for their own employee retention. If they don't, they could be left without enough good employees. A wise employer will learn how to attract and keep good employees, because in the long run, this workforce will make or break a company's reputation. What's Different? New supervisors must be prepared to be collaborative, supportive, and nurturing of their people. The old style of "my-way-or-the-highway" style of management is a thing of the past. Most new supervisors need training to understand what it really takes to retain employees. Employee retention involves being sensitive to people's needs and demonstrating the various strategies in the five families detailed in Roger Herman's classic book on employee retention, Keeping Good People. 1. 2. 3. 4. 5. Environmental Relationship Support Growth Compensation

Employee retention takes effort, energy, and resources...and the results are worth it. Keeping the right employees the most appropriate amount of time & moving them up the retention cycle.. Productivity Morale Employee satisfaction Employee retention

PRODUCTIVITY

MORALE

EMPLOYEE RETENTION

EMPLOYEE SATISFACTION

HR Connect conducted a survey of the HR heads of 22 IT companies, in an effort to determine what these practitioners thought about attrition in their companies. Top 3 reasons why talent says I quit Dissatisfaction with superiors Inadequate compensation and benefits Lack of career development opportunities

What Makes Employees Stick To Their Companies? While managers predicted the most important motivational aspect of work for people would be money, personal time and attention from the manager was cited by employees as most rewarding for them at work. American Psychological Association Survey

Top 15 Retention Drivers

Other Research

How to Minimize Attrition? Segment attrition data to understand who is it that you are losing and target accordingly Spend time during recruitment to explain your culture and expectations Build a value proposition in terms of learning and career growth Make your line managers equally responsible for attrition Ensure that when people leave the organization, their knowledge doesnt leave with them Employees Quit Bosses But Not Organizations Key management positions being given to younger people has given rise to inexperienced people managers Dont look at attrition merely as a statistic. Read the story behind the numbers Identify the underlying issues contributing to attrition Attrition is not only an HR issue Sensitize line managers towards people issues Equip front line and first time managers to manage talent related issues There is a strong correlation between employee attrition and front line management. A good manager can reduce attrition with in his/her team to near-zero levels if he/she keeps sight of the touch points

Exit Interview Form Name: Date of Joining : Name of Organization Joining: Personal Mail id: Employee Code: Date of Exit: India / Abroad: India

The objective of this questionnaire is to elicit your honest feedback using which the organization can learn from its shortcomings. All information provided by you will be kept confidential and used only for the purpose of organizational improvement. Consider this feedback as a parting gift to us. What are the two most crucial reasons for your quitting? 1 2 Is there any thing that could have been done differently that may have affected your decision to leave? Would you like to rejoin the organization in the future? Are there any pre requisites? How did you find the morale in your team and the Company? What are the major areas that need improvement in the organization?

3 4 5

6 7 8 9 10 11

What were the three positive elements you saw in the organization? Did you experience growth in terms of level and responsibilities with adequate inputs/training? Was the job Satisfying? Did it add value to your knowledge base / career? Were you respected as an individual? Do you feel that you were fairly compensated for your position? Did you feel your manager / organization provided you with enough freedom and space to allow your creativity to blossom? How does your new assignment / job compare with that in Envision, in terms of job specifications, designation, and compensation? Additional Comments

12

Signature of Employee: ______________________

Date: _________________

The Value of Exit Interviews

Exit interviews with departing employees are often conducted in a perfunctory, haphazard manner. But these workers last words can provide valuable insights into corporate culture, dysfunctions and opportunities to do better at retaining top talent. It's important to listen carefully during an exit interview; but more important is to act on the information you receive. Pros and Cons Some HR experts think the exit interview serves no purpose, coming far too late in the employment relationship to be useful. Regardless of your track record as a manager, however, take your exit interviews seriously and try to learn from what your employees have to say. In addition, use interviews as an opportunity to convince a valuable employee to stay. Exit interviews provide a unique chance to get candid feedback from employees, which can be very helpful for identifying ways in which HR management could improve. Departing employees have nothing to lose by being totally honest about their reasons for leaving, their experiences with co-workers or their opinions of company policy. One thing a leaving worker does have to worry about, however, is damaging relationships that extend beyond the term of employment. The employee may be less frank about managements shortcomings due to fear of a bad job reference. Some staff may plan to stay in touch with former co-workers and don't want to burn bridges. Others simply dont feel comfortable badmouthing the people they will leave behind. Feedback, though illuminating, is not useful from just one exit interview. Only speaking with all departing employees will allow you to identify trends that point to chronic or systemic weaknesses in the companys retention management. For this reason, it is important to design effective exit-interview protocols and administer them consistently. What to Ask in Exit Interviews Exit-interview questions should yield the most information possible. They should also give departing employees the opportunity to be candid in expressing their feelings and feedback. It is important to ask the same questions in every interview and record answers in a consistent manner. Of course, many responses lead to follow-up questions that can reveal more details of what caused an employee to leave. Here are some questions that might be asked in an exit interview:

What made you decide to leave the company? Were you frustrated with some issues, or was there an external reason to leave, such as a spouse relocating? What did you find most satisfying about working for this company? This question can highlight areas that are important to employees and in which management can do more. What did you find least satisfying about working for this company? This question might open a can of worms, but it can provide the most valuable input. It is important that the interviewer does not become defensive, but maintains an objective listening attitude.

How would you rate the level of support you received to perform your job duties? This question can uncover a host of issues, from relationships with supervisors to the effectiveness of IT systems. Did any company policies or procedures inhibit you from performing your job duties to the best of your ability? You may learn that some policies are not serving the best interests of the company or that they are inconsistently applied. It is not unusual to learn that some managers invent their own policies. What kind of performance feedback did you receive and how regularly? This question can elicit ambiguous answers. People who dont think they need feedback may say it was fine, while those who crave it may believe they didnt get enough. You might also learn that managers are not following policy when it comes to performance evaluations and informal feedback. What qualities and characteristics do you think a person should have to be successful in this organization? This question can provide insights into the informal culture of a company and highlight traits that you should look for in future recruits. What advice would you pass on to the next person selected to perform your job duties? This question often yields answers that uncover shortcomings in training, management support and other aspects of the company that need improvement. What are the salary and benefits of your new job? This question can provide valuable competitive intelligence in the battle for talent. It may highlight a need to improve your companys compensation packages.

What to Do with Exit-Interview Data All too often, exit-interview responses are simply filed away with the employees profile, to be used only if litigation looms later. It is vital to track these answers, look for long-term trends and take action to correct mistakes or improve areas in which management excels. The exit interview is your last chance to get employee feedback.

[Company name]

Exit Interview
Your opinion is important to us.

Name: _________________________________
(optional)

Supervisor: ______________________________
(optional)

Department: ___________________________

Position: ________________________________

1. 2.

Why are you leaving the company?

Personal reason

Medical benefits

Quality of supervision

Work environment

Please explain your reason(s) for leaving in more detail.

3.

What suggestions for improvement do you have for us?

4. 5.

If we implemented those suggestions, would you return to work here? Would you recommend this company to your friends as a good place to work? In this section, please rate the following statements: Strongly agree 1 1 1 Somewhat agree 2 2 2

Yes Yes Somewhat disagree 3 3 3

No No Strongly disagree 4 4 4

6. 7. 8.

I believe that I was treated like a valuable member of the company . My immediate supervisor let me know when I was doing a good job. I felt free to suggest to my supervisor changes that would improve my department. My job duties and responsibilities were clearly defined. I received the proper training in order to perform my job effectively.

9. 10.

1 1

2 2

3 3

4 4

11.

Employee problems and complaints were resolved fairly and promptly in my department.

12.

If I had questions or concerns, I felt comfortable speaking with: My immediate supervisor Upper management Human resources 1 1 1 1 2 2 2 2 3 3 3 3 4 4 4 4

13.

I was kept well informed about the company, its policies and procedures, and other important information. I felt that the company provided me with job security.

14. 15.

Please rate the benefits that you received at the company (keeping in mind the benefits offered by other companies that you have worked for): In this section, please rate the following items: Medical Dental Vision Paid time off 401(k) plan Excellent 1 1 1 1 1 Good 2 2 2 2 2 Fair 3 3 3 3 3 Poor 4 4 4 4 4

Please list any additional benefits that you would have wanted the company to offer:

Additional comments and suggestions are encouraged.

Use the space provided below for any additional comments.

Exgratia is an additional compensation given to the employees as declared by the management during festivals or one time in a year as an incentive. It can not be included in CTC. As rightly mentioned, exgratia is not mandatory. It is purely the discretion of the management to pay exgratia. Normally when an amount is paid to the employees who are not coverable under the Payment of Bonus Act and when some amount is given in excess to the ceiling prescribed under the Act (Bonus earnings restricted to Rs.3500/- per month), it will be termed as Exgratia in the bilateral/tripartite settlements. Normally exgratia is the amount paid to the employees in recognition of their cooperation and contribution. The employees have no right to demand exgratia unless it is contemplated in a settlement between the employer and employee. Minimum wages has two components. 1) Basic wages 2) Dearness Allowance. Dearness Allowance prescribed under the Minimum Wages Act will be revised every 6 months once based on the increase in cost of living index. Companies pay Dearness Allowance to the employees based on the long term wage settlement they enter into with the Unions. Like Basic wages, Dearness Allowance will also be taken into consideration for indirect benefits such as Bonus, PF, Gratuity, Superannuation etc.

Provident Fund
Employer Coverage 1

Establishments employing 20 or more persons and engaged in any of the 180 industries / Classes of Businesses specified. Co-operative Societies, employing 50 or more persons & working without the aid of power. Establishments not coverable statutorily can come under the coverage of the Act statutorily. An establishment continues to be covered under the Act, irrespective of the fall in the employment strength. Since the Act applies on its own force to the establishments, the employers are required to file the particulars in the specified format for registration and allotment of business number.

Financial Obligations: Contributions:

Statutory rate of contribution is 12% of emoluments (basic wages, dearness allowance, cash value of food concession and retaining allowances if any,) in the case of 175 establishments. Rate of contribution shall be 10% in the case of the following: Brick, beedi, jute, guar gum factories, coir industry other than spinning sector. Establishments declared as sick undertakings by BIFR. A matching contribution is to be collected from the emoluments of the employees. Out of 12% (or 10% as the case may be) of the employers share of contribution, 8.33% is to be remitted towards pension fund. Employer is also required to pay a contribution of 0.5% of the emoluments towards EDLIS1976.

Administrative Charges:

An employer is required to pay administrative charges at 1.10% of emoluments towards provident fund charges and 0.01% towards EDLI Scheme 1976. No separate administrative charges for pension scheme

Inspection Charges:

In respect of exempted establishment under P.F. Scheme employer is liable to pay only inspection charges at the rate of 0.18% of emoluments. In the case of establishment exempted from EDLI Scheme, the employer is required to pay only inspection charges at the rate of 0.005% of emoluments.

Interest Liability:

For belated remittances of contributions, administrative / inspection charges interest at the rate of 12% on such remittances for the period of delay is to be remitted.

Damages:

For all the belated remittances of contribution and administration/inspection charges damages are also payable as penalty ranging from 17% to 37% p.a. depending upon delay.

Duties of Employer

Enrol all categories of employees including the employees engaged by or through contractors and also piece rated, hourly rated employees. Remit the contributions and administrative charges before the 15th of the following month. File the initial returns of Form 9, Form 3(P.S.), form 5A. File the monthly returns in Form 12A, Form 5, Form 10 and Challans for remitting the dues. Maintain the contribution card in respect of each employee in Form 3A and submit the annual returns in Form 3A and 6A after reconciliation with Challans and form 12A. The employer has to ensure that statutory dues in respect of contractors employees are remitted and returns filed. Employer should attest the form No.2 and the claims forms submitted by the member/ legal heirs/ nominees. Make available all relevant records for inspection of visiting officials with due authorisation.

Exemptions under the Schemes Provident Fund

An individual member getting Provident Fund benefits on par with or better than statutory provisions can apply for exemption in Form 1 under para 27. Employers can apply for exemption in respect of a class of employees getting similar or better benefits than the statutory P.F. Scheme under P. 27A subject to the conditons governing grant of exemption. The employer can seek exemption from P.F. Scheme for the entire establishment if the majority of the employees also consent for exemption, subject to certain conditions governing grant of exemption and certain formalities.

Pension Scheme

Employer can avail exemption for the establishment as a whole, with the consent of majority of employees, if an alternative pension scheme is formulated by the establishment with benefits either on par with or superior to the EPS 95 and subject to certification of the viability and long sustenance of the scheme by an independent qualified actuary and satisfying the other conditions prescribed governing the grant of exemptions. There is no provision for exemption of individuals or for class of employees.

EDLI Scheme

The establishment can get exemption from the EDLI Scheme, if the employees therein are entitled for a benefit in the nature of insurance whether linked to their P.F. deposit or not and without paying any contributions.

PF EMPLOYEE 12% PF (A/C 1) EMPLOYER 13.61 % 3.67 % PF (A/C 1) 8.33 % PENSION (A/C 10 ) o 1.1 % ADMIN CHARGES (A/C 2 ) o 0.5 % EDLI (A/C 21) Employee Deposit Link Insurance 0.01 % (A/C 22) Inspection Charges

Payroll Software - PF/ESI Reports Monthly PF It will give the monthly PF details like employees PF earnings, contribution to EPF and Employer contributions to EPF and Pension Fund. It will give the information about the amounts to be remitted under specific PF accounts. Form 5 This will give the basic details of employees who have joined in the specified month. Form 10 This will give the details of employees who have left the service in the specified month. Form 12A It is the Monthly statement of PF contribution made from the company (Un-exempted establishments). PF Challan PF Contribution details of individual employee and employer with administrator charges to be paid to the department and the payment details are entered in the PF Challans. Form 3A It is the annual PF statement of a particular employee. It gives information about each monthly detail of PF Contribution, EPF, Pension Fund, EPF Difference. Form 6A Employee wise yearly totals of PF Contribution, EPF, Pension Fund, EPF Difference to be filed along with the PF Challans details will be shown in this report. Monthly ESI Includes details of ESI Contributing amount, Employee share and Employer share of contribution.

ESI Challan Form 5 It will give the details of the total Challans remitted in the financial year. It will show the total employees share and employers share. Form 6 It is the annual ESI statement. It gives information about each monthly detail of employees share and employer share.

Payroll Software - PT Reports Form 5A It is the return of Tax payable (PT) by the employer. It will give the details of number of employees in each slab and total amount tax deducted in that month. Form 5 It is the annual statement of PT paid during the entire financial year, giving the detail of PT paid, tax deducted and balances of each month.

FORM NO. FORM-01

SUBJECT- ESI Act | Downloadable Forms Employer's Registration Form

ACT
10 B 10 C

TO BE USED BY Employer Employer

FORM-01(A) Form of annual information on factory/establishment covered under ESI Act FORM-1 Declaration Form

11 & 12 15-A 15-B 14 26 31 31 32 63 & 89(B) 66 68 76(A) 80 83(A) 88, 89 & 91 89(A)

Employer Employer Employer Employer Employer Employer Employer Employer IP/Beneficiary

FORM-1(A) Family Declaration Form FORM-2 FORM-3 FORM-5 Addition/Deletion in Family Declaration Form Return of Declaration Form Return of Contribution

FORM-5(A) Advance payment of contribution FORM-5 New Return of Contribution (New) FORM-6 FORM-9 Register of Employees Claim for Sickness/ Temporary Disablement Benefit/Maternity Benefit Accident Book Accident Report from Employer Claim for Permanent Disablement Benefit Claim for Dependent Benefit Claim for periodical payment of Dependent Benefits Claim for Maternity Benefit and notice of work

FORM-11 FORM-12 FORM-14 FORM-15 FORM-16 FORM-19

Employer Employer IP/Beneficiary IP/Beneficiary IP/Beneficiary IP/Beneficiary

FORM-20

Claim for Maternity Benefit after the death of an Insured Women leaving behind the child Funeral Expenses Claim Life Certificate for Permanent Disablement Benefit Declaration and Certificate for Dependents Benefit

IP/Beneficiary

FORM-22 FORM-23 FORM-24

95(E) 107 107(A)

Beneficiary IP/Beneficiary IP/Beneficiary

FORM NO. ESIC-32 ESIC-37 ESIC-53

SUBJECT Wage/Contributory record for disablement benefit Certificate of re-employment/continuous employment Application for change in particulars of Insured Persons regarding change of Branch Office/Dispensary

TO BE USED BY Employer Employer IP/Beneficiary

ESIC-63

Declaration form regarding payment to the legal heir/representative IP/Beneficiary of the deceased IP Particulars of contribution in case Return of Contribution in respect Employer of an IP not sent Application for duplicate Identity Card Certificate of Employment Certificate of Entitlement Certificate of continuous employment for Extended Medical and Sickness Benefit Claim for conveyance allowance and/or compensation for loss of wages for an IP appeared before the medical board Proforma for Survey Register IP/Beneficiary Employer Employer Employer

ESIC-71

ESIC-72 ESIC-86 ESIC-105 ESIC-126

ESIC-142

IP/Beneficiary

C-1,2 & 6

C-18, Actual, Proformas Interest, C-19, 20, 22 & 23, D-18 & D-19 C-2 to C-5 & C-7 Proformas to C-12