“Summer Training Report”

On
“Human Resource Management process and payroll management within the organization
and its service providers”.

Submitted for the partial fulfillment of the requirement for the award of Master of Business
Administration (MBA) degree from Dr. A.P.J Abdul Kalam Technical University, Lucknow

Submitted By:

ARYAN SIROHI

MBA III SEM

2100290700038

Under the guidance of

Dr. Ranchay Bhateja

KIET School of Management

KIET Group of Institutions

13 KM Stone, Ghaziabad - Meerut Road, Ghaziabad – 201206 (U.P.)

1
 Certificate of the HoD

To whom it may concern

This is to certify that Mr. ARYAN SIROHI, roll no. 2100290700038, is the student ofMBA III

semester and has successfully completed his project on “Human Resource Management

process and payroll management within the organization and its service providers”.

Date HOD

2
 13th October 2022

TO WHOMSOEVER IT MAY CONCERN

This is to certify that Mr. Aryan Sirohi (Reg No: - 2100290700038) doing his second-year
MBA from KIET Group of Institutions, Ghaziabad, India, has successfully completed his
two-month Internship from 22nd August 2022 to 10th October 2022 with Greytip Software
Pvt. Ltd, located in Delhi NCR.

Aryan has undertaken the project “Human Resource management process and payroll
management within the organization and its service providers”.

During the period of his internship with us, he was found punctual, sincere and his conduct
was found to be satisfactory.

We wish him every success in his future endeavors.

For Greytip Software Private Limited.

Mohana Sardar Senior

Manager-HR

3
 Declaration

I ARYAN SIROHI roll no. 2100290700038 student of MBA III Semester of KIET, School of
Management Ghaziabad hereby declare that the project report on

“Human Resource Management process and payroll management within the organization
and its service providers”.
is an original and authenticated work done by me. I further declare that it has not been submitted
anywhere by any other person in any of the university for the award of any degree or diploma.

Date Aryan Sirohi

Faculty Guide

4
 Acknowledgement

It is really a great pleasure to have this opportunity to describe the feeling of gratitude from the
core of my heart who given their immense contribution while preparing this project report.

I convey my sincere gratitude to Dr. R SRINIVASAN for giving me the opportunity to prepare
my project work “Human Resource Management process and payroll management within
the organization and its service providers”.

I am thankful to Dr. Ranchay Bhateja Ma’am for her guidance during my project work and
MR ALOK SHARMA for sparing his valuable time for the same. I express my sincere obligation
and thanks to all the Faculties of Department of MBA for their valuable advice in guiding me at
every stage in bringing out this report.

I am also thankful to my family for their kind co-operation which made my take easy.

Name: ARYAN SIROHI

Roll No: 2100290700038

5
 Table of Content
Chapter Title Page No

Certificate, Declaration, Acknowledgement 5 pages

ABSTRACT Executive Summary of Internship / Project work 8 pages

CHAPTER I  Introduction 9-12pages

 Importance of study
 Overview of the Company
CHAPTER II  History 13-25 pages
 Different Product /Service / Scope of Work
 Organization chart
3.0 Introduction to Project / Internship and Project / Internship
Management
3.1 Project / Internship Summary (you wish to
convey.)
3.2 Purpose
3.3 Objective
3.4 Scope (what it can do and can’t do)
CHAPTER III
3.5 Literature Review 26-98 pages
3.6 Project / Internship Planning
3.6.1 Project / Internship Development
Approach and Justification
3.6.2 Project / Internship Effort and Time, Cost
Estimation
3.6.3 Roles and Responsibilities
3.6.4 Group Dependencies
3.7 Project / Internship Scheduling
 Problem Encountered and Possible Solutions
CHAPTER IV
 Interpretation and Analysis of Internship / Project 99-103 pages
 Conclusion and Discussion
 Limitation and Future Enhancement
 Learning’s & Value addition during training
CHAPTER V  Difference between practical exposure and theoretical work. 104-108 pages
 Challenges faced by you during your internship.
 Usefulness of training should also be highlighted.

 Bibliography
 Tables and Charts
ANNEXURE  Photographs during Internship / Project work 109-114 pages
 Plagiarism Report (should be under 15%) signed by Mentor
 Nalanda e-consortium Report signed by Mentor

6
ABSTRACT

7
This internship paper discusses Greytip Software. I have tried to gather information about the
achievement and gaps in industry and assess the opportunities to grow the company as a whole. There
are certain factors that perpetuate our organization one of the leading in the industry and as an agent of
payroll software, gives us brand name in the market and easy access to potential consumers. Because
payroll software has vast network in the world.

Greytip Software is a company providing people management software for small and medium
businesses. It offers greytHR, a solution that automates people operations including employee
information management, leaves and attendance management, training, appraisals, compensation, etc.
Additionally, the company develops a mobile app for employees.

My job responsibilities at Greytip Software, I am expected to submit reports of our data entry records
to our manager within strict deadlines. As an Intern, I have to follow precise codes of professionalism,
attend professional development training sessions and also foster relationships with stakeholders at my
organization as well as outside of the organization.

The report continues to assess the organization through a SWOT analysis. I have further identified a
few areas of growth of organization as a whole. The suggested ways of overcoming those issues and
challenges have been elaborated in the recommendations section.

8
CHAPTER- I

9
 Introduction

Human resource department is the one of the driving factor within any organization that ensures
better flow of operation for any of the company. Sometimes it is possible for the companies to do
their HR works smoothly at efficient cost and time. But many of the times it is very difficult to
manage human resources and their various operations like compensation, staffing, event
management, creating harmony within employees, monitoring and strengthen industrial relation
etc. Companies use various approaches time to time that helps in resolving any type of dispute
and clashes in work.

Nowadays as digital devices and technology comes into play for corporate functions. Various
types of software and Information technology services helps in better productivity and accuracy
in day to day operations as well as in strategic decisions too. For coping with the competition of
market, it is the need of the time to use different software and IT approaches to run any business.
GreytHR software for HR and payroll processes is also one of the IT tool in this league. Greytip
software Pvt. Ltd. provides software named Greytip software that provides complete solution for
basically payroll outsourcing companies and for payroll service provider.

Nowadays companies looking for such technology that can automate their processes and make
them possible in simple clicks. This software has different categories and modifications as per
the needs of different types of client. Software provides complete solution to all the Core HR and
payroll works. The complete internship is basically oriented towards working and benefits of
such software within the organization and its service provider. There are different needs of the
market time to time. So to understand such need and make changes in own product helps in more
revenue generation and better sales of product. Companies are not only limited to any specific
operation. They are looking for the product that helps in their integrated operations like payroll
and HR processes in a single product.

Payment errors may occur faster than you think. For a moment, think of the employees whose
only monthly income is their source of income. Consider what happens if the salary is not paid
correctly or there is a delay in withdrawal. Such inequalities can disrupt the morale of employees
and ultimately disrupt business productivity.

While ensuring fair and timely pay is important, adherence to various laws and regulations such
as labor law, PF, PT and other compliance is also important. Failure to comply with these rules
could result in serious legal and financial consequences.

To make sure your employees are happy and compliant with the law, you need to have a clear
idea of what the payroll is and how you can manage the payroll effectively. We will start with
the basics of pay. Although leave management is relatively easy compared to many other HR
processes, there are still many reasons to do it. Let's go deeper. Managing staff is a core HR task
that every company should manage. A few common doubts bother new founders or newly
created HR professionals. Can the heavens collapse if we ignore this tedious task? What are the

10
benefits of leave management for any organization? Heck, what does leave management mean?
These are some of the tasks that every HR department has to perform in the organization. As
with this dynamic environment in corporate world, roles and responsibilities of HR manager is
also changing. Human resource department is not only a single unit nowadays. Payroll is also
one of the integral parts of any organization that somewhere covered by HR department and
somewhere in the Finance department. Due to lot of other responsibilities, many companies
outsource their services to the third party. It has many benefits to company as well as to the third
party agency which render that service. Payroll is also frequently outsourced service nowadays.
Payroll service providers in market help such organization in their efficient working of services.
Outsourcing helps in cost effectiveness, specialization person dependency and also provides
flexibility to companies. Greytip software Pvt. Ltd. is one of the Information Technology service
company. It provides solution for the all core HR tasks and payroll outsourcing too. It is a
helpful tool for Payroll service providers, Tax consultants, Chartered accountant, Tax advisors
etc. In simple words we can say that greytHR software provides solution for all HR functions,
payroll services like compliance management, reimbursement, disbursement, salary processing,
report generation, etc. Now that time passed away when HR department has to manage and keep
lots of records in hard copies and in paper books. For any of the organization data is the foremost
raw material for their business processes. And keeping such data in accounting books or in
shelves is really very typical, ambiguous and difficult to retrieve. So for this the only solution is
to change the approach and shift to other mode of data management and communication i.e.
digital medium.

11
 Importance of Study

In 2020, the pandemic Covid- 19 changes the whole world drastically. The changes that
we make in just one year are really imaginary. But as an idiom suggests that there will
always an opportunity in every problem. The changes like work from home culture,
online studies, online businesses comes with a very rapid rate.
Same is with HR automation, now those days gone when HR department have to manage
books of information of employees, salaries etc. Nowadays there are various softwares in
the market that performs various HR functions in just some clicks. Such as salary
disbursement, salary processing, tax deductions, attendance management etc.
This study describes about the usefulness of HR software and cloud based solutions for
HR practices. Some of the points that shows significance of our study in quick lines-
 Help in making required changes for cloud based software for Information Technology
services.
 To understand the today’s HR need.
 Helps to know about the market for cloud based software.
 Find out the problems that leads to dissatisfaction with cloud based HR softwares.

12
CHAPTER- II

13
 Overview of company & its products

Greytip Software was developed to provide cost-effective and cost-effective software solutions
to the HR domain to companies worldwide. Since 2009, we have done that with greytHR -
India's first fully integrated cloud-based HR & Payroll software. Powerful automation options
and affordable environment make greytHR a popular choice for 10,000+ products worldwide,
including industry leaders such as Chai Point, Volvo, Teamlease, and Hexaware.

Greytip Software is India's largest provider of cloud HR & Payroll software solutions. With a
customer base of over 9000+, we touch the lives of 1,000,000+ active employees daily.

Whether your team has 5 or 50,000 members, we make HR departments of all shapes and sizes
use IT to work efficiently and effectively. GreytHR automatically performs all human functions
including employee information management, leave and attendance management, training,
analysis, compensation and much more - making it a great friend of human administrators.

Values

Drive Customer Success- Listen and treat every interaction with our customers as an opportunity to
create an enduring relationship that adds value to them.

Improve Every Day- Growth is not ‘set it and forget it.’ We strive to be better every day, as a business
and as individuals.

Focus on Impact- As a business, the impact we create for our customers and solving their
problems is our Chief Key Performance Indicator.

Nurture Learning & Sharing- We thrive in an environment of mutual trust, shared knowledgeand
collaboration.

14
Deliver Excellence- Excellence, both in our products and customer success, is our North Star.

Website : http://www.greythr.com
Industries : Information Technology and Services
Company size : 201-500 employees
Headquarters : Bangalore, KarnatakaType
: Privately Held
Founded : 1994
Specialties : HR and Payroll Software, Online Payroll, Leave and Claims application,
Employee Self service, and attendance and leave tracking
Branches : Pune, Mumbai, Delhi NCR, Hyderabad, Chennai, Dubai

Leadership Team

Girish Rowjee (Co-Founder & CEO)

Girish Rowjee is the founder and CEO of Greytip Software. Girish has directed Greytip to
become the main HR & Payroll solution provider today that allows the processing of 13 Lakh +

15
user records every month. One of the first developers in the Cloud B2B region of India has been
instrumental in appointing Greytip as market leader in the Payroll & HR space with
approximately 10,000+ pay businesses in India and GCC countries. Girish did his engineering at
SJCE Mysore. He is one of the founding members of iSPIRT (Indian Software Industry Product
Cycle Table) and is a Consultant at the Founder's Institute, India.

Sayeed Anjum (Co-Founder & CTO)

Sayeed Anjum is the co-founder of Greytip Software. He focuses on improving the product
development process and oversees all aspects of product development, including engineering
requirements, usability, planning and quality since 1994. Sayeed leads R&D, Innovation Labs
and Product Development. He holds a Masters degree in Computer Applications from SJCE,
Mysore and is a member of NASSCOM and a member of TiE.

Mohammed Azhar( Chief sales officer)-

Mohammed Azhar has been an integral part of Greytip since 1998. Overseas the strategy, model
and implementation of marketing resources and he combines marketing power across India with
the Channel Partners. He has been instrumental in promoting Greytip's recognition among
reputable companies in India. His unique communication skills, developed to communicate
regularly with HR professionals, make the process of new customer acquisition smoother and

16
accelerate revenue generation. He has over 21 years of experience in sales, delivery and training
and holds a degree in Engineering.

Krishna Prasad (Chief Product Officer)

Krishna Prasad has grown dramatically from a vocational student to Head of Production in his 13
years with Greytip. His hard work, dedication and technical knowledge of the product have been
very helpful in shaping the greythHR product. With the latest knowledge of technological change
in the software industry, Krishna is an unpopular guy who handles all aspects of a product with
ease. He also oversees the Product Roadmap, Customer Success and Training and holds a
Masters in Computer Science from NIE, Mysore.

Unnikrishnan Raghavan(Chief Knowledge Officer) -

Unnikrishnan Raghavan is the Information Officer at Greytip. He has more

than 25 years of professional experience in B2C and B2B Sales, Channel Management,
Franchising, Performance Talent Development, and Knowledge Management. He has many
industries such as Consumer Durables, FMCG, Mobile Telephony, Retailing, Education, Design,
Real Estate etc. Unni joined the BPL team in the early 90s as a Sales Coach and rose to the GM
level alike. group, which acquires various product lines and markets. He later moved to
Subhiksha Retail where he gained a deeper understanding of the retail business. After leaving
Subhiksha, he joined NIIT as their Geo Head of the South African retail training business and
rose to prominence as Vice President and Head of Placement and Cooperative Companies. It was
at this stage; he became an entrepreneur by launching the QSR series in the South. After a

17
successful business career, he joined the Design Thinking Education and Consulting firm as its
COO and later became the Director of Pana Education Group. Unni holds a degree in Science
from Calicut University and holds a PGDM from Bharatiya Vidya Bhavan.

A good leading and managing skills boost up the growth of any organization at rapid rate.
Greytip software Pvt. Ltd. has a very strong leading team that strategically have a clear mission
and vision.

Company Roadmap:

18
Products offered-

Payroll Software

Complete payroll processing-

1. Process payroll with a single click
2. Use guided payroll processing with checklist
3. Compute accurate salaries automatically
4. Use extensive reconciliation tools

Configurable salary structure

1. Configure complex salary structures
2. Add unlimited salary components

Automated payroll inputs and pay slips

1. Automate reimbursements, loans and advance
2. Process payroll with automated payroll inputs

19
3. Generate and distribute customized pay slips

Comprehensive Post-Payroll Process

1. Generate statutory reports

2. Disburse salaries with ease
3. Generate Accounts JV

100% statutory compliance

Enjoy complete compliance

Generate payroll reports

Generate payroll reports

The perfect online payroll software for small business

The importance of having a highly paid software system cannot be overstated. All
companies that have used payment software have seen significant improvements in
employee productivity. In addition, there are other factors such as HR management, leave
management, attendance tracking, and many more that contribute to improving the
efficiency of the HR department. GreytHR can be considered as the leading Payment
Management Software because of its wide range of features suitable for large businesses
and small companies alike.

HR Software

Core HR - Where Everything Begins

1. Capture all employee data
2. Manage lifecycle activities
3. Search employee data
4. Track employee assets
5. Collect and update KYE information

greytHR Onboard- A Pleasant Onboarding Experience

1. Paperless On boarding Process
2. Integrated Document Management
3. Review Workflow
4. Ensure New Hire Compliance

20
 Employee Communication, Reminders and Alerts

1. Manage employee communication

2. Send reminders and alerts
3. Use notification templates
4. Update and publish company policies and forms

HR Reports and Dashboards

1. Use readymade HR MIS reports

2. Gain insights from HR dashboards
3. Gain insights from CEO dashboards

Employee Document Management

1. Manage and access employees’ documents
2. Generate letters to employees

Automatic and Centralised Online HR software

GreythHR is an all-inclusive HR software solution designed for small and medium

enterprises in Indian businesses. Our online HR software is backed by more than 25 years
of experience in all HR related activities. Also, greytHR comes with integrated presence
management and leave management system with staff support features and salary
management features. We are constantly analyzing the need for our customers to
understand how we can help them become more successful, which is why greytHR ranks
# 1 in providing the best value in HR.

Leave Management

Fully customizable leave policies

1. Create multiple leave types
2. Customize configure leave policies
3. Access library of standard policies

Holiday lists

1. Holiday lists
2. Create regional or location-based lists
3. Add Restricted Holidays
4. Publish company’s holiday list

Minimal leave-related tasks and queries

1. Grant leaves automatically

21
2. Let employees and managers handle leave requests
3. Focus more on strategic HR tasks
4. Access leave reports Leave

year-end processing

Leave year-end processing need not mean extra work anymore.

The Best HR software for leave management system

Every organization may have different needs, so when choosing vacation management
software, it would be wise to choose a vacation solution that provides basic needs while
providing flexibility to customize the vacation process. Managing greytHR staff leave is
not easy with full HR management software.

Attendance Management
Without real time attendance management, work is challenging and full of compromises.
Real time automation of attendance enables smooth operations and improves
productivity.

Attendance capture from varied sources

1. Record real-time attendance
2. Capture attendance from the ESS portal
3. Capture attendance from third-party hardware

Geo Mark Attendance Marking feature

1. Capture attendance from mobile app

2. Eliminate need for attendance devices

Extensive shift management

1. Create shifts and associated policies
2. Assign shifts to employees

Attendance Processing
1. View real-time attendance info
2. Configure attendance the way you want it
3. Real-time reports

Employee portal: More than an attendance register

1. View complete attendance information

22
2. Regularize attendance

Highly configurable policies

1. Create employee group wise attendance policy
2. Set up actual hour computation logic
3. Create attendance scheme, a one-time activity

Comprehensive Overtime Management

1. Configure Flexible Policies
2. Apply Overtime in bulk or for individual employees
3. Generate detailed Overtime Payslips
4. Data-driven decisions based on reports and insights

greytHR Visage - Attendance through Facial Recognition

1. Secure, COVID-safe & touch-less attendance capture mechanism
2. Comprehensive attendance solution
3. Accurate attendance marking
4. Easily scalable solution

Robust Attendance Tracking Made Easy

In today’s work environment, organizations may need to allow employees to work in

remote areas or work from home. By using greytHR, employees can easily access any
site. So if you want that perfect payment solution for all your HR needs, try online HR
software like greytHR.

Employee Self Service

Empower employees with access to personal organisational information. Enable greater
transparency, improved communication and engagement. The portal also enables
anytime, anywhere access.

ESS portal - General Activities

1. View your own information
2. View your official documents and letters
3. View company policies and forms
4. Leverage the power of social networking
5. Search for and view employees

ESS portal – Payroll

1. View payroll information
2. View and update tax-related information
3. Payroll inputs

23
 ESS portal – Leave
1. View leave balances and holidays
2. Manage leave transactions
3. View team’s leave information

ESS portal - Help Desk

1. Use as IT Help Desk
2. Use as Admin Help Desk
3. Use for Recruitment needs
4. Use as Accounts Help Desk
5. Use as HR Help Desk

ESS portal - Attendance

1. ESS portal - Attendance
2. On Employee Self Service, managers in your organization can access better
information with significantly lesser effort.

Empower your employees with Employee Self Service

Content staff is the key to the success of any organization. With an ESS site
dedicated as part of HR software, your employees can quickly access related
features and data; payslips, applications, etc. All of this comes as part of
India's best payment software for small businesses, greytHR.

Mobile Apps for Employees

greytHR puts access in the employee’s pocket via a cool mobile app. Payroll
information, leave applications, geo-attendance marking and a 24/7 help desk for
queries, are all just a screen tap away.

Mobile app for employees and managers

Apply/ review leaves and claims, access income tax-related information and plans,
view payslips and use the Help Desk to log in trouble tickets - all from the
ubiquitous smart mobile device. They can also apply for and approve/ reject
attendance regularizations.

24
Payroll-related information

View, upload and update information pertaining to income tax, tax-saving plans, deductions, etc.
Also, view payslips, total earnings statements and PF and YTD statements, all from smart phone
devices.

Leave Management

Your employees and managers can apply for and approve/ reject leaves, respectively, with a
single tap on their mobile. They can view leave balances (across all leave types) and holiday
details from the app itself. Managers can also view their team members’ leave-related
information.

Geo Mark Attendance Marking

Our feature enables your employees to be signed in and signed out the moment they arrive and
leave predefined location coordinates. You can set up an unlimited number of location
coordinates, such as multiple office locations, on-site client locations, vendor offices, etc. No
more worrying about not capturing accurate and real-time attendance of remote, on-site, or
mobile employees again - without depending upon third-party attendance hardware systems and
their associated costs

Help Desk

Access the Help Desk on your mobile from the comfort of your home or even while traveling.
Track and manage all categories of employee queries anytime, anywhere. Your employees can
simply submit a ticket on the Help Desk (can be used as IT, Admin, HR Recruitment or
Accounts Help Desk) via greytHR mobile app. The mobile Help Desk helps faster resolution of
issues and helps your HR and Payroll departments to function efficiently.

25
CHAPTER III

26
 Introduction to Project

Human resource department is the one of the driving factor within any organization that ensures
better flow of operation for any of the company. Sometimes it is possible for the companies to do
their HR works smoothly at efficient cost and time. But many of the times it is very difficult to
manage human resources and their various operations like compensation, staffing, event
management, creating harmony within employees, monitoring and strengthen industrial relation
etc. Companies use various approaches time to time that helps in resolving any type of dispute
and clashes in work.

Nowadays as digital devices and technology comes into play for corporate functions. Various
types of software and Information technology services helps in better productivity and accuracy
in day to day operations as well as in strategic decisions too. For coping with the competition of
market, it is the need of the time to use different software and IT approaches to run any business.
GreytHR software for HR and payroll processes is also one of the IT tool in this league. Greytip
software Pvt. Ltd. provides software named Greytip software that provides complete solution for
basically payroll outsourcing companies and for payroll service provider.

Summary
Nowadays companies looking for such technology that can automate their processes and make
them possible in simple clicks. This software has different categories and modifications as per
the needs of different types of client. Software provides complete solution to all the Core HR and
payroll works. The complete internship is basically oriented towards working and benefits of
such software within the organization and its service provider. There are different needs of the
market time to time. So to understand such need and make changes in own product helps in more
revenue generation and better sales of product. Companies are not only limited to any specific
operation. They are looking for the product that helps in their integrated operations like payroll
and HR processes in a single product.

Payment errors may occur faster than you think. For a moment, think of the employees whose
only monthly income is their source of income. Consider what happens if the salary is not paid
correctly or there is a delay in withdrawal. Such inequalities can disrupt the morale of employees
and ultimately disrupt business productivity.

While ensuring fair and timely pay is important, adherence to various laws and regulations such
as labor law, PF, PT and other compliance is also important. Failure to comply with these rules
could result in serious legal and financial consequences.

To make sure your employees are happy and compliant with the law, you need to have a clear
idea of what the payroll is and how you can manage the payroll effectively. We will start with
the basics of pay. Although leave management is relatively easy compared to many other HR
processes, there are still many reasons to do it. Let's go deeper. Managing staff is a core HR task
that every company should manage. A few common doubts bother new founders or newly
27
benefits of leave management for any organization? Heck, what does leave management mean?
These are some of the tasks that every HR department has to perform in the organization. As
with this dynamic environment in corporate world, roles and responsibilities of HR manager is
also changing. Human resource department is not only a single unit nowadays. Payroll is also
one of the integral parts of any organization that somewhere covered by HR department and
somewhere in the Finance department. Due to lot of other responsibilities, many companies
outsource their services to the third party. It has many benefits to company as well as to the
thirdparty agency which render that service. Payroll is also frequently outsourced service
nowadays. Payroll service providers in market help such organization in their efficient working
of services. Outsourcing helps in cost effectiveness, specialization person dependency and also
provides flexibility to companies. Greytip software Pvt. Ltd. is one of the Information
Technology servicecompany. It provides solution for the all core HR tasks and payroll
outsourcing too. It is a helpful tool for Payroll service providers, Tax consultants, Chartered
accountant, Tax advisors etc. In simple words we can say that greytHR software provides
solution for all HR functions, payroll services like compliance management, reimbursement,
disbursement, salary processing, report generation, etc. Now that time passed away when HR
department has to manage and keep lots of records in hard copies and in paper books. For any of
the organization data is the foremost raw material for their business processes. And keeping such
data in accounting books or in shelves is really very typical, ambiguous and difficult to retrieve.
So for this the only solution is to change the approach and shift to other mode of data
management and communication i.e. digital medium.

Objectives

To find out the scope of HR and payroll software in market.

To understand the main purpose of payroll outsourcing and HR services outsourcing for
organizations.
To understand the benefits of payroll software for organization and payroll service
providers.
To understand various data mining functions and how to convert prospect client into
potential client by using effective communication skills.
To find out the challenges in front of cloud based software.

Literature review

HRMS software makes HR processes so easy and simple like GreytHR software. Bring
simplicity, speed and efficiency to all repetitive HRMS functions. Deliver world-class employee
experience. Get operational HR out of the way, and make time for high value work.

HR has many core operations from capture all employees’ data to manage lifecycle activities.
Download all required employee details from personal details to work in a central location. Easy
28
tools to carry out various employee lifecycle activities, such as addition, confirmation,
resignation, etc. and maintain complete work history.

Use powerful search and querying capabilities to quickly locate, consume, or update employee
information. Monitor your company’s asset-related information, especially upon an employee’s
resignation, promotion or transfer. At all times, know which company assets are being used by
which employee.

HR & Payroll Administration –

What is Payroll?

Payroll is a list of employees who are paid by the company. Payroll also specifies the amount of
money an employer pays to employees. As a business activity, it includes:

1. Developing an organizational payment policy that includes flexible benefits, leave pay
policy, etc.
2. Define payslip components as basic, flexible payment, HRA, and LTA
3. Collecting other payroll inputs (e.g., an organization food retailer may provide
information about the amount that will be paid to employees for food eaten)
4. Actual calculation of total income, legal and non-legal deductions, and arrival of
payments.
5. Withdrawal of staff salaries, Payment of fees such as TDS, PF, etc. and appropriate
authorities and compensation returns

29
 6.
In short, the payment process involves getting what is due to employees and is called a
'net pay' after adjusting the required taxes and other deductions.

The equation for calculating the net pay-

Net pay = Gross income- gross deduction

Where, Gross income or salary = All types of regular income + allowances + any one-time
payment or benefit

Gross deduction = All types of regular deductions + statutory deductions + any one-time
deductions

What are the Stages to Processing Payroll?

The payroll officer needs careful planning. There are always ongoing activities that require
attention and an ongoing need to monitor changes in lending, contribution to social security
funds, etc. The whole program can be divided into three categories, pre-payroll, real payroll and
post payroll functions.

30
Pre-Payroll Activities-

Defining Payment Policy

The total amount to be paid is affected by many factors. Various company policies such as
payroll policy, leave and benefits policy, attendance policy, etc. they start working right away.
As a first step, such policies need to be well defined and approved by management to ensure
standard payment processing.

Collecting Input

The payroll system involves liaising with multiple departments and staff. There may be
information such as mid-year salary review data, attendance data, etc.

In smaller organizations, this input is accepted from a merged source or from several groups.
However, in a large organization, the task of collecting data may seem daunting. If you use smart
payment software with integrated features such as leave and commute management, self-help
site, etc. the input collection process is not always a problem.

Input Validation-

Once the input is validate, you need to check the validity of the data related to company policy
compliance, authorization / authorization matrix, correct formats, etc. You also need to make
sure that no active worker is missing and that no inactive employee records are included in
payroll.

Let’s read top 6 payroll validations to ensure accurate payroll.-

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A small error in the consideration of pay can cause financial embarrassment to the organization
or can lead to employee grievances and in the worst case, call for legal action. Here is a quick
checklist to reduce the chances of payment errors.

1. Integrity of payroll input- Payroll inputs include both income and withholding of employee
data: Input providers can be a financial team (acquisition / payment data), staff (data such as tax
savings declarations, tax-free grant allocation funds) etc.

To avoid data errors, you can provide standard templates to input providers and get all the
information in the default format.

When using the software, be sure to supply the input in an acceptable format / syntax to the
system. Ideally the default payroll system should be able to throw errors when input values do
not match the predefined format.

2. Input v/s Output validation- Post the first payment process, compare the total number of line
items in the source file (the one obtained from the input provider) with the payment results, for
each pay item. This will ensure that you do not miss the data for any activity. Additionally,
compare the total cost of such inputs with the payment results to ensure that the values are
entered correctly.

Example: You have received a filing file from the sales department with an order to pay
compensation of Rs. 250,000 / - to 200 employees. Once you have completed the inclusion of
this data in the payroll system, it should provide you with a report showing the number of line
items such as 200 (number of employees affected) under the “Motivation” type of salary and the
total number of line items that should be the value. up to Rs 250,000. This function of comparing
source data with payment results is called ‘input v/s output validation’

3. Validations while posting accounting entries-

Your accounting system needs to record all financial transactions. Gaps in information need to
be defined. Use statements to find differences in granular level and correct errors.

If your payroll system is integrated with your calculation system, errors can be avoided.

GreytHR offers you a JV or Journal Voucher feature for accounting entries for all pay-per-view.
This way your calculation system can be updated without data loss.

4. Head count validation- In addition to input verification, headcount verification in your

earnings results is also very important.

Formula:

Number of active employees of the current month = Closing last month of active employees +
new employment of this month (-) division during the month

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In the event of any discrepancy, inquire about any employee ‘with payroll hold’ or ‘monthly
salary loss’ etc.

5. Month-to-Month; Year-to-Year cost validation

Compare the total amount of salary with last month's payroll. Generally, salary differences
between two months can be due to:

1. New appointments
2. Separation
3. Salary changes
4. Flexible parts
5. Legal/Statutory changes

6. Eyeballing & System checks: Over time with your years of experience, you should be
able to see / suspect confusing or at least, look around by asking for big or ridiculous
payments that don’t look right.

Actual Payroll Process

Payroll Calculation- At this stage, verified input data is entered into the payment system to
process the actual payment. The result is a lump sum payment after adjusting the required taxes
and other deductions. Once the payment process is complete, it is always a good practice to
synchronize prices and ensure accuracy to avoid any mistakes.

Post-Payroll Process

Statutory Compliance- All official deductions such as EPF, TDS, ESI are withheld during
payment processing. The company then sends the money to the relevant government agencies.
The frequency may vary depending on the type of payment. In most cases, payments are made
by challans. After all bills have been paid the refund / report has been submitted. Eg, in order to
complete PF recovery, ECR is produced and completed.

Payroll Accounting- Every organization keeps a record of all its financial transactions.
Remuneration is one of the most important operating expenses to be reported in the ledger. As
part of your salary management, it is important to check that all salary and refund details are
correctly entered into the accounting / ERP system.

Payout- You can pay the salary in cash, by check or by bank transfer. Organizations often offer
employees a payroll bank account. Once you have completed the payment, you need to make
sure that the company's bank account has sufficient funds to make the payment. You will then
need to send a bank statement of advice to the relevant branch. This statement is issued with

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details such as employee id, bank account number, and salary amount etc. account and access
pay slips.

Reporting- Once you have completed the monthly payment, the finance team and senior
management may request reports such as the cost of the smartest employee in the department, the
cost of the smartest employee in the area, etc. As a paid officer, it is your responsibility to dig
into the data and extract the necessary data, information and share reports.

Statutory Compliance in Indian Payroll- If you use a payroll, complying with the law means you
are paying according to the applicable employment procedures set by the national and
international law. Common legal requirements applicable to Indian businesses include the
provision of minimum wages, the payment of overtime pay to employees, the seizure of TDS,
the contribution to public safety programs such as PF, ESI, etc.

When using a computer salary you need to consider all of these deductions and contributions.
Income tax is one such asset. At the beginning of the year, an employee is asked to make an
announcement about his or her additional income, tax-saving investment, etc. called ‘income tax
declaration.’ Accordingly, the employee tax liability is calculated, and TDS deducted.

Challenges in Handling Payroll Management Process

Payroll process is challenging due to two major reasons-

The Requirement to stay Statutory Compliant-

As mentioned earlier, compliance without the rules of the law may result in the
imposition of fines and penalties and in the worst case may threaten the existence of the
business. Today there is advanced payroll management software that automatically
processes payments in accordance with legal requirements.

Dependence on Multiple Payroll Inputs Sources-

Before the list of employees is processed, you need to gather all the information from
sources such as attendance register, available transfer record, data from the HR team such
as salary review information, etc., which makes the process more complicated. For many
years HR and payroll officials have been paying payroll on excel sheets, but excel sheets
have problems such as relying on excel formulas for calculating salaries, complexity in
adding and removing staff and other limitations such as data entry, difficulty in extracting
information , etc.

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 Various Methods Available to do Payroll for your Business

The possible methods for running payroll can be-

Excel based payroll management

Payroll outsourcing
Using payroll software

Excel based Payroll Management-

Many businesses are in the first phase of operation and have a number of employees who
often go to excel-based payroll management.

Excel-based payroll management involves calculating earnings on excel pages using a

standard payment calculation template. Established statistical formulas help the paying
officer calculate. Although this method does not involve costs, it has its own natural
limitations-
High probability of writing and mathematical errors as data is entered manually
Difficulty in adding and removing employees from payroll
Chances of duplicate data and occasional input extensions
You need to monitor tax updates and other legal changes like PF, PT etc.

Payroll Outsourcing-

Outsourcing payroll means you need an outside agency to take care of your payroll job.
Many nonprofit organizations go through this process. Based on their pay cycle, each
month they provide staff salary information and other information such as availability,
leaves, return details, etc. to a payroll service provider. The service provider then
calculates the payment amount and monitors compliance. Since remuneration is an
important task and businesses want to be fully transparent and in control of it, they are
often reluctant to take their earnings out.

Payroll Software-

As mentioned above, in order to use a successful payroll, you need to make sure that
payroll inputs come from all sources in a timely and efficient manner. The purpose of
using the software is to reduce the impact on the acquisition of inputs. There is advanced
payroll management software available on the market that not only automatically
calculates salary but also works as a complete leave management and attendance
management, staff management and self-service portal. Depending on the size of the
business and the operating conditions, you may choose the right software to pay for your
business.

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Best Payroll Software for any Organization-

Moving from a manual payment system to an automatic one can save a lot of time. It not
only helps to process salaries quickly and accurately but also keeps employees, managers
and governing bodies happy.
There are some features that you should consider while selecting any payroll software

Ease of Operation
Paying work can be very difficult. You should choose a system with a complete but direct
flow function. If the software is accurate, it reduces the need for software training and
guidance. Also, make sure that the software provider provides the updated documentation
so that you can access the information whenever you need it.

Scalability
As the size of the organization increases your software also needs to work properly for
you. The limit can be based on the personnel data it is processing or on the availability of
features such as leave management and attendance, compensation model, etc. Software
delivery should be such that you can select advanced features at a reasonable price
without much hassle.

Employee Self-Service Module

One of the main payroll deposit providers is the employee. ESS provides information
such as income tax return declaration, optional variable interest rate, etc. Interactions
between a paid officer and an employee are usually based on events. To understand the
importance of the ESS module let us consider the issue of income tax declaration in two
cases:

 Integration with Time, Attendance and Leave Management System

Time Management

This module is usually used to track time spent on specific projects or activities.
Consulting firms such as auditing firms, specialist doctors, etc., manage important
projects that require a strict time management module and sometimes this data may be
used for paying clients.

Attendance

While most small organizations make a personalized approach, medium and large
organizations have begun to use smart automated tools such as biometric method,
automatic tracking of system login, access cards, iris photography, etc. Data is stored in a
system and connected to payroll software that uses this data to calculate existence dates,
overtime, etc. For seamless payment processing, check that the software supports
presence management and is configured with access control devices.

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Leave Management

In all unions, employees have the right to take a certain number of leaves such as annual
leave or leave, sick leave, vacation, etc.

If the software has a break management feature, HR can add these pages directly to the
account for all eligible activity. As and if necessary, the employee can apply for leave
with the system. A good plan should also be able to explain the work flow to inform the
employee manager of approval or rejection. Robust payment software with a built-in
leave management feature can help you get accurate payments.

Integration with the Accounting System

Your accounting / ERP system needs to record all financial transactions including
payment information such as a smart employee in the department, portions of each salary
as reimbursement, taxes to be paid, etc. Some payroll software can be integrated with
calculation software via API (a method of compressing data directly from one software to
another).

In the absence of such a merger, the presiding officer is required to provide full details of
the transaction in the accounts department. The librarian then sends it in person in the
form of a journal embedded in accounting / ERP software such as Tally ERP, SAP,
Quickbooks, etc. This integration can help the financial and payroll team to work
together and avoid any personal data entry.

 Cloud-Based Software over On-Premise Solutions

The payroll management space is changing rapidly. In-house software solutions
are outdated and businesses are looking for cloud-based solutions for their
benefits.

 Ability to Access the Data at Any Time and From Anywhere

If you are using cloud software, you do not need to be in your office to access
your payroll and employee data. You can log in anywhere at any time like Gmail.

 The Advantage over the Inherent Limitations of On-Premise Systems

Local systems have their limitations such as the threat of data loss by fire, floods,
etc. Also, the setup costs of these programs are high and come with the initial
operating limit. The annual cost of care is usually very high. Although, cloud
solutions are built on such technology, so you can always opt for an advanced
system that supports a high level of performance at any time. As cloud solutions

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 have a data center in many places, even in times of fire, flood, etc. your data
remains secure.

A Guide to HRMS

HRMS (Human Resource Management System) is a type of HR software that

allows for the management of several HR operations through information
technology.

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 HRMS aims to improve the productivity and efficient business automation of
manual and duplicate operations. This, in turn, frees up the HR team time that can
be spent on strategic, more important business activities.

HRMS typically integrates all aspects of HRIS and incorporates the skills of a
personnel management system. Two popular features of the standard HRMS are
Payroll and Time & Labor Management (TLM).

"Some HRMS merchants have [HRIS + (Payroll + TLM) = HRMS] while a few
do not have [HCM + (Payroll + TLM)]"

Typical Functions of HR

Human Resource Management (HRM or HR) is a function throughout the organization designed
to maximize staff performance in line with the employer's strategic objectives. HR focuses on
how people are treated in organizations, focusing on programs and policies. HR includes the
following sub-tasks:

Manpower Planning: Human resource planning emphasizes the balance of resources required to
achieve the desired business outcomes. HR programs can be temporary / immediate or long-term
/ strategic.

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Recruitment: Hiring staff with the right combination of skills and competence at the right time is
an important task. It includes filling positions through programs such as promotions, internal
transfers and transfers of staff.

On boarding: A nominee who has agreed to join the organization will report to work on a
specific date. This day is called Join Day. There is a specific set of activities performed on the
first day of the activity you joined the organization. These activities are called Employee On
boarding.

Confirmation: After joining the project, you usually pass the so-called Trials Period of 1-6
months. At this point, the organization and work review each other and decide if each of them
would like to continue meeting with the other. At the end of the Probation period, the employee
will usually go into the verification process.

Employee Information Management: One of the key functions of the HR department is to

maintain accurate information about staff. Some of the important information that needs to be
maintained includes:

 Name
 Gender
 Birthday
 Join Date
 Contact Information
 Phone Numbers
 Email Ids
 Previous job information
 Information about the Department
 Location
 Range
 Reporting Manager, etc., of the current company
 Payment information and official information such as PF number, ESI number,
Income Tax PAN, etc.

In addition to the above, HR also holds the details of Passport, Visa, Nominations, Company
Assets, etc. Ensuring that accurate and up-to-date employee information is maintained is one of
the most important tasks of the Department of Labor as many organizational decisions. Managers
are considered based on this data.

Leave Policy and Transaction Management:

One of the functions of the HR Department is to formulate or administer the organization's Leave
Policy. In addition to implementing this policy, the Department of Labor is also responsible for

40
keeping track of all activities. It is a (legal) requirement to grant employees Leave in the
organization.

Tracking Time and Attendance

Every day, tracking the amount of time an employee has worked, the time he or she enters, the
time he or she leaves, etc., now attracts a lot of attention from organizations and as a result HR
departments. In addition to using this information to process Payroll, organizations will also be
required to generate a number of official reports based on attendance data.

Salary Changes and Increment Calculations

Labor Departments are involved in adjusting or updating staff remuneration in consultation with
Business Heads. A standard salary review is accompanied by a salary review book. This
information is also forwarded to the Payroll team which will include it in the next payroll list.

Payroll Processing and Salary Disbursement

Wage processing is a very important task for the whole organization and the employee. It is
directly related to one of the most important reasons a person works for an organization without
complying with the law. Wage analysis includes calculating all official payments (employee and
employer contributions) and producing the required reports. In addition, employees need to be
informed of their pay, tax deduction figures, reimbursement balance, etc. These activities will
also fall under the Payroll processing system.

Separation Process

If an employee submits a letter of resignation or simply resigns, it is usually referred to as

resignation. The HR department is responsible for ensuring that all work involved in this process
takes place. The task involved will be to conduct an exit interview, to ensure that all
accreditation certificates are issued, submissions are made and complete information is passed on
to Payroll. The payer team will work out the Complete and Final Agreement and give him his
final payment. At the end of this process, the staff plan will be reviewed and depending on the
needs of the organization, an Employment Application will be initiated.

Communication and Basic Employee Services: One of the tasks of the Department of Labor is to
create and ensure a normal channel of communication between the organization and employees.
Employees need to be informed of various policies such as Vacation Policy, Travel Policy,
Tourism Policy, Dress Code, etc. There may be various rules and regulations that an employee
may need to adhere to in the organization. Any changes to these important policies or events and
any information that may affect employees will also need to be informed. The HR department
needs to make sure all of this happens.

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Employee Engagement

The human resources department is slowly moving from a more commercial - focused approach
to more strategic ones. One of the keys to the success of an organization is to have employees
with the needs and objectives that are consistent with those of the organization. Human
Resources departments play a key role in building this alliance.

Statutory Compliance

Another important function of the Department of Labor is to ensure that the organization
complies (complies with) all applicable regional (regional / state) laws. They need to make sure
they are aware of these rules and take all the necessary steps to ensure that this is achieved.

The various functions that are part of compliance are:

Ensure that all relevant employees and work-related licenses and permits are available
Incorporate all current and new employees into the various programs as it applies to the
organization
Calculates Payroll-related deductions on employee pay based on applicable laws
Ensure that timely reports are submitted to the relevant authorities as per the approved
schedule. The submission of the report may be online or by completing a backup copy.
Ensuring that when an employee leaves the organization they are provided with all the
relevant legal forms and certificates.

MIS Reports

HR needs to send more reports to participants. Some of these reports are presented
periodically (weekly, twice monthly, monthly, etc.) and will be in a predefined format. In the
view of the participants, this is an important task as they can use it in their planning and
reporting organization.

Training and Development

This work focuses on improving the knowledge and skills of employees. New entrants are
trained in the product and procedures of the Associations. Staff are also trained in various soft
skills such as team building, leadership skills etc. and behavioral skills such as time
management, behavior etc. Training modules are designed and delivered based on the skills gap
required and a set of skills staff possessed.

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Performance Appraisal and Promotions

Performance appraisal is a systematic process that helps an organization determines how much
an employee brings in line with business outcomes. HR professionals design and implement a
Performance Management System (PMS) system and maintain records. This work focuses on
processes for setting performance goals as individuals / teams and designing performance
appraisal methods.

Succession Planning

Succession Planning is a process in which an organization identifies potential candidates for

senior positions and regularly prepares them for future positions. HR departments must identify
those people, give them the necessary ideas, track and monitor their progress.

Human Resource Development

Therefore, the human relations system seeks to enhance the motivation and motivation of
employees through three improved communication channels and the participation of employees
in decision-making processes. Human resources seek to emphasize work features rather than
technical or economic ones.

It is easier to talk about doing things than doing them. Many of us want to exercise more, eat
more healthy food, be kinder to our loved ones, etc., but unless we have specific milestones
about how to do this, our intentions do not match our actions. The HR milestones we lay out
offer specific steps along the longer journey to HR transformation. – Dave Ulrich

The Need for an HRMS

HRMS is one of the reasons why HR operations today move automatically to Data Analytics. As
AI becomes a meaningful word, everything is empowered by having the right information at the
right time.

This is not limited to large corporations but also start-ups and emerging companies face
additional challenges that may need to be addressed.

Data Management

HR data is one of the most sensitive data available within an organization. The previous method
of storing and managing this data was paper-based, which required a large investment in the
required space and the time required to create a major challenge. This was followed by a period
of spreadsheets. This method seems to be flawed and time consuming. The answer to all of the
above problems came in the form of HRMS, that is, firstly, undocumented and thus eliminated
the problem of inaccuracies or imperfections, among other things.

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HRMS also allows real-time data tracking of all HR functions such as leave, presence, and
payment, for example. This is especially true at a time when employees are increasingly
perceived as customers and the interaction of employees has become an integral part of the
organization.

Employee Self Service

Employee Self Service refers to the information available to employees at one central hub. The
modern HRMS comes integrated with the Employee Services website which gives employees
access to all of their data. Such a broad view of sensitive data such as that related to pay, leave
and presence not only builds trust in the organization but also shows that it is truly beneficial for
employees in a number of areas. They can now view/ download their pay slips, view vacation
updates and real-time attendance data and their monthly or annual tax bills without the need to
go to HR. Freeing the HR team time for other strategic activities also improves business
efficiency.

Easy Reporting

HRMS allows you to generate a number of predefined rules and MIS reports quickly without
setup. On the legal side, the CLRA Report, the Shop and Innovation Law Report, and the like,
can be accessed with their stated formats without any effort. Additionally, powerful filters allow
you to generate any reports about employees based on several much-needed parameters, usually
at the request of senior management. In addition, HR dashboards give you a quick view of
important information, all on one screen

Efficiency and Cost Effectiveness

Modern HRMS cloud computing comes at affordable prices. The cost benefits you will incur
from using them far outweigh any minimal investment involved. For example, the cost of
managing a payroll decreases significantly once compliance has been established and the risk of
penalties and penalties. In addition, duplication of information is avoided, thus saving time and
improving the efficiency of the department. Leave management is simpler and is now more
manageable between employees and their reporting managers, rather than involving HR. The
same truth emerges about existing managers.

Improved Employee Engagement

A committed worker is a productive worker. With this in mind, it is easy to see how features
such as Self Service, timely and accurate salary management, improved leave and attendance
management, etc., fit into the organization’s goals by keeping employees busy and thus ensuring
more productive employees. HR jobs that could be chaotic and long drawn are easy and lead to
higher employee engagement and satisfaction levels.

100% Statutory Compliance

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Compliance with national and international laws plays a significant role in the cleanliness of any
company. After all, it could have serious financial consequences if not handled properly, in the
form of fines and penalties for government agencies. The modern HRMS cloud ensures
compliance with the rules with regular updates of the official changes behind the software, so
you are not forced to hunt for the nitty-gritty of legal changes in the ever-changing legal
environment like the one in India.

Adopt Best Processes in the Industry

Good habits ensure that you are at the top of your game in terms of performance. Adopting
advanced processes improves efficiency, increases productivity, reduces the risk of errors, and
much more. HRMS is researched and structured in such a way that it incorporates into it the best
practices used in space. A few examples of this include checklists, pre-defined character formats,
applications, etc.

Emerging Trends in HRMS

HR work progresses to better organizational performance and forecasting analysis. In addition,

work shifts from strategic HR strategy. Transactional HR reductions in chat bots and automation
are really open. Now HR is like the strategists in the organization.

The Emergence of Relationship Analytics - Organizational Network Analysis

The existing social networks within the company help to establish employee communication
within the organization. It looks like there is internal communication between employees in the
organization on various social media platforms. This analysis can see how they can link to get a
more effective response. It is actually a network of people within the company.

PMS

In the past, 360-degree feedback was on all HR lips. Now, from a 360-degree response,
companies move on to a loop of continuous feedback. Developmental ideas can also occur in the
movement of visible, distributed groups.

Employee Experience

Selected, customized experience for specific job categories from On boarding to career
development is in vogue today. E-learning is also being pushed as an experience, and there is a
movement towards self-study. E-learning takes new forms as learning molecules that are small
units of information provided on employees' cell phones, especially those who are still traveling.

Artificial Intelligence

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Today, more and more companies are turning to AI tools for predicting the outcome of
employee-defined objectives such as KRAs etc. Staff training with current technologies makes
AI to understand new technologies and show benefits to employees and grow. Adoption of new
technologies is so important for HR department due to such reasons.

How to find the right HRMS for you

Okay, now you get the feeling that the HRMS solution is your time requirement. So now that
you have decided, you need to ask the most appropriate question. How do I get the right HRMS
for my organization?

The following indicators will be able to guide you through the systematic process of this
solution. Although as a sixth rule if, reducing costs, improving productivity, and communicating
with your employees are your main concerns, then sticking to a cloud-based solution can be your
best bet.

Setting up Best Practices in HR and Payroll-

If you are planning to set up industry-best practices or want to redesign your existing HR policies
and procedures, HRMS launches bring the same as it will be built in advance with the best
products integrated with the product. For SMEs, legal policies and procedures are generally not
available in the HR and Payroll space. Introducing the HRMS to the organization has the
potential to bring discipline to these areas.

Cost Implications and Understanding your Requirement

Cloud HRMS comes in a variety of forms. While the key features may seem similar, the depth of
technology in each area mentioned and the user experience tends to vary greatly. Therefore, to
choose software that suits your needs, you first need to have an accurate understanding of your
needs. You need to be very specific about the specific modules and features you need to have a
smooth transition. In terms of pricing, cloud software by its very nature tends to be more
expensive compared to other options such as desktop software available in the market today.
Your ROI for cloud software is not something you should worry about if you choose one that
meets your needs well.

Employee Self Service is a must for Employee Satisfaction

In the ideal world, no employee should rush an HR team to access his payroll and HR
information. Cloud HRMS makes this possible Self-help is primarily an employee information
system that gives him direct access to his pay slips, tax information, leave information and
commute information, and more. In addition, all of this data can be made available in real time
using the HRMS cloud. Such access to information improves employee interaction and

46
satisfaction levels as employees become more aware of how and why their pay in the balance of
leave and so on.

Eliminating Repetitive Manual Tasks with Automation

What the HRMS does, even in its skeletal structure, performs a number of tasks that would have
to be done by hand. Vacation and attendance data that had to be checked and re-evaluated using
muster or Excel is now being captured in real time and displayed to employees automatically.
Integrated HRMS ensures that the paid input flows seamlessly into the HR system. These are
some of the critical ways in which the use of HRMS can increase productivity and save time. In
this sense, HRMS is, in fact, designed for efficiency.

Uncompromised Customer Support

Suppose you are not in a city or currently in a different country and your HRMS system
suddenly crashes. What can you do if you need any technical assistance in this situation? In some
cases, you will need 24X7 support services from your software company to attend and fix that
issue.

Therefore, before purchasing any HRMS software, it is very important that you get their
customer support service. You should also make sure they are available for customer support
24/7. Or will they only hold calls at certain times during the day? Also, you should ask if you
will have to wait after leaving a message for them to call again. The answers to these questions
may give you an idea of their performance and emphasis on their after-sales customer support.

Customization to Suit your Business Needs

Cloud HRMS must be customized to suit your needs. Whether leaving policies and attendance
policies or vacation lists and the concept of change, they are flexible enough to be fully
customized in these modes and more, depending on the solution you choose.

HRMS System should be able to scale with your Growth

Given the excellent and cost-effective model as you go hosted by HRMS cloud, this is not the
place to worry. In fact, in our experience, we have seen that the need for measurement often
becomes the main reason for choosing a cloud HRMS.

Easy upgrades and upgrades are available at the end of the product. You can also easily upgrade
the system to suit the additional functionality as needed.

Integration with your Existing Systems

This is also important when considering direct integration with income generation as presence /
biometric systems. Also, you may have data flowing to other systems from HRMS, and today

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this is available with most cloud-based HRMS with the help of APIs. Integration with accounting
software, presence and performance management tools is possible.

All in all, the HRMS cloud is a new automated concept in the HR industry. Inexpensive and very
easy to get up and running, such programs not only improve the efficiency and productivity of
your business but also lay the foundations for organizational change.

Statutory Compliance in Payroll- A Complete Guide

Most of the time your organization, effort and money go into making sure the salary goes hand in
hand with formal auditing. From the proper management of employees to the protection of the
company from unreasonable demands or unimportant claims from unions or aggressive
employees, each company is confronted with a number of potential legal issues related to
compliance. However, it may never be the company’s intention to break these rules, but without
the necessary protection, it could easily get into the cracks.

So how can you make sure that you avoid the danger of breaking the law?

To address this, let us first understand what law enforcement and the various compliance
components required in Indian payroll system.

Why is it important?

Each country has its own set of national and labor laws that companies must adhere to. Dealing
with compliance requires companies to be updated on all labor laws in their country. It is also
imperative that companies adhere to them. Failure to comply with these rules could result in a
large company with legal issues such as penalties and fines. That is why every company invests a
lot of money, effort and time to meet compliance requirements ranging from professional tax to
minimum wage law. To help with this, the company seeks professional advice from experts in
labor law and tax law.

In order to control the control area, every company must know and be aware of all labor laws.
They need to develop effective ways to maintain compliance and reduce risks.

48
Need for Statutory Compliance

The complexity of doing business has grown exponentially and it has become a major challenge
to adapt to the operational aspect of all businesses. As discussed earlier, the organization seeks
the help of law enforcement professionals whose main focus is to comply with the ever-changing
regulatory environment.

Also, many companies also provide compliance management services and have a deep
understanding of the regulatory framework and provide specialized services to organizations.
They organize the process from the daily maintenance of prescribed forms and registers to
completion and reports.

Is it different for organization?

Compliance with corporate law firm, limited private company, LLP, or any other type of
company does not change. Every organization that hires and pays employees must comply with
labor laws.

Advantages of Statutory Compliance

 Ensures fair treatment of employees

49
 Ensure they are paid fairly for the work they have done and their
company complies with the minimum wage rate

Prevents employees from working for long hours or inhuman condition.

The advantage of statutory compliance to organizations

 Avoids penalty or fines because of their timely payments

 Protects the organization from unreasonable wage or benefit demands from trade
unions
 Prevents legal troubles as the company is fully compliant
 Mitigates risks and increases awareness about compliance
 With compliance in place, there is a lower risk of an adverse incident

Risk of non compliance

If a company does not conform to rules and regulations it will risk:

 Penal actions and financial losses to the organization

 Loss of reputation and business integrity
 Customer loyalty will be impacted severely

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Payment of Wages Act, 1936

The Remuneration Payment Act, 1936 regulates the payment of salaries to direct and indirect
employees. The Act authorizes the payment of salaries on time and without withholding money
other than those authorized under the Act. According to this action, payment must be made
before 7 of a month when the number of employees are less than 1000 and on the 10th day if it is
greater than 1000.

The Remuneration Payment Act, 1936 regulates the payment of salaries to employees (directly
or indirectly). The Remuneration Act regulates the payment of wages to certain categories of
people employed in the industry, and their value cannot be underestimated. The Act guarantees
the payment of salaries on time and without deductions other than those authorized under the
Act. Lead time will not exceed 1 month.

The Salary Remuneration Act does not apply to employees earning Rs. 10000 or more per
month. The Act also provides that an employee may not agree to a waiver of any right granted to
him or her under the Act. Under the law, payment must be made in cash. Payment of cheques or
deposits into a bank account is approved with the employee's written consent. The employer's
deductions should be made only for this purpose.

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Under this law, payment must be made in banknotes or coins. Payment of check or credit deposit
into a bank account is approved in writing by the employee. (Section 6)

This Act includes fines (Section 8), unemployment (Section 9), Damage or loss (Section 10),
deduction of services (services) provided by the employer (Section 11) early repayment and
loans (Sections 12, 13) and compensation of corporate and insurance association (Section 13).

Know the forms and compliance with the Karnataka Payment of Wages Act.

Minimum Wages Act, 1948

India's minimum wage is determined under the Minimum Wage Act, 1948 and is determined by
both the Central Government and the Provincial Government. Minimum wage rates can be
established in any region, occupation, and sector and announced at national, regional, industrial
and occupational level. The minimum wage is determined by the cost of living.

While adjusting the minimum wage, it may be arranged for different job classes in the same
scheduled work or set for different scheduled tasks. It may also be set for an hour, a day, a month
or any other pay period.

Under the Minimum Wage Act, both the Central and Provincial Governments may notify the
planned activities and adjust / review the minimum wage for these planned activities.

There are two ways to adjust / update the minimum wage:

1. Under the committee approach, the government sets up committees and sub-committees
to hold inquiries and recommendations for adjusting and changing minimum wages.
2. In the notification process, government proposals are published in the Official Gazette for
the people who are likely to be affected and state the date (not less than two months from
the date of notification) on which the proposals are considered.

The government, after considering the recommendations of the committees and all the
submissions received on the due date, amends / reviews the minimum wage for the relevant
contract work which comes into effect three months from the date of issue.

The Payment of Bonus Act, 1965

The Bonus Remuneration Act provides an annual bonus to an employee in a particular institution
- which includes industries and institutions that employ 20 or more people.

Employees who deduct Rs 21000 per month or less (basic + DA, excluding other benefits) and
who have completed 30 working days in that financial year are eligible for the bonus payment.
Salary or wages include only basic and DA bonus payments, and all other allowances (e.g.,

52
HRA, overtime, etc.) are not included. The bonus should be paid with a minimum amount of
8.33% and a maximum of 20%. Payment must be made within 8 months from the end of the
accounting year.

Employees can be exempted from bonus payments if they are fired for fraud, misconduct, or
even absenteeism. The employer must ensure that upon dismissal, home screening procedures,
proper documentation and admission of employee misconduct are all done in accordance with
the applicable rules before withdrawing the bonus payment.

Tax Deduction at Source (TDS)

TDS is deducted from payments made by individuals in terms of the Income Tax Act.
Administered by the Central Board of Direct Taxes (CBDT), which falls under the Indian
Revenue Services (IRS)

Under TDS, when the inspector receives his or her salary, there will be a TDS deduction by the
person (deductor) who pays the inspector and it is submitted to the revenue department.

The inspector then lodges a TDS refund and the tax calculated on his or her income will be
deducted and the final amount refunded.

TDS was released in the following 2 cases:

1. If the recipient gives his / her personal declaration to make the required amount in FORM
15G / 15H.

2. If there is a certificate of exemption provided by the Assessing Officer

Tax Deductions:

Normal Tax Rates for Individuals & HUF:

The normal tax rates applicable to the person living in you will depend on the age of the person.
However, in the case of a non-citizen, the tax rates will be the same regardless of age. For the
purpose of validating a valid tax stable, one can be classified as follows:

1. Resident under 60 years.

2. A citizen who is 60 years or older at any time during the year but less than 80 years.
3. Resident individual of the age of 80 years or above at any time during the year.

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 Amendments to Maternity Benefit Act, 1961

The maternity benefits to the employed pregnant woman (“Claimant”) are governed
under Maternity Benefit Act, 1961 (“MBA”) and Employees’ State Insurance
Corporation Act, 1948 (“ESIC”).

MBA is enacted –

to regulate the employment of women in certain establishments for certain periods before
and after childbirth and

to provide for maternity benefit and certain other benefits.

To whom does MBA apply-

Any shop or establishment that falls within the purview of laws for shops and
establishments in any State wherein ten or more persons are employed or were employed
within the preceding twelve months.
MBA is applicable to all establishments which include factories, plantations, mines
belonging to Government. -To every establishment wherein persons are employed for the
exhibition of equestrian, acrobatic and other performances.

To women who cannot claim under ESIC for the reason of her income being above
INR 3000/- per month.

To whom MBA does not apply- This law is not applicable to those women to which the ESIC is
applicable.

What are the Maternity Benefits

1. It is a payment benefit that a woman during pregnancy can apply for maternity and
postnatal leave which will be considered a paid maternity leave.
2. Payment is calculated on a daily wage equal to three calendar months in the absence of
maternity leave, including her prenatal, postpartum and postnatal period accredited under
the MBA.
3. This benefit can be claimed by a woman who must have worked no less than 80 days in
the preceding 12 months from the expected date of delivery including women who are
employed on a part-time or part-time basis. This benefit does not apply to a woman who
has moved to Assam or who was pregnant during such an arrival.
4. In the event of a woman's death during childbirth or during the period immediately after
childbirth in which the child is alive, the deceased woman is entitled to the full maternity
benefit of the child still alive. The employer is therefore obliged to pay all maternity
benefits.
5. In the case of maternal death any day after birth, the benefit should be calculated up to
that time including the date of death of the child.

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 6. If the employer does not provide free medical care the employer must pay INR 3,500 / -
to the applicant. This is w.e.f. 19.12.2011.

Procedure to be adopted by the claimant

Inform her employer in writing the period of leave and benefits to be availed as
prescribed by the establishment; (if the notice cannot be given before delivery, the
claimant can notify the employer at the earliest possible after delivery; failure to notify
employer does not disentitle the claimant from the benefits),
Declare that she will not undertake any other employment during such period
Provide medical records as proof that claimant has delivered the child.

Procedure to be adopted by the claimant

Inform her employer in writing the period of leave and benefits to be availed as
prescribed by the establishment; (if the notice cannot be given before delivery, the
claimant can notify the employer at the earliest possible after delivery; failure to notify
employer does not disentitle the claimant from the benefits),
Declare that she will not undertake any other employment during such period,
Provide medical records as proof that claimant has delivered the child.

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Equal Remuneration Act, 1976

The Equal Employment Act, 1976 provides for equal pay for men and women who work the
same work and prohibits discrimination, on the basis of gender, of women in the matter of
employment, employment and related matters in addition or associated. This Act applies to
almost every kind of establishment.

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Shops & Establishments Act

The Shop and Establishment Act regulates the employment status of employees in stores and
facilities. This includes working hours, downtime, overtime, holidays, termination of service, etc.

Registration must be done within 30 days from the date of commencement of the business. Even
if there is no employee, the company must be registered under this law.

The application must be submitted with the payment fee and scanned documents online. Within
15 days of successful submission of documents, the department authorizes registration. The
registration certificate can be downloaded from the portal.

The registration certificate is valid for 5 years and must be renewed thereafter.

In the event of a change of address, status, partner submissions must be submitted to the
department within 30 days of the change on the online application. The registration fee depends
on the number of employees employed by the company. Additional fees must be paid by
applying online if there is an increase in payroll, payment, etc.

The annual return must be submitted online to Form U by or before 31 January of the following
year.

The Employees' State Insurance Act, 1948

ESI Act provides certain benefits to employees in the event of illness, childbirth and
occupational injuries. This rule applies to non-seasonal industries that use energy and employ
more than 10 employees, and non-energy-based industries and other institutions that employ 20
or more employees.

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All benefits are provided by ESC hospitals, clinics and accredited private doctors. The wage roof
under this action has been upgraded from Rs. 7500 to Rs. 10000 per month.

The law provides for temporary payments to women in the event of incarceration, miscarriage or
related illness. This only applies to insured women. They can also claim maternity benefits of up
to 70% of their income.

Employees Provident Fund (PF) and Miscellaneous Provisions Act, 1952

The Employee Provident Fund (PF) Act and the Miscellaneous Provisions Act, 1952 are created
for the social benefit of an employee. When a person starts work, he or she is expected to
contribute monthly to his or her PF budget. The employer is also expected to contribute to his
employee retirement fund.

Any industry or institution with 20 or more employees directly or by contract is liable for cover
under this act.

The PF contribution is calculated on basic grants. It does not include food allowance, House
Rent allowance, overtime allowance, bonus, commission, etc.

The minimum wage to be paid under this Act is Rs.15,000 / - per month.

The employer's contribution accounts for 3.67% of the total salary determined by the Central
Government. As an employer, an employee must also pay an equal contribution.

The employer is liable to pay a fine for failure to comply. However, this could lead to up to 3
years imprisonment and a fine of Rs.10,000 / -

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Voluntary contributions are also included under the Employee Provident Fund and the
Miscellaneous Provision Act, 1952 in a facility with less than 20 employees.

The admin charges are highlighted below:

The Payment of Gratuity Act, 1972

The Payment of Gratuity Act applies to every shop or establishment in which 10 or more persons
are employed or were employed on any day of the preceding 12 months.

There is no percentage set by the act for the gratuity amount an employee is entitled. An
employer can use the formula-based approach or even pay higher than that.

Gratuity depends on 2 factors:

Last drawn salary

Years of service

To calculate how much gratuity is payable, the Payment of Gratuity Act, 1972 has divided non-
government employees into two categories:

Employees covered under the Act

Employees not covered under the Act

Calculation of gratuity-

For employees covered under the Act

59
 The amount of gratuity payable is calculated using the below formula. The formula is based
on the 15 days of last drawn salary for each completed year of service or part of thereof more
than six months.

The Formula:

(15 X Last Drawn Salary X Tenure of Working) divided by 26

Last Drawn Salary= Basic Salary, Dearness Allowance, and Commissions Received on Sales

For employees not covered under the Act

There is no law restricting an employer from paying gratuity to his employees even if the
organization is not covered under the Act. The amount of gratuity payable to the employee can
be calculated based on half month's salary for each completed year.

The Formula:

(15 X Last Drawn Salary X Tenure of Working) divided by 30

Last Drawn Salary= Basic Salary, Dearness Allowance, and Commissions Received on Sales

As per the government pensioners' portal, retirement gratuity is calculated like this: one-fourth of
a month's basic pay plus dearness allowance is drawn before retirement for each completed six
monthly periods of qualifying service.

In case of death of an employee, the gratuity is paid based on the length of service, where the
maximum benefit is restricted to Rs 20 lakh.

Labour Welfare Fund Act, 1965

Employee welfare means all resources for workers to improve their working conditions, provide
social security, and improve their quality of life. The legislatures of several states have enacted a
Law that specifically focuses on employee welfare, known as the Employee Welfare Fund Act.
We tell you all about it here!

The Labor Welfare Fund is a fund provided by the Employer, Employee and other provinces by
the Government. A separate (regional) Employee Welfare Fund Act and the (Regional)
Employee Welfare Fund Act are designed for different regions and Union Areas.

How Does Labour Welfare Fund Help Labourers?

Labour Welfare Fund (LWF) help labourers in many different ways.

60
Improving Standard of Living: Provide nutritious food and educational facilities for the children
of workers, medical facilities for private and public sector workers and their families, housing
facilities with accredited programs and standards, etc.

Offers Better Work Conditions: Provide staff and staff resources such as commuting (transport),
classrooms, libraries, job training programs, tourism and tourism, recreational facilities, etc.

Providing Social Security: Treatment planning, specific industrial schemes and sub-programs for
women, unemployed people, etc.

The amount of the fund, the amount, and the duration of the contribution is determined by the
Employee Social Welfare Board. Donations may be made monthly or once every six months
(half a year) or once a year (annually) in the prescribed amount and submitted to the relevant
Employee Welfare Fund Board in the prescribed Form before the due date specified under the
Act.

Currently, the Act has been established and is applicable in Andhra Pradesh, Chandigarh,
Chhattisgarh, Delhi, Goa, Gujarat, Haryana, Karnataka, Kerala, Madhya Pradesh, Maharashtra,
Odisha, Punjab, Tamil Nadu, Telangana and West Bengal.

Labour Welfare Fund Applicability-

The fund operates on a case-by-case basis based on the total number of employees, salaries and
job appointments. All parameters are limited under the corresponding State Act. Click here for a
description of the Fund's international contributions. RTI issued by the Indian government for
Labor Employment.

The Ultimate Guide to Leave Management

Staff management is an important HR function that every company should manage. A few
common doubts bother new founders or newly created HR professionals. Can the heavens
collapse if we ignore this tedious task? What are the benefits of vacation management? Heck,
what does it mean to manage to leave?

So, do you want to better understand what vacation management is all about and apply that
knowledge? You have reached the right place. Although vacation management is relatively easy
compared to many other HR processes, there are still many reasons to do it. Let's immerse
yourself in it.

What is Leave?

You do not have to work every day to earn your living. Vacations are days off work in addition
to the holidays that employees are entitled to, according to the leave policy.

A hundred years ago, worldwide, workers were not entitled to paid leave. But today, all
countries, with the exception of the USA, require employers to provide employees with paid

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leaves and paid holidays. Even in the US, 99% of organizations voluntarily provide the benefit of
paid leaves.

Leave, or pay-time-off (PTO), is one of the most preferred benefits after health care.

There are several types of leave that an employee is entitled to annually. National government
regulations regulate the different types of leaves and the number of leaves that should be
provided per year. Some of these types of leave are available, and employees can carry the
balance to the next year. Some types of leave expire at the end of the year.

For example, here is a snapshot of leave rules for Delhi State.-

In case of dire need, after exhausting their leave balances, employees can also take leave against
loss of pay (LOP). This is also called "Leave without Pay (LWP)."

What is the Need For Leave Management?

Leave management is a crucial activity of benefits administration and is needed for many
reasons:

For statutory compliance

Record keeping
Business operations & planning

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 Reporting and analytics
Prevent revenue leakage

Statutory Compliance Need

In addition to providing employees with paid pay, employers are required to keep proper
records of paid leave granted to employees in compliance. For example, in Karnataka, Form
F or Form 14 registers need to be maintained. The same is true in many parts of India.

Record Keeping-

Even if there is no requirement to comply with the rules, it is highly desirable to keep track
of paid employees. It is not possible to enforce and enforce leave policies without accurate
record keeping.

Since paid leave is an employee's benefit, employees need to disclose information and
detailed information about leave policy, rights, leave balance, and detailed work history.
Failure in these areas results in employees' unhappiness, mistrust, and erosion of the
employer's reputation.

The need for record keeping becomes more and more evident during the full payment and
retention of employees. Lack of proper records or accumulated leave pay policy is a way to
resolve disputes with unhappy former employees.

Business Operations & Planning

In large groups, on any given day, someone is on vacation. But work is disrupted when most
of the team members take a break at the same time.

When approving the leaves, the manager needs to consider the list for the day and decide
whether to approve or reject it. If you do not know the team members on a day trip, you end
up with bad decisions or delays.

Yet again, this is an area where a sound leave management system can be helpful.

Reporting & Analytics

Leave reporting is a common requirement for both management and compliance. Unless
there is a proper vacation plan, this can be a daunting task every month.

Tracking absenteeism and obtaining leave-taking patterns indicating employees stopping

work are the tasks a diligent HR professional should handle.

But accurate and up-to-date information is needed to get the details.

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 Leave Management Challenges

Without proper leave management processes, we encounter a whole host of undesirable

situations. If you encounter any of these problematic scenarios, it signals the need for a better
practice.

2. A team member is not at work as they are on leave, but the manager is not aware of this.
3. The HR admin extended the vacation without prior approval from the manager.
4. Customer is unhappy with delayed service because the Support Engineers went on
unplanned leave.
5. People don't inform the HR that they are on leave, so leaving accounting is inaccurate.
6. Employees have taken leave far more than their eligibility.
7. The leave policies of the organization are not uniformly applied to all employees.
8. Employee Leave Balance is not correct, leading to disputes and employee dissatisfaction.
9. Approvals are delayed, leading to anxiety, inconvenience, and cost impact for the
employee.
10. An employee needs to follow up multiple times with the HR admin or manager for leave
queries or approvals.

All these problems can be boiled down to these broad challenges:

Low productivity
Poor customer service
Lack of proper /holiday planning
Low employee trust and motivation
Low employee satisfaction
Unauthorized absenteeism
Revenue leakage

What is Leave Management?

Leave management is the administration of employee leave as per company leave policy not only
for statutory compliance but also for better employee engagement, productivity, and employer
branding. There are three broad areas of leave management:

Designing leave policies

Implementing and enforcing leave policies
Routine leave administration work

Leave Policies

In many small businesses, there are no written leave policies. Without documented leave
policies, it's hard to enforce the policies and a root cause for all the problematic scenarios
we discussed above.

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 Designing good leave policies requires knowledge of statutory rules relevant to your
industry and location. While compliance is a concern, a leave policy also has to balance
business interests, employee needs, and employee engagement.

Employees are entitled to many types of leaves. Therefore, there need to be different
policies for different leave types. Policies also can vary for different levels or categories
of employment.

Designing a leave policy requires several inputs:

Leave Types
The weekend policy of the company (e.g., 5-day week)
Leave rules for each leave type.
Public holiday calendar for the company

Leave Types

Several types of leaves are either mandated by the government or voluntarily provided by the
company. Here is a list of some of the most common leave types:

Earned Leave (EL) or Privileged Leave (PL)

Casual Leave (CL)
Sick Leave (SL)
Maternity Leave
Compensatory Off Leave
Bereavement Leave
Leave Without Pay (LWP)

Weekend Policy

The weekend policy defines the company’s weekly rest days. Again, this must be in
accordance with local laws. Companies can operate within 5 or 6 days a week. Some
companies have another Saturday off.

Leave Rules

The root of the leave policy is a set of rules that govern policy. Rules may be imposed by the
government or determined by the company. These rules include such factors as eligibility, the
amount of leave to be granted each year, the frequency of benefits (monthly or annual),
management of transfer rules, availability, clubbing accreditation, coverage, procedure and more.

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 Holiday Calendar

In addition to paid leave, companies should also announce 8 to 14 regular holidays to their
employees. Various provincial governments issue an official list of public holidays at the end of
each year. Companies then have to announce their public holiday calendar corresponding to the
government list.

While employees take individual leave according to their need and convenience, the entire
company closes with public holidays. Companies also advertise a list of restricted or voluntary
holidays so employees can seek to avoid a complete closure of the business.

Routine Admin Activities in Leave Management

Defining leave policies may be a one-time affair but enforcement is a full-time HR job.
Here is a list of all the things a manager needs to handle as part of their leave
management responsibilities

Leave Accounting
Granting Of Leaves (periodicity, pro-rating, advances, square-off)
Handling Employee Queries
Monthly Payroll Advice
MIS Reporting
Year-End Activities

Leave Accounting

An easy way to understand vacation accounting is to compare an employee's leave

account with a bank account. The bank savings account is about money, and the leave
account is about the balance of the leave.

Although a bank account has a single bank balance, a leave account needs to track leave
balance of different types of leaves such as Acquired Leave, Sick Leave, etc.

Like a bank account, the balance of the leave increases when the leave is received or
granted periodically as per the leave policy. Leave balance decreases when an employee
receives leave.

Various leave transactions are possible that either increase the leave balance or decrease it:

Grant (+)
Avail (-)
Encash (-)
Lapse (-)

An HR admin's key responsibility is to diligently keep track of all the leave transactions for each
employee. It is also a regulatory requirement.

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Along with the leave transactions, the admin must track the net leave balance for each leave type.
The leave balances must tally with the individual leave transactions.

While many leave types have annual or monthly grants, some types of leaves are discretionary.
There is no leave balance for such leave types, and employees are eligible to take these leaves
during certain conditions.

The Leave Year

Leave balance is monitored annually. Some companies have their vacation year as a
calendar year, while others use a financial year (e.g., April to March). Most vacation
activities take place in the holiday season.

Granting Of Leaves

In accordance with the rules of the law, employees are entitled to a certain number of leaves
for Acquired Leave, Sick Leave, etc., annually.

Leave benefits are granted for an annual or monthly amount. Many companies choose a monthly
option because it simplifies the final compensation job when employees leave the company.

On the other hand, if you give a month's leave, the employee may need to leave more than
his or her current balance within his or her annual leave. In such cases, employers may allow an
overdraft and allow employees to make an incorrect balance.

Year-End Activities

At the end of the vacation year, the leave balance is transferred to the following year. Also,
there are government regulations on this topic. There is, however, a limit of the upper leave
balance that can be further developed.

So what happens to a vacation that will not go on next year? Included or expired depending
on your organization's leave policy.

Not all leave can be carried forward. Some leave types like Casual Leave and Sick Leave
lapse each year.

Apart from closing the accounts for the year and juggling with leave balances, the HR admin
needs to prepare the next year's holiday list.

Employee Help Desk

Like wages or any other employee benefit, employees will need information, guidance, or
trade support to manage their leaves. They will have questions related to leave policy or their
leave balance.

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 As with any support function, accurate accounting and responsive service are essential. If
not, this is an important source of employee dissatisfaction, mistrust, and loss of productivity.

Monthly LOP Advice

There are cases when an employee has exhausted his or her entire balance but is required to
take leave. In such cases, there is an option for employees to take Leave without Pay.

Factories and other organizations operating in strict working hours penalize workers for
being late or unauthorized absence. Another type of penalty could be a vacation deduction or a
LOP leave transaction.

In large companies where the Finance team is in charge of payments, the HR regulator needs
to provide timely LOP capture advice to avoid wage processing delays.

MIS Reporting

As a good practice of keeping accounts and from a management perspective, the HR

administrator needs to prepare monthly MIS reports related to leave balance and break activities.
Here are some reports prepared by the administrator:

Leave a Summary Report

Leave a Monthly Performance Report
Detailed Monthly Leave Activity Report
Incorrect Vacation Balance
Leave the Encashment report
Leave Balance As Date
Annual Leave Report

These reports are usually statements of one or more employees. Apart from this, analytical
reports can also help identify patterns of leave or absence from work.

Apart from standard reports, there is always a need for ad-hoc reports when needed.

Software Tools

For professional leave-accounting and record keeping, a sound information system is

essential.Using spreadsheets like Microsoft Excel or Google Spreadsheets is an easy way to do
this. However, in order to minimize the effort of the HR administrator and to perform the entire
process automatically, you need software-based leave management software.

We have two categories of software tools for two different user groups.

HR management tools
Employee leave site

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Admin Tools

The leave management software automatically performs all the different functions managed by
the HR administrator. Includes- leave policy setting, rules engine, leave accounting, leave
transaction tracking, year end book closures, and much more.

Employee Self-Service (ESS) Leave Portal

Employee leave portal is a web-based or mobile application intended for employees and their
managers. With the employee's website, employees get up and do information about their leave
balance and leave the transaction. It also provides an automatic leave process with the added
benefit of default policy implementation.

A sound vacation management system can help solve many of the challenges of vacation
management and make life easier for the HR manager. The company receives the following
benefits:

Smooth business activities

Save time for HR manager, employee, and manager
Similar policy implementation
Accurate leave accounting
Cost reduction
Transparency and high staff satisfaction
The best employer brand

Management tools come in many forms such as desktop software, web-based software, and
cloud-based software. Solutions are available at various price points from free to high priced.

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 PAYROLL WORK

Payroll mistakes can happen faster than you think. For a moment, think about the employees for whom
monthly salary is the only source of income. Imagine what if the salary is not paid accurately or there is a
delay in releasing salary. Such irregularities can take a toll on the morale of the employees and ultimately
affect the business productivity.

While ensuring accurate and timely payment of salary is important, adhering to the various laws and
regulations such as labor law, PF, PT and other statutory compliance is also critical. Non-adherence with these
laws can attract serious legal and financial consequences.

To make sure that your employees are happy and you are law compliant, you need to have a proper
understanding of what payroll is and how to run payroll effectively. We will start with the basics of payroll.

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 Group Mission
 We share the vision and belief that our customers and stakeholders shall be served only by creating
and executing future scenarios in the consumption space leading to economic development.
 We will be the trendsetters in evolving delivery formats, creating retail realty, making consumption
affordable for all customer segments – for classes and for masses.
 We shall infuse Indian brands with confidence and renewed ambition.
 We shall be efficient, cost- conscious and committed to quality in whatever we do.
 We shall ensure that our positive attitude, sincerity, humility and united determination shall be the
driving force to make us successful.

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SOURCES OF RECRUITMENT

SOURCES

 Help increase the success rate of selection process by decreasing number of visibly under
qualified or overqualified job applicants.

 To help reduce the probability that job applicants once recruited and selected will leave the
organization only after a short period of time.

 To meet the organizations legal and social obligations regarding the composition of its
workforce.

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  To Increase organization and individual effectiveness of various recruiting techniques and
sources for all types of job applicants.

Considering the importance and relevance of the subject, selection of this topic is very obvious.
Basically recruiting is the discovering of potential candidates for actual or

anticipated organizational vacancies. It also can be said in another way that it refers to bringing
together those with jobs to fill and those seeking jobs.

It is important to study Recruitment and Selection because through it we can identify our human
resource needs. We can know what kind of people must be selected to fill up the specified vacancies.
The ideal recruitment effort will attract a large number of qualified applicants who will take the job
if it is offered. It should also provide information so that unqualified applicants can self select them
out of job candidacy, that is, a good recruiting program should attract the qualified and not attract the
unqualified.
In this project, study is done on recruitment and selection process of GreytHR.. To find out actual
recruitment and selection process of the company is my main objective of study.

Through this kind of survey we are able to identify the real recruitment program of the company
where for all kinds of operations technical level qualification is needed. The various selection costs
of the company are also identified. It is very interesting to study recruitment and selection process as
it will give light when the researcher will work in HR department in his future corporate life.

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 FACTORS AFFECTING RECRUITMENT

Most of the organizations, whether large or small, do engage in recruiting activity the though not to
the same extent. This differs with:
 The size of the organization
 The employment conditions in the community where the organization is located;
 The effects of past recruiting efforts which show the organization’s ability to locate and keep
good performing people;
 Working conditions and salary and benefit packages offered by the organization – which may
influence turnover and necessitate future recruiting;
 The rate of growth of organization;
 The level of seasonally of operations and future expansion and production programs;
 Cultural, economic and legal factors, etc.
Factors governing recruitment may broadly be divided as internal and external factors.

The internal factors include:

 Recruiting policy of the organization;
 Human resource planning strategy of the company;
 Size of the organization and the number of employees employed;
 Cost involved in recruiting employees, and finally.
 Organization image.
 Size of organization.
 Human resources planning.
.

The external factors include:

 Supply and demand of specific skills in the labor market;
 Political and legal considerations such as reservation of jobs for SCs, STs, etc.
 Company’s image-perception of the job seekers about the company.
 Nature of competition for human resources.
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  Legal factors.
 Growth and expansion of organization.
 Unemployment rate.

Recruitment policy
Step1

Step2 Recruitment organization

Manpower forecast
Step3

Recruitment sources
Step4

Recruitment techniques
Step5

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A recruitment policy asserts the objectives of the recruitment and provides a framework of
implementation of the recruitment program of an organization in the form of procedures. As Yoder
and others observe:
“Such a policy may involve a commitment to broad principles such as filling vacancies with the best
qualified individuals. It may embrace several issues such as extent of promotion from within, attitudes
of enterprise in recruiting its old employees, handicaps,
Minority groups, women employees, part-time employees, friends and relatives of present employees.
It may also involve the organization system to be developed for implementing recruitment program
and procedures to the employed.”
Therefore, a well considered and pre-planned recruitment policy based on corporate goals, study of
environment and the corporate needs need to be developed which may avoid hasty or ill-defined
procedure and may go a long way to cater the organization with the right type of personnel.

A good recruitment policy must contain these elements:

 Organization’s objectives - both in the short-term and long-term -must be taken into
consideration as a basic parameter for recruitment decisions and needs of the personnel -area-
wise, job-family-wise.
 Identification of the recruitment needs to take decisions regarding the balance of the
qualitative dimensions of the would be recruits, i.e., the recruiters should prepare profiles for
each category of workers and accordingly work out the main specifications, decide the
sections, departments or branches where they should be placed and identify the particular
responsibilities which may be immediately assigned to them.
 Preferred sources of recruitment, which would be tapped by the organization, e.g., for skilled
or semi-skilled manual workers, internal sources and employment exchanges may be
preferred; for highly specialized categories and managerial personnel, other sources besides
the former, may be utilized.

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  Criteria of selection and preferences: These should be based on conscious thought and serious
deliberations. In some cases trade unions may be consulted in working out the recruitment
policy. In others, management may take the unilateral decision.
 The cost of recruitment and financial implications of the same.
A recruitment policy, in its broadest sense, involves a commitment by the employer to such general
principles as:
 To find and employ the best qualified persons for each job;
 To retain the best and most promising of those hired;
 To offer promising opportunities for life-time working careers; and
 To provide programs and facilities for personal growth on the job.”
According to Yoder, “the recruitment policy is concerned with quality and qualifications (viz., and
Q1 and Q2) of manpower.” It establishes broad guidelines for the staffing process. Generally, the
following factors are involved in a recruitment policy.
 To carefully observe the letter and spirit of the relevant public policy on hiring, and, on the
whole, employment relationship;
 To provide individual employees with the maximum of employment security, avoiding,
frequent lay-off or lost time;
 To provide each employee with an open road and encouragement in the continuing
development of his talents and skills;
 To assure each employee of the organization interest in his personal goals and employment
objectives;
 To assure employees of fairness in all employment relationships, including promotions and
transfers; To assure employees of fairness in all employment relationships, including
promotions and transfers;
 To encourage one or more strong, effective, responsible trade unions among the employees.

In this chapter, we will shed some light on the secrets of hiring and recruiting methods, used
by the recruiters. Recruitment is broadly classified into two different categories − Internal
Sources and External Sources.

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Internal Sources of Recruitment
Internal sources of recruitment refer to hiring employees within the organization internally. In other
words, applicants seeking for the different positions are those who are currently employed with the
same organization.

At the time recruitment of employees, the initial consideration should be given to those employees
who are currently working within the organization. This is an important source of recruitment, which
provides the opportunities for the development and utilization of the existing resources within the
organization.

Internal sources of recruitment are the best and the easiest way of selecting resources as performance
of their work is already known to the organization. Let us now discuss more on the various internal
sources of recruitment.

Promotions
Promotion refers to upgrading the cadre of the employees by evaluating their performance in the
organization. It is the process of shifting an employee from a lower position to a higher position with
more responsibilities, remuneration, facilities, and status. Many organizations fill the higher vacant
positions with the process of promotions, internally.

Transfers
Transfer refers to the process of interchanging from one job to another without any change in the
rank and responsibilities. It can also be the shifting of employees from one department to another
department or one location to another location, depending upon the requirement of the position.

Let’s take an example to understand how it works. Assume there is a finance company called ABC
Ltd. Having two branches, Branch-A and Branch-B, and an employee from Branch-A resigned from

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his job responsibilities. Hence, this position has to be filled for the continuation of the project in
Branch-A.

In this scenario, instead of searching or sourcing new candidates, which is time consuming and
expensive, there is a possibility of shifting an employee from Branch-B to Branch-A, depending upon
the project requirements and the capabilities of that respective employee. This internal shifting of an
employee from one branch to another branch is called as Transfer.

Recruiting Former Employees

Recruiting former employees is a process of internal sources of recruitment, wherein the
exemployees are called back depending upon the requirement of the position. This process is
costeffective and saves plenty of time. The other major benefit of recruiting former employees is that
they are very well versed with the roles and responsibilities of the job and the organization needs to
spend less on their training and development.

Internal Advertisements (Job Posting)

Internal Advertisements is a process of posting/advertising jobs within the organization. This job
posting is an open invitation to all the employees inside the organization, where they can apply for
the vacant positions. It provides equal opportunities to all the employees working in the organization.
Hence, the recruitment will be done from within the organization and it saves a lot of cost.

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Employee Referrals
Employee referrals is an effective way of sourcing the right candidates at a low cost. It is the process
of hiring new resources through the references of employees, who are currently working with the
organization. In this process, the present employees can refer their friends and relatives for filling up
the vacant positions.

Organizations encourage employee referrals, because it is cost effective and saves time as compared
to hiring candidates from external sources. Most organizations, in order to motivate their employees,
go ahead and reward them with a referral bonus for a successful hire.

Previous Applicants
Here, the hiring team checks the profiles of previous applicants from the organizational recruitment
database. These applicants are those who have applied for jobs in the past. These resources can be
easily approached and the response will be positive in most of the cases. It is also an inexpensive
way of filling up the vacant positions.

Pros and Cons of Internal Sources of Recruitment

Internal sources of recruitment, i.e., hiring employees within the organization, has its own set of
advantages and disadvantages. The advantages are as follows −

 It is simple, easy, quick, and cost effective.

 No need of induction and training, as the candidates already know their job and
responsibilities.

 It motivates the employees to work hard, and increases the work relationship within the
organization.

 It helps in developing employee loyalty towards the organization.

The drawbacks of hiring candidates through internal sources are as follows −

 It prevents new hiring of potential resources. Sometimes, new resources bring innovative
ideas and new thinking onto the table.

 It has limited scope because all the vacant positions cannot be filled.

 There could be issues in between the employees, who are promoted and who are not.

 If an internal resource is promoted or transferred, then that position will remain vacant.
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  Employees, who are not promoted, may end up being unhappy and demotivated.

External Sources of Recruitment

External sources of recruitment refer to hiring employees outside the organization externally. In other
words, the applicants seeking job opportunities in this case are those who are external to the
organization.

External employees bring innovativeness and fresh thoughts to the organization. Although hiring
through external sources is a bit expensive and tough, it has tremendous potential of driving the
organization forward in achieving its goals. Let us now discuss in detail the various external sources
of recruitment.

Direct Recruitment
Direct recruitment refers to the external source of recruitment where the recruitment of qualified
candidates are done by placing a notice of vacancy on the notice board in the organization. This
method of sourcing is also called as factory gate recruitment, as the blue-collar and technical
workers are hired through this process.

Employment Exchanges
As per the law, for certain job vacancies, it is mandatory that the organization provides details to the
employment exchange. Employment exchange is a government entity, where the details of the job
seekers are stored and given to the employers for filling the vacant positions. This external
recruitment is helpful in hiring for unskilled, semi-skilled, and skilled workers.

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Employment Agencies
Employment agencies are a good external source of recruitment. Employment agencies are run by
various sectors like private, public, or government. It provides unskilled, semi-skilled and skilled
resources as per the requirements of the organization. These agencies hold a database of qualified
candidates and organizations can use their services at a cost.

Advertisements
Advertisements are the most popular and very much preferred source of external source of
recruitment. The job vacancy is announced through various print and electronic media with a specific
job description and specifications of the requirements. Using advertisements is the best way to source
candidates in a short span and it offers an efficient way of screening the candidates’ specific
requirements.

Let’s take an example. Assume that there is a Sales Company called XYZ Ltd which has got a new
project of selling a product in a short span of time, as the competition is very high. In this scenario,
choosing the specific recruitment plays a vital role. Here the ideal type of recruitment which should
be chosen is Advertisement.

Advertisement is the best suitable practice for this kind of hiring, because a large volume of hiring
in a short span can be done through Advertisement only. Advertisement is one of the costliest way
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to recruit candidates, but when time and number are important, then advertisement is the best source
of recruitment.

Professional Associations
Professional associations can help an organization in hiring professional, technical, and managerial
personnel, however they specialize in sourcing mid-level and top-level resources. There are many
professional associations that act as a bridge between the organizations and the job-seekers.

Campus Recruitment
Campus recruitment is an external source of recruitment, where the educational institutions such as
colleges and universities offers opportunities for hiring students. In this process, the organizations
visit technical, management, and professional institutions for recruiting students directly for the new
positions.

Word of Mouth Advertising

Word of mouth is an intangible way of sourcing the candidates for filling up the vacant positions.
There are many reputed organizations with good image in the market. Such organizations only need
a word-of-mouth advertising regarding a job vacancy to attract a large number of candidates.

Pros and Cons of External Sources of Recruitment

External sources of recruitment, i.e., hiring employees outside an organization, has both its benefits
and drawbacks. The benefits are as follows −

 It encourages new opportunities for job seekers.

 Organization branding increases through external sources.

 There will be no biasing or partiality between the employees.

 The scope for selecting the right candidate is more, because of the large number candidates
appearing.

The disadvantages of recruiting through external sources are as follows −

 This process consumes more time, as the selection process is very lengthy.

 The cost incurred is very high when compared to recruiting through internal sources.

 External candidates demand more remuneration and benefits.

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To conclude, the HR department should be flexible enough to choose between internal or external
methods of recruitment, depending upon the requirement of the organization.

METHODS OF RECRUITMENT POLICY

Dunn and Stephens summarize the possible recruiting methods into three categories:
 Direct,
 Indirect and
 Third party.

1. DIRECT METHODS
These include sending traveling recruiters to educational and professional institutions, employees’
contacts with public and manned exhibits. One of the widely used direct methods is campus selection
which involves sending of recruiters to colleges and technical schools. Most college recruiting is done
in co-operation with the placement committee of a college.
The placement committee usually provides help in attracting students, arranging interviews,
furnishing space, and providing student resumes. For managerial, professional and sales personnel,
campus recruiting is an extensive operation. For this purpose, carefully prepared brochures,
describing the organization and the jobs it offers, are distributed among students, before the
interviewer arrives.
Sometimes, firms directly solicit information from the concerned professors about students with an
outstanding record. Many companies have found employees' contact with the public a very effective
method. Other direct methods include sending recruiters to conventions and seminars, setting up
exhibits at fairs, and using mobile offices to go to the desired centers.

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2. INDIRECT METHODS

Indirect methods involve mostly advertising in newspaper, on the radio, in trade, and professional

journals, technical magazines and brochures.

Advertising in newspapers and/or trade journals and magazines is the most frequently used method,

when qualified or experienced personnel are not available from other sources.

Senior posts are largely filled by such methods when they cannot be filled by promotion from within.

Advertising is very useful for recruiting blue-collar and hourly workers, as well as scientific,

professional, and technical employees. Local newspaper can be a good source of blue-collar workers,

clerical employees, and lower-level administrative employees.

The main point is that the higher the position is in the organization, or the more specialized the skills

sought, the more widely dispersed advertisement is likely to be.

The search for top executive might include advertisements in a national periodical; while the

advertisement of blue-collar jobs is usually confined to the daily newspaper or regional trade journals.

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3. THIRD PARTY METHODS (TPMs)

The best management policy regarding recruitment is to look first within the organization. If that

source fails, external recruitment must be tackled.

These include the use of commercial or private employment agencies, state agencies, recruiting

firms, management consulting firms and recommendations or referrals by friends and relatives.

Private employment agencies are widely used. They charge a small fee from an applicant. They

specialize in specific occupations: general office help, salesmen, technical workers, accountants,

computer staff, engineers and executives. These private agencies are brokers who bring employers

and employees together.

State or public employment agencies also known as Employment or Labor Exchanges are the main

agencies of public employment. They provide a clearing house for jobs and job information.

Employers inform them of their personnel requirements, while job-seekers get information for them

about the types of jobs that are referred to by employers.

These agencies provide a wide range of services -counseling, assistance in getting jobs, information

about the labor market, labor and wage rates.

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 THE RECRUITMENT PROCESS

The recruitment process can be easily summed up in the below three stages

Sourcing

Advertising, a common part of the recruiting process, often encompassing multiple media, such as
the Internet, general newspapers, job ad newspapers, professional publications, window
advertisements, job centers, and campus graduate recruitment programs; and Recruiting research,
which is the proactive identification of relevant talent who may not respond to job postings and other
recruitment advertising methods. This initial research for so-called passive prospects, also called
same-generation, results in a list of prospects who can then be contacted to solicit interest, obtain a
resume/CV, and be screened.

Screening

Suitability for a job is typically assessed by looking for skills, e.g. communication, typing, and
computer skills. Qualifications may be shown through resumes, job applications, interviews,
educational or professional experience, the testimony of references, or in-house testing, such as for
software knowledge, typing skills, numeracy, and literacy, through psychological tests or
employment testing. In some countries, employers are legally mandated to provide equal opportunity
in hiring. A well-planned introduction helps new employees become fully operational quickly and is
often integrated with the recruitment process.

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 SELECTION

Selection involves a series of steps by which the candidates are screened for choosing the most
suitable person for vacant posts. The process of selection leads to employment of persons who possess
the ability and qualifications to perform the jobs which have fallen vacant in an organization.

The selection procedure is concerned with securing relevant information about an applicant. “The
objective of selection process is to determine whether an applicant meets the qualifications for a
specific job and to choose the applicant who is most likely to perform well in that job.”

Selection is a long process, commencing from the preliminary interview of those applicants and
ending with the contract of employment. The hiring procedure is not a single act but it is essentially
a series of methods or steps or stages by which additional information is secured about the applicant.

At each stage, facts may come to light, which may lead to the rejection to the applicant. A procedure
may be compared to a series of successive hurdles or barriers, which an applicant must cross. These
are intended as screens, and they are designed to eliminate an unqualified applicant at any point in
the process.
This technique is known as the successive hurdles technique. Not all selection processes include all
these hurdles.
The complexity of a process usually increases with the level and responsibility of the position to be
filled.
According to Yoder, “the hiring process is of one or many ‘go, no-go’ gauges. Candidates are
screened by the application of these tools. Qualified applications go on to the next hurdle, while
the unqualified are eliminated.”
Thus, an effective selection program is a non-random process because those selected have been
chosen on the basis of the assumption that they are more likely to be “better” employees than those
who have been rejected.
Selection processes or activities typically follow a standard pattern, beginning with an initial
screening interview and concluding with the final employment decision.

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 The traditional selection process includes: preliminary screening interview; completion of
application form; employment tests; comprehensive interview; background investigations, physical
examination and final employment decision to hire.

Hire the right person

 Conduct a wide and extensive search of the potential positive candidates

 Recruit staff members who are compatible with the organization’s environment or culture

 Hire individuals by using a model that focuses on learning and education of the whole person

 Place individuals in positions with responsibilities that will enhance their personal development

 To meet organization’s obligations

 To increase and evaluate effectiveness

 To determine present and future requirement

 To create and increase applicant pool.

Procedure for successful Recruitment and Selection

 Develop a written job description, which clearly articulates the essential elements of the job.

 Establish valid, job-related criteria which are as objective and measurable as possible.

 Find qualified and diverse applicants by casting your recruitment net far and wide.

 Evaluate all applicants by the same criteria.

 Never make prohibited pre-employment inquiries.

 Safe questions are those which are clearly job-related.

 Establish and retain documentation supporting all selection or rejection decisions.

The process of recruitment and selection of staff occurs within a student affairs culture shaped by
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 many external and internal forces. Such forces should be considered in every search process.

Following are 12 steps that every effective search process should include:

1. Assess the Need For and Establish the Purpose of the Position

The institution's goals and mission statement should be clearly defined and understood prior to
conducting a search for qualified individuals. It should also emphasize the people oriented nature of
the organization.

2. Perform a Position Analysis

Every student affairs division should identify the characteristics and requirements of the vacant
position and the personality traits that would most benefit the individual who assumes the position. It
is important to create a profile that best fits the position in the context of the institution's culture.

3. Prepare the Position Description

The division should first establish a hiring profile, consistent with the idea of choosing the person
who would best fit the position. It is imperative that a position description clearly defines the
institution's goals, including the definition of student services, and that employees are selected based
on personality and chemistry that fit the defined services and goals.

4. Appoint and Empower the Search Committee

The integrated staffing model suggests the use of a search committee to recruit and select staff. Search
committees are most frequently the mechanism used to carry out recruitment and selection processes
Composition of committees varies depending on the functional area and level of the position

5. Prepare the Position Announcement

This crucial step informs all who are interested in the position precisely what the search committee
is looking for in clear and unambiguous language. The announcement should include such
information as:

 Title

 Location and demographics of the institution

 Supervisor

 Contributions expected by the staff member toward the accomplishment of these missions

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 Goals and work requirements of the position

 Minimum education

 Experience and knowledge requirements

 Conditions of employment

 Individual and office to contact for further information

6. Advertise the Position

The student affairs division should evaluate all possible avenues for advertising a position vacancy.
Limited budgets may determine the means by which a position vacancy is advertised. Therefore, it is
important to consider carefully which advertising medium is most likely to target the audience most
important to reach.

7. Conduct the Search

The individual and office listed in the position announcement should receive all applications from
candidates. Acknowledgment of the application should be sent to both the applicant and the search
committee. Applicants that the division would normally judge unacceptable suddenly seem desirable
when the need to hire a body, "any body", becomes severe. The division will face a natural temptation
to short-circuit the standard screening process and hire a replacement immediately.

8. Screen the Applicants

Screening of applications should be conducted from the beginning of the search process, and reviews
should begin immediately following the announcement. The division should test to ensure that each
applicant fits the profile and hire a person who fits the profile remembering that good selection
reduces turnover, training and recruitment costs, and thereby produces stability, consistency, low
operating costs and an ability to increasingly reward desired behavior.

9. Arrange the Candidate Interview

Once the applicant pool has been screened and individuals to be considered are identified, interviews

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 should be arranged with those candidates. Often, the size of the departmental recruitment budget will
determine both the type and the number of interviews that will be conducted. Many times, institution
with limited budgets will begin the interview process by conducting telephone interviews.

10. Interview the Finalists

Interviewing an applicant from a resume can lead the search committee to overvalue assets and never
see liabilities. The purpose of the applicant's resume is to highlight assets and hide shortcomings.
Most applicants do not overtly lie on their resumes; they just omit negative information. Unsuccessful
short-term jobs, reasons for leaving and dates of employment are the items most frequently omitted
from resumes. As a result, interviews must be conducted from completed employment applications.
The search committee should never grant an interview to an applicant who has not fully completed
an application form.

11. Conduct Reference Checks

One of the most crucial but often neglected steps in the hiring process is reference checking.
Reference checking is often forfeited when a student affairs division is pressured to hire in a hurry.
Additionally, reference checking can be a frustrating exercise that yields little useful information
about a candidate. Nevertheless, the desire to save time and avoid legal ramifications should not
prevent any recruitment staff from conducting thorough reference checks on all prospective new
hires.

12. Make the Offer

After the search committee has completed all of the interviews and has evaluated the candidacy of
the finalists, the committee will submit a recommendation to the hiring authority.

Issues if Gender in Recruitment and Selection

 Do not discard applicants who “stopped out” to provide care for a child, or for maternity leave.

 Understand questions that cannot be asked regarding family, children, pregnancy, etc.

 Provide medical insurance that covers the full range of medical needs of women employees, including
reproductive health care.

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 Provide paid sick-leave policies for employees’ illness and illness of spouses, lifetime partners,
dependent children, and elderly parents.

 Provide life insurance, disability and pension programs that are nondiscriminatory on the basis of
gender.

 Before attempting to diversify a staff and make it more gender equitable, one must tackle issues such
as, “gender stereotyping; discrimination in hiring, pay, and promotions; family issues; and sexual
orientation discrimination”.

There are five areas critical to this process:

1. Open communication

2. A commitment to creating an inclusive environment

3. Clear preconceived expectations based on gender

4. A neutral supervisor who can observe different styles and facilities communication when a conflict
arises.

5. Training – sexual harassment as well as gender issues training (It is thought that 75-80% of sexual
harassment complaints could be prevented by understanding gender differences”.

Guidelines

Helping develop the position announcement, including the identification of minimum and preferred
qualifications, timeline and recruitment plan

 Completing recruitment and selection activities for classified and unclassified staff positions

 Placing advertisements or conducting personal outreach

 Developing the selection procedure, including rating guides receiving applications, corresponding
with applicants, sending applicant information forms, and maintaining the applicant record

 Screening applications, conducting reference checks, determining a long or short list of finalists

 Maintaining required search documentation

 Coordinating campus visits for interviews and/or conducting interviews

 Making recommendations to the hiring official

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FLOW CHART FOR RECRUITMENT AND SELECTION AT GreytHR

Manpower planning

Requirement Generation (Allotted Vs Actual Basis)

Internal Fitment (Job Rotation)

Recruitment (CVs screened by HR Department along with Business Head)

Selection Procedures (Initial interview by HR Department/Finalization by Business

Head/Executive Committee/CMD)

Joining and Induction

Orientation

Placement

Appraisal

EMPLOYMENT CYCLE

Recruitment
Possible vacancy identified
Phase

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Analysis carried out to see if the job has changed or it still needed

Job description drawn up

Person specification drawn up

Advertisement designed and issued

_________________________________________________________
Selection
Short listing Phase

Interviews

Appointment offered

Induction
Employment
Phase

Training, development & appraisal

______________________________________________________________
Exit
Phase
Resignation or retirement

Not only recruitment and selection phase but also other phases (employment phase and exit phase) of

employment cycle can be improved if all phases are properly interlinked with each other, as shown

in above figure.

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 At the time of recruitment, when a possible vacancy occurs, it is a good idea to look at the post that

is being vacated to see:

 Are the functions that were being carried out still going to be needed?

 Is the position changing such that new skills will be needed in the near future?

 Can the job be combined with another job that may also be undergoing a change?

Only after checking all these points, go ahead with other parts of recruitment phase.

In case of job description, check the following points:

 Formal job description

 Does it fit the pattern?

In case of advertisement designed and issued:

 Where would you advertise your job in order to attract suitable candidates?

 How would you word the advertisement?

At the time of selection, first comes short listing and after this interview.

In case of interview, check the following points:

 Structure of interview (one-to-one interview, two-to-one interview, panel interview)

 Feasibility of interview pattern

And after this, last part of selection phase that is appointment offered comes.

Certain Do’s and Don’ts in Recruitment and Selection

 DO’S:

 Be fair at the time of decision making for the final selections as well as salary.

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 Always cross check the references and the information provided by the candidate

 Place a person according to his qualification and experience

 Lessen the grievance of each employee and take decision according to natural law of justice.

 DON’Ts:

 Don’t get influence by outsiders at the time of outsiders at the time of requirement

 Don’t be judgmental on personal basis

 Don’t promise anything which will go against the ethos of the organization

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 ORGANIZATION CHART

Store Manager

Asst Store Manager

Dept Manager
HR Manager Administration Sales manager

Visual
Asst Dept Merchandising Information
Manager Cashier

Maintenance
Assst Dept
Team Leader Marketing
Manager

House
Team Member Keeping

Security
CSD

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CHAPTER IV

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 Problems Encountered
• As cloud based software provides their own leased cloud server, clients have some privacy
concerns.

• Cloud based software is quite expensive due to external database software.

• Excel oriented employees are not ready to shift on any paid software for their HR processes.

• GreytHR software is unable to provide solutions to Recruitment agencies, that need to be

sorted soon otherwise it leads to decrease in market share for Greythr software.

Possible Solutions

• Proper Awareness should be spread among the business owners for more business generation
in this cloud based software market.
• Cloud based software requires proper firewall , antivirus & security measures in device using
this software.
• Company needs to be more Focused towards providing solutions as well as publish the
benefits of solutions.

10
0
 Data Interpretation

By proper telecalling the data that we collect and get is-

10
1
Conclusion & Recommendation

Due to free excel services and various other free software, clients are not ready to pay
high prices for cloud based HR software.
As cloud based software provides their own leased cloud server, clients have some
privacy concerns. As company have lots of data that all is almost saved at HR
department.
So the privacy concern makes them not to shift from on premises software to cloud based
software.
Cloud based software requires proper firewall, antivirus and security measures in the
device that using the software.
Cloud based software provides more automation services as compared to on premises
software.
Proper awareness should be spread among the business owners for more business
generation in this cloud based software market.

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 Limitations of Study

Telephonic mode is little bit frustrating for some clients who are so much busy in their
works, a little bit lack in proper tone leads to disconnection of call.
Covid situation disturbs all the businesses that lead biasness in result due to negative
ecosystem in market.
Due to covid, payroll service providers are drastically impacted that leads to play safe
policy and not moving towards any extra expenses like cloud software.
Presence of noisy data and improper data extraction from Google.
Invalid numbers are so often found problem.

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CHAPTER V

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Learning and Value addition

• I look out to enrich my educational experience of Payroll Management by taking up this

internship.
• This Internship experience provides me to gain hand-on experience & helped me to build a good
network.
• Learn about the Leave Management.
• Handled the Cloud-Based Software.
• Learned about the Statutory Compliance.
• Came to know about the back-office work of the company.

Competitors-

 ADP
 GUSTO
 ASAP

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OUR CUSTOMERS

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 Research design/ Methodology

In this research work for company Greytip software private limited we try to find out the
behavior of HR consultants for the payroll software and to find out the benefits of this software
to payroll service providers and for the organizations.

Method used for data collection are–

1. Telephonic interviews of clients

2. Use data mining techniques for finding the details of payroll service providers, payroll
consultants, payroll outsourcing service provider.
3. Directly ask questions with existing clients and with prospect clients.
4. Data is extracted from Google and from websites of various payroll service providers and
chartered accountants.
5. Firstly data is extracted from Google and then various data cleaning techniques are used
to remove data redundancy and to remove noisy data.
6. All the searched data is stored in Google sheets and data mining process takes place by
telecalling and asking clients about their feedbacks regarding cloud based data.

• Sample size- 800 clients

• Location- Ghaziabad, Noida, New Delhi, Gurugram.

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Challenges faced during Internship:-

• Telephonic mode is little bit frustrating for busy clients, a little bit lack in proper tone
resulting disconnection of call.
• Invalid numbers are often found problematic.
• As a intern, I was not aware of the working’s properly as well as company’s culture.
• Presence of noisy data & improper data extraction from google.
• Due to Covid-19 , we were not able to meet more clients.

Suggestions and Usefulness of training

While doing research try to be more aware with HR related terminologies and growing
aspects of HR working
Find the valid satisfactory reason for data privacy issues.
Be humble and more communication fluent with client, no matter in which language you
are communicating.
Just be clear with your points and deep knowledge about HR evolution.

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ANNEXURE

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 Bibliography

JOURNALS

1.Muhammad Zahid Iqbal, et.al., (2011). An Empirical Analysis of the Relationship

between Characteristics and Formative Evaluation of recruitment. The International

Journal of Business Research 4 (1): 273

2.Eugen Rotarescu, (2010). Alternative selection under risk conditions in Human Resource

Recruitment and selection through the application of the estimated monetary value and

decision tree analysis. Journal of Manageme nt and Economics 4 (60): 468

3. Pilar Pineda, (2010). Evaluation of recruitment in organizations: a proposal for an

integrated model. Journal of European Industrial recruitment 34(7): 673

4.Cary Cherniss, et.al., (2010). Process designed Recruitment : A new approach for helping

leaders develop emotional and social competence. Journal of Management development

29.

(5): 4135.Thomas Andersson, (2010). Struggles of managerial being and becoming: Journal

of Management development 29(2): 167

6. David McGuire and Mammed Bagher, (2010). Diversity recruitment in organisations: an

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 introduction. Journal of European Industrial recruitment 34 (6): 493

7.Cody B. Cox and Margaret E. Beier, (2009). The Moderating effect of individual

differences on the relationship between the framing of training and interest in training. The

International Journal recruitment and selection 13(4): 247

8. Franco Gandolfi, (2009). Recruitment and Selection in an Era of Downsizing. Journal of

management research 9(1): 3

Books Referred:

 Beri.G C, 2010, Marketing Research, Tata MC Graw Hill Education PVT. LTD, ISBN- 13; 978-

0-07-062022-3

 Kotler.Philip,2009,Principle Of Marketing, Arrangement with Person Education Inc. and Dorling

Kindersley Publishing Inc. , ISBN- 978-81-317-1547-5

 Krishnamoorthy.R, 2011, Introduction to Rural Marketing, Himalaya Publishing house PVT.LTD.

ISBN- 978-93-5024-787-7

 Hartmam.Laura P, 2008, Perspectives in Business Ethics, ISBN- 13; 978-0-07-062004-9

 C.R. KOTHARI “Research Methodology”

Websites referred:

www.pantaloon.com

www.indiaretailing.com

 www.hr.uchicago.com

 www.vishalmegamart.net.com

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  newspaper

Photograph during Internship

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 Questionnaire
1. Does your company follow formal recruitment process?

a) Yes b) No

c) Can’t say

2. When does your company hires new

employee

a) Immediate need b) Yearly Basis

c)

Both

3. Which sources of recruitment your company should

follow?

a) Promotion / Transfer b)

Consultancy

c) Campus Placements d)

References

4. What criteria do you think should be used for selection process?

a) Written test b) Personal Interview

c) Written test and Interview d) Any

1
Other
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5. According to you, 3 rounds of interview in GreytHR are essential for an effective recruitment process.

a) Strongly agree b) Agree

c) Can’t say d) Disagree

6. Were you given same job description as discussed in Interview?

a) Yes b) No

7. According to you on what basis candidates should be evaluated for selection?

a) Academic Qualification b) Experience

c) Family Background d) All Three

8. Do you think physical examination should be included in selection process?

a) Yes b) No

c) Can’t Say

9. Are you satisfied with the overall recruitment & selection process at your

company?

a) Satisfied b) Neutral

c) Dissatisfied

10. Which of the following factors mentioned below you think have beneficial effect upon the ability of

GreytHR to attract & retain good employees?

a) Salary Package b) Brand Name

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c) Career Growth d ) Good Working Environment

e) Good working environment

11. The salary offered at the time of interview to the candidates is at par with the market rate.

a) Strongly agree b) Agree

c) Can’t say d) Disagree

e) Strongly Disagree
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