Hiring Tips Archives - AttendanceBot Blog https://www.attendancebot.com/blog/category/hiring-tips/ Musings on Work Wed, 18 Jun 2025 11:22:36 +0000 en-US hourly 1 https://wordpress.org/?v=6.7.4 https://blog.attendancebot.com/wp-content/uploads/2021/10/ABOnly@2x-100x100.png Hiring Tips Archives - AttendanceBot Blog https://www.attendancebot.com/blog/category/hiring-tips/ 32 32 How to Develop a Staffing Plan? https://www.attendancebot.com/blog/staffing-plan/ Mon, 09 Oct 2023 14:53:08 +0000 https://www.attendancebot.com/blog/?p=198492 Let's get started and discover how staffing plans can help your organization achieve success and why they are so important. 

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Staffing is a critical aspect of any organization’s success. Having the right number of employees with the right skills and experience is essential for a successful business. A staffing plan is a strategic document that outlines an organization’s workforce needs. It is an essential tool for businesses to manage their workforce effectively and efficiently.

In this blog, we will discuss the importance of a staffing plan, its benefits, and how to create one. Such as assessing the current workforce, identifying skill gaps, determining future workforce needs, and developing job descriptions. We will also share some best practices for implementing and monitoring a staffing plan. To ensure that it remains aligned with the organization’s goals and objectives.

Whether you’re a small business owner or a human resource professional, this blog aims to equip you with valuable insights and actionable tips for creating a successful staffing plan. Let’s get started and discover how staffing plans can help your organization achieve success and why they are so important.

What is a Staffing Plan? 

A staffing plan is a strategic document that outlines an organization’s workforce needs. Including the number of employees required, the skills and experience necessary, and the timeline for hiring and training. The staffing plan aims to ensure that the organization has the right people with the right skills at the right time to achieve its goals. 

A staffing plan typically includes information about the organization’s current workforce. Such as the number of employees, their roles and responsibilities, and their skills and experience. Additionally, it outlines how to address any gaps in the current workforce through recruitment, training, or other strategies. 

Why is a Staffing Plan Required? 

To Ensure Adequate Staffing Levels

A staffing plan helps businesses to determine the optimal number of employees required to meet their targets. By having the right number of employees, businesses can avoid understaffing, which can lead to increased overtime costs, poor customer service, reduced productivity, and employee burnout. On the other hand, overstaffing can result in unnecessary costs and inefficiencies.

To Identify Skill Gaps

A staffing plan helps businesses to identify the skills and experience required for each role in the organization. By doing so, they can identify any skill gaps that may exist and develop strategies to address them through training, recruitment, or other means.

To Plan for Turnover

Businesses need to plan for employee turnover and other staffing changes, such as retirements, resignations, or transfers. A staffing plan helps businesses to anticipate these changes and prepare for them by identifying potential successors, cross-training employees, or developing contingency plans. 

To Manage Labor Costs

Labor costs are a significant expense for most businesses. A staffing plan can help businesses to manage these costs by identifying opportunities to improve productivity, reduce overtime, and optimize staffing levels.

To Align Staffing with Business Goals

A staffing plan ensures that the workforce is aligned with the business’s strategic goals and objectives. By doing so, businesses can ensure that they have the necessary resources to achieve their goals, while also minimizing costs and maximizing productivity.

Eligibility for Rehiring Boomerang Employees

How to Develop a Staffing Plan? 

At the core of a staffing plan, we only need to do four main activities: 

  • Define staffing needs to achieve organizational goals
  • Determine your current workforce
  • Estimate future staff requirements 
  • Fill the gap between your current workforce and future requirements 

Define your Organization’s Goals

The first step in creating a staffing plan is to clearly define the organization’s goals and objectives. This will help you determine the number and type of employees you need to achieve those goals.

For instance, if the business is planning to expand into the South-East Asian market you may need to hire an entire team to handle that division. While also moving around current staff to head it. 

Assess your Current Workforce

You can evaluate your current workforce to determine their strengths and weaknesses, as well as identify any gaps in skills or experience that need to be filled. How can you do this?

Use your current org chart software to measure: 

  • Current staffing figures
  • Staff distribution across geographies, departments, and teams
  • Skills and competencies within the workforce
  • High performers for succession planning  
  • Low performers or “flight risks” who could increase attrition
  • Average staff tenure and age to anticipate retirees 

Determine your Future Workforce Needs

Based on your organization’s goals and your current workforce assessment, determine the number and types of employees you will need in the future.

  • Review your organization’s business plan: Your organization’s business plan should provide insight into its future growth plans, which can help you forecast future staffing needs.
  • Analyze historical data: Reviewing past staffing trends, turnover rates, and patterns can help you identify areas of the business that may require additional staffing in the future.
  • Evaluate market conditions: Evaluate external factors such as the economy, industry trends, and labor market conditions to help you forecast the demand for talent in your industry.
  • Conduct a skills inventory: Analyze the skills and competencies of your current workforce to identify any skills gaps and areas where additional staff may be needed.
  • Develop scenario planning: Use scenario planning to consider a range of possible future scenarios that could impact your organization’s staffing needs, such as expansion, downsizing, or changes in technology.
  • Consult with managers: Consult with managers and department heads to gather insights into their anticipated staffing needs for the coming year or period.
  • Use forecasting tools: There are a variety of software tools and models available that can help you forecast future staffing needs. Consider using these tools to help you analyze and predict future staffing trends.

Do a Gap Analysis 

To identify any gaps or deficiencies that need to be addressed, compare the current state of your staffing to the desired future state. These gaps may include shortages of employees with specific skills, or a lack of staff to support specific functions or business areas. It could even include key leaders approaching retirement age where the staffing plan should deal with succession planning. 

Prioritize the identified gaps based on their potential impact on the organization’s performance, the urgency of the need, and the feasibility of filling the gap.

Implementing a Staffing Plan

Create a Timeline for the Staffing Plan

A staffing plan without a deadline and constraints is too open-ended. Create a timeline for each step of the hiring process. This can include posting job openings, reviewing resumes, conducting interviews, and making job offers.

Depending on the requirements that need to be filled, you could also incorporate plans for upskilling and succession planning.

Develop Job Descriptions

Once you have determined the positions you need to fill, develop job descriptions that clearly define the roles and responsibilities for each position.

Determine Compensation and Benefits

Determine the compensation and benefits package for each position to attract and retain top talent.

Identify Key Recruitment Sources

Identify recruitment sources, such as job boards, social media, and professional organizations, to reach potential candidates.

Implement the Plan

Finally, implement the staffing plan by posting job openings, conducting interviews, and hiring the best candidates for each position.

Monitor and Adjust

Regularly monitor the effectiveness of your staffing plan. Adjust as necessary to ensure your workforce remains aligned with your organization’s goals.

Conclusion

To build a talented, motivated, and productive workforce that is equipped to meet the challenges of a rapidly changing business environment, organizations can benefit from a well-designed staffing plan.

By following the steps outlined in this blog, organizations can develop a comprehensive staffing plan. That aligns with their strategic objectives and enables them to achieve their business goals. 

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Furloughs: How to Make the Most of Them https://www.attendancebot.com/blog/furloughs/ Fri, 14 Jan 2022 09:34:40 +0000 https://www.attendancebot.com/blog/?p=197257 What are furloughs and what benefits do they offer? In this article we take you through the ups and downs of furloughs.

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Furloughs, a word many people hadn’t heard until recently, are now the talk all around the world. After the pandemic struck, unemployment surged to 14.7% in April 2020, which is the highest since the Great Depression. Ever since then, furloughs are steadily rising, which is now replacing layoffs. 

But what are furloughs? How do they work? Are they any better than layoffs?

This article will answer all these questions. In addition, you’ll see some ways to help furloughed workers. Let’s begin with some basic definitions.

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What are Furloughs?

Furloughs are an unpaid type of leave that an employee gets. Unlike layoffs, furloughs are considered temporary and the employee gets back to their job after some time. Some furloughs are planned due to seasonal downturns in business. Today, many companies are turning to furloughs because of the benefits they have over permanently terminating an employee. 

Two types of furloughs are known. During both types, employees are put on a non-pay and non-work period either due to lack of budget or lack of work. For instance, many employees have been furloughed since the pandemic. 

Shutdown Furloughs

Shutdown furloughs, also known as emergency furloughs, are leaves given to employees in cases of an emergency. These furloughs occur when there is a lapse in appropriations or the expiration of an authorizing act that provides access to certain funds. An affected agency shuts down any activities funded by annual appropriations that are not accepted by law, in a shutdown furlough. 

Administrative Furloughs

According to opm.gov, an administrative furlough, or money-saving furlough is a planned, short-term action designed to overcome budget reductions for reasons other than a lapse in appropriations. 

Things to Keep in Mind Before Implementing Furloughs

You should keep in mind some things when it comes to implementing furloughs for your employees in order to make the most of them.

See if it’s the Right Thing to Do

A furlough is usually the best decision to make when your organization is going through temporary unforeseeable issues. For instance the pandemic. In such cases, employees are only furloughed to keep the retention rates steady, However, if that’s not the case and the organization is going through something rather serious, a furlough may not be the best solution. 

Look for the Type of Employee

Some types of employees like part-time, temporary, or contract employees may not receive unemployment benefits during their furlough period. This may increase the administrative costs which can outweigh savings. In addition, losing a talented employee may also have the same impact. 

Keep in Mind the Law

There are several rules and laws that govern furloughs and as employers, you should keep an eye on them. For instance, it is especially important to consider rules regarding health benefits given to employees during the pandemic. 

Keep Things Fair

Layoffs usually target underperforming employees that leave opportunities to hire better-performing employees. Furloughs on the other hand may target most of the workforce in an organization which may seem unfair to many employees. To tackle this issue, employers can start by rotating employees within departments and reducing work hours first. 

Notifying Employees

Whether it’s a furlough or a layoff, you must always give your employees advance notice. This helps build a relationship of trust between both employee and manager. Research shows that by exercising fairness when dealing with information, employees trust their managers more. 

To notify your employees, you must give them all details regarding the leave. You must mention how it will affect them and the reason for doing this. After that, you should give your employees some time to think, and then answer any questions or concerns they may have. 

happy employee

How to Help Furloughed Employees?

 Even if your employees are on furloughs, you can keep in touch. Some things to keep in mind are:

Don’t Pressure them Into Working

Furloughed employees don’t get paid and therefore you should not pressurize them into working on the down-low no matter how pressing the issue may be. It’s common to think that an employee is on leave and can work. 

Communication is Always the Key

If your employees are furloughed, doesn’t mean they shouldn’t be contacted. Frequent communication is the key to building a healthy and transparent relationship. To make furloughs more humane, keep in touch and keep enquiring about their well-being. You can set aside some time and even a remote, once-a-week meeting should do wonders. 

Your communication should be short, sweet, and relevant. If your employees are furloughed due to the pandemic, you must offer guidance or job postings for temporary work, etc.

Consider Flexible Furloughs

Sometimes it’s a good practice to let your employees choose the days they want to furlough. This will help them maintain a healthy work-life balance and schedule around child care needs. 

See How they’re Doing

During the furlough, enquire about how they are doing. Try talking non-work. From any habits, they may have picked up during the leave to any other work they may be doing, ask it all.

Things to Keep in Mind to Recall Furloughed Workers 

Once furlough ends you still need to take care of several things:

Keep Things Transparent Once Again

Most employees will need reassurance of some type about what the future is going to be like. Keep the communication transparent and frequent. You must assure them if the future is going to be bright and if not, they deserve to know. Doing so will build high levels of trust within the organization and especially you two. 

As Avoiding Furlough Fallout tells us ‘Despite communication, retaining top talent and keeping morale high can be challenging. “People are worried about the future of the laboratory,” says Jackson. “They wondered if the cut indicated a lack of commitment by Congress to science and the work they do.”

In addition, advance notice of recall must be provided should to the employees describing things such as the date and location of their return to work, their title, their exemption status, their salary, etc. 

“The more notice employers give, the more likely they are to retain those workers,” said Mamaysky.

Benefits of Furloughs

For Employees

Returning to Work

The biggest benefit of furlough to employees is that they get to keep the job. When employees are furloughed, they are expected to return to work. After they are furloughed, employers usually give them a specific time period and date they can resume their work. 

Employment Rights

Employees have several rights when it comes to furloughs. For example, if a public sector employee is furloughed instead of laid off, they have the right to return to their job. Firing or terminating an employee requires an official termination process and notice.

Retain Benefits

Although furloughed employees aren’t paid during the furlough period, they retain their benefits. During the furlough, they can draw unemployment benefits and can also work for other companies. For example, they still get to retain health benefits and insurance of any other kind. 

For Employers

Cost Reduction

One benefit of furloughs for employers is the reduction in cost. As compared to layoffs, in furloughs the employee is expected to return to work. On the other hand, a laid-off employee means the company needs to hire a new employee to fill the vacancy. Hiring and training the new hire is costly. 

Employees workingDisadvantages of Furloughs

Furloughing employees can have some disadvantages for the employers:

For Employers 

Cost of Benefits

Perhaps a big downside of furloughs is that the company still has to pay the expenses for furloughed employees. 

Losing Top Talent

Although the furloughs are usually short, during this time the top talent is likely to look for other jobs in order to be paid and stay on top of their game. Some people might update their resumes during this period and they are also the most likely to be hired. Plus, these are those employees that you wouldn’t want to lose. 

Loss of Work

During the furlough, most employees including your top-performing ones are on leave. An interruption in work is inevitable in such a scenario. This causes instability at work and other complications. In some cases, for instance, a project that was left before employees were furloughed, may have to be started again after it. 

For Employees

Reduction in Employee Morale

Sometimes furloughs are unexpected for instance in the case of the pandemic. When this happens, employee morale reduces. And because the future is so uncertain, they are likely to go through stress as well. 

In an article on morale, Fermilab says ‘Morale also suffered. Last December, Fermilab conducted employee focus groups to find out if the organization had systemic discrimination problems against women and minorities. The good news: Discrimination wasn’t a problem. The bad news: People had residual unease related to furloughs that had ended seven months earlier. “We suffered a ding to our morale because of the furloughs,” says Jackson. “It’s been months later, funding is fine, but the aftershocks linger.”

All Set to Make the Most of Furloughs?

Like all strategies, furloughs too, require thoughtful analysis, and only then you should implement it. Furloughs have many benefits over layoffs and have recently become common around the world. 

Some good that comes out of furloughs is that employers get to keep connection with their employees even if they’re potentially on leave, cut costs, and help employees take back their job once the situation improves. 

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The Guide to Job Design for HR https://www.attendancebot.com/blog/job-design/ Wed, 29 Dec 2021 15:08:06 +0000 https://www.attendancebot.com/blog/?p=197012 Job design is an essential tool for organizations to compete and survive. This article is a comprehensive guide to the job description in HR.

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In an increasingly complex and dynamic world, organizations need to treat their employees as valued assets to succeed. Employees need to constantly build new skills, be versatile, and handle work pressure well. To achieve these lofty goals, employers need to understand what drives them and how they can be motivated to go the extra mile.

Job design can be used to improve employee motivation, maximize performance, and provide value to the organization.

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What is Job Design?

The human approach of job design states that jobs design should keep employees at the core and not organizational processes. It should focus on the satisfaction of employees so that they are more productive. This approach of work design says that jobs should be challenging, interesting, and rewarding. It seeks to satisfy a person’s need for recognition, respect, fulfillment, and growth.

Job Design Examples

Providing flexible work hours to employees, creating a job profile with a variety of skills, and promoting the thoughts and ideas of employees are a few examples. Job Design is not restrictive and relates to many aspects that management and HR need to ensure that employees are performing to their and providing value to the organization.

Contemporary Approaches to Job Design

Human Approach

The human approach of job design states that jobs should be designed keeping in mind the employees and not organizational processes. It emphasizes the satisfaction of employees so that they are more productive. This approach of work design says that jobs should be challenging, interesting, and rewarding. The human approach seeks to satisfy a person’s need for recognition, respect, fulfillment, and growth.

Engineering Approach

The engineering approach of job design relies on the scientific principles of management developed by FW Taylor. This approach might have been great for traditional industries. However, things have changed dramatically since Taylor’s time, and modern approaches are more suitable for today’s world.

According to this approach, the management/HR should decide the task one day before and send the same to the employees. The job description should contain what, how, and when of the task to be performed.

Job Characteristics Approach

Used widely, Hackman and Oldham developed the contemporary approach to job design in 1980. According to the duo, to motivate an individual, every job needs to have five core characteristics. These characteristics are:

Skill Variety

Jobs that need a variety of skills are more challenging and require more from an employee. A job that needs different skills enhances the ability of an employee and keeps them challenged.

Task Identity

Task identity is the degree of work allotted to an employee. Enlarged job responsibility is much more fulfilling than a skeleton list.

Task Significance

Task significance consists of two things:

  1. Internal significance (how much the job contributes to the company);
  2. External significance (how proud the employees are talking about their job to their friends, family, and relatives).

Autonomy

Autonomy means job independence. The amount of freedom and independence an employee possesses contributes to their job satisfaction.

Feedback

Information received from supervisors or managers about the performance of an employee adds to job satisfaction too.

(Source)

Hackman and Oldham followed the job characteristics by providing psychological states, which are:

  1. Experienced Meaningfulness
  2. Experienced Responsibility
  3. Knowledge of Results

The duo’s model offers weightage to autonomy and feedback. Employees seeking higher job growth are more likely to respond positively to enriching jobs than others.

Companies following these characteristics will see an increase in productivity and a reduction in absenteeism and employee turnover.

Job Motivating Potential

Employees are much more likely to perform to the best of their abilities if they like their job. Companies try a wide range of things to motivate their employees. However, it may be futile if the work design itself is ineffective.

Hackman and Oldham proposed a Job Diagnostic Survey (JDS) that calculates the measure of job enrichment. It involves calculating the Motivating Potential Score (MPS). The formula is:

MPS = (Skill variety + task variety + task significance)/ autonomy x feedback.

The JDS measures additional aspects of a job such as feedback from others, job meaningfulness, general satisfaction, growth satisfaction, pay satisfaction, etc. MPS scores range from 1 to 343. The average score is estimately around 125.

Motivating Employees’ Performance

The internal factors of an organization play a crucial role in motivating employees and improving their performance. HR needs to create a healthy and motivating environment for all employees. To develop job design tools, HR and management need to look at the following points:

  • Handling of Employees

You should plan well for the work design process. Recruit employees by keeping in mind their abilities, skills, personalities, among other factors. After hiring, train the employees so that they are in a position to do their job efficiently. Additionally, include a bit of flexibility in the job description as the world is dynamic and employees have to learn new things regularly. Reward employees who perform well with more responsibilities and recognition.

  • Flexibility

Managers need to ensure that they provide flexible work hours, telecommuting, and job sharing. The upper level needs to encourage employees to share their thoughts and ideas for fresh perspectives and insights. Additionally, they should help in strategy making and decision-making.

  • Ergonomics

One vital aspect of job design is ergonomics. Employees must be safe from diseases, disorders, and ailments to perform their jobs well. Managers need to ensure that they are cultivating a safe and hazard-free environment. Tools and equipment should emphasize safety. Additionally, they should ensure that employees get coffee breaks and other breaks so that they are not overworked. Lastly, the involvement of workers and unions is essential when deciding how work is organized and structured.

  • Leadership Style

Leaders play a massive role in motivating employees. Leaders that are benevolent, fair, and trustworthy become a source of trust for employees. Great leaders persuade employees to follow the participative form of work where employees are responsible for the performance and enjoy freedom and work autonomy.

Theories of Job Design

There are mainly three theories of work design:

Classical Theory

The classical theory propounded by Max Weber and Henri Fayol states that an organization can achieve efficiency by division of labor. Managers need to identify the purposes of the organization. Then, they have to divide jobs in such a manner that it achieves the organizational goals. The purpose should be divided into jobs, with each job contributing something to the whole. Lastly, a supervisor is assigned to oversee the work and report the same to their superiors.

Behavioral Theory

The behavioral theory is quite different from the classical theory. It is not much concerned with allocating specific responsibilities to specific jobs. Behaviorists prefer simple organizational structures, a decentralized mechanism of decision-making, and informal departments. They do not like rigidity in the organization. Work Design based on this theory advocates creating flexible jobs with employees participating in decision-making and contributing effectively.

Situational Theory

The situational theory emphasizes the external environment while fixing tasks,  responsibilities, and roles to jobs. You need to create a structure keeping in mind the company type, market, research, and other factors.

Job Design Strategies

Employees need to feel a sense of accomplishment in the work they do. They need to believe that they are rendering value, and it is equally essential that they get the freedom to do so. The job design theory of motivation says that a job is designed to provide an employee with job relevance, enlargement, and enrichment.

Relevance

Job relevance is not just for the CEOs, CFOs, or senior executives. All employees need a sense of relevance in the job they do. They do not want to be just another cog in the wheel. Standard and routine tasks are necessary in every field but can get tedious at times. Jobs should be designed in such a way that an employee does not feel alienated.

Enlargement

Job enlargement helps in overcoming the problem of alienation. Enlarging the task an employee performs creates a sense of fulfillment for an employee. An employee would get much more out of performing a task if he is in charge of a significant part of it. In the age of specialization, employees might not get something out of a task if they perform just one perspective of it.

Practical examples of Job Enlargement

Here are a few examples of job extension:

Example 1

A multinational company had a communications team for its operations worldwide to oversee the implementation of digital tools. However, the company noticed that the adoption of digital tools remained low.

The communication did not always conform to the functionalities of the tools. The company resolved this issue by enlarging the role of the communications team. They involved them in conversations during tool development and took their expertise while designing. With their involvement, the exact purpose and functionalities of the tools came into the front, and communicating the same to the target audience became easier. Therefore, job designing in management is vital for the organization.

Example 2

Suppose that a law firm has a team working on a case. Every person on the team has a specific task and their role is restricted to that. In this, they may not be able to feel that they are providing value. Additionally, they might not be able to see the big picture. If the law firm applies a more hands-on approach and increases the role of people in the team, it might see an increase in productivity as well as a sense of fulfillment.

Frederick Herzberg once said,  “If you want people to do a good job, give them a good job to do”. Herzberg believed that companies can boost employee satisfaction by adding different tasks to their job to make employees feel valued. A job needs to be designed in such a manner that it utilizes the employee’s potential and provides them with challenges too. Moreover, an expansion in the ability of an employee should be rewarded with increased responsibilities and rewards.

(Job Design Strategies)

 

Process of Job Design and Job Description

The process of work design is as follows:

Specification of Individual Tasks

First, you need to identify the tasks to perform. Based on individual abilities, skills, and nature of tasks, classify them. The factors taken into account are the interdependence of tasks, their relationship with each other, the complexity of tasks, etc. To make this step easier, simplify the individual task.

Combining Tasks into Jobs

A particular job is the combination of tasks that need to be performed and are similar in terms of skills, roles, and responsibilities. During this step, you need to assign groups of jobs to the respective department.

Specification of Methods

After the above two steps, you need to identify specific methods to perform the jobs you have designed. This step ensures that employees get a basic blueprint of how they should do their job. It also helps in doing the jobs uniformly.

Conclusion

In a dynamic world, job design becomes an essential tool for organizations to compete and survive. Considering the advancements in management theories, management and HR need to employ novel ideas to maximize performance and create value while designing jobs.

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How Can Charismatic Leadership Transform Remote Workplaces? https://www.attendancebot.com/blog/charismatic-leadership/ Fri, 24 Dec 2021 15:35:34 +0000 https://www.attendancebot.com/blog/?p=196971 Charismatic leadership aims to create a healthy work environment in the organization. Find out how it can truly transform workplaces.

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For every organization that starts working remotely with all their employees, there are a lot of things that have to be considered. The pandemic that started in 2019 has forced almost all organizations to work from remote locations. But on the flip side, it was an opportunity for charismatic leaders to showcase their potential and transform their workplaces. 

Let us now see why it is important to understand what charismatic leadership is, and how it can help people in transforming their workplaces. 

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What is Charismatic Leadership?

Charismatic leadership is practiced by those who rely more on communication skills, charm, knowledge, and persuasiveness over the actual power their position wields.

In the modern business world, where leaders must influence and charm their team, charismatic leadership has become the norm. These leaders can inspire and motivate their employees without any monetary incentives, and with the state of the economy, it is really gaining prominence.

The characteristics of such leaders are usually translated through their speech, work, and actions. They have a unique set of abilities that helps them in overcoming problems quickly, and their charisma makes them highly influential. Many charismatic leaders share the same skills and features, some of which are discussed below.

Skills of Charismatic Leaders

These combinations of skill sets and qualities help them in transforming remote workplaces into interactive and amazing places to work:

Infectious Creativity

Charismatic leaders have an unmatchable creative power. They don’t like doing things the ordinary or traditional way. Rather they choose to pick unique methods and think out of the box. They not only express their skill sets but also inspire people around them to match their energy.

The major power of these charismatic authorities is the ability to show their teammates different ways to think about and solve a problem. They reveal that there are no problems that can defeat your will or creativity. At the same time, they also keep inspiring people who share the same talent. With their expertise and contagious positive approach, not only do they help their team but play a vital part in the success of the organization.

Transparent Communication

When you think clearly, you speak and do things the same way. Charismatic leadership involves the same premise. People who fall in this category have command over their speech, mind, and actions. They even transform the remote workplace by making communication transparent, clear, and continuous. These leaders practice open communication with their team members and foster an atmosphere where the team doesn’t fear repercussions for mistakes made. In fact, mistakes are merely looked at as stepping stones to success. The leaders designate clear roles to their team and explain their goals but they’re given enough room to come up with their own solutions.

Transparent Communication by Charismatic Leaders

Trustworthy and Safe Work Environment

These leaders have a great sense of how to create a healthy work atmosphere. But they also know the importance of empathy for having a safe workspace for the team. Charismatic business leaders actively create a trustworthy environment where everyone feels comfortable. These people are good listeners, having a willingness to hear every problem and giving ideas to tackle it. It creates a positive ambiance in the organization and works wonders, especially in a remote workplace. 

What are the Pros and Cons of Charismatic Leaders at Workplaces?

Is charismatic leadership important to the organization? How many charismatic leaders are good enough, and what if you have too many of them in your workplace? Here are some of the good and bad sides of these leaders at workplaces.

Pros of Charismatic Leaders

  • As we have already seen, the presence of charismatic authority acts as a boon for the entire workplace. They not only motivate but inspire workforces that improve their overall productivity.
  • They encourage and drive home the importance of teamwork, camaraderie, and collaboration in the entire organization.
  • One of their features includes good listening skills that result in complete employee satisfaction. Whatever their queries, doubts, or complaints, it never remains unheard.
  • They also create an overwhelmingly positive work environment. 

Possible Cons of Charismatic Leaders

  • They may sometimes consider themselves the center of the team and begin to exhibit narcissistic tendencies. 
  • Many famous charismatic leaders might become self-serving because of the importance they get from the people in the workplace.
  • They may sometimes choose to lie and cheat their way to positions of influence.

But these are extreme cases where things can go tragically wrong. For the most part, charismatic leaders are empathetic leaders who build personal connections with the team and work towards common goals.

How to be a Charismatic Leader? 

Charismatic leaders aim to create a healthy environment in the organization. But that’s not easy, especially when you are in a big firm. But there are some features of a charismatic leader that can be adopted by most managers. 

Maturity

Maturity indeed comes with experience and time. But for a charismatic leader, maturity comes with knowledge. All of this makes them powerful and dependable people in the organization. While working in remote workplaces, when you can’t see people face to face, it counts a lot how you motivate and counsel people to work for you to their full potential. 

Resolving Conflicts is an Employee Strength

Conflict Resolution

Humility is known for the way a person treats others. For a leader, it is imperative to respect and treat others equitably. One of the qualities of these charismatic leaders is the ability to listen patiently to everyone, irrespective of their level in the hierarchy. There can be a communication gap or a misunderstanding between two members of a team while working remotely. But these leaders can overcome that situation and are quick to resolve conflicts.

Substance

Charisma in a person can exist even without any substance or value. People love and get attracted to the glamorous appearance of these leaders, but what about the values? After some point or the other, people would want something substantial from their leader. It is better to build it from the base. Get substance in your character right from the beginning.

Confidence

One of the most essential features of a charismatic leader is having confidence in them. Once they start believing in their potential, they keep spreading the same amongst the employees. It’s their confidence that influences and motivates people around them. They should be well aware of their capabilities, and they know what they can achieve. After the self-analysis comes the other part, where they influence and guide others.

What are the Benefits of having a Charismatic Leader in a Remote Workplace?

Now, before hiring a person, the management always considers and rates them. More as an asset than a person. Whenever a leader is hired, the organization analyzes their potential and usefulness to the company. But a charismatic leader is an integral part of the ecosystem, especially in a remote workplace. Here are some benefits of having them in your team:

  • Making professional life better and less problematic for the employees. 
  • Building courage or conviction so that every individual takes ownership of their work.
  • The charismatic authorities are open-minded and stand up to the people having a different perspective and opinion.
  • Filling the communication gaps between the organization and its employees.
  • Boosting the morale of the employees and inspiring them to become better leaders and increase their productivity. 
  • Promoting team building as well as collaboration.

What are the Important Aspects of a Charismatic Leader?

The final question that comes to our mind is how to become a charismatic leader and transform the workplace. Let us look into them.

Knows How to Build a Connection

Having authority can help you in becoming a successful leader, then you are highly mistaken. Even in this field, you have to step up in your game. It is better to build a connection with your team members and help them expand their interest in teamwork. Don’t make them feel like you are the boss.  It will also trigger them to take ownership of their work. This also prevents zoom fatigue to a great extent, know more by clicking here!

Can Become Light and Productive

Survey results claimed that the productivity of the employees increases when the work environment is relaxed. All the top-quality leaders do the same for their team. They create a bubble environment for their team which is light and relaxed. Keeping the tension at bay, people can focus on their work, and that helps the members of the team to perform well. 

Should know How to Trigger Honesty and Trustworthiness in People

Honesty and trustworthiness are two critical attributes in life and an organization. These two qualities are going to help people in your team get to a better position. As a leader, you too have to nurture these qualities inside yourself. But they come with experience and time. If you have both of these, remain assured you have two sought-after charismatic leadership qualities within you. It is going to help you in becoming an inspiring leader.

Direct Reports Span of Control

Examples of Charismatic Leaders 

We have been talking about charismatic authorities right from the beginning but haven’t yet given a single name. Here are some leaders who you can follow and learn from. These people have worked a lot on their skills in their particular fields. Here are some examples of charismatic leaders:

  • Jeff Bezos- One of the richest men in the 21st century and also the founder of Amazon Inc is a person who has created the largest e-commerce business in the world. 
  • Elon Musk- A man with ambition and knowledge. He is a person who inspires people with his words as well as actions. What makes him a person to look up to is his personality and how he motivates people to make a difference in the world. 
  • Warren Buffet- If you want to motivate yourself and understand how to gain wealth, you should follow Warren Buffet. He is not just a charismatic leader but much more than that. 
  • Bill Gates- The founder of Microsoft is also a man with a charismatic personality. He not only motivates people to think beyond their wildest dreams but is also a philanthropist. 

Conclusion

To wrap this up, you need to understand that those who have the potential of persuading, motivating, and influencing people are known as charismatic leaders. These people have the ability and charm to boost the productivity of every individual that also improve the overall productivity of the organization.

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Fixed-Term Contracts: A Flexible Solution for Modern Workplaces? https://www.attendancebot.com/blog/fixed-term-contract/ Mon, 29 Nov 2021 15:56:38 +0000 https://www.attendancebot.com/blog/?p=196109 In this article, we'll take you through the meaning of fixed-term contracts, their pros, and cons along with their uses for modern firms.

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Imagine a work environment where your organization can swiftly respond to seasonal spikes, project deadlines, or the temporary absence of staff—all while maintaining productivity and minimizing costs. Enter fixed-term contracts, a strategic employment approach that allows businesses to hire talent for a specific period without the long-term commitment of permanent contracts. These agreements can foster enthusiasm and dedication among employees, who often bring specialized skills to the table for the duration of their contracts. In this article, we will explore what fixed-term contracts entail, their advantages and disadvantages, and the unique situations in which they shine. Whether you’re an HR professional, a business owner, or an employee curious about your options, this guide will help you navigate the world of fixed-term employment.

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What is a Fixed-Term Employment Contract?

In a fixed-term contract, the organization employs an employee for a fixed tenure. The organization hires employees for a pre-decided duration under a fixed-term contract. Usually, employers hire fixed-term employees for a year, and their employment ends at the end of the contract.

Employees governed by a fixed-term contract are not on the payroll of the organization. 

Key Features of Fixed-Term Contracts

  • Length of Employment

A primary feature of a fixed-term contract is the length of employment. Fixed-term employees are not permanent employees of an organization. They are appointed for a specific time and dismissed when the predefined term ends. It is short-term employment. The period of employment may vary according to the nature of the work and the organizational requirements. Generally, fixed-term contracts are for one year.

  • Salary

Fixed-term employees have a fixed salary determined by organizations. It remains the same for the entire period of employment. Employers cannot change the remuneration before the expiry of the contract. As fixed-term employees are not permanent employees of an organization, they are not on the organizational payroll.

  • Notice

For fixed-term positions, the employer does not give any notice period to the employees. The contractual relationship between an employer and a fixed-term employee ends after the expiry of the contract tenure. 

  • Renewal of Fixed-term Employment Agreement

Employers can renew fixed-term contracts. Both parties should be willing to continue the relationship. If a fixed-term employee continues to work after the expiry of the defined period, the contract renews. However, if the employer fails to terminate the contract after the defined term, the fixed-term employee becomes permanent.

Suitability of Fixed-Term Contracts

Suitability of Fixed-Term Contracts

Fixed-term contracts are best suited for the following kinds of work.

  • Seasonal Work

Business organizations may require an additional workforce during the peak season. They prefer to hire fixed-term employees in such conditions as it provides flexibility and meets their needs during high season. For instance, hotels may require additional staff during the summer holidays to attend to the onslaught of visitors. Therefore, they may hire fixed-term employees during peak season and terminate them after the season.

  • Project Work

Organizations prefer fixed-term employment when they have a project that requires a specific skill. The employer may not need a specialist once the project concludes. Therefore, they would hire employees on a fixed-term basis in such cases.

  • Maternity Cover

Business enterprises hire fixed-term employees to fill in a temporary gap when a permanent employee goes on maternity leave. The fixed-term employee takes care of the duties of the employee on leave. They work till the employee on leave returns. 

At-will Employment vs Contract-based Employment

At-will employment means that there is no written contract between the employer and the employee. The employer and employee are free to leave the job without any prior notice. Further, the employer can terminate the employee whenever they wish to. Similarly, the employee can also leave the job whenever they want to. 

Both the parties work together as per their will. For that reason, it is a no-term agreement between both parties. The employer cannot force the employee to work for them. In the same way, the employee also can not bind the employer to hire them. Both parties have equal rights to terminate the contract.

Fixed-term Employee vs Contractor

Fixed-term employees are like regular employees of an organization. They work for a specified duration with the organization but are not contractors. Contractors work independently and render their services to the organization for a predetermined period. They have the autonomy to decide their working style and are not under the control of the organization. Further, contractors can have a flexible work schedule if they want. 

However, fixed-term employees are under the total control of the organization. They cannot work according to their whims and fancies. Fixed-term contracts, like contractors’ contracts, are for a definite period. Still, the nature of the relationship between the two is different. In fixed-term contracts, there is an employee-employer relationship between the parties. On the other hand, in contractors’ contracts, it is a business-to-business relationship.

Fixed-term Contracts and Pregnancy

Employers should have knowledge regarding employees’ rights in fixed-term contracts. Fixed-term employees have the right to avail of maternity leave. Employers pay the fixed-term employee on maternity leave in the same way as they pay the permanent employees. In some cases, the employee qualifies for statutory maternity pay during the tenure of their fixed-term contract. If so, they continue to receive the statutory maternity pay even if their tenure has ended. It would be unjust if the fixed-term contract is not renewed owing to pregnancy or maternity leave.

Fixed-Term Contract and Redundancy

It is crucial to understand what is fixed-term contract redundancy, and what are the rights of fixed-term employees regarding claiming redundancy benefits. Fixed-term employees are entitled to receive redundancy benefits since they are like the regular employees of the organization. Entitlement to redundancy pay depends on the length of the service period. If a fixed-term employee works for an organization for more than two consecutive years, they become a permanent employee. In such cases, they can claim redundancy benefits. Organizations must pay fixed-term employees redundancy benefits if they have served the organization for more than two years.

Advantages of Fixed-Term Contracts

  • Flexibility

A fixed-term employment contract benefits both parties. It offers enhanced flexibility to the organization and the employees. The organization can easily meet its requirement for additional staff during peak periods by hiring fixed-term employees.

  • Cost-savings

Fixed-term employment also leads to increased cost savings. It allows companies to hire when required. Organizations dismiss the employees once the project finishes and the requirement ends. Further, the firm does not needlessly bear the burden of employees. Fixed-term employment is beneficial when the job is seasonal or for a definite period. It does not alter the budget of the organization.

  • Provides Maternity Leave Cover

Fixed-term employment is used to hire an employee to work in place of a permanent employee on maternity leave. Companies recruit a fixed-term employee for a specified duration to take care of the responsibilities undertaken by the employee on leave. It is an effective tool in such circumstances, and organizations use it to their advantage. 

  • The Benefit of Special Skill

With the help of fixed-term contracts, the organization can take advantage of the unique skills of an employee for the desired period. Organizations prefer hiring fixed-term employees for projects that require specialized knowledge and skill. It is not feasible to recruit permanent employees for such jobs as they are not recurring in nature.

Fixed-Term Policy

Organizations should understand the critical factors involved in fixed-term contracts to avoid legal hassles. The regulations governing fixed-term employment may differ in different countries. Therefore, firms should draft the fixed-term policy, keeping in mind these regulations. The HR department should understand and implement the following mandates.

  • Reason for Fixed-term Employment

In certain countries, organizations can hire fixed-term employees only for a justified reason. For example, the Peruvian government allows fixed-term contracts only in the establishment phases, emergencies, or seasonal jobs. 

  • The Proportion of Fixed-term Employees

Certain countries restrict the number of fixed-term employees to the total workforce. Organizations can not hire fixed-term employees more than the sanctioned limit. For instance, in Lithuania, fixed-term contracts cannot exceed more than 20% of the total employment contracts.

  • Duration of Fixed-term Contract

Many countries determine the length of fixed-term contracts and the number of times they can be extended for an employee. In Greece, the total duration of fixed-term contracts cannot be more than 24 months, including four renewals. Further, in Germany, the aggregate duration can not exceed 24 months, including three renewals.

  • Written Contract

Employers must draft a fixed-term contract with utmost care and diligence. It must be a written contract stating all the terms and conditions clearly. Both the parties should agree to the terms of the contract and abide by the same. Moreover, both parties should sign the contract.

  • Discrimination

In certain countries like Japan, there is no discrimination between fixed-term and permanent employees. Organizations are required to treat fixed-term employees the same as permanent employees. 

  • Working after the Expiry of Contract

If a fixed-term employee works after the expiry of the defined term, it may result in an indefinite-period employment contract. In countries like Canada, if fixed-term employees continue to work after their term expires, they are deemed permanent employees of the organization. Their contract is considered to be renewed automatically for an indefinite period.

Are Fixed Term Contracts Better? 

Business organizations prefer fixed-term contracts over indefinite-term contracts because they provide for easy termination of employees. However, organizations should draft fixed-term agreements carefully because they are subject to local regulations. It might lead to legal complications and litigation. Hence, organizations must understand and comply with the requirements of fixed-term contracts.

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The Top 15 Employee Strengths Managers Need https://www.attendancebot.com/blog/employee-strengths/ Fri, 01 Oct 2021 01:00:17 +0000 https://www.attendancebot.com/blog/?p=196953 Employee strengths refer to qualities like extraordinary communication and negotiating skills. Here are the top 15 every manager needs.

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Employers are keen on recruiting employees who possess extraordinary communication and negotiating skills. Employee strengths refer to those qualities or traits using which they can fulfill their duties and tasks smoothly.

The work strengths required for an employee differ from one position to another. For instance, employee strengths required for a manager may be different from the ones needed for a salesperson. The work-related strengths showcased by employees shape their performance and also motivate others.

Dedication, punctuality, cooperation, helpful nature are some common employee strength examples. However, the strengths required for C-Suite executives can be quite different. Team leaders, project managers, product managers, and other highly qualified professionals play strategic roles in an organization. Therefore, they need to demonstrate higher levels of skills and employee strengths than the other staff members and employees.

The top 15 employee strengths that you must possess to handle managerial job roles are listed below.

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Identifying Employee Strengths

A key strength will be to identify the employee strengths and weaknesses of the employees. These weaknesses or strengths at work impact the work culture, performance, productivity, and other key aspects of the organization.

If some employees lack certain skills, the role of a manager would be to groom them and help them acquire those skills. The main priority should be to get the best performance of every team member.

These employee strengths can be unique to each position such as confidence, sunny disposition, organizational skills, communication skills, and so on. Also, the key strengths at work can vary as per the job roles.

Converting Weaknesses to Strengths

After identifying the weaknesses of the employees, managers must also be able to minimize them. They may also convert them into strengths for the benefit of the organization.

For instance, an incredible salesperson might find it hard to manage Microsoft Excel sheets. The manager can enroll them in a training program that will help them hone their record-keeping skills. Instead, they can also be given access to simple tools that are easy to handle but offer the same efficiency as Microsoft Excel like Google Sheets. 

Converting weaknesses into employee strengths is not an easy job. But managers should encourage employees to learn new skills while also providing them positive feedback about this current skill set. You must also provide them with resources that will help them to polish their strengths at work.

Creating a checklist for areas of improvement could help to identify areas in which they lag. It will also help managers evaluate their weaknesses, and make better decisions based on workforce management.

Finding employee strengths and areas of weaknesses is a continuous process. A smart manager should constantly be evaluating employee skill sets and helping them upskill.

Finding Strategies to Improve Productivity

Group meetings, talking over lunch, and conferences can be some ways to maintain a healthy relationship with the employees. If some of your employees are working remotely, connect them via a video conference. Try to understand the things that may be hampering productivity in the team. Try to resolve their issues and ask them to work more on their employee strengths.

For instance, a salesperson might need an enclosed cubicle to pitch deals to potential customers. Programming, marketing, and other job roles involve a lot of stress. Therefore, the individuals recruited for these roles might want to unwind after work. Having a cafeteria, gym, or recreational hub in the organization will boost their motivation levels.

Some employees may need to work a couple of days from home to increase their productivity. Invest ample time and effort to find out the things that influence their productivity. If bringing in new technology and infrastructure or renovating the premises can help them perform better, you should do it. Managers will need to negotiate these changes with upper management.

Sometimes, employee strengths can become their weaknesses. The highly productive employees may be prone to burning out with their large workloads. They might suffer from stress, fatigue, and other mental issues due to excessive work. Responsible and empathetic leaders should be able to recognize the signs of burnout early and prevent high performers from burning too bright.

Finding Strategies to Improve Productivity

Emotional Intelligence 

“Reading minds” can be one of the key strengths at the workplace. However, managers must develop emotional intelligence to do that. They must understand the emotions of the employees and try to grasp their issues while talking to them.

Employers want to hire intelligent leaders due to the same reason. They want their managers and leaders to find solutions to their employees’ problems. It is not possible without effective communication skills and emotional intelligence. Follow these tips to enhance emotional intelligence:

  • Learn from the struggles, lives, and stories of others.
  • Learn from your experiences and commit them to memory.
  • Getting along with others is a key to developing emotional intelligence. Interact with people from different cultures, societies, and statuses. By interacting and collaborating with them, you will understand their pain point, strengths, and shortcomings.
  • Don’t encourage employees to play with each other’s feelings and bully others. Guide them to help and coexist with each other.
  • Examples of strengths like compassion, empathy, kindness, and a friendly attitude need to be cultivated in employees. It will not only improve the workplace culture but will also help to incorporate other strengths in the workplace. These employee strengths can be teamwork, resilience, patience, and honesty.

Top-notch Communication Skills

We have talked about the importance of communication skills while discussing all the employee strengths. However, to cultivate top-notch communication skills, managers will need to put these things into practice:

Most of you might think that communication skills only include verbal communication. However, it is not true. It includes written communication, body language, and other forms of non-verbal communication as well. If you have established a good relationship with your team, they will understand your gestures and signals well. 

Acquaint yourself with all sorts of written communication like letters, emails, notices, text messages, and social media content. After that, you must expand your vocabulary and try to learn new words each day. 

Maintain eye contact during face-to-face interactions. If you are responsible for conducting interviews, try to be cordial with your tone and way of talking. While giving one, be confident and pretend like you are just attending another interview.

To grow communication skills and other strengths at work, try to solve the problems of your employees. Be transparent while talking with your team members and try to win their confidence. Express yourself clearly but don’t dive into unnecessary arguments to prove that you’re smarter. 

Be a Problem Solver

Being a problem solver at work is one of the key employee strengths. It not only establishes managers as helpful but also confirms that they are skilled at what they do. By solving the problems of team members, you gain their trust and create a positive work environment.

Managers don’t have to solve all the problems themselves. Most times, finding the right person to resolve an issue is also good enough. 

Situations can change drastically in the corporate world. Managers will have to be alert and predict issues well in advance to pre-emptively manage them. Forecasting and proactive thinking are essential employee strengths when you play a strategic role in an organization.

For instance, during the COVID-19 lockdown, many companies were forced to wind down or suffered a heavy loss to stay up and running. Those who managed to survive had to cut down on expenses to manage the finances and keep the company afloat. Emergencies like these need confident and wise leaders who thrive in ambiguous and uncertain situations. 

Play-Well with the Team

The managers need to remember that though they are higher on the organization ladder, they aren’t better than their subordinates. Forcing their opinions on team members or chasing credit can alienate them from the team.

Always mention things like “our project”, visions and goals to inspire employee strengths like team spirit and teamwork. Don’t hesitate to share successful projects with upper management and shine the spotlight on team members who helped move the needle. But never single out members for failures. Accept every success and failure gracefully as a team to maintain a healthy environment in the organization.

Play-Well with the Team

Collaboration

Collaboration is one of the essential employee strengths as it evaluates the ability to work with others. Even a simple task or project may need the combined efforts of many team members. Also, managers may need to collaborate with different processes, departments, and workers successfully to enhance leadership skills.

As one of the most important strengths, the art of splitting a task into multiple members comes under collaborative skills. By enhancing collaborative skills, managers will also improve your reputation as a problem solver. It will also establish their ability to delegate tasks efficiently, effectively, and with minimal friction.

Taking Initiative

Before expecting something from your subordinates, you should do it yourself. It will help you understand the work better. Also, it will show that you can apply yourself in difficult times and during tight deadlines.

By being an initiator at the workplace, you can set a high standard in your company. You can also motivate your employees by taking the initiative or by completing a task on your own. You will also need to imbibe these work-related strengths in your employees.

Decision Making

Being decisive is an important quality that will help you while managing a team. Your ability to make correct decisions will be tested on several occasions. Therefore, analyzing what is right or wrong for a particular project or in general can be one of the best employee strengths for your company.

To improve your decision-making skills, you must learn to gauge different situations. Also, sometimes, you might need to take the opinions of your colleagues as well. Don’t hurry things as you will have to take ownership of the outcome of your decisions afterward.

Thinking critically before making any move is one of the best employee strength examples. Awareness of the situation might also serve to be one of the essential employee strengths during emergencies. As a leader, you must know the proceedings or events that are happening in the workplace.

Negotiating Wisely

Negotiating wisely is a part of communication skills. However, having excellent communication skills is not enough to negotiate wisely. You must also be able to assess a situation and negotiate a deal accordingly. For instance, while negotiating a deal with a prospective client, you must understand what their negotiating style is. To do that study their background and needs. Don’t try to win an argument but impress the person or party with whom you are delegating. It will help build long-lasting relationships with your clients that might serve a greater purpose for your firm.

You also will require negotiating skills while dealing with your team members and upper management. Sometimes, you will have to use these skills to stop an employee from resigning. 

Negotiation skills are one of the most important skills for all management levels.

Focus

Leaders with all the above employee strengths can lose track if they aren’t focused on the organization’s goals. Leaders can achieve business goals with a crystal clear focus:

  • Your creative ability increases by many folds if you are focused at work.
  • Analyzing the needs of your clients can be done if your mind is clear and focused.
  • With employee strengths like dedication and focus, you will be able to achieve both personal and professional growth.
  • You can help your company steer ahead of its competition.
  • You can manage multiple teams.
  • With work-related strengths like communication and focus, you can build strong tie-ups with clients/customers.
  • With a sharp focus on the goals of the organization, you can set work priorities with precision.

Honesty

Honesty is perhaps one of the most sought-after employee strengths at work. However, don’t think of it from only one angle. You must not only be honest towards your company but also towards your own goals.

With honesty comes loyalty which is among the commonly expected employee strengths at every workplace. If your work and intention reflect honesty and integrity, you will easily win the trust of your seniors. They will bank on you at difficult times. Also, you will get to manage higher responsibilities. With higher responsibilities, you will also get promotions. All these employee strengths will ultimately help you attain your professional goals.

Also, as a responsible manager, you need to hire only honest and loyal employees. As a manager, you will need to take responsibility for the failures. You will be responsible for the success of your team members as well. Therefore, getting the best work out of every single employee will be one of your top strengths at work.

Self-Awareness

Image-URL: https://pixabay.com/illustrations/friends-trust-friendship-together-1027867/ 

Self-awareness is among the lesser-known employee strengths. However, as a person managing strategic roles, managers must be aware of their strengths at work. Along with employee strengths, they must also focus on the areas where they are lagging.

Self-awareness will inspire them to keep learning and improving on areas that they’re weak in. Also, they will understand their skills and limitations to perfection. As a result, they will be fully aware of whether they can handle a particular situation alone or not.

While being self-aware, they must also keep the organizational goals at top priority. Sometimes, they may need guidance and help from their peers. They must not refrain from taking their advice as it will only help them to grow faster.

Being self-aware also means understanding which leadership quality you need to imbibe in yourself. It will also help them opt for a particular leadership style that may suit their team.

It is also true that a self-aware leader can assess a situation. If you are not aware of your shortcomings, you can lose focus while handling multiple responsibilities. 

Resolving Conflicts is an Employee Strength

Resolving Conflicts

As strategic planners or executors, they need to resolve the conflicts within the organization. They will also need to address the conflicts with various stakeholders like vendors, suppliers, distributors, etc. While resolving conflict, they must give the highest priority to the profit and growth of your company. 

Conflict resolution is one of the toughest employee strengths to learn. However, it is essential for climbing the corporate ladder. They will learn how to resolve issues and conflicts with experience. Also, they must be keen on resolving issues. Keep observation skills among the top employee strengths in their priority list to achieve that.

Many organizations have started adopting agile practices in their processes. However, only implementing agile methodology is not enough. They must also view operational agility as one of the essential employee strengths. It includes the use of the latest Microsoft Team Apps and software applications that make operations simple. By being agile, they will be able to greet new changes in the organization with an open mind. It will also help them to preempt, assess, and resolve conflicts in a quick time.

Parting Thoughts

Upon mastering these employee strengths, you can thrive and grow smoothly in any organization. However, while focussing on your top strengths at work, be open to learning new strengths in the workplace too. We have provided you with some employee strengths examples in this article.

By banking on your employee strengths during opportunities and work crises, businesses will be able to become true market leaders.

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The Comprehensive Guide to the Payment In Lieu of Notice https://www.attendancebot.com/blog/payment-in-lieu-of-notice/ Wed, 01 Sep 2021 19:41:56 +0000 https://www.attendancebot.com/blog/?p=195882 PILON stands for payment in lieu of notice. Find out its definition, purpose, and rules in this comprehensive guide.

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Payment in lieu of notice is a contractual provision, according to which, an employer has to pay a specific amount to their employee instead of giving notice of termination.

This article will give you a detailed understanding of payment in lieu of notice. You will learn the purpose of PILON along with its difference with garden leave. In addition, you will go through the terms of the notice of employment. Let’s first go through the definition of payment in lieu of notice.

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What is Payment in Lieu of Notice?

Let’s begin with the meaning of in lieu. In lieu means ‘instead or in place’. Therefore, payment in lieu of notice means payment instead of notice. 

Sometimes, instead of notice, employers pay employees an amount after dismissing them from their job. This amount is called payment in lieu of notice or PILON. This payment is usually more than their normal pay because they receive it on their termination. Typically, employers are not bound to pay their employees this amount. This only happens under an employment contract. If an employee is dismissed without serving their notice period, they are given a compensation payment known as wages in lieu of notice. 

The purpose of payment in lieu of notice is to dismiss the employee right away before having them serve the notice. This payment is meant to be a reimbursement to the employee for loss of wages. However, if an employee is fired due to misconduct, they are not entitled to payment in lieu of notice. 

In this arrangement, employers have to pay employees their payroll without them serving the notice. Sometimes, even after being terminated and receiving the payment in lieu of notice, the employees can get other benefits. These include health benefits, compensation, or holiday pay for instance.

Purpose of Payment in Lieu of Notice

Some reasons for paying an entitled employee in lieu of notice are:

Stopping Access to Company’s Information

Payment in lieu of notice is given to employees when the organization has to prevent an employee from reaching out to the sensitive information of the company. In this case, they are paid to not work their notice period. 

Effect on Other Employees

Sometimes, if an employer is concerned about the effect an employee may have on the other employees, they are dismissed without having to serve the notice period. 

Employee Contract

If payment in lieu of notice is mentioned on an employee contract, it is mandatory for the employers to pay these wages to their employees. This contract mentions that the employee will not be working their notice period hence the PILON.

Lack of Productivity

If an employer feels that an employee’s disruptive behavior isn’t going to improve, they can terminate them without keeping them for the notice period. In this case, too, payment in lieu of notice is given to the employee. 

Compensation for Benefits

In some cases, the purpose of wages in lieu of notice is to compensate for any loss of benefits that may have accrued during their continued employment. These include things like an accrued vacation, bonuses, or pension.

Covering Damages

One reason to pay the payment in lieu of notice is to simply cover any potential damages for breach of contract when terminating an employee immediately.

Exception:

  • In New Jersey, employees who are receiving payment in lieu of notice are not eligible to get unemployment compensation. In case, their wages in lieu of notice are less than a week’s compensation and they can receive unemployment compensation.
  • If an employee is involved in misconduct that may include theft, harassment, and bad behavior, they are not entitled to getting payment in lieu of notice. Instead, they are fired immediately.

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Payment in Lieu of Notice and Employee Contracts 

Some employment contracts clearly state that employees will receive payment in lieu of notice immediately after being terminated. Such a contract helps employers to prevent the violation of the contract between both parties. You should provide benefits including pension, holiday pay, or health care insurance to your employees if it is mandated in their employment contract. 

Take care of the following things in the contract:

Breach of Contract

Before making the payment in lieu of notice, make sure to check the employment contract carefully. Without the contractual clause, you can breach the contract by preventing the employee from working.

What and When to Pay In Lieu

Apart from mentioning the PILON, the contract should include what to pay your employee in lieu of their notice. It should also include the way you do it and when you do it.

The clause should state that their contract will be terminated even if the payment is made at a later date.

Be Specific About the Payment In Lieu of Notice

The contract should be as specific as possible.  A vague payment in lieu of a notice clause can be costly to the employers.

Communicate the Payment In Lieu of Notice Regardless

Even if you have an employment contract that mandates payment in lieu of notice, you should still communicate this to your employees. A lot of the time employees don’t read their employment contract carefully and they could be in the dark about this clause. 

Not following the terms mentioned in the contract can lead to conflicts with your employees. Any disputes that arise due to issues in payment in lieu of notice are resolved by employment lawyers.

What to Do If There is No PILON Clause in the Contract?

Sometimes you may have an employment contract that doesn’t talk about the payment in lieu of the notice clause. In this case, it is best to terminate the employee without paying them. Otherwise, you will breach the contract. However, if you can talk to your employees into giving them wages in lieu of notice, you can do that even if the PILON clause isn’t in the contract. In some cases, employees may not agree to these conditions. In that case, if you don’t want the employee to work their notice it’s best to seek advice from employment lawyers and then decide.

Payment in Lieu of Notice vs Garden Leave

Payment in lieu of notice and garden leave are two terms that are often used interchangeably. However, both these terms are different in the following ways:

Working the Notice Period

The wages in lieu of notice is given to the employees when they are to be terminated immediately, without serving the notice period. On the other hand, in garden leave even if employees are terminated, they must work through their notice period. However, during the garden leave it isn’t necessary for them to come to work.

Looking for Other Jobs

While being on PILON, employees can look for other jobs after being terminated. However, in the garden leave an employee has to work for their organization and cannot look for a new job while being on their notice period. This is done to stop the employees from working for competitors for a period of time.

Termination Process

The purpose of PILON is to terminate an employee’s employment immediately. Therefore, they don’t have to work their notice. On the other hand in garden leave, after being terminated, employees have to work their notice period before cutting ties with the organization completely.

How to Calculate the Payment in Lieu of Notice?

The amount to be paid to the employee is calculated in accordance with the terms mentioned on the employee contract. In case the payment is not mentioned on the employment contract, then pay the amount that the employee would have received if they worked their notice period. This method can however vary depending on if the employee is a non-exempt or exempt employee

Apart from this, they need to be paid for time off accrued and not taken and possibly compensated for lost bonuses. Keeping a track of all this will help you calculate the payment in lieu.

When Should the Payment in Lieu of Notice be Paid to the Employees?

Employers must pay them these wages as soon as they are terminated. If for some reason, the payment in lieu of notice is not mentioned in the employment contract, paying it can likely be a breach of this contract.

Terms of Notice of Employment

When an employee ends a job, they give or are given a certain amount of notice to their employer. This notice consists of details of the payment that an employee gets along with other rights and responsibilities.

The following are some terms of the notice of employment:

For Employees

If an employee has worked for you for over a month, they must give you a notice of a week. If the employment contract mentions a longer notice period, employees should comply with the contract. In the case it is not mentioned, employees should decide their notice period reasonably depending on their work duration or seniority. Failure to give notice will result in a breach of the contract and you can even sue your employee for this violation.

For Employers 

Regardless of the employment contract, you must give your employees a statutory minimum notice period depending on the duration that an employee has worked for you. According to the UK government:

  • You must give your employees notice of one week if they’ve worked a minimum of one month up to 2 years. 
  • Give notice of one week to your employee for each year if they’ve worked for more than 2 years to up to 12 years.
  • In case they have worked for more than 12 years, a notice of 12 weeks is mandatory.

In the US, according to the WARN act, employers with 100 or more employees, must give notice of 60 calendar days in advance to the employees.

Payment in lieu of notice

Garden Leave

In garden leave, you give your employees a notice to stop them from working for you. In this leave, they have to serve their notice but during this, they can not look for other jobs. During this notice, employees are entitled to other pay, including basic pay and company benefits. If the need arises, employees can be brought back to work from garden leave.

Shorter Notice Period

Employees have the right to agree to a shorter notice period if they wish. In this case, they will only be paid for the agreed period. 

Failure to Give Notice

 If you or your employee fail to give notice, this will be a breach of contract. The contract of employment is breached if:

  • The contract mentions the provision of notice in the written form but was given verbally.
  • If no notice is given at all or is not detailed enough. 

Work at Will

According to the at-will employment, an employer has the right to terminate an employee for any reason, unless they are firing an employee for an illegal reason. This includes firing them either because of their religion, race, or sexuality. Similarly, an employee has all the right to leave a job whenever they want with no adverse legal consequences. 

Although it isn’t a legal requirement for an employee to give you notice, most employers expect at least two weeks’ notice prior to the termination. This gives them time to look for a new hire in the meanwhile. Having a contract with your employees is important in the terms that it states what will be the aftermath of termination.

The Takeaway on Payment In Lieu of Notice

Payment in lieu of notice is something that needs to be decided carefully. Make sure you study employee rights before and include a PILON clause in the employment contract. 

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How to Rehire Boomerang Employees? https://www.attendancebot.com/blog/boomerang-employees/ Tue, 17 Aug 2021 16:00:32 +0000 https://www.attendancebot.com/blog/?p=195484 The article covers the pros and cons of boomerang hiring along with the best practices across industries to rehire boomerang employees.

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Boomerang employees generally leave a company for a better profile or salary but eventually return. With managers often regretting great employees slip through their fingers due to budgetary restrictions, rehiring these employees is becoming a common practice. With people like Steve Jobs and LeBron James returning as boomerang employees, it is clear that this hiring trend is here to stay.

Some companies prefer not to rehire employees due to questionable loyalty. But there are many others who don’t mind letting gems back in the system.

In this article, we cover the pros and cons of boomerang hiring. We also look into the best practices across industries to rehire boomerang employees.

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Who Are Boomerang Employees?

Boomerang employees are employees who get hired by their previous employers once again. For understanding the meaning of boomerang employees, look at former employees who rejoined your organization after quitting. Rehiring former employees who quit is no longer considered taboo. Organizations rehire them based on their previous performance, skills, and reasons for leaving the company. 

Advantages of Hiring Boomerang Employees

The advantages of boomerang hiring are listed below.

Little to No Training for Boomerang Employees

Boomerang employees have experience working in your organization. Therefore, they need little or no training to meet the work requirements. Also, they will be familiar with the workplace ethics, rules, and objectives of your company. Consequently, they will adjust faster to ramp up than truly new hires.

Rehiring Boomerang Employees is Cost-effective

Hiring talented new hires may need a lot of persuasion skills and sweet talk. It is because candidates tend to keep their options open by interviewing with various companies simultaneously. 

Boomerang workers are likely to be unhappy with their present situation. When they reapply, it is clear that they enjoyed the work culture and that is a massive win already. Recruiters can woo rehire a former employee with competitive compensation and benefits packages.

Boomerang Hiring Helps HR Retention Strategies 

You can rehire previous employees and use them as subtle examples for current employees. When a former employee rejoins the company, it is clear that they enjoyed working at this one better than the competition. In that case, current employees may be more likely to question their own reasons for looking to shift. 

The boomerang employee may be back because of the work environment, paid time off, payment policies, learning opportunities, or other factors. It is HR’s job to advertise this internally to improve the retention rate of the organization. This is one of the more subtle benefits of boomerang hiring.

Rehiring Laid Off Employees Utilizes Their Prior Experience 

By recruiting the employees who are eligible for rehire, your company will benefit from their previous experience and current expertise. Boomerang employees might have developed new skills, perspectives, and ideas while working in their new organization. You can channelize those skills and perspectives to redefine some of your working practices or processes.

Things to Consider Before Boomerang Hiring 

Eligibility for Rehiring Boomerang Employees

Source

Before rehiring laid-off employees who quit your company some years or months ago, you should consider a few things. For example, you should go through your organization’s rehire policy and procedures. It will help you determine whether a former employee is eligible for rehire or not eligible for rehire.

By going through these rules and procedures, you will know how to answer the question, “can you rehire a terminated employee?” You can also consider rehiring laid-off employees if the rehiring policies of your company allow you to do so.

While rehiring previous employees, you should get the crucial boomerang employees statistics in advance. You should get data on whether the performance of the boomerang workers improves, deteriorates, or remains unchanged after rehiring. Research the industry or niche of your company, or utilize the research that has been already published.

Compare the performance of boomerang employees with the existing employees who have been promoted, considering their contribution and dedication. It will help you know whether the boomerang workers will be as productive as the freshly recruited staff. After detailed research on the thousands of former employees who were rehired, we found these interesting patterns.

Predictable Performance 

The performance of the former employees is similar to what they exhibited previously. Therefore, their productivity, working patterns, and contributions are predictable during their second stint with your company. 

It was noted that some boomerang employees tend to leave their organizations later. Also, their reasons for quitting are somewhat similar to why they resigned from the organization previously.

The Decline in Performance Over a Period 

It was observed that some former employees tend to underperform compared to internally promoted workers and freshly recruited staff. A lack of commitment or motivation could be the reason behind their lower productivity and performance.

Out Performing Boomerang Workers 

Our research indicated that the employees who’d quit earlier for positive or neutral concerns are good prospects for your organization. It is because they are likely to outperform the fresh and existing talent of your organization. The performance improvement is especially noteworthy during the first and second years after getting rehired. 

Is it a Good Decision to Rehire Former Employees?

Indulging in boomerang hiring can have positive or negative implications, depending upon the rehired employees’ performance. In most cases, organizations avoid rehiring former employees who’ve left their organization after a dispute. If you have little or no experience in hiring former employees, you can look at the rehiring strategies implemented by the world’s top MNCs.

As per the Walmart rehire policy, the company does not recruit boomerang workers terminated earlier due to legal reasons. However, for termination due to other reasons, they must wait at least six months before becoming eligible for rehire. Also, the workers who had left on a positive note can reapply only 90 days after leaving the organization.

The rehire policy and procedures vary as per the company’s sector. If you look at the FedEx rehire policy, you will notice that it is a lot more lenient. Also, it allows former employees to rejoin as few as 30 days after quitting their jobs. The boomerang jobs offered by companies such as these come with lenient rules, as they need experienced handlers constantly.

As per the Amazon rehire policy, the former employees who left due to involuntary termination are not considered for rehiring.

To determine how long after a layoff can a company rehire, the employees should contact their immediate managers or HR. If you keep the policies of the rehiring flexible, you will increase the chances of recruiting talented former employees again. The fact remains, the boomerang principle has become popular with most global organizations today.

What are the Best Practices to Rehire Employees? 

Creating a Talent Pool 

As a recruiter, you can create a talent pool of your organization’s existing and previous employees. By doing so, you can ensure that your previous employees stay in touch with you. Also, they will remain updated with the latest vacancies in your organization. 

Further, you will be able to know the status of your former employees with their current organization. It might help you to extend an offer to them when they are thinking of switching their job.

Your boomerang hiring talent pool must not contain only those employees who are, and were, full-time employees in your organization. It should also comprise interns, part-time workers, freelancers, and candidates who could not join your organization previously.

Drafting a Rehiring Policy

Before recruiting boomerang employees, you should have a well-researched, extensively documented rehiring policy in place. It should include the terms and conditions that apply to the employees who want to rejoin your company.

Draft a rehiring policy to include only those former employees who had left your organization by serving the notice period. Implementing a strict rehire policy and procedures is necessary to keep unwanted former employees away from your company.

However, you may include some special conditions that allow former terminated and laid-off employees to join after a specific period. You can always take references from the rehiring policies implemented by the top players in the market.

Interviewing Former Employees

Many organizations tend to skip the interview process while recruiting their former employees. They may do this to fill up a position quickly or due to an upcoming deadline for a project. Rehire your previous employees only if you have a proper reason to do so. Generally, you should make them go through a formal interview before you onboard them.

You can ask them questions related to their previous exit to understand their expectations while rejoining your firm. Include the questions that are standard for new hires too. It will help you to determine whether a former employee is competent enough to be rehired or not.

Reboarding Boomerang Employees

Reboarding boomerang employees is essential if your organization has undergone significant changes after their resignation. You can implement a separate reboarding process for these former employees as they are already aware of most aspects of your organization. The key factors to focus on for reboarding boomerang workers are as follows:

  • Changes or updates in the technologies that the former employees need to know to perform their job roles well
  • Remote working policies adopted by your organization because of COVID-19
  • New reporting and collaborating processes adopted by your firm 

Discussing Remuneration and Job Role Transparently

You should be unsurprised if a former employee expects a senior position after rejoining your firm. However, offer them seniority only if their current experience makes them eligible for it and not because they left your firm previously upon being denied the same.

Furthermore, if they expect an enhanced package or remuneration, you should analyze whether they deserve it. If yes, you can offer them a new, increased package. Otherwise, ask them to begin working at the same salary with an assured performance-based promotion after a few months.

Taking Insights from the Team

As an HR manager or recruiter, you may be happy to rehire boomerang employees. However, if their prospective team is unhappy with this news, you might have to think carefully before rehiring them.

Generally, you can take suggestions regarding boomerang workers from the team in which they were working before. If the former employee will join a new project, gauge whether they will fit well in the new team.

Boomerang Employees Feedback

Final Words on Boomerang Hiring 

Before deciding whether former employees are hireable, you should cross-check the reason for their previous exit. Also, strengthen your talent acquisition process by creating a thorough rehiring procedure well-supported by documents and regulations. 

Considering the benefits including less time and lower costs required for onboarding a former employee, you can contemplate recruiting your previous staff. However, do not forget to evaluate their past performance, as most probably, it will remain the same after rejoining.

Hire a previous employee only if your instincts allow you to do so. Also, you can ask them to contribute at least as much as they used to before exiting your company. Sometimes, you may have to determine whether a former employee is harboring negative feelings against your organization. Therefore, you must analyze the risks and benefits properly and use smart hiring tips before recruiting such employees.

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The Comprehensive Guide to Full-Time Equivalent for Businesses https://www.attendancebot.com/blog/full-time-equivalent/ Fri, 16 Jul 2021 13:40:07 +0000 https://www.attendancebot.com/blog/?p=195030 This article dives into the FTE definition and the advantages of calculating a full-time equivalent for businesses, irrespective of size.

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When a company hires a significant portion of its workforce on a part-time basis FTE becomes significant. It’s beneficial to convert the employees’ working hours into FTE to determine the total full-time employees in an organization. Various metrics such as headcount, sales, and profits, evaluate the FTE measure.

It allows you to compare the headcount levels of businesses within any industry. In this article, we’ll take you through why a full-time equivalent figure is important for businesses in the United States. 

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What’s Considered Full-Time?

Full-time equivalent (FTE) allows employers to measure the number of full-time employees they need. FTE calculations are done based on the employees’ work hours per week.

Technically, a full-time employee can be the equivalent of two part-time workers. Employers treat part-time employees as a percentage of full-time employees. Thus, it is possible to consider full-time equivalent employees by combining multiple part-time employees.

An employer has to follow various employment laws, but not all of them apply to every company. The number of personnel on hand usually determines the laws that apply in particular enterprises. The measure of FTE determines the number of employees (also known as a threshold) of an enterprise. It is calculated to: 

  • Comply with the employment laws
  • Benchmark revenues
  • Check qualifications for business loans

Who Qualifies as a Full-time Equivalent Employee?

An FTE employee is evaluated based on the total number of hours the employees have worked in the organization, although the FTE calculation may not consider all the employees hired by the organization. Here are some general criteria for the employees to be considered as full-time:  

  • An employee who works in a full-time work schedule as per your organization’s standards is a full-time employee. 
  • Two employees hired part-time who work half of your company’s daily work schedule are equal to a single full-time employee. 
  • Four employees hired part-time for a quarter of the work schedule are also equal to a single full-time employee. 

The Current Full-Time Equivalent Schedule

The length of the average full-time work schedule has drastically changed over the recent years. Due to changes in legislation around the world, employees that companies hire full-time nowadays work 20-30 hours less per week than employees from the previous century. Many companies have even chosen the 32-hour workweek schedule.

Is 32 hours considered full-time? The answer is both yes and no, as these figures differ in various countries.

In the Netherlands, the average full-time work schedule of the employees is approximately 29 hours and 18 minutes per week. Whereas in Colombia, the average full-time work schedule per week is nearly 48 hours. 

According to the IRS, a US employee has to work 30 hours every week or 130 hours a month to qualify as a full-time employee. In reality, the employees usually have 32-40 hours workweeks. In many organizations, the most typical work schedule is 40 full-time hours per week. Generally, employees work 8-hour shifts for five days every week.

How Many Hours a Year is Full-Time?

Identifying the total number of hours employees work in a year can help you in determining their hourly compensation. While the procedure for determining hourly wages is simple, the actual result may vary depending on the workweek pattern used in the organization.

Is it a 40-hour or a 32-hour workweek schedule?

How many leaves does the company provide?  

Once you’ve determined the weekly working hours and the overall number of holidays granted to employees, the rest is simple. Simply multiply the number of weeks in a year by the number of work hours in a week. For example, if you have a 32-hour workweek, multiply it by 52 weeks. That equates to 1,768 hours a year for each full-time employee. 

However, not every company has a 32-hour workweek. The 40-hour workweek is the most prevalent work schedule. In this schedule, each full-time employee works 2,080 hours each year.

Why is Full-Time Equivalent Important?

Why is Full-Time Equivalent Important?

The FTE determines if a business qualifies as ALE (Applicable Large Employer).

ALE is a designation that indicates that an employer has 50 or more full-time employees. It can also indicate a combination of full and part-time employees that equate to 50 full-time employees in the preceding calendar year. 

If your company meets the requirements for ALE certification, the Affordable Care Act’s employer mandate requires you to provide group health insurance to your employees. If you are in ALE status, you must also submit your 1094-C and 1095-C tax forms that describe the type of coverage you provide to your team. Make sure to submit these documents alongside your application.

How to Calculate Full-Time Equivalent?

When an employee works a typical full-time workweek, the equivalent of all employees who work full-time is calculated by dividing the scheduled hours of the employee by the total number of hours worked. Employers often use a 40-hour workweek to calculate full-time equivalents. Employees who work 40 hours per week fall in the 1.0 full-time category. Employees who work 20 hours per week qualify as 0.5 full-time equivalents under federal wage and hour laws. 

In the case of a 35-hour workweek, an employer would simply divide an employee’s scheduled hours by 35 to arrive at the equivalent rate. For example, when the full-time employees’ workweek is 35 hours, an employee assigned to work 21 hours a week will have an FTE rate of 0.6.

The number of full-time employee equivalents is determined not by the number of employees but by the hours worked. You could have four full-time workers and only one part-time worker. Four 0.25 employees would be equivalent to one full-time employee. For instance, Janice, Ben, John, and Josh could each work ten hours per week for a total of forty hours per week, or one full-time employee can work based on a 40-hour workweek schedule.

Employers can use the FTE calculation for various purposes, including benchmarking earnings or profits per employee comparisons. It is beneficial to convert the hours worked by part-time employees into full-time equivalents when calculating these metrics.

 The Patient Protection and Affordable Care Act (PPACA) specifies how an FTE is calculated. It requires employers to calculate the full-time equivalent to determine whether the law applies to their company.

How to Calculate FTE to Determine the Number of Full-Time Employees?

Consider the following scenario. You are attempting to determine the HR requirements for a project that will take 1200 hours and require your team to work 8-hour shifts per day. By dividing 600 by 8, you can determine the number of days your team has to work to complete their tasks. It will also help you identify the required number of employees to complete the task in the specified days.

1200/8 = 150 hours per day

All you need to do is decide the number of people you need to employ and the type of job you will assign them. Here are some of the options:

  • Hiring 10 full-time employees gives you an FTE rate of 10.0 and can help you finish the project in 15 days. 
  • Hiring 7 employees full-time and 1 part-time gives you an FTE rate of 7.5, and you can complete the project in 20 days.
  • If there is no time constraint, you can hire 5 people to complete the same project. They can complete the project in 30 days. 
  • Hiring a team of 15 employees full-time gives you an FTE rate of 15, and you can complete the entire project in merely 10 days.

The allocation is dependant on the time-sensitivity of the project. 

Now that you know the aggregate number of hours employees have to work each day, you can pick your days-per-employee ratio for carrying out the projected volume of work. Also, here is an FTE conversion chart to aid in the proper division of human resources.

Calculating Eligibility for the Paycheck Protection Program (PPP) 

Small and medium-sized businesses participating in the CARES Act’s Paycheck Protection Program receive assistance from the program to keep their employees on a payroll.

It specifically assists small and medium-sized businesses in covering eligible salary and non-payroll expenses for up to 24 weeks. The Flexibility Act of 2020 was made a law on June 5, 2008; eight weeks before implementing the Paycheck Protection Program. 

Once the small and medium-sized businesses complete their PPP requirements, the money they borrowed from the program will be forgiven in the following situations:

  • The funds covered payroll costs. 60% of funds spent on monthly pays, hourly earnings, commissions, additions, and other incentives. With non-payroll costs consisting of 40% of the funds spent on rent, interest on loans, or conveniences of the employees.
  • The small business owners maintained an FTE level in their organization from February 15, 2020, till December 31, 2020. The company must have maintained optimal equivalent employee levels by retaining current employees. They could also or rehire employees laid off or furlough them between February 15, 2020, and April 26, 2020.
  • The business is eligible if salaries and hourly wages were not cut by more than 25%. It is also suitable if the organization could not function at the same level of business activity as before February 15, 2020, due to COVID-19 compliance and regulations.

Does Your Business Need a Full-Time Equivalent? 

Does Your Business Need a Full-Time Equivalent? 

There are multiple reasons to calculate full-time equivalents using various calculation methods. Planning for project work in an organization by setting deadlines and a budget becomes more accessible using this tool. Having accurate employee equivalents can help HR in a number of ways. It can be useful to calculate paid time off for employees and if the business is eligible for federal programs. 

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The Comprehensive Guide to Hire a 1099 Employee https://www.attendancebot.com/blog/1099-employee/ Wed, 23 Jun 2021 14:37:11 +0000 https://www.attendancebot.com/blog/?p=194808 A 1099 employee is hired by a business for a specific project. Find out the guidelines that must be kept in mind while onboarding them.

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Independent contractors are a great way for businesses to hire specialists for short-term projects. But hiring contractors can mean jumping through a few hoops for payroll and taxation.

In this blog, we’ll take you through the differences between W2 and 1099 employees, guidelines for onboarding 1099 employees, and much more.

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Who is a 1099 Employee?

Individuals who are self-employed workers and do not fall under any employment classification rules are known as 1099 employees. The pay to 1099 employees is based on their contract, and the 1099 form is provided to report their income on tax returns.

1099 employees are also considered freelancers, self-employed individuals, and independent contractors. They own their businesses, and they provide a broad range of services to clients. 1099 employees or freelancers establish business relationships with various clients. The clients can range from small businesses to enterprise clients.

The reason why this classification is so important is that 1099 employees get paid for the work that they perform for their clients without any tax deduction. 

Clients associated with 1099 employees have a lower degree of control as compared to the 1099 employees who have a lot of autonomy over their way of working. Companies can avoid paying taxes by hiring independent contractors or 1099 workers.

A broad range of workers come under the category of 1099 employees, including even blue collar workers, like plumbers writers, and electricians.

Who is a W2 Employee?

A W2 employee is a regular employee who works directly for the business and is part of the payroll. Traditionally, W2 employees do not own businesses of their own. They are employed by the business for which they get a salary. The employer holds a high degree of control over the business activities and determines the work schedules, benefits, and wages of W2 employees. 

The employer is responsible for W2 employees’ benefits, perks, and salaries. The employers consequently possess a large degree of control over the employees and also withhold income taxes from the employee’s paycheck. W2 employees are also eligible for any wellness initiatives by the business and work in accordance with all the business requirements.

All employees are classified as W2 employees unless there is a compelling reason to classify them as independent contractors or 1099 employees.

1099 vs. W-2 Employee

Classification of an employee either as a W2 employee or as a 1099 employee is vital for the business. The misclassification of a W2 employee as a 1099 employee can result in penalties from the Internal Revenue Service (IRS). Classification of an employee is also vital for identifying the extent of control that the business has over the pay and schedules of the employees. 

However, independent contractors almost always pose a lower cost to the business. This might make unscrupulous businesses misclassify their employees. However, the IRS can audit the business and identify if it has done any misclassification of its employees. It’s certainly more trouble than it’s worth. 

Source

IRS provides guidelines clarifying the correct classification of workers into three categories which are listed below-

The First Category: Behavioral 

The behavioral category focuses on identifying whether a business can control what, where, how, and when the worker carries out their job.

The Second Category: Financial 

The financial category focuses on determining who controls the economic aspects related to the worker’s job and method of payment.

The Third Category: Types of Relationship 

The types of relationship categories are focused on determining whether the employee receives benefits or not. This along with the documentation filed can establish the type of relationship between an employee and the business. 

Difference between W2 and 1099 Employees

Tax Forms

In terms of tax forms, independent contractors and permanent employees on the company payroll have two different tax forms. Unsurprisingly, a 1099 form is filed for 1099 employees and a W2 is filed for W2 employees for payroll taxes. 

A 1099 employee is an independent contractor, and businesses pay them according to their contracts. On the contrary, a W2 employee is a salaried employee who receives wages and employee benefits regularly. The business not only holds a large degree of control over the W2 employee’s work but also withholds income taxes from the employee’s paycheck.

Schedule

A 1099 employee is hired by a business for a specific project or task. 1099 employees provide the business flexibility in terms of hiring and “firing”. Their hours spent with the business are dependant on the project requirements and their own schedules. 

On the contrary, W2 employees are controlled by their employers as the employer determines the schedule and remuneration for W2 employees.

Employment Type

A 1099 employee is self-employed, while W2 employees are salaried employees. Unlike 1099 employees, W2 employees do not own a business. Rather, they work for a business and work towards achieving the business’s goals.

A 1099 employee provides only services that are defined in the written contract. It is entirely up to them if they wish to cater to just a single client or many at the same time. There is no non-compete clause associated with their services rendered. But W2 employees can only work full time with one business at a time.

Training

1099 employees do not need to be trained by the organizations as are experts and are hired for their expertise. On the contrary, W2 employees need to be trained to adhere to processes and to improve their skillset. 

1099 employees mostly perform tasks without the employer’s processes. Their goals are oriented to end-results and process creation. However W2 employees have to follow the businesses’ processes while performing all tasks.

Expenses

Independent contractors or 1099 employees are responsible for their own employment expenses and taxes. While in the case of W2 employees, the business withholds payroll taxes from their salaries to cover the employment expenses.

A 1099 employee is not eligible for unemployment benefits, but the W2 employee is eligible for unemployment benefits in special cases.

Benefits of a 1099 Employee

Expertise in Specific Field

Perhaps the most significant advantage of working with a 1099 employee is the expertise possessed by the 1099 employee in a specific field. In case a venture requires particular expertise or specialized ability, the business can hire a 1099 employee who has constructed a business around that very specialization. 1099 employees possess specialized skills and expertise that are more streamlined or missing in the capabilities of the organization’s core team.

1099 employees are well versed in their domain and bring additional experience to the organization.

Flexibility

Businesses and organizations can hire a 1099 employee for as many projects as the budget allows. Contrary to a W2 or a regular employee who is associated with the business for a long period, 1099 employees provide flexibility to the businesses in terms of prioritizing and shifting resources.

Organizations hire 1099 employees for accomplishing a specific project as they can focus on a particular project without increasing the employee headcount.

Easy Administration

Administration becomes significantly easy for the organization by employing an independent contractor. The initial paperwork is quite less, and payroll is easier as the employers do not hold any responsibility when it comes to withholding payroll tax. However, an organization needs to make sure that the classification of employees is correct each time.  

Cost-Effective

Cost-effectiveness is a vital factor for businesses, and it can be achieved by utilizing a 1099 employee in place of a W2 employee. There is no need to provide minimum wage and benefits to 1099 workers or independent contractors.

Moreover, the paperwork is quite less for an independent contractor or 1099 employee as compared to a W2 employee.

Less Legal Exposure

1099 workers are not eligible for any kind of compensation coverage. Additionally, they cannot make wrongful termination claims, which in turn lowers the legal exposure of the business.

How to Hire a 1099 Employee

Hiring reliable 1099 workers or freelancers can be beneficial for organizations. They can provide certain benefits, including cost-effectiveness, flexibility, less paperwork, and extensive expertise in a particular domain. Companies need to be careful while hiring independent contractors to benefit from the onboarding of independent contractors.

After signing the employment contract that should ideally include expectations, termination terms, duration of the project and equipment provided, the next steps are:

Ensure a 1099 Employee is Classified Correctly

Make sure that a 1099 employee is:

  • Not working full time for the business
  • Does not require any special training and supervision
  • Offered any benefits
  • Clear about their employment status with the company

W-9 Form

W-9 form is a must for all independent contractors. A W9 provides their:

  • Name
  • Current Address
  • Tax Identification Number
  • Eligibility to work in the United States

It doesn’t need to be sent in anywhere but every business must have the W9s of all 1099 employees on file. Getting all details, in the beginning, will save you many headaches later.

W9 Form for a 1099 Employee

Confidentiality Agreement

A non-disclosure agreement (NDA) is integral for independent contractors. This confidentiality agreement should outline that any confidential material, information, and knowledge cannot be shared with a third party.

Not all businesses require an NDA but to cover all bases it is prudent to get one signed during onboarding of the contractor.

The Correct 1099 Employee Form

A 1099 employee form is a document or a combination of documents that are used by the IRS for tracking various types of income, excluding the salary that an employer receives. The person who pays is responsible for providing a 1099 employee form to the independent contractor. There are various kinds of 1099 employee forms, including the 1099-MISC form and 1099-INT form.

1099-MISC

1099-MISC is a document for people who engage an independent contractor or freelancer and pay them an amount above $600 annually. Employers need to submit the 1099-MISC form for individual independent contractors who receive an income over $600.

1099-INT

The 1099-INT form is a document that is received from banks where the independent contractor holds interest-bearing accounts. The interest that is earned on investments is taxable, and in this aspect, it is reported to the IRS.

1099-NEC form

A 1099-NEC form reports non-employee compensation. The 1099-NEC form is not a replacement for the 1099-MISC form but rather replaces its usage for reporting independent contractor payments. The 1099-NEC reports how much an independent contractor earned while working with the client. This does not include payments made via credit cards or third-party settlement platforms.

The independent contractor, as well as the employer, needs the 1099-NEC form for filling out the taxes. The 1099-NEC form has two copies, Copy A is filed with the IRS, and Copy B is sent to the individual contractor by the employer. The 1099-NEC form is not part of the State Filing Program, which is why an employer might need to submit 1099-NEC to the state where the independent contractor works. 1099 employee taxes can be determined by filling and submitting the form.

1099 Form Deadlines

January 31

1099 forms must be sent to all your 1099 employees by the end of January. If this day falls on a weekend, the deadline is extended till Monday.

February 28

1099 forms issued must be filled and sent to the IRS by the end of January. Not filing these forms accurately and on time can open the business to penalties.

Source

1099 Employee Rights

Taxes Paid

The 1099 employees do not pay social security and unemployment taxes. Instead, they pay taxes on the gross pay received from organizations. Subsequently, businesses can be on the hook for backdated taxes if they fail to classify independent contractors correctly. 

Tax Administration

If the IRS identifies that a salaried employee has been represented as an independent contractor there will be repercussions. The business can be held accountable for backdated withholdings to the tax administration. 

Work in Several Companies

1099 employees do not possess an exclusive employment relationship with any organization. However, this makes them ineligible for benefits like minimum wages, overtime payment, and other perks.

However, the business cannot prevent 1099 employees from working with several companies simultaneously either.

Freedom 

Independent contractors possess the freedom to work from their place and at their convenience.

However, a situation may arise where the client expects the 1099 employees on-site during a specific project. In that case, the employer is responsible for providing the necessary tools and equipment to the independent contractor.

Termination

The business can end the agreement of the 1099 employee at will in case explicit termination conditions are not included in the contract. It is the right of the individual contractor to discuss the termination procedure before agreeing to work on a project and incorporate it into the contract.

Is Hiring a 1099 Employee Beneficial for a Business?

A 1099 employee can bring benefits such as cost-effectiveness and flexibility. However, the business needs to determine and define the requirements of an independent contractor. 

Are you finding it hard to track hours for your 1099 employees? We think AttendanceBot, a time tracking solution that functions right within MS Teams and Slack, can help.

1099 Employee CTA

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The Ultimate Guide to Minimum Wage by State in the United States https://www.attendancebot.com/blog/minimum-wage-by-state/ Thu, 10 Jun 2021 14:49:13 +0000 https://www.attendancebot.com/blog/?p=194656 According to federal and state law, employees are entitled to a minimum wage in the United States. Find out the minimum wage by state here.

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What is the Minimum Wage?

A minimum wage is the lowest legal, hourly pay rate that an employer must pay to an employee. The minimum wage was initially introduced to protect the rights of workers to a liveable wage in the United States. Minimum wages can be mandated by both the federal and state governments. 

Although states have the liberty to set a separate wage limit, it must be above the federal government’s threshold. The federal minimum wage limit is  $7.25/hour, and states can only set minimum wages higher than this. Several states have set a limit above the statutory limit, such as California’s minimum wage, which stands at $14.

The industries where the minimum wage by state rates do not apply include service and hospitality. The changes in norms are because they are tipped employees. Tipped employees make $2.13/hour, while the tips compensate for the balance.

American employers are directed to pay the amount that is either equal to or above the limit prescribed in their states. Employers have to comply with the limit, as prescribed. California tops the chart in terms of the highest minimum wage in the US.

Enforcement of Federal Minimum Wage 

Minimum Wage Limits

Source

Back in 1938, US President Franklin D. Roosevelt signed the Fair Labor Standards Act (FLSA). The Act established the first-ever minimum federal wage at $0.25 per hour. The rough conversion of the wage following the present standards is $4.63. 

Changes were introduced in 2009, where the current limit of $7.25 was set up. There have been no changes in the law since then, while the standard workweek is 40 hours. 

The law was enforced to ensure reduced unfair compensation, protecting the rights and interests of employees. It was passed to help employees keep up with the rising cost of living. The minimum wage by state ensured that employees were provided with enough wages so they could afford their basic needs.

The minimum wage in the United States has remained constant since 2009, which diminishes the motive of its establishment. Though the purpose was to protect the employees and provide them with enough income in the face of rising inflation, the minimum wage by the state hasn’t been realigned. 

States that Have No Minimum Wage Limit

Certain states in the US do not have a state-mandated minimum wage limit. Employers of the states with no drawn limit must comply with the federal minimum wage of $7.25 per hour. Here is the list of states that have no minimum wage by state limit law:

  • Alabama
  • Louisiana 
  • Mississippi 
  • South Carolina
  • Tennessee

State Wise Minimum Wage Statistics

Attempts to increase the minimum wage limit from $7.25 an hour to $15  have been on for a few years. While a few states have raised the bar somewhere close to $15, others follow the benchmark federal min wage.

Check out the statistics on minimum wage that prevail in the country:

  • Around 29 states and the District of Columbia raised the bar above the floor wage. States have also introduced certain legislatures to safeguard the motive of the Act. 
  • 12 states of the US have the same limit as federal wage.
  • Six states have no minimum wage by state policy at all, where only federal minimum wage rates apply.
  • The remaining states have a limit below the federal government-stated threshold. Nevertheless, the general statutory limit applies in the states. 

What States are Raising the Minimum Wage? 

Here’s a list of minimum wage by each US state in 2020 and 2021. Although some states have tried to keep up with rising inflation, others have remained close to the federal mandates.

State Minimum Wage in 2020 Minimum Wage in 2021
Alabama $7.25 $7.25
Alaska  $10.19  $10.34 
Arizona  $12.00  $12.15 
Arkansas  $10.00  $11.00 
California   $13.00  $14.00
Colorado  $12.00  $12.32 
Connecticut  $12.00  $13.00 
Delaware  $9.25 $10.25 
Washington DC  $15.00  $15.00 
Florida  $8.56  $10.00 
Georgia  $5.15 $5.15
Hawaii  $10.10  $10.10 
Idaho  $7.25  $7.25 
Illinois  $10.00  $11.00 
Indiana  $7.25  $7.25 
Iowa  $7.25  $7.25 
Kansas  $7.25  $7.25 
Kentucky  $7.25  $7.25 
Louisiana  $7.25 $7.25
Maine  $12.00  $12.15 
Maryland  $11.00  $11.75 
Massachusetts  $12.75  $13.50 
Michigan  $9.65  $9.65
Minnesota  $10.00  $10.08
Mississippi  $7.25 $7.25
Missouri  $9.45  $10.30 
Montana  $8.65  $8.75 
Nebraska  $9.00  $9.00 
Nevada  $8.00  $8.75
New Hampshire  $7.25)  $7.25 
New Jersey  $11.00  $12.00
New Mexico  $9.00  $10.50 
New York  $11.80  $12.50
North Carolina  $7.25  $7.25 
North Dakota  $7.25  $7.25 
Ohio  $8.70  $8.80 
Oklahoma  $7.25  $7.25 
Oregon  $12.00  $12.75
Pennsylvania  $7.25  $7.25 
Rhode Island  $10.50  $11.50 
South Carolina  $7.25 $7.25
South Dakota  $9.30  $9.45 
Tennessee  $7.25 $7.25
Texas  $7.25  $7.25 
Utah  $7.25  $7.25 
Vermont  $10.96  $11.75 
Virginia  $7.25  $9.50
Washington  $13.50  $13.69 
West Virginia  $8.75  $8.75 
Wisconsin  $7.25  $7.25 
Wyoming  $5.15 $5.15

The figure below provides the statistics on the latest wages or new minimum wages. 

Recent Changes in Minium Wages by States

More than 25 states in 2021 are set to increase their minimum wages for workers. The minimum wage by state differs, as does the year-on-year increase. We have listed some of the crucial changes addressed by states:

  • California’s minimum wage in 2020 was $13, and it increased to $14 in 2021
  • Colorado’s minimum wage increased by only 32 cents
  • Michigan’s minimum wage and South Carolina’s minimum wage remain the same at $7.25. The minimum wage in Texas also remained the same in 2021.
  • Oregon’s minimum wage increased by 75 cents, while the minimum wage in Nevada increased by 75 cents.
  • The minimum wage in Florida increased from $8.56 to $10.  At the same time, the minimum wage in Virginia increased by $2, similar to the increase in California’s minimum wage.
  • Furthermore, the minimum wage in Arizona increased by 15 cents.
  • Maryland’s minimum wage increased by 75 cents, while Massachusetts’s minimum wage increased by $1.25.

States which introduced massive hikes in their minimum wage by state limit are:

New York – $15 

Pre and post-2020 wage situations in New York are not the same. Before, employers with less than 11 employees had a lower minimum wage rate than the ones with more than 11 employees. But now, all the employers must adhere to a minimum wage of $15/hour.

Washington, DC – $15

This is one district that has raised its minimum wage rates steadily every year since 2016. It was $11.5 in 2016 and it has risen $15 now. 

Seattle – $13.5 – $16.39 

Businesses with more than 501 employees have a minimum wage by state rate of $16.39 in Seattle. On the other hand, employers with less than 501 employees have to adhere to a minimum wage rate of $13.5.

Minimum Wage Rate Change

The Positive Impact of a Rise in the Minimum Wage

Minimum Wage Hike

Source

One of the prime factors that should contribute to an increase in the minimum wage is the rising inflationary pressure. The value of $7.25 in 2016 is not the same in 2021. Reportedly, there has been a 17% decline in the value of the prevailing federal limit of $7.25 in 10 years.

Raising the limit further would only make sense when we speak in terms of a hike in the cost of living

From the times the wage limit has been stagnant at $7.25 per hour, full-time minimum federal wage workers are making 18% less to what they must be entitled to, proportionate to the higher cost of living. 

Rise in Standard of Living

A rise in wage to $15 according to the Raise the Wage Act of 2021 would likely impact 32 million workers. The rise in wages would account for a rise in standards of living for 21% of the workforce in the US. 

Increased Income

An increase in the minimum wage would mean an increased income of $3,300 for a minimum federal wage worker working year-round.

Positive Impact on BIPOC Workers

Another argument in favor of the rise is the potential of the hiked price rectifying certain pay disparity. BIPOC (Black, Indigenous, and People of Color) workers have been traditionally underpaid and are massively affected by the low wage limit. These classes of workers form the majority of the country’s workforce. Earnings of Black and Hispanic workers would rise by 31% and 26%, respectively. 

No Adverse Impact on Jobs

Though study regarding the adverse effect of a hiked minimum wage is backed with claims, data shows otherwise. There has been evidence that supports the move and explains why there is no loss in the job or net wage gain. Therefore, support from the unemployed, people of color, and women is flowing in. 

Liveable Wages to Boost the Economy

A rise in the wage limit would give enough room for low-wage workers to afford basic necessities. This rise to a liveable wage could also boost the economy with an increase in spending power. Minimum wage increases by the state could reduce poverty and homelessness

No one should have to work two jobs just to have a roof over their heads. The whole purpose of a minimum wage limit was to ensure a “liveable wage”. A liveable wage should be one where a person isn’t worked to the bone just to provide the basic necessities for their family. 

Arguments Against an Increase in the Minimum Wage Limit

While the majority of states have set new minimum wage by state limits, states with no reported hike have their own reasons. Here are some reasons why some states do not support an increase in the minimum wage:

The rise in Potential Layoffs and Unemployment

Should there be a hike in the minimum wage, there is bound to be a rise in layoffs and unemployment. There are some studies that support this line of thought, such as the 2014 study from the Congressional Budget Office. The Congressional Budget Office indicated a loss of around 1.4 million jobs should the minimum wage by state increase to $15 by 2025. This would surmount to a drop in real income, as much as $9 billion, followed by an increase in the prices of goods and services across the country.

Small Businesses will be Disproportionately Affected

The bankruptcy of small-scale businesses that can’t afford to pay such high wages. The AAF or American Action Forum has laid down the effects of a hiked federal wage. Seattle’s continued endeavor to raise the wage is a visionary of what an increased wage limit might introduce to the economy. An increase in the limit of $11 to $13, back in 2016, portrayed a fall in work hours (specifically from the low-wage section) by as much as 9 percent. These adverse statistics are on account of only a $2 hike. With the proposed rate being double what it currently is, states might have to face large-scale unemployment. 

Local Conditions Should Impact Minimum Wage Limits

Wages across states in the US vary as per the local conditions. There are arguments that any spike in the minimum wage limit must be locally dealt with rather than at the federal level.

We do think that a rise in the minimum wage will impact small businesses. But the fact remains that large companies have misused these wage limits for their own gain.

Perhaps a mid-way point can be to have a differential minimum wage basis the size of the business and the state it functions in.

Effect of the Shift in Minimum Wage by State on the Economy

As per federal standards, the cost of living and minimum wage is not aligned. The latest efforts to pass a new bill for the long-overdue law were made on July 18, 2019, by the US House of Representatives. the proposal was of an amended version of the Raise the Wage Act of 2019, which would, in effect, hike the minimum wage by the state to $15.

The Senate committee on health, education, labor, and pensions voted against the bill, and the bill failed. Ever since the bill died in the Senate, there have been debates and protests regarding a hike in the current minimum wage.

The rise of federal wage to $15 an hour is one of the policies Joe Biden aims to enforce. But only bilateral support can get such a contentious bill across. 

FAQs

Is the minimum wage a price floor?

Yes, the federal minimum wage by state is a price floor or the base wage every US employee is entitled to. Employers must abide by this law and pay at least the minimum wage, as the federal government prescribes. 

What is the minimum wage in California?

California’s minimum wage or the CA min wage is $14.00 in the year 2021. 

How much is minimum wage?

The federal minimum wage has been $7.25 per hour since 2009. On the other front, the server minimum wage is $2.13/hour, inclusive of the tips they receive, accounting for the wage limit altogether.

What is the federal minimum wage?

The federal minimum wage is the minimum entitlement to a worker in the United States. This limit is the minimum prescribed limit, while states can set a limit beyond it. However, states cannot set a minimum wage limit below the threshold of $7.25 per hour.

A federally mandated minimum wage is a contentious topic in a capitalist country like the United States. But the fact is that unemployment benefits in some states along with a $300 supplement are higher than average wages. But as some states roll back these weekly supplements, Americans will be back on the job market.

The question is, will they be happy earning a wage that doesn’t give them a comfortable life?

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Complete Guide to Writing a Perfect Job Rejection Letter https://www.attendancebot.com/blog/job-rejection-letter/ Sun, 04 Apr 2021 11:05:41 +0000 https://www.attendancebot.com/blog/?p=194236 It is not an easy task to find the perfect candidate for the job. Yet, you did it! You now have the right person coming...

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It is not an easy task to find the perfect candidate for the job. Yet, you did it! You now have the right person coming on board, one who aligns with the job description. This person will easily fit in with the rest of the team and will contribute significantly to the vision and mission of the organization. But, what about those candidates who did not make it? Well, these are the ones whom you will have to inform now. Yes, sending a job rejection letter or declining a job offer may not be something an HR looks forward to, yet these are essential as well. It is easy to send out offer letters, but difficult to tell people that they are not selected with empathy and kindness.

In this article, we will talk all about how to write a job rejection letter, what are the components of a job rejection email, the rejection letter template, and more. Read on to learn about smart rejection that will not only help you say no but also help the candidates apply in the future.

What is a Job Rejection Letter?

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A job rejection letter is a formal communication to the candidates that they are not selected for the job. It is more of a courtesy where the candidates are informed that they can pursue other job opportunities as their profile does not match our company.

However, how well you inform the candidates depends on how versed you are with the art of writing a perfect job rejection letter.
A good job rejection letter is not verbose and communicates the key decision,the reason behind it and some advice. To know how to write it well, it is important to be aware of what is included in a job rejection letter.

What are the Components of a Job Rejection Letter?

The first and foremost thing to remember while penning down a job rejection letter is that it should be short and precise. Remember that you do not have a personal relationship with the candidate. You have only known them for a short period. But although it is not a personal relationship, it still is enough for you to know as a human resource professional, what is the best way to communicate the matter to them. It is important to be aware of what exactly you should write while declining a job offer.

Thank You

Start the job rejection letter by thanking the candidate for taking out time to apply for the job and going through the entire interview process.

The News

Deliver the news in a short and crisp fashion, without beating around the bush. It’s a blow but not one that we should spend too much time delving into.

The Reason

Give the reason for rejection whenever possible. Many HRs do not think they are required to tell the candidates why they did not get selected. You can make a difference in their career by just telling them why they weren’t the right fit. Tell them exactly where they went wrong and even if they did not, what the selected candidates did better. This will help them in their future endeavors and leave them with a positive image of the company.

The Wishes

Even though the candidate may be dejected, the letter should invoke hope and should encourage the person not to give up. The HR should close the letter on an uplifting note, communicating to the candidate that they are talented and that their profile will be taken into consideration for future vacancies. A simple kind sentence can do marvels for their morale.

Once you are done with the letter, proofread it. You do not want any typos while delivering such an important message.

What to Keep in Mind While Writing a Job Rejection Letter?

job rejection letter

There are certain etiquettes to keep in mind as you draft a job rejection letter. While nothing can make this task palatable, it will certainly be easier to deliver the news if you follow certain ground rules of communicating the ‘bad news.’ Usually, rejecting a job offer is done on emails and not as a letter anymore. Here are a few tips and tricks to keep in mind while drafting a decline job offer email.

Do Not Prolong the Decision

Sure, you can sleep on it. Choosing the best out of a large pool of great candidates is not an easy task. You should take some time but don’t waste any candidate’s time If you have made up your mind that you are declining a job offer, do that soon and do not defer the decision without any concrete reason.

Personalize the Communication

This is a foolproof method of putting the candidate at ease. Create a rejection letter template to make things easy for yourself but personalize it for each candidate. Use the candidate’s name instead of a general salutation, add a personal note, and keep the overall tone warm. Remember that the candidate is already hearing bad news. It is on you to deliver it in the best way possible. Given that you are the person they know best in this process, make sure you make them understand what the issues were.

Be Quick and Direct

Do not be ambiguous in the way you communicate the rejection. Think of it this way. If you were getting a piece of bad news, how would you like it delivered? Quick and direct or prolonged and confusing? The first, obviously.

Do the same for your candidates. Also, given your expertise with human resources, you’d know that certain candidates are not a fit for the job in the early stage itself. Do you not think an applicant suits the job description? Draft an interview rejection email or an interview rejection letter immediately and send it. Filter candidates out at every stage rather than waiting for the last one to drop the bomb on everyone. This will make your work easier and also ensure that the least amount of time is wasted for candidates as well.

Give Feedback

Now, this may sound tedious but is important. Declining a job offer via a candidate rejection email is an exhausting task in itself. The candidates face a single mail whereas you send out multiples. Nevertheless, in the quest to be quick, do not forget the humanitarian aspect. Give feedback. Tell your candidates why they are not a fit and what are the aspects they need to improve and work upon. In certain cases, the candidates may not lack anything, the hire may have something more. Tell them that too. The candidates are dejected as is, let them take something good from this. However, do not be dishonest in an effort to make them feel good. Give honest feedback.

Keep the Communication Lines Open

While declining a job offer, keep in mind that it should not be a closed-ended communication. End it in a way that the candidate can get back to you and know more about the job rejection. Keep the communication lines open but draw boundaries so that your time isn’t wasted either.

Ask for Feedback

Yes, it is not just your responsibility to give feedback to the candidate, but you also need feedback from them. This feedback would help you analyze their experience and know what went right and what went wrong in the hiring process. This also gives the candidates the impression that you value their opinion even when you have not hired them. You can also ask them to share their experience on platforms such as Glassdoor.

How to Stay in Touch with the Rejected Candidates?

job rejection letter

Do you need to? We’d say yes. Rejected candidates are not necessarily bad. So yes, you should stay in touch with them and have their details in your database so that the next time you have another vacancy, you know whom to call. This will save a lot of time and cost if they’re still looking for a position. Of course, there is no guarantee that the candidate may be available at the time, but there is no harm in trying. Also, the candidate would feel good about the fact that you remembered them first.

Here are a few things to remember if you want to stay in touch with the candidates to whom you have sent a job rejection letter in the past.

  • You have their contact details. Invite them to events and seminars that you think they would benefit from. You can even send them links to career events or job fairs if any
  • Connect with them on social media and get to know them better. LinkedIn is the best place to stay in touch. Comment on their professional and academic achievements.
  • Shortlist the candidates whom you rejected but are still promising enough to be contacted in the future. Use your hiring software to set reminders and prioritize these profiles whenever the need arises. You are a smart HR, be agile in your choices

Job Rejection Letter Template

Are you still stuck? Not to worry, let us bail you out here too. Rejecting a job offer is not an easy task, more so when words do not come naturally to you. In such a case, we have shortlisted some templates that can help you. Just tweak it a little here and there and you should be good to go.

Rejection Letter Template 1

Hello [name],

Thank you so much for your patience. We have reviewed your application and are afraid we’ve decided to hold off at the moment. You are extremely qualified and well-equipped with the knowledge required for the job, but we need somebody with more experience in leading a team and handling multiple projects at the same time.
Meanwhile, we have your profile with us. We will connect with you in case anything relevant opportunities arise in the future.

If you have any further questions, do reply or feel free to give a call. My contact details are included in my signature.

All the very best for your future endeavors.

Regards,
XYZ
HR Head, ABC
Phone number: xxxxx-xxxxx

Rejection Letter Template 2

Dear [name],

Thank you so much for your patience. As of this moment, we are afraid we won’t be able to take your candidature forward. While you fit the bill on most requirements, you fall significantly short on experience. At this point in time, we are not looking to train anyone and would prefer someone who can take the reigns immediately.

However, we really liked having a conversation with you and have added your profile to our database, in case something more relevant comes in the future.
All the best. Do let me know if you need help with anything.

Regards,
XYZ
HR Head, ABC
Phone number: xxxxx-xxxxx

Do you Need to Draft a Good Job Rejection Letter?

Gone are the days when the employer had all the power. With the advent of social media and more connections, now, the candidates too have the power to turn the tables. If the communication and their experience with the hiring process are not good, this can significantly hamper the reputation of the organization in the job market. Rejected candidates can even go on portals like Glassdoor to express their displeasure. So yes, you do need to know the best way of rejecting a candidate.

What are the practices that you follow while writing a job rejection letter? Do tag us at @HarmonizeHQ and let us know. We are all ears.

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How Many Hours Is Part-Time? Understanding the Flexibility and Benefits https://www.attendancebot.com/blog/how-many-hours-is-part-time/ Mon, 22 Mar 2021 13:29:35 +0000 https://www.attendancebot.com/blog/?p=194156 For employees seeking more flexibility, part-time work seems like the perfect solution. But exactly how many hours is part-time? The answer isn’t straightforward, as companies...

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For employees seeking more flexibility, part-time work seems like the perfect solution. But exactly how many hours is part-time? The answer isn’t straightforward, as companies have the freedom to define their own rules. Whether you’re new to the workforce or seeking a better work-life balance, understanding how many hours is part-time can help you make informed decisions. 

There isn’t a definitive answer to this question because how many hours is part-time varies from company to company. While it makes things a little tricky for companies and employees, it can be useful too. Let’s dive deeper and discuss the different aspects of part-time job hours.

Let’s break it down and explore the various factors at play.

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How Many Hours Is Full-Time?

Earlier, 40 hours a week was the standard number of hours a full-time employee had to work. But now things are different, as there are no Fair Labor Standard Acts (FLSA) rules that may obligate employees to work that many hours. 

The Affordable Care Act (ACA) describes a full-time employee as one who works 30 hours or more per week. 

This leaves the determination of full-time hours in the hands of the company. The only caveat is that it should at least 30 hours per week to be eligible for the ACA. 

On average, most full-time employees work eight hours per day, five days a week. But the total hours worked can be different, depending upon the contract the employee has with the company. It allows companies to set hours for their employees as per their preference, and also give more freedom to employees. 

But if employees want even more flexibility, they can opt for part-time hours.

How Many Hours Is Part-Time?

How many hours is part-time is decided upon by the company because there are no legal obligations for employees to work a certain number of hours. The U.S. Department of Labor says that the FLSA does not define full-time employees and part-time ones.

If a company considers an employee working 40 hours per week as full-time, anything lower is a part-time employee. But that doesn’t mean that they can make a part-time employee work for 39 hours.

Generally, the average part-time hours can be anywhere from one hour to 34 hours. It works well for people who are just entering the workforce and can be a great way to gain experience. Some people also work their way to full-time jobs from part-time ones.

Today, more people are opting for part-time hours because it allows them more control over their schedule. It can also prove to be beneficial for companies because of the lower cost.

The Grey Area Between Full-Time and Part-Time Employees

The U.S. Government has offered mandatory benefits of health insurance for full-time employees. Under this, companies with 50 or more employees have to provide insurance to employees who work an average of 30 hours per week. 

The government did this to protect employees under the Affordable Care Act (ACA). Companies now pay a lot of attention to the cut-off for full-time employees, because not providing insurance for accidental full-time employees can result in legal repercussions. 

Practically, though, the case is a bit different. Some companies do allow their employees to have a flexible schedule and give them fair pay and benefits if they are eligible. 

But some companies may exploit the situation to their advantage and change part-time hours frequently, which makes it hard for employees to track what is part-time hours for them. These companies don’t allow their part-time employees to work more than 29 hours per week. This saves the company the additional cost of providing any tangible benefits to them.

Hiring part-time workers can have a number of advantages and disadvantages for companies.

What is Part Time Hours Advantages and Disadvantages

Advantages Of Part-Time Hours

Agile Workforce Planning

How many hours is part-time is determined by the companies, and this offers them flexibility because they can respond immediately to changes in workload.

Increased Diversity, Productivity And Cost-Efficiency 

  • Part-time employees can help companies cut down on costs. It is because part-time employees are less expensive as compared to full-time ones. 
  • Hiring part-time employees can also make a company diverse. It enhances a company’s workforce, and also shows their clients and customers that they value diversity. 
  • When companies hire part-time employees, they get to know their skills. It can help them choose the best candidate among them when a spot for a full-time employee goes vacant. 
  • Since some part-time employees are new to the business, they have an eagerness to learn. It can benefit the company as may improve work quality. 

Easy Way To Enter and Renter The Workforce 

  • Employees get a chance to gain experience before they start working at a full-time job. It can also prove to be a good start for people who are still studying and don’t have enough experience to work full-time. 
  • Primary caregivers and people who took larger sabbaticals can ease themselves into the workforce by opting for part-time hours, to begin with.

Disadvantages Of Part-Time Hours

Decreased Loyalty And Knowledge 

  • Since some employees work part-time hours per week at many companies, they aren’t as invested in the future of any company. It also means that the employee may not be as loyal to a company because they look at part-time jobs as easily replaceable.
  • Some part-time hours employees don’t have much experience and knowledge. It means that the training period for these employees is much longer.

Increased Attrition Rate

  • Part-time employees may leave when they get an opportunity for a full-time job at another company. It means that the managers have to start the training and recruitment process from the very beginning. 

Infrequent Workplace Interaction 

  • Part-time employees are not in the office as much as full-time employees. What is part-time hours for them? If it is low, it will lead to lesser interaction between the employees. The chances are that employee relationships may not be as strong as those between full-time employees.
  • How many hours is part-time differs from full-time hours, and it can cause friction between employees of both types. Full-time employees may think that they are working more, and seeing their part-time counterparts clock out early may lead to some resentment. 

How are Part-Time Workers Paid?

Full-time employees get a salary at the end of a month or any other frequency that the company makes payroll. But for part-time employees, the case is a bit different. Companies usually pay them on an hourly basis. The frequency at which they get their salary can be weekly, biweekly, or monthly. Some employees who work part-time hours may also negotiate their payment to whatever frequency they prefer 

At the end of the pay period/project, the employer multiplies the hourly rate and how many hours is part-time for each worker to zero in on the total cost

What Are Part-Time Hours Taxes?

How Many Hours is Part Time Taxation

The taxes paid do not depend upon how many hours is part-time. They are the same for both full-time and part-time employees. The company still needs to withhold the income taxes and Federal Contributions Insurance Act (FICA) taxes. 

The company also has to pay unemployment taxes for both employee types. 

Do Part-Time Employees Get Benefits?

Benefits packages differ with how many hours is part-time and even for full-time employees. Thus, it becomes necessary to talk about it with employees before starting work.

Part-time employees generally do not receive the same quantum of benefits as full-time ones. Not all companies give health insurance to part-time employees. But an employee may not actually need it if they are being covered through the plan of a spouse or parent. 

Under the ACA, companies with more than 50 employees have to offer health insurance. They have to provide it to a minimum of 95% of their employees if they work an average of 30 hours per week. ACA also requires companies to measure full-time equivalent, which determines the number of full-time employees in a company. 

How many hours a week is part-time can also determine if an employee is eligible for overtime pay. If an employee works more than 40 hours per week, they get overtime pay. Even though most part-time employees are non-exempt, it also depends on companies.

Many companies extend their benefits package for part-time employees as well. For example, many companies offer paternity leave benefits to employees, regardless of how many hours is part-time. Some employees also offer paid time off(PTO), like sick leave, vacation days, and remote work. 

How Many Hours Is Part-Time For Different Types Of Employees?

How many hours is part-time can differ for different types of part-time employees. Here are a few common types of part-time schedules. 

Permanent

A permanent part-time employee is one whose time is not limited in a company. They don’t have a contract that mandates the amount of time they spend at a company, but they have regular schedules and responsibilities. The company has to pay them hourly and depending upon how many hours is part-time for these employees, overtime rules may also apply.

Freelance

Freelance part-time employees get more freedom as compared to traditional part-time employees. They usually work on a contract, and they work for shorter durations with the company. These self-employed contractors work on different projects and are responsible for their own taxes and health insurance. Even though they enjoy more freedom, they are not eligible for most benefits. 

Temporary

A company employs temporary employees or temps for short periods. They are helpful when a company is hit with seasonal demand. They can also work full-time but are usually not given any benefits. Temporary employees are the first to be laid off in a financial crisis and have no job security.

Employees With Flexible Schedule

Companies allow different schedules that work well for people looking for more freedom in a job. How many hours is part-time is something that differs a lot in these schedules.

Alternate Schedule And Split Schedule

There’s an alternate schedule system in which the employees have a different schedule type than they are currently following. There is also a split schedule system in which the employee has several hours off between two shifts. 

On-Call Schedule

Part-time employees can also opt for an on-call schedule system in which the company has the freedom to call for employees as and when they want. Often, the on-call schedule is split between multiple employees so that one person is not always on-call. Some on-call jobs are that of firefighters, emergency services, doctors, and social workers. Again, how many hours is part-time differs for each on-call employee.

Why Is It Important To Clarify How Many Hours Is Part-Time?

What is Part Time Hours for Different Employee Types

The company and the employee need to know how many hours is part-time before they reach an agreement. 

Companies should stick to maintaining part-time hours fairly for part-time workers and not misuse their employees. As discussed earlier, under ACA, there is a minimum number of hours an employee has to work to get benefits. But there is no higher limit in many places, resulting in the exploitation of employees.

In Canada, companies have an upper limit on the number of hours an employee can work. Under this law, regular full-time employees work 40 hours per week. Anything above that limit is overtime, and non-exempt employees get paid 1.5 times the hourly wage rate. 

Clarity for Part-Timers

How many hours is part-time can be different for all employees, but that shouldn’t be a loophole for companies to exploit their employees. HR should have a thorough discussion with each employee and clarify how many hours is part-time for them. Similarly, employees should be clear about the kind of flexibility they want in their job. The inclusions or exclusions of the benefits package should be something they discuss beforehand. 

If you have any questions regarding part-time work hours do reach out to us at @HarmonizeHQ and we’d love to help.

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Reference Check Questions: A Comprehensive Checklist https://www.attendancebot.com/blog/reference-check-questions-checklist/ Mon, 25 Jan 2021 15:30:39 +0000 https://www.attendancebot.com/blog/?p=143164 Hiring is a necessary process for all firms to function and thrive. But even more so for small and medium businesses where hiring costs can be...

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Hiring is a necessary process for all firms to function and thrive. But even more so for small and medium businesses where hiring costs can be much too high to keep repeating the process endlessly. 

One of the best ways to find out if a candidate is a good fit for your organization would be to conduct a reference check by speaking to colleagues or managers in their previous organizations. A successful one means asking the right reference check questions to the right people while keeping them comfortable enough to answer them candidly. 

A negative reference check can be an excellent reason to take a candidate out of the running. But we must also go out of our way to find out if the interviewee has any inherent biases clouding their judgment. 

It is essential to have a strategy and a set of reference questions that can be altered for each candidate and designation. This article will discuss everything from reference check questions, writing a reference check email, sample reference check questions, and even questions to ask personal references. 

What is a reference check?

 

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A reference check is a way to check the background of a candidate you consider a potential hire. While an interview and assignment can gauge the professional potential, a reference check can bring to the fore any past hiccups that may have gone unnoticed otherwise. A reference check can also help uncover any serious ethical violations in the candidate’s past organizations.  

All in all, a reference check may be referred to as a background check wherein the prospective employer shuffles the past contacts of the prospective employee to figure out whether or not the latter would fit in the organization. However, there is one fine line of difference between a reference check and a background check. While a reference check is more focused on acquiring an insight into the candidate’s knowledge, a background check leans towards knowing about credentials and experience.

A reference check can be done in various forms; a reference check email, a telephonic conversation, or even a meeting. Whatever the mode, the goal should be the same; discovering more about the candidate. Asking the right reference check questions will make sure that happens.

A reference check is conducted after the interview, just before the employer will extend the job offer to the candidate. It is the penultimate stage, which is a crucial part of the hiring process.

Why is asking the right reference check questions important?

While conducting job interviews is an arduous task in its own right, asking the right reference check questions is another important facet of the hiring process. That is because reference questions reveal certain important information regarding the candidate’s ethics and performance, which may otherwise have been either omitted or concealed during the interview.

Here are a few reasons why asking the right reference check questions is essential before hiring:

  • Knowing the right questions to ask references enables you to spot the red flags, if any, in the candidate’s profile. The red flags are usually in the form of inappropriate past behavior, professional or personal
  • Reference check questions also help the employer find out the candidate’s compatibility with the previous employer and team
  • It is also an excellent way to confirm the information already provided by the candidate
  • Not only this, reference check and its correct documentation also serve as a piece of concrete evidence, just in case the organization decides not to hire the person and the latter wishes to pursue legal action in the form of a hiring negligence claim

Overall, it is vital to conduct a reference check and ask the right questions. It provides objective information that helps in the hiring process and avoids hiring the wrong candidate.

What are the difficulties that may be faced while asking the right reference check questions?

reference check questions

Reference check questions are essential, but it is also important to frame them correctly. Otherwise, it is a wasteful exercise. The main goal is to determine whether the candidate is a good fit as a potential hire. If that is not fulfilled, no matter how good the reference check questions are, they fail to serve their purpose. 

But, asking the right reference check questions can also be a task and comes with its own set of challenges. Here are a few to look out for:

  • Firstly, each candidate is prepared. They know that they will be asked for a reference and will only provide the best sources; those they know will tip the scales in their favor. Such sources may suffer from unconscious bias and provide inaccurate information.
  • References can lie, too, especially if they turn out to be candidate’s friends. In today’s linear hierarchy system wherein there is a fine line between the manager and the subordinate, this is entirely possible.
  • Another point to consider is when the candidate requests discretion because they may be leaving the previous company without their knowledge due to some or other reasons. In such a case, conducting a reference check without raising suspicions is extremely difficult.
  • There is also a chance of the previous/current employer providing the candidate with a counteroffer, thus leading you to lose the candidate and rendering the whole hiring and reference check process redundant.

While you may be ready to frame the right reference check policy and may ask the right reference check questions, you have to be prepared for the risks.  

Do’s and Don’ts of reference questions

These questions ensure that you conduct the check-in in a fair and right manner so that it achieves its objective, making sure that the candidate has the potential to be an employee.

Here are a few things to do while asking reference questions:

  • A review of the candidate’s profile and verification and confirmation of all that’s written therein
  • Document all the information you receive via a reference check
  • Knowing what questions to ask references is a talent as well. Ensure that the questions pertain to the candidate’s relationship with the reference and the nature of projects they work on together
  • While sending a reference check email is useful for initial communication, it is better to contact the reference in person or on the telephone

Here are a few things that you should avoid while asking reference check questions:

  • No judgments on superficial parameters such as the employee’s appearance
  • Do not connect with one reference and form a snap judgment. The whole point is to connect with multiple references and create a collated report to reach a precise overview of the candidate. 
  • Ensure that all the information is confidential and there is no leak of any information concerning the candidate’s profile and reference data. The candidate has the right to privacy, and rightly so.

It is essential to keep the points mentioned above in mind while deciding what questions to ask references. Reference checks should not turn out to be a traumatic experience for the candidate.

Questions to ask references: A handy checklist

reference check questions

Reference check questions can be many. However, the main question is: what questions to ask when checking references? This may look like an easy feat but can be quite tricky. From professional reference questions to questions to ask personal references, it covers various facets to cover the candidate’s entire persona.

Here are a few reference check questions to ease the job. You can then use these to create your reference check questions template, depending upon the industry and designation.

Reference Check Questions on their Personal Equation

Question #1: What was it like working with the candidate?

Question #2: Would you rehire the candidate again? Why or why not?

Question #3: Is there something about the candidate that I should know and is not there on their resume?

Question #4: Do you have any advice on how to manage the candidate effectively?

Question #5: If you had to rate the candidate on a scale of 1 to 10, how would you rate them?

Question #6: What was the reason for the candidate to leave your organization?

Reference Check Questions on SWOT

Question #7: What are the greatest strengths of the candidate?

Question #8: What are their weaknesses? Have they made any in-roads in improving on any of them?

Question #9: Is there any specific area where they would need additional support in the first quarter?

Question #10: *Describe the job you’re hiring for* Do you think the candidate will be a good fit?

Question #11: What were the major accomplishments of the candidate while working with you?

Question #12: How would you describe the communication skills of the candidate?

Question #13: Do you have any anecdotes where the candidate displayed their the emotional intelligence?

Reference Check Questions to Wind Down

Question #14: How did the candidate conduct themself in office?

Question #15: Is there anything else that you would like to share about the candidate?

Question #16: Do you have any other references who can help me understand the candidate better?

Do you need to ask reference check questions?

Conducting a reference check and asking the right questions is essential because it gives you an insight into the candidate’s behavior from the people who have already worked with them. While there are a few challenges, with sufficient references, you can normalize the results.  

Do you have a comprehensive reference check policy in place? What are the questions you ask? Let’s discuss @HarmonizeHQ.

 

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How to Rescind Offer in the Best Possible Manner? https://www.attendancebot.com/blog/rescind-offer/ Wed, 20 Jan 2021 15:30:21 +0000 https://www.attendancebot.com/blog/?p=142558 Hiring the perfect candidate who suits the job description and works well within the organization’s ethics and culture is a tricky job. Presenting a job...

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Hiring the perfect candidate who suits the job description and works well within the organization’s ethics and culture is a tricky job. Presenting a job offer to a well suited candidate is one of the most satisfying parts of an HR manager’s job. 

But, what if they have to rescind offer? A job offer rescinded often can be a tricky thing to handle, especially because it comes after an employee being exhilarated and grateful upon being accepted. There are times when the news has been shared in professional and personal circles as well. 

While it may not negatively impact the organization, the rescind offer may not be taken well by the candidate.

How must an HR rescind offer so that there is no goodwill lost and the candidate and company can part on cordial terms? This blog will discuss how HRs can rescind a job offer, a rescind offer letter template, and anything else you may need.

Why is a Job Offer Rescinded?

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There can be many reasons for a rescind offer. Sometimes, it is due to an internal miscommunication, and other times it may be due to the candidate being untruthful. Mostly, these reasons for a job offer rescinded can be bifurcated into internal reasons and external reasons.

Some of the internal reasons that can lead to a job offer rescinded are:

  • Position getting double filled
  • Position going on hold
  • Candidate’s package exceeding the hiring budget
  • Offer sent to the wrong candidate
  • Biased hiring, for instance, based on a personal association rather than talent
  • References not checked before hiring

Apart from those mentioned above, certain external reasons can also lead to a job offer rescinded. These are:

  • When the candidate lies about skills and job experience
  • In the event of candidate’s social media behavior being objectionable
  • When the candidate does not pass a drug test
  • If the candidate’s work history is a fabricated one

Reasons to rescind offer are quite basic. However, no matter what it is, a job offer rescinded is quite challenging to communicate. At the end of the day, it is still a decision that can spoil potential professional relationships. How does one do it without offending the candidate?

How to Rescind Offer in the Best Way Possible?

A rescind offer doesn’t work the way regular job offers or emails do. These communications need to be handled in an extremely delicate manner because you are taking back a word you’d already given. For whatever reason, it will affect a person’s life, so it needs to be done in a respectful way that does not hurt the candidate personally and professionally.

Step 1: Inform Over a Call

Many HRs commit the mistake of skipping this step. Always remember that the candidates are not just ‘resources’ for you to fill positions. They are living, breathing humans, and you are giving them information that may antagonize them and maybe even traumatize them. Before sending out the official email, a one on one conversation regarding the rescind offer is better as it will not only be a conversation about the job offer rescinded but also how they can turn this incident around for themselves.

Here are a few things to remember while communicating the news of the job offer rescinded:
1) Make sure the candidate knows that the conversation is confidential
2) Be transparent as to why are you taking this decision
3) If your organization has a policy, then try and find the candidate an alternative placement

Step 2: Send an Official Mail

Once the conversation is over, send an official mail for the job offer rescinded. Ensure that you cite it is not a contract like the original offer letter was. This one is more like a notice. Also, it serves as a protection against any legal action.

However, before getting here there are some things need to be considered.

What are the Things to be Considered Before Rescinding a Job Offer?

rescind offer

Here are a few things to keep in mind before rescinding a job offer:

  • Make sure your employment applications meet all the conditions mentioned in the job position. The terms and conditions should state that inability to meet the conditions can lead to the rescinding of the job offer
  • Fulfill the conditions mentioned above or contingencies before the candidate joins and starts their tenure as an employee
  • Stay in the loop of all business decisions to see if it will affect the hiring plan
  • If you get to know that a job is held or nullified, communicate the same to the candidate

It is essential to consider such things before rescinding a job offer and being honest about their communication in the absence of these legal repercussions could happen. The candidate may sue for breach of contract, discrimination, or even fraud. Thus, as mentioned earlier, job rescinding is a delicate path to tread. Be gentle and descriptive in your communication. It should convince the candidate that you had no other option and that you are doing this in their best interest.

Rescind Offer letter template

Now that you know about job rescinding and how to do it effectively, it is equally important to know how to frame a rescind letter. Whether it is a job offer rescinded after a credit check or after a failed background check, a rescind offer should be communicated in the best way possible at the earliest. Here are a few rescind letter templates that can help you out.

Rescind Offer Letter Template #1

Dear XYZ,

As per our telephonic conversation, we regret to inform you that the offer you received from (company), for the position (position), now stands rescinded. We have taken this decision after careful consideration. Note that the information is completely confidential and your acceptance of the offer does not constitute any binding contract. The organization, thus, is under no legal obligation to employ you or compensate you.

Do not send in a signed copy of the offer letter, if you haven’t already done that. In case of any further queries, feel free to connect with me.

Thank you for your time and understanding.

Sincerely,
ABC
HR Director

Rescind Offer Letter Template #2

Dear XYZ,

The offer letter that you received from (company name), states clearly that the offer stands valid upon the completion of certain contingencies. One of those is a successful background check. With your authorization, we performed a screening. Unfortunately, you did not meet the requisite criteria, basis the information we received.

The organization has therefore decided to rescind your offer of employment.

Please know that there is no legal binding on you or on the company to go ahead with the offer letter. The organization is under no obligation to employ you or further compensate you for it. Rest assured that this information will remain completely confidential.

In case you wish to discuss this in detail and require any guidance, feel free to get in touch.

Thank you for understanding.

Sincerely,
ABC
HR Director

Rescind Offer Letter Template #3

Dear XYZ,

As per our telephonic conversation, we have to, unfortunately, rescind your offer. There are certain conditions in our offer, a successful reference check being one. However, upon running yours, we found certain glaring discrepancies that we cannot ignore. Thus, the offer for you at (company) in the position of (position) now stands rescinded. Please note that it is no more the organization’s obligation to hire you or compensate you.

If you have any questions, do get in touch with me. I’d be happy to assist.

Thank you for understanding.

Sincerely,
ABC
HR Director

Do You Need To Have Your Rescind Offer Guidelines in Place?

Yes, of course. Human Resources should be adept in dealing with the existing employees and the potential ones. Interviewing and hiring new candidates is an integral part of the job, and of course, this entails handling rejections. Only, rescinding a job offer is infinitely harder than rejecting a candidate.

One must have knowledge, tact, and skill to tackle the situation to not reflect poorly upon the company. Not only that, a job offer rescinded should not legally backfire on the organization. For that, one has to ensure that the offer letter has all the necessary fine print included. Transparent and appropriate conversation with the candidate helps as well.

After all, rescinded contracts can lead to bruised human egos and broken dreams. While having legal immunity helps. Treating them with dignity while communicating the job rescinding, and going out of your way to help them find a suitable placement can help repair their goodwill.

What are the job rescind offer policies at your organization? Do tag us and let us know at @HarmonizeHQ.

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Behavioral Interview and STAR Method: Ultimate Guide With 37 Behavioural Interview Questions https://www.attendancebot.com/blog/behavioral-interview/ Tue, 25 Aug 2020 14:37:52 +0000 https://www.attendancebot.com/blog/?p=2103 Recruitment is one of the most difficult processes in any organization. It not only involves figuring out whether or not a candidate possesses the right...

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Recruitment is one of the most difficult processes in any organization. It not only involves figuring out whether or not a candidate possesses the right skill-set for the job but also if he or she has the right kind of attitude. Thus, technical or traditional questions that test knowledge, are as important as behavioral based questions. That is where behavioral interview comes into being. It is a way to understand how well a present candidate will fit in as a prospective employee, on the basis of past and present attitude and behavior.

In this guide, we will not only talk about behavioral interviews, but also the pros and cons of it, the STAR method of conducting interviews and assessing behaviors, and many STAR method examples in the form of questions.

What is behavioral interview?

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Behavioral based interviewing refers to a method wherein the interviewer delves into the past of the candidate to figure out whether or not he or she will sit well with the future of the organization. Behavioral interview includes situation-based questions and an assessment of how the candidate handled it in the past. These interviews entail specific instances from the past, and then the recruiter carefully curates questions on the basis of real-life scenarios and assesses the candidate’s capabilities as a prospective employee.

Behavioral based interviewing helps the recruiter determine the competencies as opposed to just the traditional interviewing technique which only determines the skills required for a job.

Behavioral vs traditional interviews

The main difference between behavioral and traditional interviews is the predictability factor. Traditional questions are mostly so done and dusted that the employees more or less have the answers prepared in advance, and they don’t add much value to the interview except for some information which can already be gauged via some generic background search.

If statistics are to be believed, then traditional interviews are around 10% predictive, whereas behavioral based interviewing is 55% predictive. That’s nearly 45% of more predictability and success rate.

Currently, the best method of conducting a behavioral interview is via a STAR interview method.

What is the STAR method of conducting a behavioral interview?

STAR method is a straightforward way of structuring a response to behavioral interview questions. While this is more important for a candidate, it is imperative that the interviewers should also know about it so they can evaluate the answers accordingly.

STAR interview questions are basically prepared as per a format that helps the interviewer create questions that focus on the candidate’s ability to deal with real-life situations, basis past situations. STAR interview method is a technique that helps you create your own question arc while preparing an interview for a candidate.

behavioral interview star

Here’s how STAR interview method works:

  • Situation: This is where you set the context for a story which will form the base for the rest of the interview.
  • Task: Here’s where you will be asking the candidate as to what role he or she played in the aforementioned situation.
  • Action: What was the action undertaken by the candidate, in sync with his or her role in the given situation.
  • Result: What was the result of their actions in the given situation?

Together, these four components create the STAR interview method, which is a way of letting the candidate share an anecdote from his or her professional life. This would further enable the interviewer to understand how compliant the candidate is with respect to the vision and mission of the organization and also with respect to the team for which he or she is being hired.

The next question that arises is how to master the STAR interview method to prepare behavioral questions. The STAR method is not only a good technique for the interviewers to create questions but also for the candidates to structure their responses around it. Here’s how as interviewers, you can use the STAR interview technique to create behavioral questions:

  • Study the job description and the respective candidate’s profile thoroughly, and then chart out a few real-life situations that you think a person of that experience, in that position and situation, would have experienced. These are the situations on the basis of which you will base your questions.
  • While the situations can be the same for the job description, the individual candidates differ when it comes to responding to those. That’s the aim of your questions. Depending upon each candidate’s profile, alter the questionnaire and make it more personalized with respect to the candidate to get a more nuanced response, therein.
  • Again, gauge the level for which you are interviewing the candidate. Depending upon the experience that the designation requires, create questions that entail multitasking and pressure-like situations, so as to know how a candidate acts in such times. Also, ask about any team conflicts that the person has handled.
  • Focus on the results. Whatever questions you create, remember to ask the result of the candidate’s actions in a specific situation. The result may not be positive all the time, but it helps in analyzing whether or not the candidate is worthy of becoming a prospective employee.

The STAR interview technique enables you to assess the candidate accurately. Know how to apply it well in behavioral interview scenarios.

Behavioral interview questions

Behavioral interview questions are curated after carefully studying the candidate’s background and the position for which they have applied. Then, depending upon where they lie in the organization’s hierarchy structure, they are interviewed. Following are some of the behavioral interview questions on the basis of designation:

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Behavioral interview questions for managers or directors

  • What is the most successful business strategy that you created in your last position?
  • Was there any team building activity that you led? What was it, how did you do it, and what were the effects?
  • Was there any change that you introduced to the organization? What effects did that change bring about?
  • Did you hire anyone while being in your position? How did that resource turn out to be?
  • Name one risk that you think you took while being in your current position and how did it pay off, or not?
  • Have you been a part of any strategic planning process?
  • Did you ever disagree with your direct reporting manager? How did you put your disagreement across and what were the results?
  • Were you ever given feedback to improve? How did you act upon it and what were the immediate visible results?
  • Were you ever stuck in an awkward employee situation that threatened to jeopardize the team fabric? How did you deal with it?
  • Were there any times when you and your team did not see eye to eye on a situation? How did you manage to come to a consensus, as a senior and manager?

Behavioral interview questions for individual contributors who do not have to report directly

  • Was there ever a situation wherein you were required to collate information from multiple sources for a business project?
  • Did you ever call any colleague out for not contributing enough? How did they take it? What were the effects?
  • Did you at any point of time be in a position when you had multiple responsibilities but no one to guide? How did you deal with the situation?
  • Did you ever receive a strong criticism for your work? How did you react to the same?
  • Were there any last-minute deadlines that you had to deal with? What were the effects and feedback regarding the same?
  • Was there any problem for which you gave a solution in the past one year, and got lauded for your creativity and quick thinking?
  • Have you done any self-analysis and discovered any strengths and weaknesses that you may wish to elevate and depreciate, respectively?
  • How do you handle stress in the absence of any supervisor and the presence of multiple tasks for which only you are responsible? Cite any situation where you did so.
  • Have you ever taken the onus of solving a problem which was not yours to solve? How did you do it and what were the effects?

Behavioral interview questions for salespeople or people who are being hired to focus on new business

  • Cite 3 common problems that your customers have. Also, do tell me how do you solve those?
  • Has there been any particularly difficult sales call that you had to make in the past few years?
  • Have you created any new sales approach using your own mettle and research skills?
  • What impact did it have on the organization and your own growth?
  • Is there any particular organization sales that you remember being conducted solely because of your skills?
  • Have you ever been in a situation when you managed to sell your high-priced product when the customer was clearly inclined towards buying a low-priced one from the competitor?
  • Have you ever dealt with angry customers?
  • Was there any sales process where you thought silence would be better than words?

Behavioral interview questions in other cases

  • Have you ever applied your fact-finding skills to solve a problem?
  • Quote the latest example of any situation where you took the lead and showed initiative.
  • Have you ever worked end-to-end on an important document or deal?
  • Can you recall any time when you have served as an example to others?
  • What is the proudest professional moment in your life?
  • How do you tackle criticism and how do you act on bettering yourself?
  • How do you delegate projects?
  • Quote an incident when you had too many projects simultaneously yet you managed to time them effectively.
  • How do you set your goals and meet them?
  • Have you ever given a presentation in front of a group? What was it about and what was the feedback you received?
  • What personality traits do you think you get on well with? Why do you think you gel well with them?
  • Have you ever worked well professionally with a person you may not be on good personal terms with? How did you manage to do that?

It is to be noted that these STAR method interview questions or behavioral interview questions can be changed and curated as per the job for which the interview is being taken.

However, the best way to conduct a behavioral interview is by creating a mix of professional and behavioral based interview questions so that you get the right candidate; one that is good in conduct and skill both.

What is the best of conducting a behavioral interview?

It is not easy to assess the character of a person in one meeting. However, behavioral interview helps one assess, to some extent, how a person would react to certain situations if he or she becomes a prospective employee of the organization. Thus, apart from applying the right technique and crafting the right questions, it is also important to have the right kind of attitude while asking those questions. Here are a few tips that can help:

  • Divide your questions into segments and explain each to the candidate before starting off. Maybe, take a 5-minute break where you just ease into the conversation. This will not only help loosen up the candidate but also establish a trust factor. Instead of rehearsed answers, you will get real answers.
  • Be very strategic in crafting your questions. Know the job description, the level of hierarchy for which you are interviewing, and also the candidate’s professional history. Combine these with the overall work environment and vision of your company. You have to create questions in a way that the candidate sits well with the organization’s vision, in the future. Asking the right questions will help you achieve that.
  • To ease your own process, be consistent with your questions. You can have the same questionnaire for all, with a few tweaks here and there. Thus, you will have a common parameter to judge all the candidates. Too many different questions will only encourage confusion and may lead to wrong judgements.
  • Try a scoring system for evaluation. Of course, do not put that in front of the candidate, but do it for yourself. Assign a value to your questions and then, at the end of all the interviews, compare the scores. While this is a macro parameter, it will at least give you a rough idea if the differences are too high.

Conducting behavioral interviews in an organized fashion is of utmost importance. Only then can you reap the benefits of it.

What are the benefits of a behavioral interview?

Behavioral interview questions or the STAR interview method helps to polish an interview process. While traditional interviews assess how good a candidate is with respect to the job, a STAR interview method or behavioral interview determines how a candidate will fit in the organization as a prospective employee. This is important to ensure the retention rate remains balanced.

Even the most talented individuals may not be team players or leaders. On the other hand, some may have a balance of both. Behavioral interview questions or STAR interview method helps in determining the same. Following are some of the benefits of including behavioral interview questions in your interview:

  • It helps in honing your hiring skills
  • Asking behavioral interview questions can ease the candidates into answering more technical questions later on
  • Real-life examples help establish the trust factor right at the start which otherwise takes some time to build
  • STAR interview method questions help determine the adaptability quotient of the candidate
  • These questions are simple and customizable, depending upon the job role and the candidate in question
  • STAR interview method questions help find out niche qualities such as communication abilities, leadership skills, intuition and integrity quotients, and more

STAR interview method questions help the interviewer in maximizing the value of the interview. These questions ensure that the flow of questions is more natural than stiff and make the candidates more comfortable, thus bringing to the fore their actual behavioral traits.

What are the challenges of a behavioral interview?

The behavioral interview does not possess many challenges. However, the interviewer has to be careful while creating the interview questions. Behavioral based interviewing is only successful when the questions are curated after a careful study of the candidate in question and the job description. The interviewer cannot have one template fitting all the candidates. Even if there is one job, the questions have to be tweaked as per the candidate.

Another challenge that the interviewer should keep in mind is that of going overboard with STAR method questions. Remember that behavior based interviewing is a part of the interview and not the entire interview in itself. You have to judge the conduct as well as the skill-set. Thus, while it may be challenging, it is important to create a good mix of questions.

Do you need to implement the STAR interview method?

Frankly, yes. STAR interview method or behavioral interview questions are a great way of assessing how well the candidate would sync with the organization. It also helps determine how the person would perform under pressure and other relevant skills that can only be gauged once the person is a part of the organization.

Traditional, skill-testing interviews miss out on these questions. Thus, it is important that you include a chunk of customized STAR interview method questions in the interview, to find the best employee for your organization.

Have you ever implemented the STAR interview method? Do connect with us on @HarmonizeHQ and let us know.

Also read: Ultimate guide to job offer letter with templates, examples and tips

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Ultimate guide to Job Offer Letter with Templates, Examples and Tips https://www.attendancebot.com/blog/ultimate-guide-job-offer-letter/ Wed, 01 Jul 2020 04:43:50 +0000 https://www.attendancebot.com/blog/?p=1808 Finding the right person for the right opportunity is one of the most difficult yet the most satisfying moments of a hiring professional’s life. While...

The post Ultimate guide to Job Offer Letter with Templates, Examples and Tips appeared first on AttendanceBot Blog.

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Finding the right person for the right opportunity is one of the most difficult yet the most satisfying moments of a hiring professional’s life. While finding the right person is a strenuous job, making the perfect offer can be even more difficult. The HR professional has to strike a balance between organizational budget and organizational need for the ideal person for the job. The question is, how?

An employment offer letter may be the answer. Contrary to the popular opinion, it is not just the figure quoted which appeals to the candidate, it is also the language used that may or may not appeal to a prospective employee. The language in an employment offer letter is a reflection of the hiring organization’s attitude and inherent culture.

So how do you make a job offer they can’t refuse?

Let’s find out, shall we?

In this comprehensive guide, we will not only tell you about the traits of a perfect employment offer letter but also give you offer letter templates and examples that will help you create a perfect one for your organization.

What is a job offer? 

YouTube Video

To put it simply, a job offer or an offer of employment is an invitation you extend to a potential employee after all the hiring formalities and discussions have been done. It is the final document which goes to the potential person which is deemed acceptable upon receiving a signed acceptance.

A job offer is usually sent in the form of a mail or an attachment thereof. In either case, it contains the details of employment such as fixed and variable compensation, the terms and conditions of employment, job responsibilities, expected working hours, and more.

All in all, a job offer or an employment offer letter enunciates the organization’s details and potential employee’s expectations, as regulated by the HR as deemed fit.

What is included in a job offer?

A complete employment offer letter should comprise each and every aspect which a prospective employee should know about the organization. None of the terms and conditions should be left out. There are certain details which need to be present in order to make it the perfect job offer letter.

Following are the details that can be found in good offer letter templates or when you make an offer:

1. Job title

The title or designation that is being offered to the potential employee, along with the department. In certain cases, even the reporting manager can be included here.

2. Job description

Although this aspect is usually covered at the initial stage when the discussions happen, it doesn’t hurt to reiterate the details in the job offer as well.

3. Starting date

Clearly mention the date on which the prospective employee is due to start working at the organization. Given, at many times, the start date may not fall at the start of the month, this mention helps in calculating the pro-rata compensation for the month.

4. Work schedule

This is another communication which usually happens in person. However, it is better that it forms a part of the employment offer letter as well. Clear written communication of the work schedule would ensure there is no miscommunication on the part of either party, a possibility in verbal communication.

5. Reporting structure

This is another thing that should be mentioned in the employer job offer letter. It’s a good practice to include managers, peers, and subordinates in the offer letter, even though it may not be a popular practice. Consider it as a preliminary or basic orientation. If not expressly in the offer letter, this can be done separately in the mail.

6. Salary structure

The salary structure or the compensation thereof is the most important part of the offer letter. This is the value of the potential employee that has been mutually agreed upon. It is imperative to have a written communication of it and the offer letter serves the purpose. The salary structure should clearly mention all the fixed and variable components, along with insurance, gratuity, bonus, if applicable.

7. Leave structure

Another important communication that should be a part of the job offer is the leave structure. Clearly mention the yearly cycle followed (calendar year or financial year), and the number of leaves allowed in it, paid, unpaid, gazetted and optional ones.

8. Employee benefits

Again, this is one part of the job offer which is not deemed important enough to be included. However, it should be. Mentioning employee benefits is a tempting and trusting way to welcome your potential employee into the system of which you have been a part of.

9. Privacy policies

Clearly chart out the privacy policies of the organization and the way in which it is legally binding on the employee. Also, mention the repercussions thereof.

10. Termination conditions

Last but not least, mention the unmentionable. Chart out as to what can lead to the termination of the employee. These can be ethical issues as well as professional ones. Nevertheless, important to mention in a job offer.

There are many good offer letter examples available across the internet once you start searching for ‘how to make an offer’. However, not many offer a complete view of how one should create a comprehensive job offer. Thus, here is where we are collating each and every aspect so as to enable you to create offer letter templates that are complete in every sense.

Job Offer letter templates: Types and examples

If you thought that job offer could be sent in one staple format, you are mistaken. There are numerous offer letter templates, depending upon the type of offer letter you are handing out. A good job offer letter example can save a lot of time. Good employment offer letter templates can truly turn the game around for you.

job offer types

Let’s take a look at each of them, along with the respective offer letter sample to get you going.

1. Generic job offer letter

This is a generic job offer template that can be used to make any kind of offer. Only, the HR needs to include as many details as possible to avoid any confusion that may arise later. Also, this would need customization according to the offer being made.

Here is a general job offer letter sample template you can use to structure your own:

Email subject line: [Company_name] Job Offer / Job Offer from [Company_name]

Dear [Candidate_name],

It’s been an exciting journey to get to know you over the past few days. We are impressed with your profile and would like to offer you the position of [Job_title]. 

This position is a full/part-time, and would entail [mention working days and hours.] Your reporting manager would be the [head of the Department’s name]. [If applicable: Kindly note that the organization {name}  is an at-will employer, i.e. either of the party can end the relationship at any time, sans cause or notice.]

Your compensation would be an annual gross salary of [mention figure and bonus programs.] 

You will also be entitled to certain company benefits such as [mobile and travel reimbursement, paid vacation, insurance plan]. A detailed annex with the said details has been attached for your perusal.

You are expected to join at [starting date]. You will be expected to sign a few more documents of non-disclosure and confidentiality, upon your joining. 

Please revert to us with a signed copy of this letter by [date.] In case of any doubts, feel free to connect with me or your prospective manager [name].

We are looking forward to having you as a part of our team.

Best regards,

[your name]

[Signature]

2. Formal job offer letter

Next in line is a formal offer letter which is made when a full-time position is being offered to the selected candidate. A good formal offer letter template should comprise the official mail, wherein the offer letter is attached. This offer letter should be complete in every sense, including all the requisite components and the terms and conditions of employment.

Here is a formal sample welcome letter to a new employee:

Email subject line: [Company_name] Job Offer / Employment Offer Letter from [Company_name]

Dear [Candidate_name],

Welcome aboard!

We’re delighted to offer you the position of [job title] with [name of the company]. Please find attached a summary of the employment terms and conditions for your review.

If you wish to accept the offer, you will be expected to start on [joining date]. In case you need to wrap up some prior commitments, feel free to get in touch and we can agree upon a mutually decided date.

As a [designation,] you will be reporting to [name of the manager and the department.]

Attached are the terms and conditions of employment. Please revert by the earliest and get in touch in case of any concerns, via phone or email.

Looking forward to having you aboard.

Best regards,
[Your name]


Job offer letter template – Format of attached annexure

Job offer format: Table of contents

I. Designation
II. Cash compensation
III. Bonus

IV. Employee benefits
V. Confidentiality agreements

VI. Termination conditions

I. Designation

Job title

You will be joining in the capacity of [job title.] Further, you will be reporting to [manager’s name and department.]

Work hours

This is a full-time position that would require you to give [xx] hours per week, Monday to Friday, from 10.00am to 07.00pm [replace with relevant hours].

Employment Relationship [customize as per your company’s policies]

Your employment with the company is on an ‘at will’ basis, which means that both the parties can annul the relationship at any point of time, without having to show cause or notice. In case you have been communicated anything otherwise, this document will supersede the same. All the compensation and benefits to fall under the ‘at will’ nature of your relationship with the company. The only way in which this relationship can be altered, is by way of an agreement that would be signed by you and your manager. In that case, that agreement would be considered final in defining your relationship with the company.

II. Cash Compensation

Salary

You will be entitled to receive a salary at the rate of [annual figure] per year, starting [date when the first salary would be due.] This salary is subject to the employee compensation policies of the company.

Tax withholding

Any compensation in the form of salary and benefits that has been mentioned in this document is subject to legal deductions such as tax and more.

Tax advice

Even though we have professionals to help you out with your tax queries, you are welcome to consult your own taxation advisors, with respect to your compensation. It is to be noted that the company is not liable to curate its compensation policies in a way that it helps you minimize or evade tax liability. 

III. Bonus (or commission) potential

Apart from the fixed annual salary, you are also eligible for an incentive bonus in each fiscal year. Please note that this bonus or incentive is subject to the criteria that are laid out by the CEO and the company’s board of directors. The bonus, therewith, would be [mention percentage] of your salary. For the year in which you are joining, the bonus would be calculated on a pro-rata basis. Any decision by the board with respect to your bonus will be final and binding.

IV. Employee benefits

You will be a regular employee of the company. In the capacity, you will be able to take part in various comprehensive company-sponsored benefits, such as:

Vacation policy

You will be entitled to [xx] days of paid vacation per year, in addition to sick leaves, bank holidays, and the organization’s off days.

Private health and dental insurance plan

As the company’s esteemed employee, you are eligible for a health insurance plan by us, the details of which will be provided by the vendor.

Stock Options

You’ll have an option to purchase [xx] shares in the common stock of the company or the parent company (the Option). Please note that this is subject to the approval of the company’s compensation committee and the board of directors. The exercise price per share of the Option too will be determined by them and would be subject to the terms and conditions mentioned in the company’s stock plan. 25% of Options shares would be vested in by you after a continuous service of 12 months. The balance will be vested in the form of equated monthly installments over the period of the next 36 months of continuous service.

V. Privacy and Confidentiality Agreements

Privacy Agreement

By signing this letter and agreement, you agree to further uphold and accept the company’s privacy policies and any changes in it therein. Employee’s personal information too will be dealt with in accordance with the privacy legislation of the company.

Conflict of Interest policy

You will not engage in any other form of employment, part-time or otherwise, while in employment with the company. Note that any such activity would be considered as a conflict of interest and can lead to immediate termination. A signed acceptance of this letter would be considered a deemed acceptance of the fact that you have no other contractual commitments.

Proprietary Information and Inventions Agreement

You will be required to sign the company’s Proprietary Information and Inventions Agreement.

VI. Termination Conditions

The company reserves the right to terminate the employment for a valid cause, without any cause or notice. This also extends to the compensation determined. However, you will be required to serve the minimum legal notice period.

Your signed and dated acceptance of the agreement would lead to legal acceptance of all the aforementioned terms and conditions. We would need your response by [date] or else this offer would expire. Post the signed acceptance, other necessary paperwork and instructions would follow.

Sincerely,

[Sender name] Signature
Date

Accepted by,
[Candidate name] Signature
Date

3. Informal job offer letter

This type of job offer is usually extended when the organization is either not stringent with rules, or if the position is a part-time one. In such cases, mostly, the job offer entails an email with written communication of the compensatory and work conditions agreed upon by the employer and the employee.

Here is an informal employment offer letter example.

Dear [first name],

Congratulations! 

We are happy to offer you the role of [designation] at [company.] as we feel your skill set matches our vision. We are sure you will be an asset to the company.

Your annual gross salary would be [figure], paid to you in [frequency] installments via direct deposit in your bank account. Additionally [xx] percent of your gross salary would be credited to you in the form of an incentive-based bonus.

Following are some of the other standard benefits which you shall receive:

Xx Paid leaves
Xx Sick leaves
Bank holidays
Flexible working hours
Medical insurance
Conveyance allowance

… and more!

Do send us a signed acceptance of the offer by [date.] You will be reporting to [manager’s name.] In case of any doubts, do get in touch with either of us.

We cannot wait for you to join our team.

Sincerely,
[Sender Name]
Signature
Date

Accepted by,
[Applicant name] Signature 
Date 

4. Transitionary offer letter: Part-time to full-time

As the work culture is becoming more and more experimental, where testing waters has become a tradition, there are times when candidates are brought on board on a contract or on a part-time basis. Thereafter, when they transition as a full-time employee, another offer letter is sent out, highlighting the change.

Here is a job offer letter sample for when you’re offering a transition in contract type or job arrangement.

Dear [Employee’s name],

We are pleased to tell you that we are extending our relationship beyond your existing roles. Your employment status has been changed from part-time to full-time, as of [date.]

Below are the terms and conditions of this offer, subject to acceptance:

  • You will be joining as [designation] and would be reporting directly to [manager’s name and department]
  • Your gross monthly salary would be [figure], credited in the form of a direct bank deposit
  • You will be entitled to a performance-based bonus every year
  • Your working hours would be [weekly working days and daily timing]

As a full-time employee, you are also entitled to the company’s benefits:

  • X paid leaves
  • X sick leaves
  • X bank holidays
  • Private health insurance plan
  • Approved expenses, subject to the approval of the internal management
  • Any other benefit which arises in the course of the employment

Please send a signed acceptance of this letter by [date]. Feel free to contact the HR department in case of any queries.

Sincerely,

[Your Name]
Signature
Date 

Accepted by, 
[Applicant name]
Signature 
Date 

5. Internal job offer letter

This is an offer letter which is used when an internal employee is offered another position within the organization. This is a popular practice wherein an employee’s skill set may be found to be more suitable to another department and position, instead of the one originally offered. The offer letter, in this case, would be slightly different.

Here is an internal job offer letter sample that you can customize into your own:

Subject line: Congratulations on your new role! 

Hello [Employee’s name],

As discussed, you are being promoted to the position of [Senior Account Manager / Team Leader] as of [date].

Please find attached your updated contract. It contains your new employment terms, along with your compensation package and benefits. Please go through it and get back to the HR in case of any doubts. Kindly send back a signed acceptance by [date.] 

Your hard work and commitment are appreciated. We look forward to seeing you achieve new heights with this role.

Congratulations, once again!

Best,
[Your name]
[Your email signature]

Offer letter templates vary as per the type of job offer extended. Make sure you choose the correct one after considering your organization’s policies.

6. Ready-to-use offer letter templates

Apart from the aforementioned, there are also certain ready-to-use offer letter templates. All you have to do is change the details every time you use it and customize as per requirement.

Here’s a simple job offer letter example.

Ready-to-use offer letter example 1

Dear [Applicant Name],

You are coming on board! [Company Name] is ecstatic to have you as a part of its team as a [job title].

In this position, you will be entitled to a compensation of [figure]. You will be reporting to [manager and department] and would be expected to work for [number] of hours per week, from Monday to Friday, [mention timings].

In addition to your compensation, you are also entitled to certain benefits, the details of which can be found in the letter attached herewith. It entails performance-based bonuses, stock options, insurance policy, and more.

Please send a signed copy of the letter back to us as acceptance of this job offer, on or before [date].

Sincerely,
[Sender Name]

Read-to-use offer letter example 2

If you’re hiring for the role of a Product Manager, here is another simple job offer letter sample which is ready to use:

MM/DD/YYYY
Company Logo

Candidate First and Last Name
Candidate Address
City, State, Pin code

Dear [Candidate Name],

We are more than pleased to offer you a full-time position of Product Manager at [company name] for compensation of [figure] per year. This will be paid out to you on a monthly basis as a direct credit to your account. You will also be entitled to a bonus and further benefits, as mentioned in the annexure attached.

Your starting date is [xx/xx/xx], subject to your acceptance. Any change in the date would be due to a mutual agreement between both parties. Your joining is also subject to a background check that will be conducted by the company.

As a Product Manager, you will be reporting to [manager and department]. You will be entrusted with the responsibility of taking complete ownership of the product, as you study and understand the market and its consumers.

We believe you will be a perfect fit for our company and we are absolutely delighted to have you on board.

Kindly send in your signed acceptance by [date]. In case of any questions, do get in touch.

Sincerely,
[Your Signature]
[Your Printed Name]
[Your Job Title]
[Date]


These ready-to-use offer letter templates are sure to make it easy for you to create and send an offer letter to your latest hire, in minutes. Just remember that this is an official document that marks the start of a project with someone. So you need to follow a few best practices and include them in your new hire packet.

Tips to making a job offer the right way 

A job offer does not end with creating a perfect employment offer letter. There are other things to keep in mind as well. For example creating a new hire packet, framing the right new hire welcome email, new hire welcome letter, and more.

job offer tips to make

Now before you get overwhelmed by all the details, here are a few tips that you should keep in mind while sending a job offer to a prospective candidate.

  • Make sure you cover all the important details before you hire. There shouldn’t be any uncovered loop which may cause trouble later.
  • Make sure you discuss everything verbally and obtain consent, before handing out the job offer in written format.
  • Ensure that you use an effective offer letter sample. This means that while you may use any of the many offer letter templates available, you should know how to customize it in an appealing manner for the current job offer.
  • Use recruiting software to speed up the process of extending the job offer.
  • Make sure that you personalize the offer. Every job opportunity is a new experience for the candidate. Personalization helps in putting them at ease and accelerates the acceptance process.
  • Notify the candidate that once the job offer is accepted, they will receive a new hire welcome email and letter. Also, let them know that you’ll be providing them with a new employee welcome kit to ease the onboarding.
  • Making a job offer may look like an easy feat from afar, but requires a lot of skills. Make sure you use the right ones to get the right response.

How to write a standout job offer letter email 

An offer letter is not the only component of a complete job offer. The offer letter email therein is also an important part of it. In fact, it is the mail which is the first step and can often make or break the deal for the candidate.

job offer welcome email

Everything matters, from the tone used to the language utilized, to the details included therein. Here are the components of a standout mail for extending a job offer:

  • Subject line: The first thing which should be effective enough to catch the attention of the candidate. It can be a simple ‘Congratulations! You are hired.’ or ‘Welcome to Company Name.’ The main aim is to make that mail stand out from the rest. There should be no room for speculation here. The candidate should know the result from the word go, i.e. the subject line itself.
  • Job information: Give the basic job information in the email. Just the designation and package offered would do. The rest of the details can be included in the employment offer letter that goes as an attachment.
  • Salary and benefits: As mentioned in the above point, you have to mention the compensation offered in the standout mail. However, decide whether you want to disclose the components and benefits too, here. Alternatively, you can guide the candidate towards the attached offer letter.
  • Acceptance deadline: This is an important detail that may often get missed out in the offer letter. To be on the safer side, include it in the standout mail itself.
    Next steps: Guide the candidate through the next steps, as to what needs to be done to accept the job offer and what the next steps will be.

TLDR; Make sure your job offer email is personalized, warm, and welcoming.

What is a job offer acceptance rate and how can you improve it? 

Communication plays a huge part in creating impressions. The hiring process is purely based on how well the communication takes place, start to finish. It is important to create a good impression throughout so that the employee is inclined to hit the accept button as soon as the offer letter is sent out.

job offer letter acceptance rate

In today’s scenario, wherein applications such as Glassdoor exist to rate the employers and organizations, it is important to keep the communication and process transparent and easy.

A higher acceptance rate ensures that there is no hindrance in choosing the right candidate from a wide pool.

If the acceptance rate of the offer letter is low, there will be an extremely low chance of getting the right prospective employee.

Here are some of the ways in which the acceptance rate of the offer letter can be improved:

1. Process faster

You will not be surprised to learn that most candidates prefer a faster process that can tell them the results within 48 hours or at most a week.

2. Communicate better

Let the candidate know of every stage’s result. They appreciate clear communication rather than beating about the bush or worse, no communication at all.

3. Early communication on expectations

Make sure you lead the conversation with the expected compensation. More often than not, the HR discusses the salary component after all the formalities have been discussed, only to find no alignment between the organization’s budget and the candidate’s demands. This leads to wastage of time.

4. Strong offer

Make sure you adhere to all the tips required to create a perfect job offer so that your candidate is immediately inclined to become your employee.

5. Offer a welcome packet

Employees love surprises. Create your own employee welcome packet template, which is basically a kit that ensures the organization strikes the right rapport with the new employee from day one.

A good welcome packet template should include a welcome letter by the CEO, a copy of a press release that includes the name and description of new joiners, an employee handbook presented creatively, employee SWAG, and the likes. A welcome packet is basically a package that conveys a company’s identity to the employee and makes him or her feel welcome and embraced in this new phase. It can also be referred to as a new employee packet or a new hire packet.

welcome to the team

A good acceptance rate will ensure there are no hiring roadblocks for the organization ever.

Creating the perfect offer of employment is no mean feat, but it is not cumbersome as well. Only, keep your communication clear and follow this guide.

Going for an interview or to discuss a job offer? Don’t forget to read our guide on nailing the business casuals look.

What has been your experience of giving out offer letters? Do share with us and tag @HarmonizeHQ on Twitter.

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Hiring Tips: 10 Employee Characteristics To Help You Find Your Next Hire https://www.attendancebot.com/blog/employee-characteristics-hiring-tips/ Tue, 11 Feb 2020 10:00:44 +0000 https://www.attendancebot.com/blog/?p=802 Once the applications pour in, it’s time to pick the right person for that open role in your company. With resumes packed with skills and...

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Once the applications pour in, it’s time to pick the right person for that open role in your company. With resumes packed with skills and stellar LinkedIn profiles, you may have a hard time figuring out how to choose the best candidate for the job. Good thing we have some hiring tips for you, especially about the employee characteristics you need to look out for in your next hire!

Your ideal candidate should be highly competent in the role they have applied for, without a doubt. However, with enough candidates preparing themselves with the practical skills they need to excel at their role, hiring managers need to consider more value-based and behavioral characteristics that are telling of how well or not well the new employee will perform once they join the team.

Here are 10 employee characteristics you need to look out for in your next hire:

10 Employee Characteristics To Help You Find your Next Hire

1. They have a “take charge” attitude

One characteristic of a great hire is their ability to take charge and be proactive in their work— from being able to turn goals into tasks to finding errors in projects without being asked to find them. You want an employee who is thorough with their work, ensuring they find the mistakes and gaps that they seemed to miss out on.

You can see this attitude by the way they interact with you during the interview process. Do they send an email, thanking you after the interview? Are they actively responding and carrying the conversation with you in the interview?

2. They value timeliness.

While it may not seem like a crucial characteristic to prioritize, being on time must be a factor when choosing a new employee. This is because being late shows that the employee doesn’t take the work seriously or doesn’t respect the employee. 

So, if a candidate is late to an interview or doesn’t send in the assignment when they said they would and doesn’t leave a message informing you of the delay, you might want to reconsider hiring them.

3. They are honest.

Now, even if a candidate is late for an assignment or an interview, the worst thing they can do is lie about why they are late. If one of the first interactions you have with your potential candidate is a lie, you’ll have to put them in the maybe pile, or even the rejected stack of resumes.

You want an employee who is honest with you, despite how small their real reason might be. An employee who lies is one who can’t take responsibility when things go wrong.

Honesty doesn’t just stop at being transparent about themselves. The candidate must also be able to be honest with their opinions, even if it means going against the manager’s opinion. That’s when you know your candidate cares about success rather than just pleasing people in the team.

4. They are solution-oriented

There’s one question that can help you reveal a lot from your candidates.

“Imagine a setting where you’re the manager. What would you do if you come across a problem and the solution you provided isn’t working and your co-worker suggested another solution?”

How your candidate answers the question can tell a lot about their approach to problem-solving. A candidate with ego and focused on solving the issue by themself would insist on using their own approach. A candidate who is solution-oriented would be able to listen to his team members and try their method instead of insisting on doing it their way.

This also shows that they are a team player, instead of making it about their own wins.

5. They are open to learning

Your new candidate doesn’t have to be the best at the job. Their skills don’t need to be polished to fit the latest industry standards. Let’s be honest, no candidate is ever that perfect. While they still do need to check off boxes like having the basics in place, you might want to focus on another employee characteristic that really makes them shine.

Your new hire must be open to learning. They should be open about the fact that they aren’t the best but, they are willing to work towards ensuring they are. Your new candidate should be enthusiastic about taking up online courses and workshops to learn more about the field and stay updated about the latest industry standards.

6. They think independently

Your new hire should be able to speak their mind and voice their opinions or ideas on how to approach work. You hire someone for what they bring to the table rather than just following orders as they are given. 

A great way to learn whether a candidate is an independent thinker is through the assignment they are given. Do they have a logical reason for why they submitted their work the way they did. Do they follow the most common practices or try to implement their own methods within their work? 

7. They collaborate with others

Your candidate must be open to collaborating with others in the team, especially if your team is small and growing. If your potential employee is particular about working independently or doesn’t delegate tasks, you might find it hard to make progress on large projects and have a synchronized flow of work.

Ask the candidate about their experience working in a team and what skills they bring to a large team within a department. You can even ask questions that give a better picture of what challenges the candidate has tackled when working on a task with a team.

Read more: Team Collaboration Tools For 2020

8. They can recognize their weaknesses

Everyone has weaknesses, this is just how humans are. But, someone who can’t recognize what they aren’t good at is always a red flag. Many interviewers often ask the question “What are your weaknesses?”. This question isn’t just framed to know what the candidate lacks; it also points out how self-aware your potential employee is.

9. They ask the right questions

Traditionally, interviews are one-sided, with the hiring manager asking all the questions. An employee characteristic of a good hire is if they are also participating in the interview— asking questions about their role, the different parts of their job descriptions, and clarifying any doubts they have. 

This shows they aren’t just applying for the sake of applying. They’ve done their homework and want to be as sure of the role they are interested in as you want to be sure of your decision to hire them.

10. They know what they want in their career

The right hire knows where they are headed and working within your team is a conscious effort on their part. The question “Where do you see yourself in 5 years” isn’t one that hiring managers ask to ensure the candidate stays with them for the next 5 years. It’s actually asked to help HRs gauge the candidate’s self-assuredness and how they are navigating their career path.

We hope this helps you find a candidate with employee characteristics that make them a perfect fit for your company.

The post Hiring Tips: 10 Employee Characteristics To Help You Find Your Next Hire appeared first on AttendanceBot Blog.

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