Author: Spine Tech

“It is easier for a small organisation to process payroll manually.”

Many people think this and waver away from the idea of getting a payroll software. But there are many caveats to manual payroll which they are not aware of. In this blog, we are going to talk about these drawbacks.

– Calculation

Keeping this very straightforward, calculation of salaries is a nightmare. Especially when you have to do it manually. Calculation of arrears, taxation, work hours and tallying attendance reports can get hectic. Sometimes even annoying. Being a growing organisation, you would not want to put your employees under such pressure. Immense workload is not good for employee wellbeing. On the flipside, implementation of an HRMS makes things much more easier. Spine HR Suite’s payroll module imports data from attendance and calculates the gross salary. You can then link it with the leave module. Input your tax compliances and get the Net Salary.

– Data Sources

Talking about manual payroll processing, there are usually more than one sources of data. Attendance sheet from one place, leaves from another and timesheet if you keep an hourly track. You would need information from several softwares and registers. But an HRMS, being integrated, will provide you with the necessary data. For example, Attendance when linked with payroll would transfer data from one module to another seamlessly. This would drop the hurdle of many data sources.

– Data Tracking

“Appropriate information from many registers to make a track in one more.” Manual payroll process can be summarised with this single statement. Data tracking becomes arduous when you have so many sources of data. Another challenge in manual payroll processing is reconciliation of data. As you are not very sure of where exactly the data is from, it becomes difficult to correct any errors. But with an HRMS, you always have a proper, defined data source. This makes tracking of data much simpler. HRMS lets you store data in your desired format and export it to your preferred accounting software.

– Reports & Analytics

Maintaining reports in manual payroll processing can be gruelling more than often. A report for every individual employee, department, group and the list keeps going on. And even if you manage to make the reports, interpretation becomes an issue. The reports have to be simple and interpretable by everyone who sees them. An HRMS lets you create customised reports. Employee, Department, Branch, Gender, Age group, you name it! Creating reports with Spine HR Suite is as easy as a few clicks.

There are many more benefits that an automated payroll solution like Spine HR Suite offers you. Disbursement of salaries directly in the bank accounts, payslip generation and auto-mailing and letter generation are a few of them.

In conclusion, an automated payroll is much better and economical for a smaller, growing organisation. You can read What is a payroll software and all you need to know about it here. And if you are looking for a payroll service, you would want to read 9 Essential features a payroll must offer here.  

 

A good employee retention rate implies a great company!

Everyone wants good employee retention but very few know what it asks for. If you want to know the secrets of employee retention, this is the blog for you! So without any further discussion, let’s move on to 5 practices that will help you increase employees.

– Healthy Onboarding

Onboarding entails more than merely handing over a new employee’s access card and laptop. According to a 2007 study by consulting firm Wynhurst Group. New workers who go through a systematic onboarding process are 58 percent more likely to stay with the company three years later. Ensure that your workers are provided all of the information they need to accomplish their jobs with greatest efficiency. This would contain information about their job, the organisation’s reporting structure, payroll information and company policies.

– Company Culture

People are the foundation of culture. Putting your vision and aims on your website isn’t enough. Communicate your company’s beliefs, goals, and mission. This makes your employees feel like they’re a part of something worthwhile. Install a truly open-door policy and create a climate where they are free to ask questions, share feedback, and make suggestions. But without fear of being penalised for being honest of course.

– Setting Achievable Targets

This might not sound like much but setting achievable targets work wonders. Setting achievable targets helps you boost employee morale. As the employees feel they are an integral part of the department and have achieved well. In the longer term, maintaining employee wellbeing helps in employee retention as well.

– Mentoring & Training

Employers who invest in their employees’ training and development tend to have more loyal employees. Employees feel valued and motivated when companies provide possibilities for up-skilling and reskilling. Provide a well-defined mentorship programme. Also build staff development plans to keep people invested in the organisation for the long term.

– Proper Hiring

Rather than soloists seeking individual glory, hire people who are willing to work in groups. Clarify team and company goals and foster a collaborative and teamwork culture. Because everyone is different, make sure you hire people who bring valuable synergy to the table. Mark important anniversaries and accomplishments. Even buying a few team lunches can improve morale and teamwork! You might want to read 6 HRMS tools which enhance recruitment efficiency.

In conclusion, employee retention is not as difficult as some people make it seem. It requires participation and two way communication though. And what’s a better way to keep in touch with your employees directly than an HRMS? Spine HR Suite helps you boost retentivity by helping you communicate better. Not on this, it also helps in increasing employee efficiency boosting their productivity. You can learn more about Spine HR Suit here.

Gen Z is simply lazy and does not want to work in office.

Now that is an incorrect statement. Gen Z is not lazy and in fact, according to a research at Indeed, Gen Z have shown more productivity when it comes to technical work. But with regards to the work in the office, Gen Z does seem to hesitate a bit. There are 3 main reasons for this-

• No full-time Office Experience

Change is necessary but not easy to accept. The very first reason Gen Z does not want to work in-office is the mere lack of experience. 82% of Gen Z-ers surveyed by Indeed said they have never worked in an office environment full-time. Of that percentage, nearly all (92%) also said they feel like they are missing out on traditional workplace experiences. And 85% said they worry that they are at a disadvantage. A disadvantage which comes in learning professional “soft skills” due to never working in a more traditional full-time role. Nearly 87% of these 82% Gen Z-ers also said that they will switch jobs if given an option of remote working somewhere else.

• Demand for Flexibility

Offering flexibility, among other benefits, can help companies recruit and retain young people. According to Indeed’s May 2022 survey, 95 percent of Gen Z-ers are thinking and 78 percent are actively seeking for a job that allows them to work from home. In the opinion of these Gen Z-ers, the pros of work from home outweigh its cons. In fact, most young people have started their professional career after the lockdown. Amidst the lockdown, people have grown comfortable working from home. And due to this, it has become difficult for Gen Z who have started their career with WFH to switch to the traditional method.

• Lack of Soft Skills

As mentioned above, Gen Z has started its career in the lockdown. It was extremely difficult for them to get professional “soft skill” training. Helping your employees learn “Soft skills” also helps in maintaining a healthy wellbeing. Here are some things you can practise to improve and hone your soft skills:

– Practice reflective listening

– Respectfully develop relationships

– Adopt practices that encourage inclusivity

– Do your part to contribute to a kind working environment

– Learn to communicate your needs

 

In conclusion, Gen Z is not lazy but just under aware and scared. Despite their concern more than half of Gen Z -ers surveyed, reported career anxiety. Young professionals don’t appear to be compromising on their values anytime soon. In fact, they want employers whose moral code matches theirs.

 

2022 is already showing signs of recovery for the industry but why are startups slowing down on hiring?

Many have made predictions about the industry recovering from the losses in the past 2 years in 2022. But against these predictions, Startups have boosting layoff rates. In fact, they are also lowering their hiring rates. Why might one ask? Following are the reasons:

– Low Profitability

While many of the firms have been able to generate revenue, they are yet to achieve profitability. Investors have put a lot of pressure on these businesses to show that they are profitable. Companies have been cutting headcount to minimise costs in order to achieve this.

“This slowdown and bout of downsizing does not come as a surprise, since these startups, which were heavily funded, were hiring irrationally last year. This kind of rationalisation was expected from  them. Their hiring intent is bound to slow down and remain so for a while.” said Chandel to HRKatha

– Pressure from Investors

Most startups rely on outside funding to build their businesses. The majority of their finances come from foreign investors. These investors are hit hard by the financial shortage and disruptions brought on by the Ukraine-Russia conflict.

– Slow Growth

This year, substantially backed startups were expected to develop at a significantly faster rate. However, they were unable to reach that expansion. This is one of the reasons for the startup ecosystem’s massive layoffs.

More layoffs are likely in the future, according to an HR professional who works closely with startups to help them expand. And that the recovery from this catastrophe will take around a year. He adds.

As we can see, Startups are slowing down on hiring while being quick at massive layoffs. The major reasons for this catastrophe are listed above. But besides that, one more reason is the inefficiency of the hiring system.

If a company hires unskilled employees it’ll have to spend more on training and this is not efficient for startups. A great solution to this is implementation of a Recruitment System. A Recruitment System provides you with many useful tools to boost recruitment efficiency. Applicant Tracking System (ATS), Resume Parser and Interview Tracking.

A dedicated Recruitment System though, on its own, can be expensive for a startup. Spine HR Suite comes with a Recruitment and Onboarding module. Being Modular makes Spine HR Suite much more affordable than other Recruitment Solutions. Spine HR Suite also offers other modules like Payroll, Attendance and Timesheet. This means as the organisation grows you can add modules and build a full-fledged HRMS. You can learn more about Spine HR Suite here.

 

“Fixed Assets can be tracked manually, there’s no need for a software.”

If you think so, here’s a shocker- you are wrong! There are many things you can’t do manually that you can do with a dedicated software. What are these things? They are listed right here:

• Asset Budgeting

As soon as you realise the need to buy an asset the role of a Fixed Asset Management System starts. Budgeting is the second phase just after planning. Asset budgeting enables you to enter new assets into the budget as efficiently as possible. While still giving the budget coordinator the control to ensure accuracy of asset data entry. An FAMS lets you maintain an automated, on cloud record of your planned and budgeted assets.

• Asset Tracking

The most common problem organisations face while managing fixed assets is tracking them. Be it the life cycle of an asset or the current holder. It is important for an organisation to know where its assets are. The most effective way of tracking assets is implementation of  Fixed Asset Management System. There are various ways of tracking fixed assets but the most popular way is to assign them a barcode/ QR code or an RFID tag. This makes tracking of assets way more convenient.

• Bar Code Scanning

Spine Assets lets you create custom Barcodes and QR Codes for your assets. You can also attach RFID Tags to your assets for tracking. With the tags and codes in pace, tracking assets becomes much easier.

• IT Asset Management

 IT Assets are often neglected as they fall between the long term fixed assets and short term inventory in terms of durability.  But if looked at from a different perspective, IT Assets are the core of an organisation. Be it laptops, desktops or just anti-virus software, IT Assets need to be tracked and managed like actual fixed assets. Here are 4 ways in which a Good FAMS will help you manage your IT Assets:

– Service Reminders

– Expiry and Renewal Notifications

– Hardware Tracking

– Asset Allocation

You can read about this in detail by clicking here.

• Depreciation Calculator

Calculation of depreciation is a nightmare, don’t we all agree on this? According to what schedule the depreciation is to be calculated? Quick and Automated calculation of depreciation ensures that the depreciation reports are accurate. An FAMS truly converts depreciation nightmares into sweet dreams!

• Asset Bundling

With a Fixed Asset Management System which allows barcode labelling you can Bundle assets and its components together for faster identification of parent and child components and allocate depreciation accordingly. Now what exactly does “Asset Bundling” here refer to? It refers to creating a parent asset category under which you can then add child assets. In simple words you can create a hierarchy of assets and categorise them.

In conclusion, a Fixed Asset Management System is said to be good if it has these 6 features:

– Asset Budgeting

– Asset Tracking

– Bar Code Scanning

– IT Asset Management

– Depreciation Calculator

– Asset Bundling

 

If you are looking for one such FAMS, you do not need to go any further! Spine Assets is the one stop solution for managing and tracking fixed assets. You can learn more about Spine Assets here.

“Why outsource HR? It is the simplest role in an organisation.”

Well, if you thought so, you wou;d be absolutely incorrect. The Human Resources department of an organisation has an array of tasks to perform. Not only this, they have to ensure employee wellbeing and DEI as well. 

HR Outsourcing does not necessarily mean giving away all your HR Responsibility to a third party. Implementation of a HRMS could also be counted as HR Outsourcing. Not only is it more cost effective but it also helps you maintain more confidentiality. But returning back to if HR outsourcing is worth it in 2022. It is question for you to answer, but before that, here are 5 benefits of HR Outsourcing:

– Cost-efficiency

A well-functioning HR department demands greater office space and well-trained employees. Instead of recruiting professionals and increasing staff, many small and medium-sized firms consider outsourcing their HR services. You can drop overhead expenditures after HR services are outsourced. Furthermore, outsourcing fees are flexible. Which means they can vary depending on your business needs.

– Flexibility

One of the main reasons for outsourcing HR is to ensure that the HR department runs well. For example, if your company is facing a surge of information, you may always outsource your HR services to meet the urgent needs. This also allows your business to continue operating like normal. Flexibility is without a doubt a significant advantage of HR outsourcing that should not be underestimated.

– Risk Management

HR outsourcing aids in the reduction of company risks. Most regulations and services are modified on a regular basis. Which makes it difficult for businesses to stay updated with the latest trends. HR specialists at outsourcing companies stay up to date on the latest rules and services. Furthermore, when HR functions are outsourced, businesses can always count on uninterrupted support. In a nutshell, outsourcing HR services gives you access to a pool of talent that is up to date on market trends.

– Organisational Performance Management

Businesses outsource HR activities because it improves the efficiency of their HR departments. Significant HR functions including payroll and employee management can be streamlined by outsourcing HR services. Companies that outsource HR services have more time to concentrate on earnings and other essential company activities.

– Employee Performance Management

Employee growth follows the growth of the organisation. When compared to a setup where these things are handled internally, the overall quality and speed to deliver often improves when you have an HR services provider. Employee performance is frequently monitored by outsourcing organisations, who also assist with training. As a result, the in-house managers’ administrative workload is reduced.

In conclusion, HR Outsourcing is in fact beneficial. It is very well deserving of the hype it receives, even in 2022. 

If you are planning to implement an HR Software, you must check out Spine HR Suite. With 18 different modules and a scalable product, it is the HR Solution for any organisation. You can learn more about Spine HR Suite here.

It is the duty of the HR to maintain Diversity, Equity and Inclusion in their organisation.

Ensuring DEI in this era, when people are aware and awake is a must. But what is DEI you might ask. A simple description of DEI can be given as-

DEI stands for diversity, equity and inclusion. Diversity is the presence of differences within a given setting. Equity is the process of ensuring that processes and programs are impartial, fair and provide equal possible outcomes for every individual. Inclusion is the practice of ensuring that people feel a sense of belonging in the workplace.

If we were to explain Diversity, Equity and Inclusion in detail, It would be more like-

– Diversity

Diversity refers to the presence of differences within a specific situation. Differences in colour, ethnicity, gender, gender identity, sexual orientation, age, and financial level can all be problematic in the workplace. 

– Equity

Equity refers to the act of ensuring that systems and programmes are unbiased, fair, and give equal opportunities for all people. 

– Inclusion

Inclusion is the technique of ensuring that everybody in the workplace feels like they belong. This means that when it comes to expressing their real selves, every employee feels at ease and encouraged by the firm.

Okay now that we know what DEI means, we must discuss why it matters?

Diversity, equity, and inclusion must take center stage if industry is to truly be a place where innovation and invention thrive. Despite having a history of injustice that has suppressed underrepresented groups in the workplace. Employers must engage to generate significant change. DEI is an ideology that values different perspectives and prioritises employee well-being. Companies must develop programmes and activities that actively make their offices more diverse, equitable, and inclusive spaces to bring those principles to life.

In conclusion, DEI is not to be overlooked. Many organisations, even today, don’t think that DEI holds a special place. But a prosperous organisation is very well aware of the benefits of DEI.

HR is a field that is very turbulent in today’s time.

The industry; just recovered from a pandemic. Two years of losses most probably. HR has been on an all time low. 

But if one was to predict the future of HR in 2022, these are the trends that are very likely to describe the current HR situation:

• Flexibility- Work Hours and Mode

Even the most conventional organisations have resorted to the hybrid mode of working now. This is due to the impositions laid because of the pandemic. Besides that, the labour and talent shortage has also affected. Employers are more confident that work can get done despite drastic changes to the standard work style. This gives HR more freedom to experiment. Whether that means letting employees pick their own hours, introducing a four-day work week or following some other path. Still, there are challenges linked to hybrid working which need to be looked at. You can read more about these challenges here. 

• Focus on Employee Mental Health

Now more than ever before is the need to focus on employees’ mental health. While questions concerning the COVID-19 vaccination may still be relevant in 2022, employee benefits will have to cope with other healthcare issues. For example, given that patient populations have had increased exposure to virtual care during the pandemic, experts have speculated about its role in improving care delivery. According to Adam Stavisky, Walmart’s senior vice president of U.S. benefits, the need for prompt care access will be increasing in the next year.

Here are 6 Ways managers can support employee mental health at workplace.

• Performance Reviews- Informal

Over the last two years, managers have been exposed to a more human and casual side of their staff. From hearing dogs barking in the backdrop of a video call to embracing patience while colleagues manage kid or elder care. This development has aided in the dismantling of hierarchical barriers. And the facilitation of flexibility and informality in other elements of the job, such as performance management as well.

• Parental Leaves and Pay Transparency

Pinterest, recently rolled out a NICU benefit in addition to extending its parental leave to six months for the birthing parent. This is a great example of how much parental leaves matter in today’s time. Alongside the parental leave policy, pay transparency matters to employees as well. Employees want to know the breakdown of their salaries. A company must not stop an employee from knowing it.

• Organised Labour in Demand  

 After the two gruelling years, organisations want to make sure they recover all the losses they have suffered. To do this, employers wish to hire only skilled employees. It is very obvious that employers might want to do so. This implies that there is and will be a huge demand for organised labour in the following days.

 

To summarise, following are the 6 trends that are very likely to shape HR in the rest of 2022:

1. Flexibility in Working Hours & Modes
2. More Focus on Employee Mental Health
3. Informal Performance Reviews
4. Parental Leaves and Pay Transparency
5. Demand for Organised Labour

“HRIS or HRMS? What’s the difference?”

We’re sure you would have thought about this at least once. And if not, it is high time you be aware of these terms and their meaning as you would not want to be ripped off in the name of such fancy words.

In this blog, we will be talking about HRIS and HRMS. The differences between them and which one should you opt for!

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  HRIS

HRIS in comparison to HRMS is a narrower term. A Human Resource Information System, as the name suggests, helps you manage your workforce better. HRIS functions majorly relate to the human resources of the organisation. Following are the major services an HRIS offers:

– Employee Database

Employee database means employees’ personal, professional and official information present in the system. The onboarding process creates the employee database.  Employee database is also frequently referred to as employee master. All the necessary documents like ID, Bank Details, etc. are collected at the time of onboarding. All this information is then used to create an employee master.

– Employee Self Service

Employee Self Service (ESS) dismisses the need of an employee to go to the HR. ESS is a portal service which allows employees to be less dependent on the HR. It allows the HR manager to do more complex tasks like managing the workforce, workflow, etc.

ESSalso helps in maintaining a friendly work environment in your organisation. You can read What is Employee Self Service and how is it beneficial for your organisation? to know more about ESS.

– Recruitment & ATS

Next up, a Human Resource Information System takes care of your recruitment needs. Along with recruitment, a good HRIS offers a Applicant Tracking System as well. Depending upon the solution provider these can be full fledged recruitment solutions or not.

– Leave & Attendance

A good HRIS also offers you the ease of automating attendance and leave management. HRIS offers you the following features to boost leave and attendance management efficiency:

1. Leave Planner
2. Attendance Calendar
3. Biometric Integration and/or Facial Recognition
4. Geo-tagging and Geo-fencing

and much more! (These features may vary depending upon the solution provider)

• HRMS

Now talking about HRMS, it is a much wider term and is usually used synonymously with HRIS. While HRIS relates to the workforce and human resources, an HRMS deals with everything an HR has to do. A Human Resource Management System offers automated solutions to all the major processes of an organisation. HRMS majorly offers the following services:

– HRIS

As stated above, HRMS is the wider term and it offers every service offered by an HRIS. In fact, HRMS has an edge over traditional HRIS as it is usually modular. This means that the services can be separated into modules and can be purchased when required. This makes HRMS the superior choice as it grows with you while not making a hole in your pocket.

– Payroll

Okay, now talking outside HRIS, The most important thing an HRMS offers you is Payroll Management! Payroll management with an HRMS is absolute delight as it is usually integrated with time and attendance, payroll processing takes just a few clicks. To know more about payroll, you can read 9 Essential features a payroll must offer.

– Performance Management System

PMS is a tool that helps the HR track the performance of individual employees. It automates tracking the progress of an employee and provides the manager employee performance reports. This would then help the higher level management track the performance.

– Workflow Management

HRMS also lets you plan and create a workflow chart to streamline the workflow. This helps the employees get a better idea of the vision of the management and eliminates confusion. Alongside the planning and setup, an HRMS also allows you to monitor the workflow and make necessary changes whenever required.

– Reports & Analytics

It’s reporting time! From candidate interview reports to the full and final settlement report, an HRMS helps you summarise everything in a report. You can even generate detailed reports for reference purposes. Having quick access to your reports and analytics greatly boosts your productivity.

 

HRMS is not limited to only these features though. At least not Spine HR Suite. Spine HR Suite has 18 different modules to pick and choose from. Even a chatbot who acts as your own virtual assistant- Spina! You can learn more about Spine HR Suite here.

In conclusion, it is much better to go for an HRMS as it is everything that an HRIS is and much more. But HRMS tends to lean on the expensive side for smaller organisations. Spine HR Suite tackles this problem by offering HRIS as a module! HRIS is paired with payroll so that all the basic activities of an HR can be automated at a relatively lower cost.

World’s population is nearing 8 Billion. Yet there is a global shortage of labour.

Yes, you read that right. The world with 7.9 billion people on it, is facing a labour shortage after the pandemic. The pandemic has affected every aspect of our lives hasn’t it? But without further adieu, let’s talk about labour shortage and its causes.

What is Labour Shortage?

Labour shortage generally occurs when there is a difference between the labour required and the actual labour supply. In such a situation the labour supply fails to meet the demand. This causes a shortage of labour. There are various factors affecting the supply of labour, listed below are the major causes:

 

Causes of Labour Shortage

– Covid-19

It would be impossible to cover the causes without addressing the elephant in the room. As of March 2022, WHO has reported more than 6 million people deceased due to pandemic-related issues.  millions of others are dealing with the long-term effects of the virus. Covid-19 has not only affected the physical health but also the mental health of the employees. The morale of the employees is on an all time low due to the pandemic.

– Skill Gap

While the loss of skills and expertise due to retirement is undoubtedly a factor. The integration of modern technology, AI, and automation in the workplace is the primary driver of the skill gap. While this new technology can simplify business operations and increase workplace efficiency, it also requires employees who have the necessary abilities to use it. This isn’t a new problem for companies, but it’s become more serious since the outbreak. Because so many businesses are dealing with production and supply chain issues as a result of the epidemic, there is a greater drive for workplace automation. The rising usage of technology in the workplace requires a greater need for businesses to get the necessary technological skills.

– Shift in Expectation

Many employees encountered additional professional demands during the pandemic. Alongside layoffs and lockdowns, unusual personal obligations like homeschooling their children and caring for aged parents. Workers’ expectations have shifted as a result of these stressors. The need to maintain a healthy work-life balance is at the forefront of these aspirations. Remote work choices, flexible schedules, increased paid time off, and greater liberty to determine their own schedules are all things that today’s workers want. Furthermore, some people are willing to move employment or exit the industry completely.

– Low Wages

Shift in expectations also reflect in the expected pay for the employees. While many are changings jobs due to better job opportunities, some are leaving just for a higher pay.  In some areas of the world, worker’s pay increases may not be enough to cover the cost of rising inflation. And hence it is obvious for workers to shift to a better paying job.

Most Affected Industries

In conclusion, yes, there is a global labour shortage. There are some measures that you can take to ensure hiring of proper candidates. Implementation of Spine HR Suite with the powerful Recruitment and Onboarding module.