Human Resource managers play an important role in shaping the growth of the company. Right from recruiting, inducting, training and development and later to performance assessment and grievance resolution, they help in the productivity and growth of a business by encouraging performance, retention and satisfaction level of employees. Human resource personnel is the first one to directly handle internal turmoil, the decline in productivity of employees, unhealthy leadership, retention failures, even corruption and nepotism. A supportive HR sees these concerns ahead of time and addresses them, especially legal implications which can lead to expensive legal proceedings thereby saving the resources and goodwill of the company in a big way.
The various laws of the country take necessary precautions to ensure that the employees are given fair treatment, minimum wage rate, a fair chance given to both men and women, working hours and conditions, maternity leave for both male and female workers to ensure exploitation.Adhering to rules and regulations of the state in which the business is established is the primary mandate for any organization to avoid fines levied for non-compliance with statutory requirements..Non-compliant with the regulations amounts to facing legal troubles like
- Hefty fines, penalties or even complete shutdown in extreme cases.
- Civil or criminal liabilities.
- Loss of the company’s integrity.
- Distrust amongst stakeholders.
- Loss of company’s loyalty among employees, clients etc.
Statutory compliance is advantageous to the organizations by saving the organizations from undue penalties and fines when the complaint protects them from unreasonable wage or benefit demands from trade unions. In-depth knowledge of statutory compliances is required to minimize the risk associated with the non-compliance of statutory requirements. Therefore, dealing with statutory compliance requires companies to be well-versed with the various labor regulations in India.
- Is my organization adhering to Minimum Wages?
- Is my company registered for Provident Fund & ESIC?
- Have I made necessary deductions such as TDS and Professional Taxes?
- Do you know the number of days a pregnant woman should have worked in your organization to claim maternity benefits?
These are some of the statutory compliance queries every HR should be asking themselves and keep themselves abreast of the amendments that are brought about from time to time in these various acts. Please note that more and more companies look for HR professionals who are well equipped with the knowledge and skills to tackle statutory compliances and complaints.
Organizations however small or large they are must invest in cloud-based HRMS which can manage all employee data as well as information on benefits, such as enrolment and status changes. An HRMS enables employees to update personal data without having to involve HR personnel for simple tasks. The HRMS allows the organization to add more modules to ease organizational work like payroll, project management, asset management, onboarding, offboarding, leave management etc. to name a few. This software is user friendly, allows to select access as per hierarchy and makes most work paperless and on real-time basis. This eases HR in maintaining only limited records to comply with federal, state, and local laws and to help administer HR policies and practices.
SELECTING TRAINING KITS & MODULES
Human resource not only deals with hiring and retaining capable staff offering appropriate compensation and managing labor relations, it also plays an important role in the realm of training and development of existing as well as newly hired employees to help organizations operate efficiently. Training employees at various stages of their careers in the organization falls on the shoulders of HR. HR has to look for websites on the internet that are suitable for their organization as well as appropriate courses for the position held by the employees. Training programs are an ongoing activity for any organization to expand the employee’s skills. It may be for new products introduced or enhancing knowledge that gets identified during yearly appraisals by the managers. HR should proactively plan for the future of the organization to determine skills that would give the company a better edge over the competition and set training goals to strengthen the workforce. Some training programs can be designed by the HR themselves taking the help of the senior and experienced staff of the organization.
For example: Getting new workers acquainted with the company’s culture and job processes, setting work performance goals and expectations where the training can be conducted by a senior employee.
Training can be either organized in-house or can be arranged like workshops in training centers. There are corporate training providers who can be hired to train a set of employees from the organization. Job-specific training can be given to employees by sending them to training conducted by experts.
Appraising employee performance is another pivotal role in the human resource management process since it allows managers to assess employees’ strengths and weaknesses and determine appropriate developmental activities to resolve skill and performance gaps. Here HR personnel guides managers after selecting an appraisal system after weighing each of its unique pros and cons. Managers get a chance to come up with action plans to address weaknesses, determine future training needs and learn about the employee’s career goals.
HR also designs employee wellness programs to help develop employees, make them more productive and satisfied and increase organizational effectiveness. Corporate Finance Institute suggests that employee wellness programs can also save the company money in health care costs, reduce employee absences and strengthen team bonds.