Vendor Compliance Management

Critical aspects of Vendors Compliance

Managementfor Risk Free Operations...

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Management

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ease and precision

Payroll

Compliance

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VOLUME: 15 NOVEMBER 2017I

Establishment Compliance Management

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Consultant Review

Magazine, 2017

Top 5 Labour Law Consultants

Silicon India Magazine

Top 25 Global

Outsourcing Companies

Top 10 Indian LPO’s

Conference Asia 2015

Excellence in HR

Information System

Global HR Excellence Award 2013

Organization with

Innovative HR Practices

IN THIS EDITION

► From the Director’s Desk

► Compliance

- Minimum Wages

- Holiday List

► Payroll

- HRMS software enabling Contractor Management

► Human Resources

- Why SMEs on growth trajectory should consider outsourcing HR requirements

► Humour

RECKONER FOR OCTOBER 2017

► Payment of Stipend to Apprentices

on or before 10.11.17

► Submit PF on or before 15.11.17

► Pay ESIC on or before 15.11.17

► Pay PT on or before 30.11.17

From the Director’s Desk…

It is hard to believe that we are close to ending yet another

year. With the excitement of the holidays, the action in the

world of HR has also been as palpable. What has emerged

quite clearly through the goings-on this year has been in

consonance with a practice and principle we have

earnestly followed – streamlining and automation of

processes. In almost every facet of HR today, whether

audit and compliance or payroll, the need to be automated

and updated is a given today. Sanwad promises to help

keep you updated and in tune with the latest news, best

practices and trends in the year to come.

Best regards,

Pratik Vaidya

Compliance

MINIMUM WAGESThere have been modifications made to the minimum wages in a few states. The official minimum

wage notifications are all available for view:

- Jammu and Kashmir Minimum Wages:

http://comply4hr.com/mw/JAK2017Nov-All.pdf

- Central Government Minimum Wages:

http://comply4hr.com/noti/2016/MWA2017Oct6.pdf

- Security Guard Board for Thane, Maharashtra -

http://comply4hr.com/mw.asp

GOAQualifying establishments as high, medium and low risk, this new notification lays down guidelines

for inspection depending on the nature, strength and other parameters. You may view a synopsis of

the notification on our blog http://comply4hr.blogspot.in/2017/10/government-of-goa-issues-

exemption-from.html. Access to the official notification is also available at

http://comply4hr.com/noti/2016/GAMWR2017Oct26.pdf

HARYANAAccording to the changes made to the Contract Labour Regulations Act in Haryana, the Act is now

applicable to establishments where employees are 50 in number, as opposed to the earlier 20.

Additionally, it states that the regulations may be further amended at the time of registration. View

the complete notification at http://comply4hr.com/noti/2016/HACLR2017Oct17.PDF

CENTRAL GOVERNMENT – PROVIDENT FUNDThis notification lays down revised guidelines for change of name and lists authorities who must be

approached for the same. The notification is available at

http://comply4hr.com/noti/2016/EPFS2017Oct31.pdf

HOLIDAY LISTBeing the end of the year, the Holiday lists for the coming year are keenly anticipated. We will bring

you a consolidated collection of the states in the coming issue of Sanwad.

Payroll

HRMS software enabling Contractor Management

Outsourcing is on the rise, companies are focusing on their core competencies, leaving the functional management to the domain experts in each area. In short, outsource what is not core!

Thus arises the need for monitoring the outsourcing services received. Are you getting the best for your buck? Since volume of outsourcing services & resources are increasing, need for automation has become a necessity.

Manpower outsourcing majorly involves resources & their performance; it becomes an obvious conclusion to include this function under the supervision of HR & the use of managing contractor resources on HRMS platform.

Since it is clear that HRMS software is the only way to manage & monitor the outsourcing resources for its attendance to billing & performance to employee compliances. So what is it that needs to be checked in a HRMS software?

Following is the list of functionality that is required to manage the contractor resources on the HRMS software :

1. Contractor management module• Register the contractor & its compliance data [insurance, registration of establishment, others … ]• Map the PO with nos of resources required for the tenure of the contract• Capture contractor employees mandatory data like, Full name, DOB, Addresses, contact details, PAN,

Adhaar details & similar data as required from time to time.

2. Time & Attendance software and integrated Biometric attendance system.• Every contractor employee needs to be registered with attendance device• Attendance compliance needs to be adhered, like weekly working hours, OT hours, weekly offs,

compensatory off for extra work done, especially national holidays as per rules stated by each state

3. Payroll software• Contractor employees need to be paid as per the job role defined• Minimum wages state wise & category wise needs to be paid• PF, ESIC, PT, LWF & bonus needs to be calculated as per rules

4. Payroll compliance state wise• All statutory payroll compliance challans needs to be submitted on & before the defined dates. • Maintaining of registers [Time & Attendance, leave card, wages register]

5. Integrated with ERP software [Vendor management, billing, SAP…]• HR automation is complete only when there is integration is seamless to get desired output• Integration is necessary for ease of flow of data, and reports to take correct decisions

The above stated 5 points are minimum mandate to have in an HRMS software to run the contractor

management module.

Human Resources

Why SMEs on growth trajectory should consider outsourcing HR requirements

SMEs face numerous challenges, but issues around human resources is one of the biggest challenges for small business. We spell out challenges SMEs face in the domain of HR and how they can counter it.

What are some of the HR challenges that SMEs face?

a. Cost is a major constrain in introducing many HR practices that can hugely benefit the workplace and employees, most SMBs shun away from the thought

b. SMEs are struggling to fill the talent gap, identify right talent, find skilled workforce and retain talent crunch is becoming a big challenge

c. Most SMBs do not focus on Training and Development activities. However, they do not realise that T&D is a huge motivator for employees who associate their individual growth with such programs

d. Reward and remuneration is another key aspect that SMEs need to deal with effectively

e. Vendor management, complexities associated with workforce, compliance, workforce administration and need for smart analytics

f. SMEs face a resource crunch and require better methods to solve the complexities for better cost optimization on their assets and requirements

What makes more sense for SMEs- having their own HR, outsourcing it or a combination of both?

HR in an organization on growth trajectory face a number of challenges associated with HR operations -harmonization of HR tools and processes, vendor management, complexities associated with workforce, compliance, workforce administration and need for smart analytics. To overcome these challenges, SMEs are increasingly partnering with HR outsourcing with rich domain knowledge, process capability and IT infrastructure. HR outsourcing cuts across strategic and transactional components. HR outsourcing popularity has grown rapidly after the economic slowdown worldwide. It saves up to 35% of the total business costs for small employers in India. According to a study, 56% of companies outsource HR functions to cut down operating costs, while other 41% chose it to reduce the number of HR team members and related expenses and cost. Reasons include:

a. Hiring, retaining and engaging quality talent in the competitive environment is the reason for outsourcing

b. If small businesses start HR outsourcing right from the beginning, it helps them to get right talent with fewer efforts.

c. Minimizes risks

d. Help in the employees' growth and meeting business goals

e. It helps organizations improve accuracy, increasing quality by lessening workloads and by gaining technology advances that they may not have otherwise been able to afford

f. HR outsourcing is required by companies that need to focus on their core business activities and still establish and maintain good HR policies.

g. The decision of HR outsourcing is contingent upon factors like flexibility, availability of adequate resources, affordability, and acceptability

h. The payroll part of a company is a complex and time consuming exercise internally

i. Cost reduction is a crucial reason for companies to opt for HR outsourcing

Human Resources

Can technology make life easier for SMEs?

Technology today is truly helping organizations to deliver better workforce utilization and also at the same time reduces HR administrative costs. The HR Technology model landscape has expanded in recent years on the back of a range of new service models, including HR analytics and cloud-based offerings such as Software-as-a Service. SaaS based HR products has always been invaluable to organizations in enabling their HR leaders to deliver greater value by increasing workforce competitiveness and controlling labour costs. The influence of cloud-based applications has been particularly evident with personnel data, compliance data etc. being stored and organized on the cloud, available just a click away hence, greatly reducing the need for physical storage and IT support.

Some facts about Cloud HR

a. 42% firms will replace their existing HR system with a Cloud based solution

b. 63% firm expect improved value add from Smart HR systems to their Businesses

c. Currently only 24% of cloud HR customers are able to provide promised value

Most SMEs are cost conscious and think technology and outsourcing can be expensive. How true is that and does benefits outweigh the costs?

HR Outsourcing has become one of the fastest growing segments. Small and large companies have quickly recognized that HRO is a cost effective alternative. SMEs are turning to HRO firms for help in managing payroll, legal compliance, benefits and HR administration, recruiting, staffing and other related services. Many MSME's and startups in India are realizing the need to consolidate their payroll as integrated payroll systems which offer many advantages including ease of compliance, operational efficiency and consolidated reporting. The shifting paradigms of today's corporate world demand that businesses reinvent their HR management processes with a strategic and proactive approach towards Human Capital Management.

There are certain

famous companies that

carry with them a

perceived image – you

may even go as far as

calling it a prejudice.

We bring you a new

series in the HR humour

section, starting this

month and going all

through until the end of

next year. We present

you the conspiracy

theories behind hiring in

some of the largest

companies(if only they

were true!!) Stay tuned

and pick your favourite

among the 13.