Category: HR & People Management

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HR & People Management

5 Steps Companies should take to Improve Diversity at Workplace!

diversity

Diversity is good, and there are no two ways about it. Diversity in the workplace is essential to create a friendly environment in the workplace. It is also critical for employee engagement. It not only promotes creativity but also provides room for innovation.

According to a research conducted by Deloitte, a workplace that prioritizes inclusivity and diversity are twice as likely to meet or exceed their financial goals, six times more likely to showcase innovation, and they generate 30% more revenue per employee.

What is workplace diversity?

Every employee in an organization brings their unique backgrounds, experiences, and perspectives to the table. Diversity occurs when an organization provides a healthy environment where a beautiful intersection happens.

From gender diversity, language diversity, religious diversity to distinct viewpoints, and unique abilities, diversity exists everywhere.

So why is diversity important in the workplace?

Promoting workplace diversity can bring actual benefits like creative solutions to challenges, better efficiency, employee satisfaction, and a lot of others.

Diversity in the workplace creates a well-rounded employee experience that gives an organization a competitive advantage.

If you have an organization where your employees are unsatisfied with the culture and leaving your company in great number, here are 5 ways in which you can promote employee engagement:

  1. Educate Managers

An employee never leaves a company, but a bad manager. Hence, the relationship between an employee and a manager is important. Empower your managers with the necessary skills to maintain a cordial relationship with their subordinates.

When workplace diversity is celebrated, the potential of your workforce becomes unlimited.

  1. Diversity Training

We all are biased at some level. Whether we would admit it or not, all of us carry some form of bias, unconscious or otherwise. The most crucial step in overcoming this is to develop awareness, which is only achievable through diversity training.

  1. Create more Inclusive Workplace Policies

Conducting a comprehensive evaluation of your workplace is extremely necessary. Deep-dive your current policies and introduce some news to facilitate workplace diversity at the workplace. Make your job openings in such a way that they will reach wider audiences.

  1. Keep the Communication Clear & Build Employee-led Task Forces

Creating workplace diversity policies is not sufficient. Ensure that there is clear communication between the management and the employees. Policies should also reflect the unique needs of everyone working in your organization.

Hiring the right talent is not enough for an organization to grow in the long run. Promoting workplace diversity is also essential to provide a safer environment for those who work there.

Investing and intentionally endorsing diversity in a workplace will create a happier and engaged workforce that will take the organization ahead.

If you are a business owner or a CEO of a large company, you can learn how to improve employee engagement. Learn how to manage the multiple departments with our diverse business templates that you get with our Problem Solving Courses. Click here to know more about our course: https://www.badabusiness.com/psc?ref_code=ArticlesLeads

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HR & People Management

4 Top HR Trends & Priorities for 2021

hr trends

The COVID 19 pandemic will be recorded in history as an event that has significantly and permanently changed the present and the future of the work, eternally.

Though the last year has been physically, mentally, and financially challenging, most of us have made it through it. The good news is that the long and agonizing year of 2020 has finally turned a new leaf!

The world is adopting the ‘new normal’ and most of its credit goes to the Human Resources department that led from the front to ensure an uninterrupted route to navigate through the unseen challenges.

According to a recent survey by Gartner in which around 800 HR leaders took part, building essential skills and competencies continues to top the list of priorities in 2021 for all the HR leaders. Organizational design and restructuring of the management are also among the key objectives.

The organizations in 2021 will look to give their strategies a competitive advantage by making the best use of learning gained through the last year.

So what are the HR trends that are expected to bring more sustainable operations to the organization? Let`s find out below:

Workforce Analytics Tools

As the organizations battling the realities of the slowdown in global and domestic demand, employee cost remains a huge area of concern. Hence, the organizations will need to deploy digital job evaluation where the gap between the job role and the compensation being paid can be optimized.

A Dynamic Approach to Building Critical Skills & Competencies

From growing business to improving operational excellence, building critical skills is considered extremely vital for HR leaders as it leads to business transformation. According to Gartner`s report, one-third or more HR leaders believe that lack of visibility and understanding of current skill gaps are one of the many other major challenges.

The total number of skills required for a single job is increasing by 10% every year, and 1/3rd of the skills present in an average 2017 job posting, might not work by 2021, according to Gartner TalentNeuran data.

Hence, a dynamic approach for future-forward skills development has become necessary as the traditional ways of upskilling the workforce are passé.

Adopt New Recruiting Tactics

As the working norms have been changed completely, HR leaders also need an innovative, modern, and out-of-the-box recruiting approach. Generally, organizations look to replace the roles and individuals in the workforce by seeking a similar candidature from the known talent pools as well as EVP (Employee Value Proposition).

 

However, to ensure quality hires, the focus should be on prioritizing skills rather than hiring profiles. Instead of tapping into the known talent pools, try to explore the total skills market too.

Organizational Design & Change Management

According to a Gartner survey, 46% of HR leaders have put the objective of organizational design as their top priority. Many organizations have realized during the pandemic that their focus on efficiency has left them with rigid workflow, structures, networks, and role design that are completely useless in today`s fast-changing conditions.

Rethinking the work design strategies can help employees to be more responsive towards the changes. It can also help to address the issues that lead to work friction. Thus, a shift from designing for efficiency to designing for flexibility is expected in 2021.

Current & Future Leadership

A Gartner research shows that only 44% of employees in an organization trust their leaders and managers to navigate through challenging times. This also contributes to the lack of confidence and trust in the current leadership. Therefore, strong leadership is essential during times of great change.

Employee loyalty will be the goal of 2021 that every good organization will try to achieve. However, there could be many more upcoming trends and challenges that might require one to adapt for business growth.

You can learn the nuances of Human Resource Management that will help you to resolve the organizational conflicts you might be encountering with our Problem Solving Courses. Find out the new HR policies and trends to stay updated with the trend.

Click here to know more: https://www.badabusiness.com/psc?ref_code=ArticlesLeads

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HR & People Management

3 Facts about ESOPs everyone should Know!

esops

ESOPs, the Employee Stock Ownership Plans is the current term that has created a lot of buzz in the business world. ESOPs is the term that offers employees a chance to have ownership in the firm. It recognizes the best performing employees and rewards them with an equity stake or cash based on an equity stake.

The definition of ESOP was originally introduced in the Companies Act, 1956, which underwent a complete change in the Companies Act, 2013.

An Employee Stock Ownership Plans aids to retain high-performing employees and provides cost-effective company benefits. There are two types of ESOPs- selective plans and all-employee plans. While the selective plan is only for the senior executives, all employee plans provide the same facility to all employees of the company.
However, various myths and facts are revolving around ESOPs that need to be addressed. Here are 3 facts every employer and employee must know about ESOPs:

1. ESOPs are for everyone

ESOPs are for every organization that is generating profit to support the annual costs of maintaining the ESOP. The profitability of the company is more important than a company`s size. In a profitable ESOP organization, the tax savings alone can be enough to offset the annual costs.

2. Company`s Operations Remain Unaffected

Many company owners feel that after establishing an ESOP, they will have to consult their employees on regular basis regarding the company`s operations. However, the matter of fact is that the management remains in control of the company. Even when the ESOP owns a majority, there is no loss of control of the company.

3. No detailed financial information is to be disclosed

An ESOP is a qualified retirement plan. Hence, the participants must be provided with the annual statement demonstrating the number of shares and the value for their benefits. No other financial disclosures are required by the organization to its employees who are a share-holder.
The companies offer ESOPs to attract more qualified employees. They do it in a phased manner and provide stocks at the end of the financial year to reward their impressive performance.
Many companies startups and companies that can`t provide high packages, offer ESOPs to their employees. We hope we have shed some light on the current trending term- ESOPs. For more information, visit www.badabusiness.com

You can learn how to grow your business from the experts. Find out the in-depth knowledge of how to tackle the challenges of the various industries. Click https://www.badabusiness.com/?ref_code=ArticlesLeads to know more.

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HR & People Management

Indian Corporates look to hire more in 2021: Are you ready for the post-COVID job market?

The New Year brings with it a lot of opportunities along with positive growth. Adapting to the new normal of remote and office work, corporates are keeping an optimist outlook and looking to hire more people.

The COVID pandemic emerged as the main inflection point for the Indian job landscape. While the corporates have embraced the new work-from-home culture, the professionals are more focused now on online learning and digital skills.

The optimistic corporates have set up new recruitment plans for 2021 and planning to fill all vacant positions. Many big organizations have also increased their hiring for the roles in IT, cybersecurity, 5G, and virtual reality along with many other departments.

There was an increase in hiring activity by 14 percent on December 20, at 1,972 as compared to November 20, at 1,727, according to Naukri JobSpeak Index. Though the overall hiring showed a decline of 10 percent in December 2020, the trend shows a recovery signal in the current post-COVID job landscape.

According to the CEO of recruitment firm CIEL HR Services, “There is positive sentiment and a clear upward swing in hiring from October-December 2020 quarter. In fact, on an overall basis, the hiring in January-March 2021 quarter will be the same as this quarter last year”.
Firms, be it health-tech, fin-tech or ed-tech will begin their hiring activities in full swing, thanks to the digital push as a result of the pandemic.

According to TeamLease Employment Outlook Report, ‘January-March 2021, the hiring for entry, mid and senior positions has risen by 2%, 4%, and 2 %, respectively. An increase in the hiring for junior level positions by 7 percent indicates demand for talent with 2-5 years of work experience’.

Not just the technology sector, there has been a 45% increase in the insurance sector in December 2020 and other sectors have shown positive growth. There was 33% growth in the Auto & Ancillary sector with increased consumer demand during the year-end period. Other key sectors such as BFSI (18%), FMCG (21%), Pharma/Biotech (28%), and IT-software (11%) showed slow yet steady growth.
For thousands of people who have lost their jobs during this global pandemic, this is great news. However, the post-COVID workplace can be a bit challenging. It is essential for job-seekers to analyze the market conditions, demand, and upskill themselves to find a suitable job opportunity.

If you are one of those who are looking to begin a career in the current job market, here are few essential skills you must upgrade yourself with:

Digital Marketing Skills

As the world has completely gone digital, targeted marketing strategies, backed by effected data analysis are paramount. Organizations are looking to hire talent who knows digital marketing skills to manage online sales promotions and campaigns. Digital marketing knowledge includes skills like digital business analysis, SEO, and content marketing, among others.

Data Analysis

To gain a better perspective of the business market, data analysis is a useful skill that can help you to find a better career path. The predictive analysis helps to build an effective product development strategy and key decisions in business operations. Hence, Data Analyst is another key skill whose demand has increased in recent times.

Business Skill Training

In this constant-changing world, being the master of one skill will not help you succeed. Critical thinking, problem-solving ability, and a dynamic approach to the crisis are key elements for organizations. So, whether you are an entrepreneur or a wantrepreneur, taking a professional business skilling course can help you significantly in achieving your business goals.

The good news is that the intent of hiring is regaining its growth and many corporate firms are showing a healthy sign of recovery as they are planning to hire more people in the first quarter of the year 2021.
But the current job market is changed completely. Hence, upgrading yourself is the only key to find your dream job in the post-COVID workplace.

With our courses, you can learn the latest business skills from the industry experts, right from the comfort of your home. Not only they will demonstrate emerging business skills, they will also share success stories.

For more information, click https://www.badabusiness.com/psc?ref_code=ArticlesLeads

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HR & People Management

3 Offbeat Career Paths: How Millennials are breaking the monotony of 9 to 5 jobs!

off beat career

If millennials had their way, 9 to 5 jobs would have become a matter of the past. In the changed parameters, today, the new normal for millennials and Gen Z is to find offbeat career options. They are looking for career skills and opportunities that are in-demand and break the monotony of mundane 9 to 5 jobs.

According to a Deloitte Global Millennial Survey 2020, ‘despite the individual challenges and personal sources of anxiety that they are facing, the millennials and Gen Zs have remained focused on larger societal issues, both before and after the onset of the pandemic’.

The report also revealed that if anything, the global pandemic has reinforced their desire to do something for the community that will help to drive the positive changes around them and across the world. The young generation continues to push for a world in which business and governments echo that same commitment to society. A world where the interests of people are put ahead of profits and environmental sustainability is a priority.

Two trends are having an impact on their career choices. The first is choosing work & workplace flexibility over salary packages. Secondly, a job that has a greater purpose and can leave a positive impact on society.

Here are 3 offbeat career options to kill the monotonous 9 to 5 jobs:

  1. Jobs in Social Sector

Passion combined with professionalism, Social Sector is the new kid on the block! It has emerged as a professional space in the past few years and offers challenging, meaningful, and financially viable career choices.

From strategy planning, value-based fundraising, government advocacy, corporate social responsibility, behaviour change communication, collaborative partnerships, and ethical and pragmatic M&E etc can be opted for.

Contrary to the popular belief, the Social Sector is more than just ‘volunteering’ and offers an amazing off-beat career path that can make a difference in the real world.

  1. Political Campagin Manager

Another extremely dynamic, interesting, and critical field to work in is ‘Political Campaign Management’. A political campaign manager needs to put his best foot forward by using his analytical part of the brain. The working conditions can be quite stressful due to the nature of the job.

Being a campaign manager will require to work at the core and provide services like political consultation, fundraising, marketing, crisis management, and public relations.

  1. Radio Jockey

If you have unmatched communication skills that can engage the listeners for hours, then becoming a Radio Jockey is an excellent career path. As the name suggests, a Radio Jockey works at the radio stations. From presenting music programs to celebrity interviews, providing commentaries, and storytelling, a radio jockey is required to keep their listeners entertained. If you have a good voice and communication skills par excellence, you can work your charm in this industry too.

Apart from picking the career option we have mentioned above, you can also become an Independent Business Consultant. Not only you can earn lakhs, but you can also work remotely! You can also get free access to Lifetime Membership, worth Rs 1.25 lakh. To know how you can become an IBC, click here https://www.badabusiness.com/ibc?ref_code=ArticlesLeads

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HR & People Management

3 Tips for Setting Better Business Goals for Employees

goal setting

Don`t focus on multiple things, focus on your business goals and growth will follow you’. Setting up business goals for employees is very essential for any organization. Goals represent critical and important achievements in your growth strategy.

Goal settings have long been used as a quantitative measure for employee performance. But many organizations find the entire process rather time-consuming and least effective. However, the truth is that if done correctly, business goal setting can help to improve productivity.

According to recent McKinsey research, ‘goal setting for employee elevates the performance, which benefits the organization and helps to achieve business goals’.

Here are three critical things that organizations must keep in mind while setting goals for an employee:

  1. Make Employees Part of your Business Goal-setting

The purpose of a business goal setting is to improve the productivity of the employees. Hence, it makes sense to include them in this process. Managers should develop goals by involving their team members by following the SMART approach- specific, measurable, actionable, results-oriented, and time-bound.

Applying this strategy will inspire commitment and instill a sense of ownership in the individuals to achieve business goals.

  1. Link Business objectives with Employee Goals

When business objectives are linked with employee goals, an effective performance management system is achieved. Employees will be motivated to see how their individual goals fit into the bigger picture. In recent years, many organizations are linking their business goals to functional business objectives. This approach helps them to achieve team-performance goals.

It encourages accountability and individuals to perform better as they see the direct impact of their performance.

  1. Set Realistic & Real-time Goals

Dynamic & evolving! That`s how every goal should be. One common mistake is setting business goals at the beginning of the year and then forgetting about them. However, as realities fluctuate throughout the year, failing to achieve those goals can be demotivating.

Goals should become moving targets, but they should also provide a scope of adaptation, whenever required. Targets should be updated if the assumptions used to set them to change unexpectedly. This approach helps to motivate employee performance.

Nobody likes annual performance reviews, but setting business goals for your employee can flip the game. Goal setting can improve an employee`s commitment and contribution to improving organizational health.

No matter how big your business goal is, you can achieve them if you have in-depth knowledge of fundamental issues in business with 600 business templates, strategy sheets, checklists & tools.

You can also get access to learning from India`s top 70 business gurus to get information about HR, marketing, sales, operation, strategy, product, brand, taxation, and other functional units too.

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7 Key Differences that make Intrapreneurs better than Employees

intrapreneur and entrepreneur

We must have come across multiple times the term ‘Entrepreneur’ in our daily lives. But are you familiar with the term ‘Intrapreneur’? If you think we have misspelled a word here, let us tell you that we certainly have not.

‘Entrepreneur’ is defined as a person who is a risk-taker, and comes up with his venture to sell his products at a certain price. Intrapreneur on the other hand works in an organization takes charge of new ideas and promotes innovation within the limit of the company guidelines.

‘Intrapreneur’ is a newly introduced term in today`s times, however, it was first introduced in the 1980s when a book was published by Management Consultants Gifford and Elizabeth Pinchot. If you are looking for a constructive way to build a motivated team in your organization, turn your employee into an Intrapreneur.

 

Here is a list of difference between an Employee and an Intrapreneur:

  1. Speed- First thing that makes these two professionals different is their speed of doing a task. A self-motivated Intrapreneur finishes his work at a rapid speed without compromising the quality of the work. But, an employee takes a considerable amount of time to finish the work.

 

  1. Approach- An Intrapreneur will always have a problem-solving approach. He will focus on finding a solution to a certain problem with his innovative ideas and critical thinking. However, an employee will always focus on problems and setbacks without making an effort to resolve them.

 

  1. Ownership- Where an employee considers only his relatives as his family; an Intrapreneur considers the entire organization as his own family. He not only takes ownership of his assigned work and but also tries to inculcate new ideas to experiment with his projects.

 

  1. Value- What makes an intrapreneur different from an employee is the way they create and add value to the company. An employee becomes a consumer by doing only their assigned tasks. An intrapreneur becomes a contributor by sharing his vision and bringing a new way to do existing projects to the table.

 

  1. Ideology- Another difference between employees and intrapreneurs is their ideology of working. An Intrapreneur is proactive and self-start, whereas an employee is reactive and needs a push-start.

 

  1. Availability- An intrapreneur is available round-the-clock, whereas an employee is available only for time-to-time. An employee works for 9 hours and leave, while an intrapreneur finishes his work, irrespective of the time it takes for him to finish it.

 

An Intrapreneur gets paid for the value he creates in an organization and promoting new business ideas and breakthroughs, while an employee gets paid for the tasks he performs in his official hours.

 

Build a team of Intrapreneurs in your organization by motivating them in simple and easy ways. Join our https://www.badabusiness.com/life-time-membership?ref_code=ArticlesLeads where you can learn how to take your business to next level.

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3 Skills Entrepreneurs Must Consider when Hiring post-Covid-19!

Critical problems demand creative solutions! As Covid-19 pandemic has changed the world forever, it has also increased our capacity to look beyond the impossible.

In the first and second quarter of 2020, there have been mass layoffs by the companies. According to a report by the International Labour Organization (ILO), around 81 million jobs are wiped out in 2020.

However, the economy is slowly coming back on its knees with ease of COVID rules & regulations. Jobs are returning to India with major changes in hiring trends post-COVID. Businesses are opening up and industries are right back on track though at a slow pace.

Needless to say that building efficient manpower would be one crucial step to transform the businesses. The process of hiring criteria post-Covid is going to be a demanding exercise.

The challenging times of Covid-19 have paved the way for smart thinking. Large businesses as well as small business owners are becoming more creative. If you are an entrepreneur and looking to expand your team, these set of skills you should be looking for in your prospective employer:

Critical Thinker

You don`t need hands & legs to drive your organization, you need a head and heart to drive your organization. Thus, people who can think critically, quickly, and can solve problems with ease should be given preference. Complex problems need creative solutions and this new hiring trend will focus on such analytical skills.

Agility will be under the spotlight

The smartest business decision you can make is to hire qualified people. Therefore, hiring the right people is very important.

Apart from looking for qualifications and skills ‘flexibility’ is what you should be aiming for. Flexibility is the need of the hour, and we all must look for people that can easily adapt to the new working norms.

Hire people who come for the love of the job. A person who loves challenges will deliver the service and products just the way your customer needs and would be the right fit for the business.

Versatility is the Key Factor

Courtest to Covid-19, new tasks, roles, and responsibilities have emerged suddenly. Hence, we all must stretch ourselves to the optimum level considering the hiring trends post Covid. The prospective employee must bring a set of multiple skills that will outdate role titles and definitions to benefit your business.

Creative Mindset!

If there is one thing that can never be off-the-shelf that is Creativity! Thinking out-of-the-box will always bring a sense of innovation in every dimension of business. Hence, bringing in a creative mindset will take your business to a whole new level. This is one hiring trend, one should follow.

Making a comeback from a struggling situation is not easy, but reaching out to the right people is. Shift your perspective from the mainstream recruiting process to a creative one.

As the hiring trends have changed, make use of Twitter and Linked In. to interact with job seekers and connect with them on a personal level too.

 

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HR & People Management

How to build a high-Performance team in your organization

high-Performance team

Introduction

  • Do you want to know about a collaborative advantage?
  • Are your employees effective or ineffective?
  • Do you want to how to build a high-Performance team?

In today’s cut-throat competition most companies want to build a High-Performanceteam – a team that performs and at the same time maintains the speed.
But, the question is “How?”

So, here we will see ways to how to build a high performing team, wherein, one employee is doing the task of about five employees!

Have you Heard of Collaborative Advantage?

You might have definitely heard of ‘Competitive Advantage’. But have you heard of ‘Collaborative Advantage’?

Collaborative Advantage, in the corporate world, means forming an association for mutual benefit.

When applied within an organization, it means forging an association between the employees on the basis of their strengths for enhancing the performance of the whole team.

Competitive Advantage, without Collaborative Advantage, is not going to improve the speed and performance of your organisation.

Thus, you need to inculcate a collaborative advantage in your organisation to boost your growth, by creating a sense of inclusiveness among your employees.

“You don’t have to build the business, you have to build the right people, and they will build your business.” Henry Ford, Founder of Ford Motor Company

How Collaborative Advantage can be Achieved?

Collaborative advantage can be achieved through incentivizing the role and the goal of your employees, recognizing and rewarding their efforts and results.

This leads to the effective and efficient performance of employees.

You need a team where 1 person can do a work of about 5 people. But nowadays finding people of such caliber is becoming difficult.

Let’s discuss the ways of building and leading a high performance team.

Tip #1: Give them a Paid Vacation

One of the best ways to reward your top-performing employees is to give them paid vacation at frequent intervals. Send them on vacation on the company’s expenditure.

It will not only boost the morals of top performers but also inspire others to improve their performance to get rewarded.

“Anything that is appreciated gets repeated.”

Tip #2: Give them Trophies and Certificates instead of Cash

For building and leading high performance team, do not give cash awards to your performing employees as it is short-lived.

Instead, reward them with trophies and certificates on a public platform. It remains imprinted in their minds for a long time.

Prepare HR policies for Trophies and Certificates.
Prepare a set of the parameter for giving awards and trophies as per the role and goal of employees.
Write down the rewards against each goal and put it on the bulletin board.
Make ways to appreciate them publically.

Tip #3: Coffee with the CEO or Lunch with the Boss

You can reward the Star Performer of the Year by arranging a coffee with the CEO of the company or a lunch with the boss.

You can take a picture with him and frame it on the bulletin board.

This will not only pump him with delight but will also motivate others to work hard to achieve the treat.

Tip #4: Photo-Video Case Study of a Star Performer

Make a testimonial, short videos, and videos depicting the appreciation of Star Performer by all the employees. Now, club it together to make a case study.

Once done with this, share the case study in all the groups and on social media handles of the company. This will make them feel good. They will repeat the same effort for the same or better result.

Once you start incentivizing the effort with the result, the complete culture of the office will change and speed will increase.

Tip #5: Star Performer to Represent the Company

Whenever there is any kind of reward, award, and recognition being given to your company, let the Star Performer represent your company, and

Let them take the award.
Make them shine in public meetings and social gatherings.
Let them speak on these public forums.
This will not just boost them but also the others.

Tip #6: Incentivize 100% Attendance, Punctuality or consecutive 90 days Presence

If someone is coming before time or has a 100% attendance for 90 days, he/she should be incentivized with gifts and cash.

This will make people realize the importance of time and they will also come on time.

Always remember, “To build a good intellectual capital and financial capital you need to have a good human capital.”

Tip #7: Loyalty and Ownership Award

If someone saves the company from any kind of money theft, betrayal, or financial damage then he/she should be awarded.

And if you start rewarding the loyalty and ownership of one person, the others will follow the suit.

This will increase the speed and enhance the performance of the other employees as well.

Tip #8: Praise in Public and Correct in Private

This is the most important tool of building and leading a high performance team in an organization. If someone is doing things out of the box or is giving his efforts in doing too good for the company, praise him in public.

Let everybody know about his work and his efforts.

Motivate him and help him in eradicating the problem once and for all.

Never correct your employees in public but in private. This will boost morale.

Tip #9: Recognition for Improvement in Cost, Quality, & Customer Centricity

Incentivize the employees who help the company in reducing its cost and increasing its quality, customer satisfaction, and positive cash flow.

Recognize them for taking new initiatives for the growth of the company.

Tip #10: Performance Linked

Send your Star Performer on monthly party outings; send them to watch motivational movies, sports events, celebrations and much more.

These are several steps of how to build a high performing team by which you can incentivize the Star Performers and influence other employees to raise their productivity.

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HR & People Management

A COMPLETE GUIDE to Small Business Payroll

मार्केटिंग टिप्स
मार्केटिंग टिप्स

How to step up a payroll process for your business?

Setting up a small business payroll can become very stressful if carried out in an unsystematic manner. One mistake can cost you a tough time with the tax department. Also, the process is based on your business type and the number of employees you have.

We provide you a complete guide to set-up payroll for your small business:–

Planning for small business payroll

When you set-up your business, taxes and the complications associated with payroll is probably not the first thing that comes your way. But payroll is a critical part of the management and financial side of entrepreneurship. Before this process becomes a burden, it is important to start planning for your small business payroll. First of all, you need to understand whether you need a payroll or not. For instance, you need not have a payroll to pay daily wages.

A payroll system comes with 3 important components; 

  • Paying the workforce
    ’ Paying the right amount and scheduling it in the right way is an important factor for employee productivity and satisfaction. This component includes; tracking working hours, processing withheld taxes, issuing paychecks, and crediting the amount directly to the employee’s bank accounts.
  • Preparing and paying the payroll-related tax
    ’ It is important to submit those taxes to the relevant authorities and government that is deducted from your employee’s salaries.
  • Filing Taxes
    ’ Filing taxes is no doubt a time taking task for every business owner. You can file taxes monthly, quarterly, and on a yearly basis; subject to the size and flexibility of your business.

Methods to set up your payroll process

1. Manual
’ Companies that have a handful of employees prefer to do it manually. For effective results, you need to create a spreadsheet to track the employee’s work hours, then calculate the taxes and proceed with the paycheck process. Besides, you need to calculate and file payroll taxes manually. This process is suited for small businesses that have limited employees in their company. You can very well opt for the manual process if you are a finance savvy company with up-to-date information on tax deduction.

  • Pros-
     The manual process is a cost-effective and a good fit for your business if you have complete control over your employee’s earning and tax filing.
  • Cons-
     This process is time-consuming with the potential chance of errors.

2. Hire an Accountant
’ If you want to set-up an in-house payroll process then an accountant is a great help for your business. You can hire a full time or a part-time accountant for your small business payroll process; depending on the size and the number of your employees working. 

  • Pros ’
    You can save your energy and time which will allow you to then focus on other important things to grow your business. Because the accountant has adequate knowledge of filing taxes and the process involved, there will a chance to have fewer errors.
  • Cons ’ 
    This option gives you minimal control on your financials. It is a bit costly for a small business that is keen to minimize expenditures.

3. Install a Payroll Software
’ The purpose to have payroll software is to automate the process of paying your employees. This process includes; computing the employee’s benefits, filing the taxes, preparing their pay slips, regulatory compliances and all other functions related to small business payroll. The correct payroll software will help you set-up your business and employee information on the fly. Invest time to set-up the right payroll software to save money and efforts.

Small business Payroll software helps you to speed up the payroll process and lets you keep a good control on your business financials.

  • Pros ’
    Small business Payroll software takes away the worries that come with the payroll process. You can start processing the payroll at the click of a button. It provides accurate tax calculation and regular updates. Most of the payroll software comes with a one-time price and data security. The software gives you complete control over your process, saves time to focus on the other important aspects of business growth. 
  • Cons ’
    Like any other application, payroll software also requires learning and understanding of the procedures. It is important to train your staff on how to use the software.

4. Outsourcing the payroll
’ Outsourcing the payroll process is like having a virtual accountant who is responsible to take care of your payroll tasks. Outsourcing the payroll is all about submitting the right information and a timesheet of your staff to your service provider; they will calculate and pay your employees. The service provider will prepare and file the taxes to the relevant authorities. The outsourcing small business payroll service is ideal for an organization that has a large number of employees. 

  • Pros ’
    Outsourcing the payroll process can eliminate the possibility of errors and delayed payments that can later attract penalties. As they are the experts in the payroll process, their process will be accurate and efficient.
  • Cons ’
    Communication between the service provider and the employer is critical to avoid the errors. It is also important that your service provider is up-to-date with the employee’s information and state tax laws.

The common payroll issues

To avoid heavy penalties and fines, you must never make any mistakes. Let’s discuss the common problems a small business payroll faces.

  • Doing payroll manually when you have a large workforce
  • Setting-up the payroll process incorrectly
  • Inexperienced payroll processors
  • Miscategorize workers
  • Ineffective time records
  • Untimely payroll processing and miscalculation of overtime
  • Failure to issue the right form to your employees
  • Failing to file the tax timely

Best payroll practices

Small business Payroll is one of the most important components of your business. It is a great tool for cost-cutting and efficiency if you follow the best payroll practices that include:-

  • Customization of paying methods according to type of employee and the kind of work he does.
  • Integrate your small business payroll with the HR System and Accountants.
  • Let the employee choose their preferred payment method; weather by cheque, cash or direct deposit.
  • If you have multiple office locations, make sure you process the payroll from the main office to have complete control over your financials.
  • If your small business payroll process has become a burden for you then this is the right time to outsource it.
  • Make sure you keep a note of tax deadlines to avoid penalties and interests.
  • Do a proper classification of your independent contractors and employees.
  • Issuing the tax forms before time to avoid any delay on your small business payroll.
  • Make sure you do a regular backup of your payroll data.
  • Train your employees with the updates regularly on using the payroll software.
  • To avoid any error in tax filling, double-check the entries in the software.
  • Conduct regular audits to ensure a smooth working process.
  • Understanding of the small business payroll process, tax deduction process, and tax filing process.

Setting up the right payroll process is one of the key components of any business. The right payroll for small business will save you time, money, efforts, and also help you to grow your business exponentially.