NEW SSS CONTRIBUTION IN 2014

This news has been released early in May or June of this year but was finally announced and confirmed last October 2013.

It is confirmed that a 0.6 percent hike in SSS contribution will take effect in the coming year. Starting January 2014 the employee will have a share of 3.63% in the contribution and the employer with a share of 7.37%. The monthly salary credit or MSC will increase to PHP 16,000.00 per month.

Such increase in payment or contribution will result to increase in benefits. The maternity benefit is one example. Since the monthly salary credit increases as the contribution increases, then that will result to a higher computation of the said benefit. The maternity is being computed based on the monthly salary credit.

WHAT TO DO WITH EXCESS LEAVES?

If  a company have always practiced non-conversion and non forfeiture of its leaves and resulted in a number of excess-leaves, what is the best thing to do?

The scenario is that the company only provides the 10-VL SL. Due to non-treatment of excess leaves, employees have as much as 20+ leaves. Co. Wants to change this .

ANSWER:

It depends on what the management is willing to do and what is it that you want to convey to your employees. In other words, go back to your purpose: “ what is the reason for granting SL and VL to your employees?”

Do you want them to take a break and recharge from an exhausting work in order to have a better performance when they come back?

If you really want them to take a break, forfeiture of unused vacation leaves would be in order. This would compel them to use it. This way you put across the message that vacations are important to their well-being and that the company is looking out for them on this.

SL on the other hand should be treated differently. Unused SL could be monetized. This then serves as an incentive for them to keep themselves healthy, as the SL is actually savings for them. 

There are a number of ways to treat the excess, but the key is what do you (and management for that matter) want to do?

PHILHEALTH - ON REGISTERING AND REPORTING EMPLOYEES

Philhealth is one of the government mandatory benefits in the Philippines. It aims to provide medical assistance to nearly the entire population. It caters the five patient groups as : the workers; the Retirees; the OFWs; the indigents ; and the Non-poor and others.

Benefits package are the same for each group except for indigents and the OFWs who have additional outpatient primary care benefits.

Let’s leave it at that and now continue with the write-up on the formal sector since HR works for the  employed.

PHILHEALTH REGISTRATION FOR NEWLY HIRED AND EXISTING EMPLOYEES WITHOUT PIN YET

• Get a Philhealth Member Registration Form from the HR Department and fill it up.
• Attach the supporting documents for qualified dependents as: birth certificate for children and the marriage contract for spouse.
• Submit to HR Department. Better to have a receiving copies of your evidence in doing follow-ups.
• HR Department will then forward it to Philhealth office together with ER2 Form or Report of Employee Members.
• Then, Philhealth will send the Philhealth ID card and a copy of the Member Data Record to the member through his employer or the HR Department.

HR Department should be organized in keeping up this files of the employees since they are designated as the custodian.

PHILHEALTH FOR NEWLY HIRED EMPLOYEES WITH PIN

For newly-hired with PIN , he/she just have to report his PIN to the employer to indicate the same in ER2.

HR TO REPORT NEW AND SEPARATED EMPLOYEES TO PHILHEALTH

HR must be responsible enough to report the employees to Philhealth to ensure that they can get due benefits especially in times of need.

Newly – hired employees must be reported using the ER2 Form . Reporting must be done within 30 days of hiring date.

Separated employees must be reported using RF1 within 30 days from date of separation from the office.

LOW COST "PERKS" THAT HELP ATTRACT EMPLOYEES

When we ask an applicant in the interview on how much salary is he currently receiving, you may hear this response, “ I am receiving this ____________ amount as a basic salary plus other perks. If you would come to dig with it deeper, you would agree with me. Most of the times, there is no difference with the salary offerings of different companies but with the other benefits that they can offer? – It is really what makes them different. And it is that “other perks” which attract most of the applicants.

Below are some of the less expensive perks we can offer the employees:
1. Flexible time – it all depends on the kind of industry that we are in. If you found out that employees find it hard to make it on time at 7 am, then probably, it is too early for him and he can’t cope up with it. If said employee is of one of the potential talents and his position is considered as one of the hard-to-fill in, then it’s time to make a way I order to make him fit for the job. Consider adjusting his reporting time but be sure to make it 8 hours as required by the policy and the law.

2. Free Lunch – To foster teamwork and happiness in the workplace by way of celebration, why not offer a free even just once a week or once a month. This could be done along with the celebration of those who have birthdays for the month.

3. Pick and Drop – Free transportation can free the employees from worrying with everyday traffic and stress from commuting.

4. Gym Facilities – it is just a one-time investment which we can offer to employees. Make this sports or strengthening and healthy activities free for all employees during non-working hours and on weekends.

5. Libraries for leisure and learnings – encourage reading habits and learning sessions with the employees in order to make them at home even when they are at work.

6. Organize a family day – This will bring the employees including their families closer to the organization.
7. Livelihood Projects – This will interest old employees even the young ones who wants to be productive outside their works.

8. Summer Hours or Summer Days – Aside from the regular teambuildings during summer, give “one Friday” free for all employees. This to give them time with their family for their scheduled outings or summer escapades.

9. Free Chair Massage – Again, this is a “one time” investment which will benefit the employees to ease their back pains from sitting for just around 5 minutes. After that, they can go back to work with the feeling of comfort and relax.

10. Free snacks – Fill the kitchen or the pantry area with fruits, biscuits,  juice, coffee or milk. This will take out the employees from the burden of buying small time snacks and at the same time, it would reduce the office time spent outside the office by buying in the nearby convenience store.

Those are just a few of the perks that would attract talents and helped in retaining them. How about you? Any sharing on unique ideas that would help retain talented employees?

HUMAN RESOURCE MANAGEMENT – a Thankless Job

Human Resource Management is a very difficult job but is viewed as a thankless job. For one to love this job, you must really be interested and see its worth as a function in a company or organization. Getting into full understanding of its processes and its importance depend on ones interest and commitment to the job. I mentioned, it’s a thankless job for the reason that more often than not, no one ever notices or appreciate its importance and its contribution. They are always in a dilemma between employees and the management. But most important of all, they still retain their principle of fairness and professionalism despite any pressure.

HR professionals have different functions or oftentimes are groomed into different specialties. Seeing the job searches or job engines, there a lot of demand than supplies nowadays. Companies are now realizing the importance or significance of Human resources in the corporate world hence the need for more HR people to handle the tasks.

DIFFERENT HR PROFESSIONS THAT ARE PREVAILING IN THE MARKET TODAY

1. Recruitment Officer / Talent Acquisition Officer
2. Recruitment Specialist / Talent Acquisition Specialist
3. Recruitment Manager /Talent Acquisition Manager
4. HR Generalist
5. HR Officer
6. HR Specialist
7. HR Manager
8. HR Executive
9. Timekeeper
10. Payroll Specialist
11. Payroll Officer
12. Payroll Manager
13. Employee Relations Officer
14. Employee Relations Specialist
15. Employee Relations Manager
16. Training Officer
17. Training Specialist
18. Training Manager
19. HR Consultant
20. Employee and Welfare Services Officer

…… And a lot more

Some HR professionals have chosen not to work for a company but have preferred establishing their own businesses. They started a business like Manpower Recruitment, Consultancy, HR Training and other services and as a freelancer in HR jobs.

HR as the center of grievance and discipline is labeled as “Highly Reprimanded” Department rather than “Highly Recommended”. It is also tagged as the department of many excuses, such “ we are waiting for the management’s decision”, “ the position is on freeze”, “we need to cost cutting”, and a lot more excuses. But nevertheless, let’s understand that HR Department is the custodian of all processes but always honor the management decision and fairly discussed the employees’ concerns.

With a vast of HR experience in different industries, I could say that every HR of different companies is unique hence also requires a unique yet most effective approach. It depends on how flexible you are as an HR professional. The learnings in handling the Human Resource Management Department are as immeasurable as the challenges that it may bring. Hence, as an HR expert, a mature worker in that profession that is, should have a solid motivation and a love for the job and expect not to be reciprocated with all the goodness and sacrifices done for the sake of doing the job as an HR. After all, it is really a Thankless Job.

HIKE IN SSS CONTRIBUTION 2013

As mentioned in the last SONA (the 4^th one ever ) by the President of the Philippines, Noynoy Aquino held last July 22, 2013, there is a need to increase the SSS contribution to help in the reduction of unfunded liability.

Consequently, if the contribution of the members will increase, the pension scheme will have to be amended too.

The hike which was said to be around 0.6% was approved in principle by the Social Security Commission last March 16, 2013.

The matter is still under study and debate awaiting for further approval and implementation. Will post an update once fully approved.

TRAINING NEEDS ANALYSIS

Training Needs Analysis or TNA is often neglected in many companies. Probably because they don’t see its importance. Just as how important the training is, TNA is also a necessary component in order to arrive at a real objective of trainings. We don’t just send out employees to training centers , spend an amount for them just to attend a learning session for nothing. Training should be something that they need in order to do better in their assign jobs. It should be something that will add new skills, a new acquisition of right behavior and attitude towards the success of the department moreso of the organization and it should be something that would improve their performance to the next level.

So how do we know that an employee needs training? It is through the conduct of Training Needs Analysis. TNA produces a list of skills needed in order to perform the job well. It is filling-in the skills and the knowledge gap in order to resolve deficiencies in performance. It is also used in order to prepare the employees to new technologies and approaches in businesses. Moreover, it is also used in order to identify or pinpoint the right training for the staff.

How do we conduct TNA? The process of Training Needs Analysis covers the following:

·         Business goals

·         Job analysis

·         Analyzing cost and budget available

The means or Instruments used in conducting the TNA:

·         Through the feedback portion at the end of the Performance Evaluation – some HR department incorporates TNA in the conduct of the Performance Evaluation, which is just fit and timely. At the time of analyzing ones performance the supervisor and the rate themselves can easily identify the gap in performance and the gap in skills and knowledge that the rate possess and still needs to develop.

·         Through a separate survey form – which is quite easy to implement but the help of the line managers of course.

·         Through online survey – some uses these techniques in order to get quicker results. However, it is applicable to those who have computers.

AWOL - HOW TO DEAL WITH IT?

Two cents for this reality: Every HR practitioner has faced this same problem with employees having the series of absences for long period without any notification given to the HR Department and to the department where he belongs.

The emerging question here is : Can we just delete him from the roster? Or can we just stop his services? Or worst, Can we just terminate him?

The answer is “Yes”, but after doing all the required legal steps. There might be a good reason why they’re gone without asking the necessary permission.

Dismissing an employee because of AWOL  is not just a simple process.

Steps to follow:

1.       Always give the benefit of the doubt. If they didn’t arrive within an hour try to ask their close friend/colleagues. If they can’t you any information, make a move to call the staff’s relatives/family. In cases like , the employee is living independently and just boarding , try to call the landlady or landlord which may be seen from his personnel data information sheet. Give a deadline for a response when you leave a message for the concerned employee. Do not forget to get the name of the person you have talked with. Take note of the moves you have taken and file in the Personnel 201 for the record and documentation purposes.

2.       After trying hard to contact the AWOL employees, you still haven’t got any idea on his whereabouts, it’s about time to send him an AWOL letter. It should show some concern and benefit of the doubt plus the explanation that if you haven’t received any response within 3 days upon receipt of the letter, then the corresponding disciplinary procedure which may lead to termination might be imposed. The letter should advise him to report within 3 days upon receipt of the letter or contact the HR Department for any information.

3.       Again, if you don not get a response, send him the second AWOL letter or a follow-up letter. This time, the content of the letter must be firmer, reiterating that they must contact the HR Department for whatever reason they may have otherwise the matter will be of more grievous offense and will be forwarded to further disciplinary action including dismissal.

4.       If no response again, a third letter for disciplinary proceedings may be sent through. Remind them of their rights and attach a copy of the related disciplinary policy. Be clear and explain that if they won’t contact the HR Department, the hearing will go on as scheduled and a decision will be made therein based on gathered facts. Disciplinary action may lead to Termination.

5.       In case of failure of the employee  to attend the hearing, the decision may be made. Send him a letter confirming the result of the hearing and do not forget to give him the right to appeal.

IF THE AWOL EMPLOYEE MADE CONTACT

In case that at at any stage in the above process, the concerned employee does respond and make contact,  the unauthorized absence may be converted to misconduct. Go through the applicable disciplinary procedure unless there is a good reason not to and that an appropriate evidence has been presented to support their reason. Example is a serious illness with a doctor’s advice.

DELIVERY METHODS OF THE LETTERS OF AWOL

To make sure that the letters you are sending are trackable which is very important for an evidence, send it via walk-in delivery, postage with stamp (registered mail), special delivery and first class mail.

RECRUITMENT TIPS

RECRUITMENT TIPS

Architects and Engineers are only two of the hardest to fill-in jobs in the country. Most of these professionals prefer going abroad basically because of higher perks they would receive in another country. It has always been a challenge to get employed as a Talent Acquisition or Recruitment Officer of this kind of industries. It is in these specialized industries that ones resourcefulness in finding the most fit candidates gets tested and proven.

Aside from being totally resourceful, strong selling and negotiation skills  are also a factor. Recruiting for the company is like selling its good image and the opportunities it may offer to the candidate. Learning the art of building relationships which start with being more open in communication and being friendly makes the company the employer of their choice, sometimes.

With the abundance of job engines, networks and tools , it makes the job of the recruiter easier. But it depends on how effectively the recruiter uses it. The recruiter should have the mentality of a hunter. Meaning to say, to be a hunter is not just to simply log in - on jobstreet.com or monster.com and keep on searching ‘till noon. The recruiter does not stay passive , he/she should be active in head hunting.  A recruiter is someone who calls, uses social media to contact the possible candidate, and builds a network among the applicants in order to find the most qualified one. A good recruiter does not only search for applicants the whole day but to look at how these candidates could fit into the organization even though there is no available position at the moment is more valuable.

A Recruitment Officer/Manager could catch more bees with honey than they can with vinegar. In other words, to attract more applicants, even for a very hard to fill-in positions, one must be approachable and personable. Answer phone calls and inquiries as much as you can, contact them via E-mails, or let them follow-up the status of their application and most important of all,give an honest answer and feedback. That is always a consistent rule, do not give false hopes but answer in a very polite manner with whole honesty. No one goes astray with being honest and sincere.

SUGGESTED RECRUITMENT TOOLS

• Employee Referral Program – This is one of the best HR Practices wherein existing employees can refer their former colleagues, friends and classmates for the vacant post. When the referred candidate becomes regularized, then the one who referred will get a Referral Reward or an allowance. In some companies, they give a 10,000 reward for the most hard to fill-in post; then 8,000 to the next; 5,000 and so on. It is very important that a course plan of actions is built before its implementation in order to set the doable direction .Let’s say, is there any budget for the reward? What are the guidelines and mechanics? It is necessary to understand how the team operates and then, plan accordingly.
• Extend the Referral Program to external sources such as your networks, buddies, seminar classmates, etc. Have an unlimited sources to have a variety of applicants to choose from. Give them rewards, too.
• Put a notice on the information board so that the whole organization could know the latest vacancies.
• Pull manpower from other companies in the same industry. Pirating is the term for it. This practice is unethical for some but that’s the trend now especially when it comes to scarcity of resources. 

TARDINESS OF EMPLOYEES - HOW TO DEAL WITH IT?

Coming in on-time in the office is a struggle to some employees. The HR Department and the supervisors have heard the same reasons for being tardy from the employees such as long traffic, defective alarm clock, flat tire, etc. In all these reasons, the HR must be vigilant and must learn how to detect which one is true and which one is not. An occasional offense of being tardy for let’s say just 3 to 5 minutes might not be of real issue but if repeatedly done and worst, if it is increasing from 5 minutes to 30 – 40 minutes, then that’s something that you know is calling for an action.

 Employee absences and tardiness could have a great impact on the company and could put a great burden on his co-workers or team. This issue has been a great challenge in almost all companies. Many have attempted to remedy it via different ways but they always go back to the same scenario.

In the Orientation process, it is important to reiterate the importance of coming in on time or more so, of being present in the office at all times. Since he is a new employee, the culture of being punctual must be remarkable at the first step-in the door, in order for him to carry on the good habit. The supervisors and all in the team must show a good example. Likewise, the management and the HR Department must also be fair and consistent in administering progressive discipline to the employees committing an offense.

Counselling and communication is always a good tool to call the attention of the frequent late employee. Through counselling, he may be able to realize his mistake and he may learn that being tardy is not a good practice if one wants to be productive and excel in ones job. It is in counseling and communication too, that the HR Department will come to know the problem of the employee behind his being late habitually. There is a true reason behind the invented alibis of having so much traffic, failed alarm clock and so on.

In counselling, the supervisor or the HR may use the same approach as below:

• Are you aware of our policy on tardiness? Can we talk about it?
• Do you think you can follow it?
• What do you think are the reasons why you can’t come earlier or at the scheduled start of our office work?
• Can we look at the top three factors that make you late for work? What are these?
• Can you think of ways on how we can overcome this 3 factors because I know you love your job right? And you don’t want to lose it.
• So when can we expect you to come on time?

Then, if by talking to the concerned person, you felt that he is de-motivated which greatly affect his enthusiasm to come to work early every day, mention it to him frankly and enumerate to him your observation and its impact to his work. Then ask, “Is there a way we can help you there?”

Aside from counselling, a series of oral and written warnings are also important to administer as what is written in the policy or Employee handbook. Documenting it , is also as important as giving warnings. Keeping it on his personnel records for future reference is another step. But most of all, remember that it is important to set up a clear policy before imposing the said progressive discipline.

But first, before taking any radical decision, see the situation in your own point of view too, as an HR staff, you might have observed that the employee is having difficulty on his schedule, and you may help him become motivated again by coming up with an alternative solution.

ATTRITION RATE - TO MEASURE AND TO PREVENT

You as an HR staff has discovered that more than 5 employees from different departments/different levels are applying in another company. You accidentally saw them browsing over a job engine, looking for a job or you may have sighted them along the way carrying all the requirements in an interview attire. What does this means to the organization?

It may mean that the employee is not anymore committed to stay longer with the company and if you found out that there are more than 5 employees or even a group of employees who are planning to transfer to another company, well,  it may lead to high attrition rate or high turnover.

There are various reasons on why employees leave the company.  Some of the reasons are Lack of challenge, lack of job satisfaction, salary and benefits are not competitive enough, conflict with the management, conflict with the coworkers and so on.

When an employee applies or submit an application to another company, then, that should be taken as a warning sign. There is a need to understand why the employees are leaving or are aiming to leave the company.Corrective and Preventive measure have to be implemented as soon as the discovery of the reasons why the employees are wanting to resign from the company.

As high turnover rate is the most common problem of the corporate nowadays, initial steps on how to at least reduce it must be taken into consideration. The first thing to do is to hire the right person and develop that hired candidate further. Training and Development are both necessary to ensure loyalty among employees. Second,  be employee oriented. Encourage an open communication and ask for their input. In other words, make them feel that they are a part of the company. Third, create a strategic incentive package. Creating a compensation package which is attractive and more competitive is the best weapon against attrition. An employee who is well-compensated is a happy employee. A happy employee creates a harmonious relationship towards the co-workers and the management hence no conflict will arise. Who wants to leave a company with good training programs, employee oriented and with attractive compensation offer?

WAYS TO MEASURE MONTHLY ATTRITION RATE

Monthly Attrition = (No. Of Employees left in Current Month/Avg Headcount) *100{Average HC = (Employee Strength at the Start of the month+Employee Strength at the end of the month)/2 }