Reading Time: 3 minutes

In an ever-changing work scenario today. The importance of effectively managing people has never been more emphasized. It is here that HRM functions (Human Resource Management functions) come into play. Anything and everything that touches the life of an employee is dealt with by HRM. 

The blog will take you through the main HRM functions as they differ from the traditional ones.  

What Is HRM?

It is a strategic process that leads the management of people in an organization. The objective? 

In other words, HRM is about recruiting the right people. Enabling growth in them and ensuring that they remain happy and productive.

8 Functions of HRM You Should Know

The key HRM functions need to be in place to promote the growth and success of any company.

1. Human Resource Planning

This is really about workforce planning. HR looks into how many people are needed, in what positions, for the future. The result is that an organization usually ends up neither overstaffed. Nor short of potential talent.

2. Recruitment and Selection

If you will seek, hire, and employ candidates for the right talents. HR prepares job descriptions, shortlists candidates for interviews, and hires the right candidate.

3. Training and Development

Training keeps employees in tune with the advancement of standards in a company. Human Resources coordinates skill development programs.

4. Performance Management

Continuous appraisals ensure that employees are on their feet and improve.

5. Compensation and Benefits

They pay variable pay, basic pay, bonuses & all considered to make employees loyal. To the company.

6. Employee Relations

HR oversees conflict resolution within the workplace, employee feedback, and fun team-building activities. All these foster a conducive, good working atmosphere.

7. Compliance with the Law

HR stats on the law. The law concerning working hours, wage policy, benefits, and so on. That keeps it from losing money in penalties and gaining employee trust.

8. Health and Safety

Employee health is cared for. HR’s actions are seen in placing safety regulations. Wellness and mental health programs for a conducive work culture.

HRM Functions and Traditional People Management

 

Feature	Traditional Approach	Modern HRM Functions
Emphasis	Administrative tasks	Strategic people management
Recruitment	Internal referrals only	Multiple recruitment platforms
Training	One-time onboarding	Continuous learning & development
Performance Review	Only an Annual Review	Regular Feedback and KPIs
Employee Role	Replaceable	Value asset
Using Technology	Minimal	Huge- HR Tech Tools, AI

 

Example of Real Life: How HRM Functions Increase Startup Growth

A tech startup thus hired an HR manager to ensure effective HRM practices. And within 6 months:

• Employee turnover reduced by 30%.

• Targeted training improved productivity by 40%.

• Effect of HRM on direct business growth.

Pros and Cons of an HRM Function

Pros

• Creates strong teams

• Enhances employee satisfaction 

• Provides legal protection 

• Develops Company Culture 

Cons

• Can draw vast resources

• Need constant refreshing with law & tech

• Might be met with some resistance when changes are initiated.

FAQs

1. What are the five most important HR functions? 

• Recruitment
• Training
• Performance management
• Employee relations
• Compensation

2. How is modern HRM different compared to older practices? 

In contrast to traditional methods that focused on merely performing tasks. Whereas modern HRM is strategic and employee-centric.

3. Why is training considered crucial in HRM? 

As HRM functions upgrade employee skills & they also prepare him/her for future challenges.

4. Is legal compliance a part of HRM? 

Certainly. HR ensures that the policies line up with the government laws so that there can be no legal issues.

Conclusion

HRM functions, which include planning and hiring. Training and retention constitute the basic framework of the company’s workforce. Therefore, companies that choose to invest in sound HR practices increase their performance management software. Job satisfaction and opportunities for workplace problems. 

In short, HRM is really not just about people; it is about development.

Reading Time: 3 minutes

In an organization, the gratuity has a lot of intricacies with respect to the amount. With so many vital factors such as salary, period of service, etc., to be considered. It is here that the Gratuity Calculator provides an easy and accurate solution.

It is a time and effort saver for an HR professional and the employee alike.

What is Gratuity?

The payment made to an employee upon termination. It is usually paid upon cessation of work by the employee. Either by retirement or resignation, or in some cases. By the death of the employee. Belongs to the Payment of Gratuity Act, 1972. 

Gratuity Calculator: Why Use it?

Calculating gratuity manually can be very challenging. Especially when dealing with the eligibility criteria and formula. A Gratuity calculator, on the other hand, ensures accurate calculations. Such as salary reimbursements or tax estimations. Follows the standardized formula. So, your degree of estimation is accurate and replicates the latest gravity.

Benefits of a Gratuity Calculator

Let’s get on with the discussion of why this tool is becoming a necessity. In today’s work environment:

• Time-saving and no errors in calculations

• Helps one in financial planning for retirement. 

• Helps clarify the policies of the companies.

• Useful to HR professionals while processing full and final settlements.

Working in the HR domain with other areas like employee benefits & payroll management. It can make sure that there is increased efficiency and accuracy in its use.

Gratuity Calculator: A How-to Guide

This tool is as easy as it sounds. Here’s how it works.

• In the first box, enter your last basic salary + DA.

• In the second box, enter the total number of years you worked in the company.

• Finally, hit Calculate and see what your gratuity is estimated to be.

Some calculators also offer the option to customise gratuity payments. 

Eligibility for Gratuity

You are eligible if:

• You are resigning, retiring, and tragically, your family may lay claim after your death.

Some companies also offer gratuity voluntarily even before the completion of five years. So it is good to check your HR policies.

Gratuity to Contract Employees and Private Sector Workers

Many wonder if contract employees and private-sector workers have a claim on gratuity. In a way, yes. And if his tenure with the organization meets the minimum required cutoff period.

As for private-sector employees, the same kind of rule applies. Gratuity remains a right under the Act. To avoid legal ambiguities in the future. A contract of employment and HR policy must clearly set out the gratuity provisions.

Mistakes That Should Be Avoided in the Calculation of Gratuity

Miscalculations usually happen due to inaccuracies in inputs. Also, if you wish to know how many years he/she has worked in the organization. It would be applicable for rounding down to a whole year. Nearest unless there is a company policy on counting in the fraction of a year. Keep abreast of the latest legal amendments. These errors can also be avoided by HR teams. 

Conclusion

A Gratuity Calculator is not just a number-crunching machine. It simplifies the process for greater clarity and compliance with the law requirements. Be it planning your future or ending your current one, this is going to be your go-to resource.

FAQs

1. Is gratuity taxable?

Yes, it is taxable if it exceeds ₹20 lakh during your lifetime. For private sector type employees not covered by the Gratuity Act. 

2. Can I get gratuity if I resign before 5 years?

Generally, no, unless there are specific policies in place at your company. Or you qualify for special cases, such as a disability or death.

3. What happens if the employer doesn’t pay gratuity?

The employee can complain to the Labour Commissioner or reach to the court. The employer is also liable to pay the interest as well hrms software.

 

Reading Time: 4 minutes

If you’re a startup company or one that has existed for years. Then an HR Helpdesk will make your people processes speedier, clearer & more consistent. It takes in such basic systems as leave management systems for integration into the main hub. –

What is an HR Helpdesk?

An HR Helpdesk is a central hub. Through which all employees can communicate their grievances or issues. It will be the base of requesting guidance on all those matters.

It takes away all the scattered communication through emails, calls, and messages. And helps with a single, trackable system. Be it clearing some doubts about a salary slip from the HR Helpdesk. Or help with onboarding paperwork. This point becomes the first to be approached for such help.

The Need for HR Helpdesk

Lack of a point of contact for employees eventually lowers productivity. And raises frustration levels. An HR Helpdesk looks into all these factors. It creates a single portal of communication, making employees know where to ask. And HR knows where to respond.

Key Benefits of HR Helpdesk

• Clear communication

• Faster resolutions for employee queries

• Reduction of unnecessary confusion from centralizing all HR-related concerns

It cuts down the time of delay and confusion as well as increases the response time for basic and complex HR tasks. They will have automatic replies to the commonly asked questions.

And the best part? Everything happens to be recorded. This translates into far greater accountability & better-organized workflows. 

Key Characteristics: Definition of Best Service Helpdesk

A great HR Help Desk is far more than just a ticketing system or even an employee support experience. It should be:

• Efficient for HR
• Internal teams can be assigned, tracked, and closed queries within the system.

• Integrated
• Works very well with your payroll, attendance, and performance systems

• Automated

When all of that comes together, it does not just support your employees. It contributes to the culture of your company.

How It Actually Works

Say an employee wants to find out how he should go about applying for a salary leave of absence. He logs on to the HR Helpdesk, chooses the subject category of “Leave Policies,” and puts in a query. The system immediately refers that query to the correct HR executive. Or else gives an automated response.

It becomes registered, time-stamped, and visible to both parties. Then marked closed once it is resolved. That is all.

Now multiply this scenario hundreds of times across multiple staff members and departments. 

Help Desk or Self-Service Portals?

Most people misinterpret HR Helpdesk for self-service portals. Although both have their place in the system, they do not serve the same purposes. Whereas the self-service portal provides the employee with documents or payslips. An HR Helpdesk is an interactive forum for when a person needs support other than just using a button.

All in all, they form the entire HR support where concerned.

Time and Attendance Management

Time and attendance tracking. By putting time and attendance tracking features within the human resource helpdesk.

This feature provides transparency and accountability for time spent by employees at work. Ensuring higher operational efficiency levels.

Find the Right HR Helpdesk for Your Company

Selecting an appropriate HR Helpdesk system is essential for long-term success. As it is not a generalized solution for all. Every organization has individual requirements and priorities. Some of the considerations include:

• Company size

A very small startup may need just the most basic system. Whereas a large enterprise may need considerably more complex functionality.

• Scalability

Will your helpdesk grow with the changing needs of the organization?

• Integration

It is important to consider the effectiveness of the new HR Helpdesk. Integrating with the already set-up systems (HRMS, payroll, etc.).

• Support and Training

Opt for a platform that has reliable customer support as well as learning resources.

Pointers for choosing the right HR Helpdesk

• Convenience of use

• Integration with the other HR systems

• Scalability, the ability of the platform to grow along with your team

• Strong back-up support features for both HR and employees.

By existing with an appropriate system. Translating into better efficiency and satisfaction for employees.

Conclusion

Experience of the whole employee becomes smoother with the HR Helpdesk. Employees feel heard, supported, and valued. It gives leadership insights into common pain points and service quality.

In addition to this, there is reduced dependency on individuals. Since even if one HR executive is unavailable, the query does not get stuck. 

FAQs

1. What’s in it really for HR Helpdesk? 

 Provides a medium for collecting and answering employee inquiries or grievances. Such as those concerning salaries, leaves, benefits, and workplace policies.

2. Is it only for big organizations?

 No. Little as one can be, an HR Helpdesk will assist small businesses too. In smoothing and professionalizing internal communication. 

3. Can it be automated?

 Yes, it can. Automation can even include chatbot assistance in many systems. Offering automation for standard replies to be automatically routed to departments. 

4. What is the difference between HR Helpdesk and HRMS? 

 HRMS underlies human resource management systems. Colossal data payroll, hiring, and also, performance. Whereas helpdesk helps resolve any issue and correspondence.

Summary

HR Helpdesk is more than a support platform. It changes how your company conducts communication between HR and employees. With features like query tracking, automation, and easy integrations. 

You’re ready for an HR Helpdesk, whether improving internal support. Reducing HR workloads, or just trying to show that you care about your people.

 

Reading Time: 3 minutes

At the end of the year, employees often find themselves with leave. They did not utilize. Or upon leaving any company offer. Thus arises the need for leave encashment. If you are an employee wanting to learn about the entitlements. Or an employer establishing HR policies, understanding leave encashment is essential.

This blog post will provide a brief overview of leave encashment. Its meaning, eligibility, taxation norms, and benefits. We will also unravel some FAQ on leave encashment and the HR management process.

What Is Leave Encashment?

To start, encashment means compensating an employee monetarily. For unused paid leave by the employer. It is a privilege to guarantee that no employee loses worth through earned leave. But it is instead encashed by being paid for such days not availed.

Normally calculated as:

Leave Encashment = (No. of unutilized leave days) × (Basic Salary per day + DA + Other allowances, if applicable)

When Leave Encashment is Paid? 

1. Encashment during the course of employment
2. Encashment after retirement
3. Encashment at resignation or termination
4. Encashment in case of death

In a nutshell, it is a way to provide financial stability in view of the tenure of one’s employment.

Tax Regulations for Leave Encashment in India

Leave encashments are considered taxable. Because it serves differently for people depending on the following – 

Government Sector/Public Sector

Exempt from tax on account of retirement.

Private Sector Employees

Under Section 10(10AA) of the Income Tax Act. Any amount exceeding ₹3,00,000 is taxable under the head of salaries.

While you’re in employment

For all employment types: Taxable.

Therefore, to apply the above computation and administer it properly. Companies generally utilize some kind of HR payroll software. Or integrated employee benefits management systems.

What Is the Leave Encashment Calculation?

Understanding the computation of leave encashments helps employees and HR. Teamwork together in ensuring transparency and proper compensation. However, the general form is this:

Leave Encashment = (No. of unutilized leave days) × (Basic Salary per day + DA + Other allowances, if applicable)

Let’s break this down.

Basic Salary per Day = Monthly Basic Salary ÷ 30 (or the number of working days in the month)

Other Allowances = Sometimes includes HRA or DA, based on company norms

Example:

Monthly Basic Salary: ₹30,000

Unutilized Earned Leave Days: 20

Calculation:

 ₹30,000 ÷ 30 days

Hence, ₹1,000 per day

 ₹1,000 × 20 days

Leave encashment of ₹20,000

Some companies also use gross salary to calculate encashment. Thus, the amount of encashment can rise significantly. It is always better to check your leave policy or consult the HR on how your company treats it.

Leave Encashment Policy – What Does HR Include?

From the HR perspective. The general leave policy of an organisation should be well-defined:

– The types of leave for encashment

– The timing of payments (annually, on exit, etc.)

– The method of calculation (basic or gross salary)

– The ceilings or cap (the maximum number of days permitted for encashment)

Thus, when written accurately, policies increase the transparency of an organisation. While enhancing employee engagement and retention.

Pros of Leave Encashment for Employers and Employees

Leave encashment is also a strategic HR tool that benefits the workforce. And the organisation in many ways.

For Employees:

Financial Aid

Leave encashment grants an extra financial cushion. 

Motivation To Perform

The idea that unused leave can be encashed offers advantages to employees. By making them aware of time management, discouraging them from taking unnecessary leave.

Sense of Recognition and Reward

It appreciates and compensates for employee commitment and attendance. Boosting the overall satisfaction level at work.

For Employers:

Less Unplanned Absenteeism

Employees are more careful in their approach towards leaves.

Retention Booster

A properly framed leave encashment policy wins the employee’s heart. And trust in HRM’s practice.

Streamlines Exit Settlement

It adds efficiency to the final settlement process. Enabling a smoother and more professional transition.

When clarity of implementation prevails

It creates a fair and productive culture in the workplace.

Conclusion

Leave encashment is not merely a financial facility. It is a key differentiator in an employee-friendly and just HR system. With proper framing and execution. This can also prove a strong morale booster. Strengthening faith in the policies of the organization among employees. Between the costs incurred by the business vis-a-vis employee benefits.

FAQs

Q1 – Is encashment of leaves taxable in India? 

Yes, it is. Mostly for the privately working class, it is partially exempted, but within limits. It remains totally exempt for the government workers while they are retiring.

Q2 – If I resign and I still have unused leaves, what will happen? 

Left according to your premises policy and at the current rate.

Q3 – How many leaves can be carried forward for encashment? 

This totally depends on your company’s leave policy.

Summary

It is crucial that companies have leave policies that define the processes in place. Clearly, to ensure transparency and ease in operations within HR departments. This should clearly outline eligibility and calculation methods, and encashment limits. 

Furthermore, by integrating leave management into an expansive HR management system. Organisations can optimise employee satisfaction alongside compliance with labour laws.