Small businesses often have limited manpower and budget. Most of the time, their HR department consists of only 1-2 members who take care of the entire operations. This affects the company’s hiring quality, productivity and eventually, revenue. Therefore, the most effective way for small businesses is to hire an HR outsourcing agency.
Outsourcing companies specialize in providing an entire gamut of human resource services right from hiring to onboarding and many more. This is extremely helpful as small business owners do not have to worry about HR activities and can focus on their profit-generating aspects.
Let’s explore how HR outsourcing services can help small businesses
Complete Hiring & Onboarding Solution
A small organization generally has around 20-30 employees and its HR department may consist of merely 2 members. It’s very difficult to perform hiring, onboarding, payroll and engagement activities with such a small team. Having an HR outsourcing agency is highly beneficial in such a case because it can take care of screening, hiring, verification and onboarding of the candidates. Imagine how much workload of the HR department can be reduced by hiring an agency. This is a must-have aspect for a small business.
Payroll and Statutory Services
Payroll can be a time-consuming process for a small business as the HR employee(s) has to deal with other human resources activities too. Many HR outsourcing companies in Mumbai like Prompt provide the latest payroll software and services to simplify the payment and compensation process.
Companies, small or big, need to comply with Labour Laws and other government regulations. These laws are complex to understand and there is constant updation. A small company cannot keep up with them and want to focus on their business. HR consultancies have a team of experts in labour legislation and can help make your company fully compliant.
Employee Benefits and Engagement
Modern employees expect various benefits and facilities from the company. Small businesses can lose out on quality employees if they can’t satisfy such needs of their employees. Consultancies can help small businesses by providing HR outsourcing services in terms of employee benefits such as PF, Gratuity and also planning and executing engagement activities to keep the workplace fun and productive. This way, employees, business owners and HR – everyone is happy.
Apart from the above-mentioned services, small organizations can also hire a consultancy for HR audits, advisory and strategic staffing.
Hiring an HR outsourcing company is a wise management decision for a small-sized organization. It helps the company focus on its core business functions, takes a massive workload off from the HR team and simplifies the operations. There is also a huge time and cost-saving which is critical for a small business. In a nutshell, it’s a business-saving decision for a small company to outsource its HR needs.
Prompt Personnel is one of the leading HR outsourcing companies in Mumbai. Contact us and let us help you with your human resource requirements.
With the Covid-19 pandemic, remote working increased awareness of well-being, and work-life balance, employees are looking to join companies that are providing many engaging benefits and are leaving the organizations where they are feeling burned out. Therefore, it is extremely important for businesses to focus on how to keep their workforce happy and loyal.
Employee retention begins right from finding the right talent to engagement throughout the employee life cycle. Listed below are the crucial employee retention strategies to create a loyal and happy workforce:
Create a respectable work culture and hire culturally fit talent
Having a positive work culture is essential for an organization. Create a professional and fun work environment so that employees don’t get bored and enjoy coming to the office. Understand your work culture and hire candidates who are culturally fit. This reduces the chances of wrong hiring and eventual resignation.
Companies with a conducive work culture help cultivate relationships among the managers, team members, and top management, making everyone feel a valuable part of the organization. Employees tend to stay for long in such companies. Just think why people love to work for cool companies, start-ups, and ad agencies? Because they offer an engaging culture and a sense of belonging. Consultancies like Prompt provide HR services in Mumbai to help you create a positive work culture.
Rewards & Recognition
Probably the most important retention strategy, recognizing your employees’ efforts and rewarding them is a powerful way to keep them loyal to your company. It’s a human need to be appreciated as we are all social creatures. Rewards can be monetary and non-monetary. A raise, bonus, incentive, and stock options are some of the most effective monetary compensations.
You can also provide a higher job title, awards, and bigger responsibilities for your high performers. An employee who is getting genuinely appreciated and compensated would not leave the company and it also sends the right message to your staff. Many HR consultants in India provide compensation services so that companies can focus on their core activities.
Provide flexibility and work-life balance
Covid-19 pandemic showed that employees don’t need to come to the office daily to get the job done. Provide a flexible way of working to your staff. A hybrid type of working is perfect in today’s time as a combination of work-from-home and work-from-office works really well. Employees stick to the companies that provide such facilities. Work-life balance is another vital aspect for employees today. Try to reduce work hours and workdays so that they don’t feel burned out.
Many companies are now practicing 4 day work week. Companies like Zomato are providing extended maternity leaves for their employees and LinkedIn also recently gave a complete week off to its staff for mental health.
Provide benefits and growth opportunities
One of the biggest reasons why an employee leaves a company is the lack of important benefits. A job is not just about earning a monthly salary. Make sure you offer PF, Gratuity, and Mediclaim to your staff so that their families and future are taken care of.
Nobody wants to get stuck in the same job, doing the same thing every day. Impart a growing opportunity to your employees such as promotion, managerial and bigger responsibilities so that they have something to look forward to. Also, many organizations conduct training and learning programs for their employees to make them better at their jobs. When you provide such benefits, employees are less likely to leave, in fact, they are more engaged in such an environment and give their best.
Open Communication and Feedback
Sometimes, you just have to ask your employees how they are doing and the problem gets solved. This is why open communication is such an effective tool for employee retention. Be open to suggestions, complaints, feedback, and ideas from your staff. You will get a clear idea if and why they are unhappy and they will also present the solution themselves. All you have to do is listen and communicate rightly.
Hiring a candidate is hard but retaining them is even harder. Therefore, employee retention becomes crucial to running the business smoothly. Prompt is one of the most respected HR consultants in India to provide expert advisory and HR services to retain your staff and engage them. We have more than 23 years of experience and a PAN India presence through 8 metro cities.
Start-ups have disrupted the Indian business world. They have changed the way of doing business and the scenario of employment in India. From tech, manufacturing, finance, pharmaceuticals to media, they are prevalent in every sector and contributing to the economy of our country. Although start-ups and entrepreneurs are special, they still must follow Labour Laws and be fully compliant so that their employees get an equal and safe environment to work, and the start-up ecosystem flourishes. If not compliant, they can face legal action and prosecution from authorities.
The Government of India has given some exemptions to start-ups to help simplify their entrepreneurial journey and to gradually understand the necessity of these rules. In their first 5 years of commencement, they are given the privilege of self-declaration for compliance with 9 labour laws. However, every start-up needs to follow these laws diligently to run a legal business and provide their employees with a good and safe workplace. As written compliant of violations filed startups can be subject to inspection.
Labour law compliance becomes essential for start-ups because of the following aspects:
Although a start-up company runs with a small team and limited resources, it still needs to provide respectable pay to its employees. India’s Minimum Wages Act, 1948 makes it mandatory for start-ups to give minimum wages to all their employees. They must follow the state wise minimum wages which are updated from time to time.
Due to their busy working schedules and massive workload, start-ups employees might end up working long hours. Labour legislation guides the start-ups and helps the employees by specifying the maximum working hours every day so that employees do not tire out. All start-ups have to abide by these laws where a definite no. of working hours with breaks are to be adhered to.
Safety & Health Measures
Be it an office space, factory or warehouse, labour regulations make it necessary for entrepreneurs to provide a safe working environment for all their employees and workers. Appropriate safety protocols are mandatory at offices and factories so that employees feel safe and protected.
Legal Framework for Employment
Compliance protects the start-ups as well as employees in the employment cycle. It’s vital to check employee records and provide them with standard documents such as proof of employment and relieving letters to make the business operations smooth. Entrepreneurs are also legally required to provide benefits such as PF, Gratuity, ESIC, etc. so that their workforce is taken care of. Violation of these laws can create legal problems for a start-up; therefore, compliance is necessary.
Preventing Harassment & Discrimination
These rules are drafted to prevent any form of discrimination based on age, race, caste, colour, gender or religion. According to The Sexual Harassment of Women at Workplace Act, 2013, it is also imperative for start-ups to provide a safe working environment for women and there must be a strong policy in place to prevent sexual harassment at the workplace. Additionally, the Industrial Disputes Act, 1947 helps start-ups resolve industrial conflicts through its regulations.
Complying with these regulations ensure that start-ups are following legal ways to run a business and providing a well-cultured and safe environment for the employees.
We understand that Labour Laws can be complicated to understand for entrepreneurs, and they want to focus on the growth of their start-ups. Prompt has an exceptional team of labour law consultants who have expert knowledge of these regulations and are constantly updated with changing developments. We can advise and implement these laws to make your start-up fully compliant.
Looking for a labour law advisor? Contact Prompt and understand how labour law compliance can help your start-up grow and become authentic.
Many organizations hire HR consultancies to fulfill their human resource needs. However, there is more to HR consultancies than just providing the talent and handling payroll. Nowadays, outsourcing companies give comprehensive business solutions from hiring, training, performance review, advisory to benefits and compliance.
Companies want to focus on their core business and increase their profits. In this blog, we are going to cover how you can get the most from outsourcing human resources to increase productivity and grow your business.
Hire the Best Talent Faster & Efficiently
The HR outsourcing services team are experts in finding the right talent faster. They can help you with what kind of job description you should write, which job portals you need to post, the interview process and eventual hiring. HR consultancies have a vast database of talent pools which gives you the best candidates. Moreover, the outsourcing team conducts thorough background checks to ensure the candidates are legitimate.
A business thrives when it has the right kind of employees. The HR team can also focus on its core activities better when the outsourcing team takes care of the hiring process. This efficiency helps in business growth.
Get A Streamlined Onboarding & Engagement Process
An HR consultancy is adept in every process of human resources. They can help you create a centralized onboarding process for employees to save significant time and money for the organization. Right from the welcoming, induction, training to query resolution, they can set up an efficient process to make the new joiners feel part of a professional organization. This is essential for a business because many employees leave the job in the first 10 days if they don’t find the company processes comfortable.
You can make a sound employee engagement plan with the help of your human resource outsourcing team. Consultancies deal with lots of organizations and they know what kind of facilities make the work culture happy and engaging for employees. Engagement activities like get-togethers, events, trips, wellness programs are some of the ideas these teams can execute proficiently. A happy workplace is extremely important for business growth and employee engagement is the most crucial aspect in that regard.
Latest Payroll & Performance Review System
HR outsourcing companies have the latest payroll software to make your compensation system faster and efficient. It saves a lot of time for the HR department and business owners. Moreover, these outsourcing teams have sophisticated Performance Review Systems to evaluate your employees based on their KRAs, performance, attendance and skills. Such modern tools help the organization stay relevant and on top of its game.
Benefits Management to Retain Employees
Employees expect various benefits nowadays from companies. A good consultancy can create a comprehensive benefits plan right from incentives, bonuses, promotions, paid leaves, PF, ESIC to gratuity. They implement the entire benefits management plan, so you don’t have to. Benefits Management is a way of showing respect to your employees and it creates loyal employees, reduces attrition and improves business performance.
Manpower Analysis & Advisory
An HR outsourcing team can help an organization with strategic decisions. They can conduct manpower audits, analyze the performance of the existing workforce, their work schedules, remote or flexible working process and how to achieve the maximum output with optimum talent strength. Cost analysis of hiring and engagement, spending vs return from an employee, and departmental hiring needs are strategic level decisions that can make or break a business. HR outsourcing company can provide you with reliable analysis and advice.
Be a Fully Labour Law Compliant Company
Labour laws are complicated to follow and it’s difficult to keep updated with them when you are running a business. A capable HR consultancy has a specialized team that knows every aspect of labour laws and employment legalities to make your organization completely compliant so that you do not have to worry about anything. It can take care of policies, benefits, tax structure, retirement plans and many other labour law provisions.
A business can face serious legal implications if it fails to comply with labour laws. A professional outsourcing team can shield you from these implications by providing you with the perfect services.
Get a Comprehensive HRMS
Ask your outsourcing team for the latest Human Resource Management System (HRMS) software which simplifies and streamlines your entire HR process right from employee information, daily performance, leave cycle, payroll and official records. Such a system helps business owners understand every activity at one place and makes their daily operations smooth.
Having an HR outsourcing team is very useful as it saves time and money, simplifies your processes and helps you focus on your core business. This is extremely important for an organization as it can attract the best talent, retain them and increase profitability.
Prompt Personnel is one of the leading HR outsourcing companies in Mumbai. We have more than 23 years of experience in providing outsourced HR solutions to our clients. Contact us and explore how we can help your business with your human resource needs.