A profitable business thrives on employees. You hire the best talents, and with the combination of the best service/ product model, the company will scale height. But there is a glitch in the story? An organization NEEDS PEO service providers in India to run day-to-day operations.
82% of employees don’t feel recognized enough by their supervisors. A small win celebrated can boost morale among employees.
Recently, Microsoft decided not to give their employees salary raises amid a sharp focus on AI. On top of that, 10,000 employees were let go because of the unpredictable year ahead. Above all, it was a very strategic decision, and we hope that the decision was based on the best interest of employees and the company.
But a PEO service provider in India can help in avoiding these situations.
But how to mitigate the woes without laying off? PEO service providers to the rescue
MM Enterprises believe in recognizing every employee that comprises the public and the regular appraisal. Meanwhile, working closely with the company’s goals and bottom line.
A PEO service provider in India, MM Enterprise, can give you the solution to all your HR problems. But how can PEOs help me in this? Know more by reading the below picture.
To give credit, PEO service providers in India employ about 3.7 million people with more than 17500 small businesses. In the last decades, PEO service providers have acquired 6000 new clients.
The previous blog covered the primary benefits of the what, how, and why? To drive home the point, let’s start again with why.
Why do global companies prefer PEO service providers in India?
A small global company that wants to cross geographical boundaries, a startup that has just started to grow, or a big multinational with thousands of employees and no idea how to manage them.
Every company, big/small, has the same day-to-day problems. HR problems.
In the case of a global company, there is a big chance of a new market. Indeed, the company has little idea about the laws, benefits, social security numbers, etc. In a startup, the organization has just started to grow. The founders know all about their business but have no idea about management.
The less said is better for multinational companies’ HR problems. Recruiting is like a marketing strategy that should be on point, which we have further explained in our blog. Next is an onboarding program that gives a pleasant experience to the new joiner.
91% believe that onboarding programs make the recruits feel welcomed at the new company.
These are minuscule tasks, but shortly, they play a pivotal role in employee retention, performance management, and engagement. According to the NAPEO study, there is an ROI of 27.2% when PEO services are used. This includes saving HR personnel costs, health insurance, unemployment insurance, and other benefits.
Therefore, PEO service providers in India are a great help in this.
But know what? PEO is not all about health insurance and payroll benefits. As said earlier, there are other benefits besides payroll processing. , let’s concentrate on other critical areas of PEO, professional employer organization, and how it can help your organization.
#Key Area 1) Disbursing Employee Wages: not a problem anymore with PEO service providers in India
Globalization has made the world small, and companies want to expand in India or any foreign country. A recent study revealed that India has jumped miles in ‘ease of doing business.’
But labor laws and global payroll continue to be a headache, especially for foreign-based organizations with little idea of filing taxes, complex payroll laws, and regulations.
Then PEO service providers in India are the right solution for you. PEO service providers in India will hire a legal Employer of Record to manage payroll for the organization and be the employee’s legal employer.
Below are some ways to unburden a load of business houses from the right partnerships with PEO service providers in India.
Expertise in Indian Payroll regulations and simplified Processing
There is only one golden rule if any business: you should know how and what to sell. PEOs understand the intricacies of payroll laws and regulations abided by the Indian government. They get paid for this.
This means that PEO service providers in India can be a one-stop shop for many business houses. They can help with regulations which can be complex to navigate. Also, companies can avoid legal hassles and penalties that may arise due to non-compliance.
As we have said earlier, payroll processing is a necessary evil and requires tons of paperwork. Sounds exciting? Not to a startup that has just started to get profits.
You have to scale your business and manage employee benefits daily. Unload your responsibility to MM Enterprises. We will seamlessly perform time-consuming and complicated tasks which require efficiency.
This includes a lot of payroll-related tasks such as employee benefits, severance pay, annual leave, or parental leave management. Let’s not forget the dreaded T, which is tax. MM Enterprises’ fully equipped legal team will be more than happy to advise you on tax contributions.
This will include local tax laws and regulations, calculating and deducting taxes from employee salaries, tax payments to the authorities, and reporting accurate tax reporting and documentation to businesses.
This whole process is an administrative burden, which every company should avoid. Especially those who want to tap foreign markets or are just new to the entrepreneur world. They should focus more on scalability and vision. Leave all paperwork/ hiring/ management to us. Know how we manage various HR processes.
Click on the link below: https://youtu.be/TPJL5CxjamA.
Software Technology is changing payroll paperwork.
Access to the software is managing payroll processing seamlessly. Working with a PEO service provider in India, your organization can access this software without purchasing it. Think of it in terms of renting software.
Now, you can store tons of records such as US social security numbers or India’s PAN. Think about the tons of money you can save by renting the software while benefiting from it.
Also, the software can be accessed by various employees, which allows them to log hours and manage leave entitlements through the software. Now, the employees don’t have to notify their employees of special leave.
Every employee, mid-manager or entry-level graduate, can provide insights. This will pick up the pace as the employees focus on growth. Also, with customized payroll solutions, PEO will give answers to cater to business needs.
Hiring Is the New Marketing
Confused Much?
86% of HR employees agree that hiring is like marketing the company.
86% review the company when onboarding in the recruitment process.
67% of men in the US will not likely join a job with a bad reputation.
The statistics speak volumes about employee value Proposition. Skill shortages are everywhere, and high demand for the services is at an all-time high. Recently, in a book called Deep Work, author Carl Newport has stressed a lot of skills.
” Two Core Abilities for Thriving in the New Economy 1. The ability to quickly master hard things. 2. The ability to produce at an elite level, in terms of both quality and speed.”
So a highly skilled person will always have the upper hand in choosing the company, what roles they want to contest, and some agreed conditions. Therefore the top capable has the luxury of choosing where they can negotiate better pay, flexible working conditions, and health insurance.
So, companies must attract and retain top talent. Meanwhile, consider what they value most and look for qualities in an ideal role. Recognizing these values in job descriptions and interviews will ensure businesses attract the most suitable candidates.
This is where MM Enterprise can be an ally to your organization. We will screen the appropriate candidates for that job description, sometimes interview them, and hire them on your behalf.
Also, We know what the ideal candidates want from the company.
What are candidates looking for in 2023?
Salary is no longer the biggest motivator. As Simon Sinek said in the book ‘start with Why,’ Money is the by-product of your work.
The reports say that only 20% are happy doing their jobs. The report further articulates that high job satisfaction means high meaning. Additionally, 64% believe that creating milestones in employees’ journeys and positive work relations affirm job satisfaction.
Millions of statistics only point out the obvious. Employees want everything. Now working from home is a required condition for operating.
With tight deadlines and a lot of work to be done. Employees want a work-life balance. In the case of young families, the employees value quality time with their loved ones. It is a requirement which they would like to have. Also, work in the arrangement which suits best for them.
The top three drivers which motivate them to work are salary, work-life balance, and career development. This surprisingly revolves all around the employee, not the company. While company culture is essential but more important are the above three factors.
One of the areas where EVP, employee value Proposition, comes in. With this Proposition, Companies are negotiating better. They are offering hybrid working conditions which come in all hours. Part-time working from home, fully remote conditions, or flexible working hours, the buffet of working hours is set.
The flexibility allows them to work in an oversea company without visiting their headquarters even once.
Curating an Employee Value Proposition to Win over Suitable Candidates
First things first, What is the employee value proposition?
An official company statement that clearly articulates the benefits an Employee will enjoy after getting appointed. It speaks about company values and the culture it upholds. At the same time, it outlines remuneration, benefits, and perks.
Bottom line: it answers why their company would be a great place to work.
The statement could be 400 words or in character length. You are good to go as long as it conveys the company culture and attracts suitable candidates
They understand candidates’ and employers’ needs and acknowlacknowledgeill help businesses hire and retain skilled workers, which will ultimately help them in their business needs.
Confused about how to write an EVP? Try using the below points to write a kick-ass EVP.
Work-Life Balance
Try registering on the following topics:
- What perks promote a healthy work-life balance?
- Is there a provision for working from home/part-time?
- Will you allow the employees to choose their working hours within reason?
Ultimately, it’s all about getting the best output, which can surely come when you are in the best ‘you.’ The promise to help you become your best version will speak volumes about the company’s supportive attitude.
Remuneration
It is a game of win–win for both parties. Outline that the employee is entitled to these many perks and benefits if a confident expectation is met. This can go as high up as 7-10% after every 12 months.
Job Security
Layoffs, recession, and economic downfalls are a nightmare for any employee. Layout how the organization will protect its employees during an economic downturn. Does the company encourage learning and self-development or have a no-redundancy policy?
Career Development
If one thing which potential employees out of you are further developed in the career. Develop the skills and train them in new areas. Proposition this aspect of the job, including learning and development efforts such as Professional Development Plans, mentoring, coaching, educational allowances, etc. PEO service providers in India will help find the best educational platform and help curtail it to match the company’s needs.
Company culture
is one of the critical areas of the organization. How important is it? Is it safe for all employees? How open can you be with your thoughts without fear of demotion?
Address all the above issues in the points.
Reputation
High-performing professionals don’t want to get their names on the same page with invalid names and brands, as it will showcase poor business performance. This section considers factors of quality products, corporate values, growth objectives, and position in the market, and how you are socially empowering/ affecting the wider community—a key consideration for those organizations that are impactful in wider communities.
Still can’t articular what should be written? We have Netflix’s EVP, which says the company prioritizes people over process. Its values in five statements are
- Prioritises independent decision-making in employees.
- Sharing of information amongst each other
- Be candid, as well as encourage positive feedback.
- We want to retain highly effective people.
- Ruled are not for intelligent people.
Each company has a unique value Proposition. It should encompass intangible and tangible benefits. This can cover all aspects under the sun, from health benefits to career development, parental leave, and company culture.
CV screening is another remarkable aspect that businesses will focus on while selecting quality candidates. All this can be done with the help of various AI software like fetchers, ICMS cloud, etc. Let’s hear more about this.
Why do we need AI to screen potential candidates?
2021 was all about reactionary hiring, followed by massive layoffs in 2023. So this time, the organization should refocus on seeking quality candidates with the right skills, tertiary qualifications, and motivation to learn on the job.
Job satisfaction is the New requirement for candidates. So filling high-quality skilled people under challenging positions can be a massive task. AI can further implore this. Recruiters can use its Data manipulation to analyze hundreds of applications that demand specific requirements. It can range from specialists to engineers.
We have gone on and on with why hiring the best person for the job is a necessary part of HR duties. Now, the focus should be on another critical area.
#key area 2: Managing Conflicts: Expertise of PEO service providers in India
Managing a business is a time-consuming Job. On top of that, getting things done can be strenuous for the employee. In the heat of the moment, sharp words can rough the employees in the wrong way. Therefore managing a workforce and employee relations and boosting the morale and productivity of your employees is in high demand.
37% of employees have accepted that recognition at work boosts productivity.
Many employees feel that their supervisors don’t recognize their efforts. These issues can be a stone in the path to your business success. This is where a PEO can provide valuable advice and support.
Outsourcing HR responsibilities allows small business owners to focus on their core operations while ensuring that employees are well taken care of.
PEO services given by MM Enterprises will be your strategic partner, which will effectively manage employee relations. All this while providing HR services which include conflict resolution and employee relationship management.
Forms of Workplace Disputes
Disputes and conflicts take many forms. It can be not agreeing on the same idea, Disagreements on the quality of work, and so on. Some common examples are
- Interpersonal conflict between employees.
- Disagreements over job responsibilities
- Another employee takes undue credit
- Conflicts on discrimination and ‘favouritism.’
- Issues surrounding who will get better pay and benefits.
- Disputes over harassment or bullying.
- Time off requests disputes
- Disputes over company policies and procedures
- These disputes over misunderstandings
- Disputes over the implementation of technology
- Getting disputes over the process or the work.
Workplace conflicts are common. But it is essential to address them and maintain a positive work environment. We have statistics for that as well. But let’s just stick to the facts and how to resolve the conflicts.
How is remote work the reason Behind Workplace Conflicts?
- It’s One thing to say it in person. But the tone and meaning behind the exact sentence change when speaking through messages.
The biggest challenge in remote work is maintaining consistent communication between employees. Not done in a particular manner can result in misunderstandings and misinterpretations. Also, there should be a lot of clarity about expectations and responsibilities.
- It’s not easy to work as a team and maintain strong relationships.
This can lead to a lack of trust when one employee does the whole work. This leads to decreased collaboration, all of which can fuel the fire.
- Enforcing policy and procedures via mail or Zoom meeting: A headache
No one wants to school or get schooled. For example, no one wants to monitor who attended Zoom meetings and who did not. It feels like you are a class monitor again.
- Time and again, there are many failed Zoom meetings
A lot of people are taking lunch during Zoom meetings. This indeed shows the picture that work-life balance goes for a toss. As of now, the official hour of work has been blurred. It can be as late as 10 a.m. or as early as 7 p.m.
- Technical Difficulties add to the woes.
Connectivity issues between software and tools can lead to a disruptive environment.
Therefore organizations should have clear protocols and resources for employees to communicate, collaborate and resolve disputes.
But there is a solution to this. Yes, PEO service providers in India can be a great asset for this.
How can PEO service providers in India resolve such issues?
Experience: we have extensive knowledge of employee resolution. Our team of HR experts is equipped with tools to manage workplace issues. They can guide managers and employees.
All this while having a healthy conversation and sincerely listening to their problems and reason for conflict. Also, develop policies and procedures to prevent similar situations from escalating.
PEOs can bring comprehensive handbooks to the table, outlining policies and expectations. With a rule in place, it will lower the chances of further escalation of situations.
Confidentiality:
The workplace is where half of the human time is spent. In the midst of that, there will be unwanted conversations that can be heard. There will be sensitive issues with specific employees which should not be the topic of the Chai break.
PEO service providers in India understand everything and are trained to handle it with care and discretion. They can also help mediate any personal issue without telling everyone else. Also, they help to maintain a positive work environment by advising and giving impartial guidance and preventing the spread of negativity.
Employee Training and Skill Development:
The best quote from a Professional is,
” A good manager is that who makes you job ready for the next job.”
We can’t agree more. It’s never too late to add skill and training to your resume and implement it when necessary. PEO service providers in India can provide all the training; meanwhile, you, as an organization, can reap the benefits. This will include various workshops, training and develop the skills they need to resolve conflicts and become better equipped for the job.
Legal Advisory:
PEO service providers in India are fashionably famous for acquiring knowledge on ever-changing labor laws, employment laws, and regulations. Also how to resolve conflicts if it arises. Provide advice on the best course of action and ensure the company complies with all relevant laws.
PEOs can provide support to various companies of all shapes and sizes. Partnering with a PEO service provider in India can help companies manage employee relations and workplace conflicts effectively. Meanwhile, you can focus on the company’s growth and success.
#Key Area 3: PEO service providers in India Ensure Payroll Processing
It is the most important key area as it handles salary disbursals and benefits your business. How? You are starting new in this country with complex and intensive labor laws. This includes
Basic salary
The employee’s base income is 35-50% of the total compensation.
Allowances
Employees are given various allowances such as HRA, DA, etc. The percentage and limitations vary from company to company and adhere to different hierarchies. For example, the VC may get a better rate of HRA. At the same time, a mid-manager may get a lower rate of HRA.
- Dearness Allowance: this Allowance is used to negate inflation’s impact on the employee’s survival.
- House Rent Allowance: the employee needs a house to settle with his family.
- Conveyance Allowance: it covers the various travel expenses the employee covers while traveling to and fro from residence to office.
- Medical Allowance: it is a fixed amount paid to every employee annually. As per the Union Budget 2018, a standard deduction of Rs. 15000 should be introduced as a medical allowance from the company’s payroll account.
- Books and Journal Allowances: employees need a news bulletin to stay updated with the country’s trends which can be done by purchasing books, newspapers, and periodicals.
Gratuity
This is an amount to which employees are entitled when they leave the job. It is a token of appreciation from the employer for the cumulative service offered to them. But gratuity only applies when the employee has served for five years and comprises 4.81% of the basic salary.
Employee Provident Fund
It is a scheme enabled by the government and can be termed a pension scheme. In this scheme, the employer and employee contribute 12%of the basic salary monthly in the employer’s Provident fund account, which is maintained by EPFO( employer provident fund organization). The employee can withdraw the cumulative amount upon retirement.
Professional tax
State government levy tax on salaried professionals, including chartered accountants, doctors, lawyers, and police officers. The maximum amount payable in a year is Rs. 2500. Employers deduct the professional tax when paying salaries to the employees. In that case, employees don’t have to pay the tax. Employers will do the needful on behalf of them.
Prerequisites
It includes non-currency benefits that an employee enjoys, which we had stressed earlier in our blog; for example, senior employees on various tours and travels during company work get 5-star hotel accommodation. They also get a car for personal use, whose cost is borne by the employer and, in some cases, by the employee and employer. The monetary value is added to the salary, and the employee takes the tax on them.
ESIC
Suppose the company has more than ten employees whose gross salary doesn’t exceed Rs. 21,000. Then the employer should use the ESIC scheme. Employers’ contributions to this scheme would be 4.75% of the gross wage, while employee only contributes 1.75%.
PEOs have HR experts who can solve your compliance problem in minutes. Also, avail statutory benefits for your employees as per Indian laws and regulations.
Why are PEO service providers in India necessary?
- Save Time: HRs spend an average of 36 hours a week solving complaints-related activities. The practical hours saved can be used to plan a team-building exercise or schedule skill development conferences by partnering with a PEO service provider in India. Also, they can negotiate salaries better with employees when given the time. This means HR is dealing while MM Enterprises is doing the paperwork.
- HRs can reduce risk and responsibility when partnered with a PEO service provider in India. Also, you can reduce the risk and responsibility when partnering with a PEO employee leasing company. This includes: a) correctly reporting and depositing taxes to the authorities, viz state and central government. b) processing EPF &ESIC requirements. c) management and employee disputes.
Why would corporates like to work with PEO service providers in India?
Corporations offer a variety of benefits to every employee. But the same benefits are given by PEO to corporations in less amount. This can happen because PEOs negotiate with vendors and handle various employees via other companies. Hence, the myriad of privileges, which includes:
- Medical and dental coverage
- Life insurance and disability insurance( while on the job)
- Mental health support
- Retirement plans
- Travel allowances
- Personal accident insurances
- Education assistance
If you are still unsure you can go through the PEO services pros and cons. Many PEOs have access to motivational speakers, which help them climb the corporate ladder with the help of the right attitude. As well as they conduct various skill development training which will help your employee further in growing their skillset. When implemented, it can take your company to new heights.
These benefits and add-ons help companies to retain top talent in their company. PEOs are giving companies a scaling number they can achieve when using their services.
PEOs share liability while providing industry-specific expertise. When partnering with a PEO, streamlined operations, efficiencies, and operational structure become orderly.