HR Policy -Possible changes and modifications.

1 Recruitment time cycle

 To bring in more effectiveness in the recruitment process, HR would follow a specific

project deadline of “33”days (from the day it had received the approved Manpower
Requisition) to hire a new employee.

 The process specific schedule break-up could be as follows:

Phase Activities Time frame

Role Identification, Job Description, CV Sourcing & Initial

15 days
I HR short-listing

Organizing the Written Tests 2 days

Organizing the First Technical Interviews 4 days

II
Organizing the Final Interviews 4 days

Sessions to take the final decisions 2 days

Preparing the Salary Proposal, Negotiate with the selected

6 days
III candidates & offer closure

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2 Trial experience

 Candidate should be sent on field visits before joining to understand and experience their
roles and works of the organization. Frequently candidates do not join after the field
visits. This helps the organization, filter out those who would not fit into the culture even
before they enter into the system.

3 Hiring of relatives

 Related employees shall not work in positions in which one supervises the other, or
exerts a significant influence over the work or career advancement of the other, or where
there is a potential conflict of interest.

 For the purpose of this policy, “relative” or “immediate family “member can be defined
as follows:

– The spouse, as defined by legislation, child, parent, guardian, sibling, aunt, uncle,
grandchild or grandparents, niece or nephew of an employee.

– Common law spouses, mother-in-law, father-in-law, brother-in-law, sister-in-law,

stepparents, stepchildren, foster children, and foster parents , including same sex
partners and their children ; and

– Any person who lives with employee as a member of employee’s family.

4 “Know your candidate’s family well”

 This is a mechanism to assess the fitment of the candidate, where the supervisor visits
the selected candidate’s residence to understand the cultural aspects of and bond with the
family. This also serves as a background check. Given the employee deals with
customer’s money, this assessment is very important.

 Ensure that candidate’s hired are posted close to their residence to ensure a
balanced work life and also enable a closer supervision. Home location posting
should necessarily be given for employees based far from home location for over
2 years.

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5 Breakfast Allowance

 Field employees usually begin their day early in the morning and hence there is a high
chance that they miss their breakfast.

 Most of them get time to have lunch late in the afternoon.

 Hence providing a breakfast allowance of approximately ₹25-30/- apart from other

allowance, with which field staff could buy some biscuits and water.

 Given the tendency for most employees to save up on that money, company could
conduct surprise audit of its field staff to ensure they are making use of this allowance.

6 Retrenchment policy

 Avoid retrenchment policy as far as possible.

 As there are different options under the business of Indi Trade capital such as Housing
finance, MSME, Agri-commodity etc., the existing employees could be given proper
training and facilitate switching into other sectors.

7 Communication channel

 A monthly Hotline with the national business head, which could be an e-mail facility,
where the employees can send their concerns and issues at work to the National business
head, who is committed to resolve them within 48 hours.

 If the resolution is likely to take longer, the employee should be informed.

 It should be made mandatory for all employees to respond to the e-mail from National
Business Head, even if they do not have any concerns to be raised. This provides a
channel to communicate any issues or concerns and have them addressed.

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8 Incentive Policy: Trainee Field officer

I. Objective
To provide incentive to Trainee field Officer to motivate them for their performance and
additional efforts in specified duration.

II. Eligibility:
Incentive policy will be applicable to all trainee field officers, who have completed 1
month of continuous employment with Indi Trade microfinance.

III. Principles:
Incentives to Trainee Field Officers are driven towards motivating them toward the
following items:
– New Client Acquisition.
– Client Service Based.
– Additional incentive on policy awareness.
IV. Incentive Computation:

a. Incentive for Client Acquisition:

Incentive on client Acquisition would be based on the achievement of sales
targets i.e. number of new clients added by concerned Trainee Field Officer in a
given month. On achieving different targets, Trainee Field Officer would be
incentivized as below:
Total number of new clients added Payout/ client (in Rs.)
0-10 No incentive
11-35 Rs.25
Maximum incentive Rs.750

b. Client Service Based Incentive:

Incentive for client servicing will be given to Trainee Field officer who have
achieved minimum level of new client service in a given month.

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 Minimum new clients Client Base up to Payout/ Client (Rs/)
30 400 2.5
Maximum Incentive 750

c. Additional incentive on Policy Awareness

Learning and awareness is one of the major priorities for TFO. Hence they will
be paid up to Rs.500/- based on AM appraisal, recommendation and verification
from training department.

V. Incentive Payout Guideline

 Trainee Field Officer joining on or before 15th of the month will be
entitled for incentive of next month subject to performance.
 The month in which Trainee Field Officer leaves the organization will not
be eligible for incentive of that month.
 Incentive for the month will be paid along next month’s salary.
 Incentive payout data would be generated by IT and complete calculation
will be done by HR team and detailed incentive sheet should be shared
with concerned Area Manager for confirmation.

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9 Grievance Redressal Mechanism

 Need for a proper client grievance redressal mechanism.

 Customer needs a reliable and easily accessible interface for timely and fair resolution of
enquiries and complaints. Hence, it would be a good choice to assign a Customer Care
Representative, initially in matured branches and eventually extend to all branches. Due
to low literacy and vulnerable backgrounds, customers might find it convenient talking to
someone face-to-face rather than calling a remote helpdesk.

 Toll free customer care helpline should serve as a second level escalation point for
customer grievances. The helpdesk should ensure that all queries are tracked, resolved,
and if required, escalated on a timely basis.

 Each regional office should have a Grievance Redressal Officer for 3rd level
escalation

 There should be a strong customer feedback and grievance redressal mechanism to

proactively resolve service issues. Grievance Redressal officer should monitor customer
grievance at regional level and should ensure timely resolution of all complaints through
CCR’s and Help Desks. A report on status of customer grievance should be periodically
reviewed by senior management for future decision making and minimizing complaints.

 Exit interviews could be conducted to retain dormant customers.

 Posters on Code of conduct and grievance redressal mechanism should be prominently

displayed at all branch premises in vernacular language and on the website.

 Grievance redressal mechanism should be incorporated into compulsory group

training (CGT) for new customers and helpline numbers should be displayed in
the CGT brochures.

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10 Annual review process, vision & mission etc. should be translated into local language.

11 Travel Policy

Objective of this policy is to reimburse expenses incurred by employees against local/domestic

travel for official purposes. The policy should be applicable to all employees who undertake
travel for official purpose. Employees are expected to do business travel after prior authorization
from relevant approving authority.

I. Mode of travel

Depending on the levels, employees are allowed the following modes of travel.

Levels Mode of Travel

CEO/CFO/COO/Sr. Vice President Air/ up to 2nd AC train
National Business Head/ vice CEO Air/ up to 2nd AC train
Senior Manager/ Zonal/ Divisional 3rd tier AC train/ AC bus
Area Manager 3rd tier AC train/ AC bus
Executive/ Branch Staff Sleeper Train/ Bus

NOTE:

 Travel should be through shortest route and least fare available.

 In exceptional Situation i.e. when train tickets are unavailable taxi can be used as a mode
of transportation for short distance with the prior approval of concerned authority.
 In case of an emergency situation, an employee can avail the next level of mode of travel
subject to prior approval of his/her functional head.
 Air travel should be on the low cost/low fare airline. In cases, where low cost fares are
not available, regular fares can be availed but prior approval from the reporting authority
is a must.
 Travel mode for ladies should be in 3rd tier AC for overnight trips for Assistant managers
and above.

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 II. Lodging Reimbursement- Field and HO Staff

Levels Metro city Non-Metro city

(₹/day) (₹/day)
CEO/CFO/COO/Sr. Vice President 6000 4000
National Business Head/ vice CEO 3500 2000
Senior Manager/ Zonal/ Divisional 2000 1200
Area Manager 1000 750
Executive/ Branch Staff 750 500

NOTE:

 Lodging expenses to be claimed against actual bills. In no circumstances actual expense

should exceed above defined limits. In exceptional condition, prior approval should be
taken from Head Finance & Accounts.
 Employees’ up to the level of Divisional Manager have to stay in the visitor’s room in the
Branch Office. In case if the visitor’s room is occupied, he/she is eligible for stay at the
hotel as per the lodging allowance table above.
 In locations where company provides/ arranges for lodging facility, the employee is not
eligible to claim towards any lodging allowance.
 For employees who are travelling together, it is advised to take lodging on a twin sharing
basis. In this case, any one of the employee is eligible to claim for actual lodging expense.
 CEO/ Sr. VP/ V.P are eligible for individual rooms.
 Wherever female employees are travelling they will be eligible for individual room if she
is the only female. In case there are two or more then it will be on sharing basis.

III. Boarding/ Daily Allowance

Employees are eligible for the following allowance to cover lunch & dinner expenses. Any local
conveyance expense has to be supported with details and paid on actual basis.

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 Levels Metro city Non-Metro city
(₹/day) (₹/day)
CEO/CFO/COO/Sr. Vice President 1200 1000
National Business Head/ vice CEO 800 600
Senior Manager/ Zonal/ Divisional 450 300
Area Manager 300 200
Executive/ Branch Staff 200 150

NOTE:

 Employees are entitled for full boarding allowance only in case of night stay at
destination. In case of day return, only half DA may be claimed for that particular day.

IV. Conveyance Reimbursement-HO Staff

While HO employees are on official tour, they are entitled for following mode of local
conveyance.

Level Mode of Travel

CEO/CFO/COO/Sr. Vice President Taxi
National Business Head/Vice CEO Taxi
Senior Manager/Zonal/Divisional Auto/Taxi
Area Manager Auto
Executive/ Branch Staff Public Transport/Auto

V. Expense Claim Procedure:

a) Official tour is required to be approved by assigned authority prior to the date of
travel.
b) Filled expense claim format and travel expense settlement form along with
original bills for reimbursements and required approval should be submitted to

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 State Account Officer for branch and state employees and to Finance & Accounts
department for Head office employees.
c) State accounts officer should send all claims for current month to Head Office
Accounts team by the 20th of every month.
d) Any claims received in head Office after 20th will be processed in the following
month.

12 Subsistence Allowance

An employee, who is placed under suspension, during the period of such suspension, be paid a
subsistence allowance at the following rates, namely:

a) Where the enquiry contemplated is pending or departmental, the subsistence allowance

paid for the first ninety days from the date of suspension shall be equal to one-half of the
basic salary, dearness allowance and other compensatory allowances to which the
employee would have been entitled if he were on a leave with salary. If the departmental
enquiry gets prolonged and the employee continues to be under suspension for a period
exceeding ninety days, the subsistence allowance shall for such a period be equal to three
fourths of each basic salary, dearness allowance and other compensatory allowances.
b) If the enquiry is prolonged beyond a period of 90 days for reasons directly attributable to
the employee, the subsistence allowance shall, for the period exceeding 90 days, be
reduced to one-fourth of such basic salary, dearness allowance, and other compensatory
allowances.

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13 Training Program

 To ensure consistency and base lining of abilities across job roles, new recruits should be
provided with a detailed orientation program to first understand the values and culture of
Indi Trade followed by training tailored for the roles into which they are being boarded.

 Basic level training: An induction program for the employees in the field and support
department.

 Customer relationship Management (CRM) training for supervisors for better

management of branches, generating revenue and connecting with customers.

 Management Development Program: A rigorous month long orientation program

followed by a month of field exposure, specifically designed for recruits from campus
hiring programs.

 Leadership development program for selected leaders from either regional level or
national level.

 Periodic sales training program for all field level officers.

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14 Education Allowance

 Indi Trade should encourage the continuing educational development of its employees to
enhance their personal development and increase their contribution to the growth of the
company. The educational assistance program should support partial reimbursement to
employees for certain educational costs.

 Funding for educational assistance should be allocated within company’s annual

operating budget, and should be made available to the limit that it is economically
feasible.

14.1 Eligibility

 The employee must be full-time with a minimum of 18 months continuous service with
Indi Trade microfinance.

 The employee must have maintained a satisfactory performance level with the company.

 The employee must be on the payroll on the dates between the beginning and the end of
the semester/quarter.

 An employee eligible to receive financial assistance from any other sources such as
veteran's educational benefits, private scholarships, or state or central sources must use
those sources first.

14.2 Qualifying Courses of Study

 The course of instruction must be job related or one that falls within an approved career
path. All courses considered for Education Assistance must be approved prior to being
eligible for reimbursement.

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  Courses must be taken at accredited, recognized educational institutions. Courses
qualifying for reimbursement should lead to graduate or undergraduate degrees or to
certificates. Employees may also take courses on a non-matriculating basis that are
directly applicable to the innovator's work or related to company business.

 Courses may be taken from correspondence schools. However, more care must be
exercised in approving correspondence courses than courses at recognized universities or
colleges. General criteria for approval are:

– The school/course must be approved or licensed by a state or central government, or the

institution must be accredited by a recognized accrediting organization.

– The cost must be in line with other comparable institutions offering comparable courses.

– The program offered by the institution must be of high quality in terms of its
administration, faculty, and student success rate.

– Proficiency examinations will be considered as qualifying for reimbursement when the

examination is given by a recognized school, college, government agency, or association.

14.3 Modifications and Change

 Company has the right to set limits on the Reimbursement amount based on its financial
budget.

 Indi Trade has the right to modify, amend, or terminate benefit plans as dictated by the
Company's operating posture and/or imposed by the requirements of the law.

15 Compensatory off (CO)

Employees, who may be required to work on recognized paid holiday, are entitled to
compensatory off with prior approval from reporting authority. It should be noted that the
employee is eligible for Compensatory leave only if he/she has worked for at least 6 hours on a
paid holiday. Compensatory leaves cannot be en-cashed and have to be availed within 45 days of

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CO issued. Employee is eligible for maximum 2 CO together and in a month. Compensatory
leaves cannot be set off against the notice period.

16 National holiday

Every employee is entitled to national holidays in a year which will be applicable as per the
holiday list provided by the HR department at the start of the financial year.

17 Paternity Leave

All male employees are eligible for paternity leave after completion of probationary period.
Paternity leave is provided for a period of 10 days. Full emoluments will be paid for the period
of paternity leave. Paternity leave shall be restricted to two pregnancies. Paternity leave cannot
be accumulated or encashed.

18 Leave Travel Allowance

The Leave Travel Allowance (Concession) is a benefit extended to employees to travel of self,
spouse, and two children, parents, brothers and sisters of the individual who are wholly depend
on him/her. LTA amount per annum will be equivalent to one month’s basic salary or Rs.40000,
whichever is lower.

LTA entitlement can be claimed once in a financial year. However for tax exemption purpose
LTA may be claimed twice in a block of 4 years as defined by the Government. If LTA is not
claimed during the financial year, the same will be paid as taxable allowance at the end of
financial year.

An employee needs to avail of a minimum 3 days leave to claim LTA. All LTA claims must be
supported by the approved leave application and documents.

LTA can be claimed for travel between any 2 cities using the following modes of transport:

 Travel by Air: Maximum exemption will be an amount not exceeding the air economy
fare of the National Carrier by the shortest route to the place of destination.
 Any mode of Transport other than Air (Cities connected by Rail): Maximum exemption
will be an amount not exceeding the AC 1st class rail fare by the shortest route.

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  Cities not connected by Rail: The amount eligible for exemption will be:
– Where a recognized public transport system exists, an amount not exceeding first
class or Deluxe Class Fare for the shortest route.
– Where no recognized public transport system exists, an amount equivalent to AC
1st Class rail fare for the shortest route.

19 Assessment

 Performance reviews should be undertaken twice in a year.

 Area wise and role wise normalization should be carried out to prevent favoritism.

– For example, in most regions the sales roles are income generating and viewed as more
critical than support roles. Hence in the process of normalization across a region, sales
role should be placed at the higher end of the curve and support roles at the lower end of
the curve.

– By normalizing the sales and support roles separately, the bias could be minimized. This
would also ensure that the company uses a transparent method of computing performance
and promotion increments.

A branch award scheme, where the entire winning team gets a non-monetary form of reward
such as team outing with their families

20 Procedure for Criminal record check needs to be clearly defined.

21 Open House sessions

 Where employees can provide suggestions for people practices.

22 Properly defined job roles

 Duties and responsibility of all staff’s should be clearly mentioned.

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23 Career enhancement policy

 Employees should be allowed to move to different roles through internal job posting.

 Interested candidates should be provided education allowance based on their performance

in the course of their work.

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