Sunday, June 30, 2013

EMPLOYEE ENGAGEMENT


Achieving employee engagement and loyalty to the company is not just a one time event. It requires an effort and consistent attempt to make the employees feel that they are connected to the organization.

Fostering a positive environment is  a good way to start. A good trend today is to view the employees as the biggest investment and therefore, should be given an applicable reward. This is very true especially for those who are talented and has good performance. The company as much as possible wants to get hold of them. They are their precious assets. In this case, comes the issue of how can we keep this kind of employees? How can we promote Employee Engagement?

1.      Involved them. (The employees) – Create a positive self-esteem among employees by setting up a goal with them. Let them know that they have the responsibility and let them feel that they are valued. Then, it would be easier to turn that involvement into excitement and a sense of pride in ownership. That will surely contribute to earning the employee engagement.
2.      Organizations must do their best to engage their employees and in return the employees have the choice as to how much level of engagement they will give to the company. Each reinforces the other. It gives the employee the feeling that the company needs him , the same way that the company feels that the employee needs to have a job with them.
3.      Satisfy the employees – Although they said that a satisfied employee doesn’t guarantee an engagement to the company, at least it can contribute to the concept.


Generally, an engaged employee works beyond office hours without being told so and doing the job seriously and correctly even though the immediate boss is not watching.

An engaged employee feels a balanced status – satisfied, committed, empowered and involved.


So therefore, engagement with the employees is good. So why not use it as a tool for business success.

Thursday, June 27, 2013

The Thirteenth Month Pay (13th Month Pay)

Every time the  “ber” months are nearing, employees rejoice not just because of upcoming Christmas time but because it already signifies the month of giving the 13th month pay which is a core labor standard in the Philippines. It is statutory that is why the employers are always reminded to release this benefit not later than 24th of December of every year.

According to the Labor code, it is the 1/12 of the basic salary of an employee within the calendar year. ½ of the salary includes all remunerations or earnings paid by an employer to the employee for the services the latter rendered and may also include  allowances or monetary benefits which are considered  or integrated as part of the regular or basic salary. Examples of earnings that may not be included in the basic salary are : cost of living allowances, profit-sharing payments, cash equivalent of unused leave credits, overtime pay, premium pay , night differential, holiday pay, etc. Please note however, that in some companies they do include these in the computation of the 13th month pay because of the result of collective bargaining agreement, this had been the practice since time immemorial and cannot be changed as changes may result to diminution of benefits or because of management prerogative.

All rank and file employees are entitled to 13th month pay provided they have served the company for at least one month.

Report of Compliance

Per law, every employer must submit a report to DOLE Regional Office not later than January 15 of each year. It is called Report on compliance with PD No. 851.

Included in the said report is the following:


  1. Name of establishment
  2. Address
  3. Principal product or business
  4. Total employment
  5. Total number of workers benefited
  6. Amount granted per employee
  7. The total amount of benefits granted
  8. Name, position and telephone number of the person giving the information

EMPLOYEE ON PROBATIONARY STATUS – WAS FOUND OUT LATER TO HAVE COMMITTED A GRIEVIOUS OFFENSE IN HIS PAST EMPLOYMENT

Karen is a part of a new company as an HR Supervisor . The recruitment process which she has seen in this new company is not that stern or strict. Currently, she is in the process of evaluating all processes and competencies of employees across all departments. She checked out  the personnel file of each and came  across one of the current employees'  file and there she found out that he had occupied a very high position from his previous company. This was actually based from the result of his background investigation. What surprised her most is what she had found out:  Said employee had a case of embezzlement of funds from his previous employer. Karen has no idea if it is a resolved or unresolved case. What she is more concern about is the effect of this case to his present company and another thing, can this person be trusted?

Question :  Can this case from his previous company enough grounds to terminate his employment from his present employer being that he is still under a probationary status?
Answer :         As what we have discussed in the previous posts about discipline and termination, there should always be a due process in every case therein.
                                As for this one, the HR Supervisor has to conduct a thorough investigation first before taking an action. Look at the employee’s filled-up application (when he was still applying for the job ) and if she answered the portion “Do you have any pending case or have you committed  a serious / grave offense in your past employments? “ .  If the concerned employee did not declare that he has pending administrative case from his past employments or his former company, then that could be an issue of dishonesty. Then, it is time now to check it on your Employee handbook if such offense is a ground for terminating him.
                                Although the employee is still on his probationary status, you have to secure some proof before giving him a verdict of termination . If you don't prove the accusation as dishonesty, another way to prove if he is worthy to become a regular employee is by appraising his performance objectively.

                                Karen as the HR Supervisor is right in her action to evaluate all the HR Processes. In this case, the Recruitment process. Since the result of the background investigation already posed some issues, then , they should have not considered the said employee . Remember, that all processes involved matters.

Saturday, June 22, 2013

HR and Line Managers Must Work Together

HR and Line Managers Must Work Together

Line Managers are the Heads of the Departments or the one who manages the staff in a department. It is important that they work hand in hand with the HR Department for the achievement of the vision / mission of the organization. Both must work together to ensure the success of the company they are working with. It will be easier for the HR Department to implement the strategic plans if all managers understands this new trend in leading an organization.

HR must show full support to the Line Managers in order to expect the latters awareness of their responsibility to implement HR policies and procedures among their staff.

Recruitment

In the recruitment process for example, HR must inform the Line Managers about the prevailing processes and the accompanying forms to be used in fulfilling their manpower needs. In this procedure, the recruitment system will surely become smooth flowing and fast moving. From the filling-in of the Personnel Requisition Form up to the Selection Process, Line Managers and HR are often seen in the limelight. Hence, both parties are involved in the most critical process of choosing the right candidate for the vacant position.

Performance Management

Fair and the same approach must be applied by both HR and Line Managers when doing the Performance Evaluation most especially in giving feedbacks to the employee concerned. You can imagine the chaos it may produce if HR gives a different opinion about the result of the Performance rating given by the superior or most especially the Line Managers themselves. HR must provide a training program that would intend to educate the Line Managers on how to effectively and consistently implement the Performance Management System.

Conflict Resolution

You cannot get away with this. In every Organization there is a conflict or a dispute that needed to be resolved immediately. Hence, the importance of having a positive relationship between HR and Line Managers. If both parties are in good harmony then immediate resolution of the prevailing conflicts within the organization could be achieved.

Friday, June 21, 2013

TERMINATION OF EMPLOYMENT FOR EMPLOYEE ON PROBATIONARY STATUS

Case: The new employee was evaluated on her 5th month and did not meet the expectation or the requirements which was set by the management with her prior to starting her first hour of work on her first day.  In other words, all expectations were made known to her during the orientation including the awareness to the company policies and procedures. Employee Handbook was also discussed and given to her in which she signed an acknowledgement.
 Is termination of employment and not putting her on a regular employment status valid and legal? How would you write the termination notice?

Answer:  Yes, definitely it is legal to terminate employment if the probationary employee failed to meet the expectation of her superior or the management. Just be sure to document the measures made like the Performance Evaluation , in case of poor performance and the Daily Attendance Record, in case of poor attendance. It would great too, to keep note of the warnings given be it verbal or written warning. And that's to make sure that everything had been done, like giving feedback in order to help the probationary employee improve her performance.

It is also advisable to evaluate the Probationary employee on their 3rd and 5th month. The termination notice should be received at least 30 days prior to its effectivity. To be safe, use the 30 day notice period.
In the termination notice, be sure to state the reason why, and the related / referred clause and chapter from the Employee Handbook.

Template for Notice of Termination of Probationary Employee

Dear ___________________,

With reference to Chapter ___, Clause _____of Employee Handbook, we regret to inform you that you failed to meet the requirements set for the job assigned to you.
Your performance rating result in the last 5th month of your employment is not satisfactory, hence, the need to terminate your contract effective  ________________.
We appreciate the service and the time you have willingly shared with the company.


Very Truly Yours,

Wednesday, June 19, 2013

STRATEGIC HUMAN RESOURCE MANAGEMENT - WHAT IS IT?

Human Resource Management , on its plain and simple text is managing the most important asset of the organization. From its definition, one can sense its being a routinary job and more of a paperwork department.

Nowadays, gone are those old adage about managing the Human Resources. It is not just a simple ordinary job. It is very complicated but when handled expertly, it would be a successful department that will lead the organization to the achievement of its goals, vision and mission.

The Strategic Human Resource Management is the talk of the HR circles nowadays. So what is it? It is  designed and formulated to help companies satisfy their needs while encouraging the achievement of their goals. In other words, it is best to start with a goal aligned with the company vision and mission and influencing the employees to achieve it by being proactive in leadership and management. Setting up goals and plans is like thinking ahead in order to place the company strategically to its future location. It can affect all the processes being done from hiring, developing employees through trainings, assessment of performance techniques and discipline.

Strategic Human Resource Management supports long term business goals and its outcome. With this, companies work hard to meet the need of their employees. It can cultivate productivity because the employees are being guided by the set goals and objectives. With that goal in mind, aligning the processes involved to get it done follows. And yes, Human resource management is the best way to achieve it. By thinking and planning ahead, it can improve employee performance and retention rate.


Tuesday, June 18, 2013

ON LEADERSHIP - WHAT KIND ARE YOU?

What is Leadership?
Leadership is about encouraging others to maximize their efforts in order to achieve the goals.
Being a Leader and Being a Manager – What is the Difference?
A Manager is not always a leader yet a Leader has the potential to become a good Manager. Being a Leader and Being a Manager is a totally different thing. What makes the difference is the way they execute things. A manager just plans and organize while a leader has that innate ability to motivate and inspire people to work together at their best in order to arrive at a common goal.  
A manager becomes more effective when he is a good leader. Or is it more correct to say that a leader should also possess a managerial qualities in order to become a good one that executes, inspires and motivates.
Indeed, in a professional setting , a successful manager should have both a combination of the qualities of a manager and a leader. Both of them works with people. The only difference is that a manager sees people as the means to achieve something while a leader sees people as the reason or the cause from which a vision is carried on.
According to my research there are 6 leadership and management styles, but there is a need to bear in mind that these styles should be adapted depending on the demands of the situation, the requirements of the people involved and the challenges facing the organization.
  1. The DIRECTIVE (Coercive ) style fosters immediate compliance from the employees:
·         It closely controls employees.
·         “Do it the way I tell you”
·         Motivates by threat and discipline
·         This one becomes effective when there is a crisis and when deviations are risky.
·         It is not effective when employees are not that knowledgeable or underdeveloped. There is no much learnings from this style.
·         Also not effective when employees are highly skilled. They would end up frustrated and not agreeable with micromanaging.
(From Wikipedia: In business management, micromanagement is a management style whereby a manager closely observes or controls the work of subordinates or employees.)
  1. AUTHORITATIVE – provides long – term direction and vision for employees.
·         Firm but fair manager
·         Gives employees clear direction
·         Provides persuasion and feedback to motivate
·         It is effective to use when there are clear directions and standards needed and of course, when the leader is credible.
·         When employees need thorough guidance on what to do, then this approach is not effective.
·         It is not effective too, when the leader is not credible.
  1. AFFILIATIVE – loves to create harmony among employees and between manager and employees.
·         People first, Task second
·         Emphasizes good personal relationships among employees and always try to avoid conflicts.
·         Keeps people happy to motivate
·         Becomes effective when used in combination with other styles but if performance is not satisfactory, it is not effective.
  1. PARTICIPATIVE – builds commitment and consensus among employees.
·         Gets inputs from everyone and motivates by rewarding a team effort.
·         It is effective when all works as a team and there is a good working environment.
·         It is not effective when there is a lack in competency among team members.
  1. PACESETTING – gets the task done to a high standard of excellence.
·         A do it myself as in performs task personally and expects others to follow
·         Setting high standards and expectation of self-direction is the way of motivation.
·         It is only effective when one is managing a group of experts and when there is little guidance required.
  1. COACHING – long term professional development of employees is the primary objective.
·         It helps and encourages employees to develop their strengths and improve their performance.

·         It concentrates on developing the employees’ abilities and strengths.

Monday, June 17, 2013

LEAVES WITH PAY

Taking leaves from work is one of the benefits of employees and is also one of the important part of ones career. When one take time off from work,  it makes them more productive. That should be the main purpose of leaves. But mostly, employees take leave of absence because of illness, to attend to emergency errands like paying up the bills and worst, some use it for applying to a job in another company.
So what are leaves by the way? Leaves are days when employees may still be paid despite their absence from work.  There are two kinds of leaves – that allowed by law and that one called as “ Best Practices” wherein the employer may add (not subtract) to these leaves out of the goodness of their heart or under a negotiated Collective Bargaining Agreement (CBA).
Mandated by law:
1. Service Incentive Leave (Article 95 of labor code) - Every employee (subject to the exceptions below) who has rendered at least one year of service is entitled to yearly service incentive leave of five days with pay.
“At least one year of service” Meaning
The term “at least one-year service” means service for not less than 12 months, whether continuous or broken.
The 12-month period shall be reckoned from the date the employee started working, including authorized absences and paid regular holidays.
However, where the operation of the establishment as a matter of practice or policy, or that provided in the employment contract, is less than 12 months, such period shall be considered as one year.
(with exemptions : For many companies, the 5 days SIL is already covered in 15 days Vacation leave)
2. Maternity Leave (RA 1161, as amended by RA 8282) Art. 133 - Under Article 133(a) of the Labor Code, “Every employer shall grant to any pregnant woman employees who has rendered an aggregate service of at least six months for the last twelve months, maternity leave of at least two weeks prior to the expected date of delivery and another four weeks after normal delivery or abortion, with full pay based on her regular or average weekly wages.”
From the above provision, a qualified pregnant woman employee shall be entitled maternity leave of at least two weeks prior to expected date of delivery and another four weeks after normal delivery or abortion. That’s a total of six weeks maternity leave.

3. Paternity leave (RA 8187) -
Paternity leave refers to the benefits granted to a married male employee in the private and public sectors allowing him to take a leave for 7 days, with full pay, for the first 4 deliveries of his legitimate spouse with whom he is cohabiting.
4. Parental leave (for solo parents) RA 8972 (Republic Act no.8972) Section 8. Parental Leave. - In addition to leave privileges under existing laws, parental leave of not more than seven (7) working days every year shall be granted to any solo parent employee who has rendered service of at least one (1) year.

For more information on the solo parent act, check out this website:
http://www.lawphil.net/statutes/repacts/ra2000/ra_8972_2000.html
5. Leave for victims of violence against women and heir children (RA 9262) SEC. 43. Entitled to Leave. – Victims under this Act shall be entitled to take a paid leave of absence up to ten (10) days in addition to other paid leaves under the Labor Code and Civil Service Rules and Regulations, extendible when the necessity arises as specified in the protection order.

Any employer who shall prejudice the right of the person under this section shall be penalized in accordance with the provisions of the Labor Code and Civil Service Rules and Regulations. Likewise, an employer who shall prejudice any person for assisting a co-employee who is a victim under this Act shall likewise be liable for discrimination.
6. Magna Carta of Women (Republic Act No. 9710) – is a comprehensive women’s human rights law that seeks to eliminate discrimination against women by recognizing , protecting , fulfilling and promoting the rights of Filipino women, especially those in marginalized sector.
In this Republic Act 9710, women are given  a Leave Benefits of two (2) months with full pay based on grossly monthly compensation, for women employees who undergo surgery caused by gynecological disorders, provided that they have rendered continous aggregate employment service of at least six (6) months for the last twelve ( 12 ) months.
For HR people, it is important to note that HR records/database are checked and consolidated to eliminate double compensation. Like for example, in granting of sickness benefit, employee must have used up the company leave benefits with pay before he/she can avail this from SSS.
Best practices
1. 15 days Vacation, 15 Days Sick leave, 3 days emergency leave
2. Modified Service Incentive leave that allows more flexible use of leave credits
3. Birthday leave
4. Bereavement Leave - practices vary from one company to another. The one i know gives one day with pay.
In other companies , Bereavement Leave is being administered wherein the number of days is dependent on the location.

Ex. 5 days if within Metro Manila or within ___ km radius from the workplace
7 days if outside metro Manila or outside ___ km radius from the workplace

There are some that the number of days is dependent on the employees' relationship with the deceased.

Ex. if immediate family - 3 days
if extended family - 1 day
5. Leave Commutation and accrual: The practices of companies vary as well. I guess the main determinant is a business need. The company should also balance the real need of employees to take respite from work, otherwise the purpose of offering leave benefits will be defeated.

6. Compensatory Time Off (CTO). In some companies, they grant this. Only for our regular employees who are not entitled to overtime pay (those holding technical/senior administrative positions; those with supervisory tasks; and those performing managerial functions). CTO can only be taken for extra work rendered for the purpose of completing special tasks and/or assignments given or sanctioned by the respective supervisors of eligible staff. The extra work should be performed during the following time periods:

a. On all hours exceeding 12 hours of work (including meal breaks) rendered on regular weekdays.

b. On all hours worked on Saturdays, Sundays and/or legal holidays (excluding meal breaks).

CTO must be taken within 15 days after which it is earned. CTO not taken within the aforementioned period will be forfeited. However, in cases where CTO cannot be taken within this period due to urgent work requirements, special approval is required from the immediate supervisor of the concerned staff. Such special cases must be decided upon within the same 15-day period.

Sources: http://pinoyworkers.weebly.com/leaves.html