Amanda Chua, Author at Omni HR

A Harvard Business Review study of six Fortune 500 companies that transitioned to remote work in 2020 revealed that the remote workday was split into two windows: an eight-hour window from nine to five, and a longer 16-hour window.

During the first window, team members overlapped with 50-70% of their colleagues, suggesting active collaboration. In the longer “off-hours” window, this overlap decreased to 10-50%. This study reflects a global trend towards asynchronous work, which has become a necessary reality for businesses.

To maintain high employee performance levels, it is crucial to understand how to establish an asynchronous work environment and keep employees engaged.

What is Asynchronous Work?

Asynchronous work is a method of collaboration where individuals work independently and complete tasks without requiring real-time interaction with colleagues. Team members can work on their own schedules, using asynchronous communication tools to contribute and move projects forward.

With autonomy and no need for real-time collaboration, asynchronous work enables remote workforces to maximize their productivity and save time and resources. Not to mention, it gives employees some control over their working hours, eliminates the pressure of having to respond immediately, and gives them time to fine-tune their work.

Examples of Synchronous Work

Synchronous work refers to a work environment where individuals collaborate and complete tasks in real-time. Synchronous work typically spans the following:

Brainstorming sessions
Live presentations
In-person or virtual meetings (like video calls on Zoom)
Client negotiations
Real-time chatting via instant messaging platforms (like Slack)

Examples of Asynchronous Work

Asynchronous remote work isn’t as cooperative, but you’ll find that some tools support both types. Asynchronous work examples include:

Writing reports and proposals
Completing individual tasks within a project
Providing written feedback on documents
Working on shared documents using collaborative tools (like Google Workspace)

Benefits of an Asynchronous Work Environment

Understanding the benefits of an asynchronous remote work environment can provide the motivation needed to make essential adjustments to your business operations. It also helps you identify when your efforts are yielding results.

Increased Flexibility

One of the known benefits of an asynchronous work environment is increased flexibility. Employees can complete tasks on their own schedules, regardless of location or time zone. Without the pressure of real-time collaboration, the team can focus on specific tasks without distractions or interruptions.

Accordingly, employees can achieve better work-life balance, exhibit better performance, tend to their personal responsibilities, and keep employee engagement high. For employers, it facilitates the hiring of individuals from diverse time zones, expanding the talent pool available.

Reduced Stress and Anxiety

Asynchronous work does away with the expectation that employees need to be available and responsive during fixed hours. Instead, they might be expected to respond within a reasonable timeframe (like 24 hours or 48 hours).

When employees understand that others might be offline at any time, it encourages the establishment of healthy boundaries between work and personal life. This allows remote employees to disconnect, reducing stress and anxiety. In short, asynchronous remote work promotes productive work habits and safeguards mental well-being by reducing the barrage of notifications and the risk of employee burnout.

Improved Focus and Productivity

Maintaining focus is difficult in our age of shrinking attention span, but achieving the flow state is even more elusive. This state is achieved when employees are most productive and fully immersed in their tasks, losing track of time and space. The question is, how are we able to preserve this flow?

Asynchronous work does so by eliminating constant interruptions, which means higher employee satisfaction and productivity levels. Employees can focus on their tasks without the need to respond to messages or requests while working, encouraging the flow state.

Additionally, asynchronous remote work increases productivity and focus by enabling employees to work during their most productive hours.

Greater Ownership and Accountability

Engaging in asynchronous work creates a sense of accountability in employees, motivating them to complete tasks on schedule and deliver successful outcomes.

This approach allows for seamless task handover to the next responsible individual. However, it is important to note the effectiveness of asynchronous remote work hinges on hiring individuals who are both independent and accountable.

Improved Diversity and Inclusion

Creating an asynchronous work environment removes borders on time zones and locations, expanding your access to a diverse talent pool, enhancing ethnic and racial diversity and fostering inclusivity within your company.

Moreover, asynchronous remote work supports inclusivity by accommodating working mothers, caregivers, and individuals with demanding personal responsibilities. Unlike synchronous work with its fixed hours, asynchronous work enables them to work flexibility around the clock.

Roadmap to an Asynchronous Work Environment

Now that we’ve established the benefits of an asynchronous work environment, these following steps can guide and foster an asynchronous remote work environment.

1. Assess your readiness

Consider whether your organization is ready for asynchronous work. Can you break up its business processes and assign smaller tasks to your employees individually? Are there tasks that must be done synchronously? Classify tasks accordingly.

Also, assess your employees’ readiness to work alone. Are they used to working individually or equipped for it? Which tools or resources would empower them to do so? Are they readily available?

2. Set clear expectations and guidelines

As you steer your company towards a new direction, effective communication and transparency will make this transition as smooth as possible. It is pivotal to communicate and familiarize your employees with the guidelines and expectations that will define this shift to an asynchronous remote work environment. Here are three steps to achieve this:

Define core working hours

Core working hours are the fixed times when you expect your employees to be online or onsite. These are the designated hours for synchronous work (like meetings), outside of which employees have the flexibility to work whenever they want. If you have an international team, make sure these hours are during your team’s hours of overlap.

For example, setting two key days or hours in the late mornings or midday, which serve as core periods (when there is overlap). This working arrangement gives your employees plenty of time before or after these core hours for asynchronous work and personal obligations. Similarly, you can schedule these hours to help avoid rush hours if employees work from the office.

Outline communication protocols

What does communication look like in your asynchronous work model? Decide on suitable asynchronous work tools to make communication smooth.

On top of that, set policies detailing how much time employees are granted to deliver results, implement feedback, and respond to messages or inquiries. Also, state how long employees and managers should wait before sending a follow-up message.

For instance, you can establish an asynchronous remote work protocol where employees should make edits to projects within 24 hours of receiving feedback. If they don’t confirm that they’ve received the feedback within 12 hours, managers may send a follow-up message.

Read next: Navigating the Digital Divide: Enhancing Remote Team Communication

Establish meeting policies

A study found that nearly one-third of meetings are deemed unnecessary, significantly affecting the organization’s financial performance. Reducing the duration of meetings is one of the main pillars of asynchronous remote work, enhancing productivity and team effectiveness. It is important to reassess the needs and purpose of recurring and upcoming meetings.

Outline valid reasons for setting up meetings and determine which teams must attend. For instance, you can set guidelines or certain conditions for managers from holding meetings for status updates, documenting processes, providing information, or discussing other meetings, and direct them to alternative communication methods. Additionally, essential meetings should be scheduled within the core working hours, mentioned above.

To illustrate, you can eliminate meetings for project updates and instead, utilize OKR management tools to monitor progress. However, if a conversation between employees involves extensive back-and-forth and is time consuming, it may be more efficient to address it in a meeting during core hours.

Another method is to set policies for optional meetings. Instruct team leaders to attach an agenda to each meeting invitation so that individuals are able to get context before the meeting and opt out if it doesn’t pertain to them. Similarly, individuals who cannot attend can contribute input or questions beforehand and catch up afterward. Lastly, establish policies regarding post-meeting documentation, meeting agendas, and assign responsibility for these tasks.

3. Foster asynchronous communication

Once you’ve established clear expectations and guidelines, it is important to empower employees to use asynchronous communication channels. Asynchronous work prioritizes documentation and transparency over repetitive real-time communication. Therefore, having a single source of accurate information is essential for employees to easily keep track of tasks and projects.

Encourage managers to utilize unified channels for sharing insights and project updates. Similarly, motivate employees to utilize them, creating transparent communication for all. Emphasize the importance of transferring key information from emails and other tools to the designated collaborative space. These steps enhance the level of asynchronous communication within your organization.

Omni Tip for asynchronous work:
It’s crucial for managers to follow the communication protocols you have established, thereby encouraging employees to do the same. This helps create a conducive asynchronous environment!

Learn more: HR’s 2024 Guide to Singapore Maternity Leave

4. Build trust and team cohesion

Enabling employees to work according to their preferences in terms of how, when, and where they work requires a level of trust from you and your team leaders. It is essential to empower them to make decisions autonomously.

To establish a successful asynchronous remote work system, set accurate and effective key performance indicators (KPIs) so that managers can oversee projects while allowing employees the freedom to work independently. Over time, witnessing positive outcomes will build trust in the process and among team members, boosting employee morale.

Team cohesion refers to the ability of a team to collaborate effectively toward a common objective. Building a cohesive team requires members to have a close relationship and trust one another. Understanding the significance of team cohesion in asynchronous work is important, as it entails setting clear goals, defining individual tasks, promoting personal accountability, and ensuring successful project delivery.

5. Continuously adapt and improve

As you move towards fostering an asynchronous work environment, it is beneficial to utilize KPIs for tracking performance, analyzing time spent in synchronous meetings, and other relevant metrics.

Additionally, seek employee feedback via employee engagement surveys and other tools designed to protect their well-being. This approach allows you to assess what strategies are effective and which ones require improvement, while also providing valuable insights.

However, it also presents new challenges that could require adaptation. For example, you may designate eight to ten in the morning as core working hours, only to observe an increase in absenteeism or presenteeism, along with a decline in productivity and engagement thereafter. Through employee surveys, you may discover that ten to noon could be more suitable as core hours.

By experimenting with different approaches until you find the optimal solution, you can cultivate the asynchronous work culture you aspire to achieve.

Read next: Strategies and Tools for Defining Culture in the Workplace

Paving the Way to Success in an Asynchronous Work Environment

Embracing an asynchronous work environment can bring about numerous benefits to an organization, including increased productivity, flexibility and employee satisfaction. By encouraging employees to work at their own pace and schedules, organizations can tap into a diverse talent pool and accommodate different working styles and preferences.

All-in-one HR software like Omni provides support for creating an asynchronous work environment through communication, collaboration and performance tracking tools. Omni helps you track, analyze and gain actionable insights from performance data through an automated and digitized platform. Easily and quickly gather the data you need so you can spend more time on the strategic planning necessary to drive business outcomes.

Our full suite of modules provide support for every aspect of your business through an intuitive and fully customizable platform that integrates with your team’s favorite tools for a seamless and timely adoption.

By leveraging Omni’s automated processes and embracing asynchronous work practices, organizations can build a more agile and resilient workforce, primed for success in today’s dynamic business environment.

To join the 83% of Omni customers who have unlocked new, actionable insights after using our modern HR software solution, book a demo with us today!

For HR professionals in Singapore, understanding the Employment Act Singapore is crucial. It is perhaps the most important labor law in the country, and covers everything from wages to working hours. Staying compliant with its regulations is essential.

That said, the Act is subject to frequent updates (with the most recent change implemented in January 2024). Staying up to date and interpreting not only the mandatory regulations, but also the common practices it outlines is important for HR success in Singapore.

In this guide, we will delve into the specifics of the Employment Act Singapore, everything from who it applies to, key provisions to be aware of, and tips for staying compliant.

Who is Covered by the Employment Act Singapore?

The Employment Act Singapore covers all employees, regardless of nationalities, except for certain groups such as managers and executives, domestic workers, seafarers, and public servants. The Act covers employees who:

Work under a contract of service (written or verbal.)
Employed entirely or partially in Singapore
Workers engaged in manual labor earning a basic monthly salary of no more than S$4,500, other workers earning a basic salary of no more than S$2,600.

The Employment Act Singapore provides basic protections for the employees it covers, including regulating working hours, overtime pay, rest days, annual leave, and the regulations around terminations or lay-offs. Knowing the specifics of The Act, and staying up to date with any changes or additions should be a top priority if you’re an HR professional working in Singapore.

Key Provisions of the Employment Act Singapore

The Employment Act Singapore has many different provisions that are put in place to protect the rights of employees working in Singapore. They can broadly be placed into two categories. These are:

Core provisions

Employment terms and conditions: The Employment Act Singapore regulates that employers must provide written employment contracts to employees within the first two months of their employment, and they should outline the terms and conditions involved, such as job scope, working hours, and salary details.
Working hours: It also specifies the maximum number of working hours per day and week, including rest day requirements and overtime pay entitlements for work beyond stipulated hours. For most employees, this comes out to 9 hours per day (44 hours per week) with any work in excess of that being considered overtime.
Annual leave: The Act mandates minimum annual leave entitlements for employees based on their length of service, ensuring they receive adequate rest and recreation. After employees have served three months, they are entitled to seven days of leave, which increases one day per year of service up to the maximum 14 days. Employers are also required to keep accurate records of employees’ attendance and overtime. While the statutory standard working hours are regulated, many organizations also offer flexible or remote work arrangements, such as telecommuting or flexible schedules, to accommodate their employees’ needs and promote work-life balance.
Public holidays: It also regulates employee entitlement to paid public holidays and payment arrangements for work performed on such days. In Singapore, there are a total of 11 public holidays.
Sick leave and medical benefits: The Employment Act Singapore includes provisions for sick leave entitlements, including certification requirements and medical benefits for ill employees. Employees who have served at least 3 months of service and who provide 48 hours’ notice of absence are entitled to 14 days of sick leave and 60 days of paid hospitalization leave. It’s important to note that the 60 days of paid hospitalization leave includes the 14 days of sick leave unless the employee has worked for 6 months or more, in which case they receive the full entitlement.
Termination of employment: The act also regulates termination procedures, including notice periods, termination without notice, and payment of salary in lieu of notice.

Read next: HR’s Guide to Managing Singapore Employment

Part IV Provisions

Additional protection for manual laborers: Part IV of the Employment Act Singapore provides added protections for workers engaged in labor-intensive jobs. These include regulations on working hours, rest intervals, and overtime pay rates.
Benefits for non-manual laborers: It also includes provisions related to benefits such as annual leave, public holidays, and sick leave for workers making less than S$2,600 per month, ensuring fair treatment for all types of employees.

These key provisions of the Employment Act Singapore serve as the foundation for regulating employment and promoting a healthy and fair work environment for all employees.

Statutory Requirements and Common Practices

While the Employment Act makes certain regulations legally binding, it also outlines some common practices most employers choose to abide by, and encourages other Singaporean organizations to follow suit. Here’s what you should consider, aside from the core provisions mentioned above:

Salary and wages: While there’s no regulated minimum wage in Singapore, companies who wish to access a variety of government subsidies need to abide by the Local Qualifying Salary for their employees of at least S$1,400 per month. While that is generally a baseline, many employers in Singapore offer competitive salaries and benefits packages to attract and retain talent, which may include performance bonuses, incentives, and allowances such as transportation or meal subsidies.
Health insurance: While the Employment Act does not mandate health insurance coverage for employees, many employers offer comprehensive medical insurance plans as part of their employee benefits package to provide financial protection and access to healthcare.
Maternity and childcare leave: Under the Employment Act, mothers of newborn Singaporean citizens are entitled to 16 weeks of paid maternity leave, while mothers of non-Singaporean citizens receive 12 weeks of unpaid leave. Fathers are eligible for four weeks of leave, which must be taken within 12 months of their child’s birthdate. Many Singaporean employers voluntarily offer an additional two weeks of parental leave. Employers can apply to the government for reimbursement for these maternity leaves once they have been provided.

Learn more: HR’s 2024 Guide to Singapore Maternity Leave

Probation period: While The Act doesn’t mandate a probation period, it allows for one, and it’s very common for employers to take a three to six month period where they assess the skills and fit of their new hires before committing to them fully.
Employment termination: The Employment Act Singapore regulates the termination of employment relationships, including notice periods, severance pay, and the circumstances under which employment can be terminated. The most important item The Act stipulates is that the employment contract originally offered to the employee is followed closely.
Retrenchment, layoffs, downsizing: In cases of retrenchment, layoffs, or downsizing, employers must comply with the statutory requirements regarding notice periods, severance pay, and the provision of support services to affected employees. These include notifying the Ministry of Manpower (MOM), and abiding by the terms of employment contracts. Although not mandatory, the MOM website strongly recommends offering two weeks to one month of salary for every year of service is a common and likely expected practice for employees facing retrenchment.
CPF Contributions: The Central Provident Fund (CPF) is a mandatory social security savings scheme for both Singaporean employers and employees. Employers are required to make CPF contributions for their eligible employees based on specific contribution rates set by the CPF Board, which vary based on the age of the employee in question.

Try out our free CPF Calculator!

Non statutory benefits & perks

Personal well-being: Employers can and often do provide a variety of wellness programs and initiatives to support their employees’ physical and mental well-being. These can include gym memberships, wellness workshops, counseling services, and employee assistance programs (EAPs).
Travel allowance: Most employers looking to stand out in recruiting provide travel allowances or reimbursements to employees for business-related travel expenses, such as transportation, meals, and accommodation. These allowances help keep expenses down for employees who need to frequently travel for business.
Relocation package: For employees relocating for work purposes, many employers offer relocation packages to help with the costs and challenges of moving. These packages include financial assistance for housing, transportation, moving expenses, and settling-in allowances.
Employee Stock Purchase Plans (ESPP): ESPPs are programs that allow employees to purchase company shares at a discounted price, often through payroll deductions. These plans enable employees to become shareholders in the company and potentially benefit from its financial performance—sharing in the success of a company is a great way to boost employee engagement and motivation.

Strategies to Stay Compliant with the Employment Act Singapore

As we’ve already laid out, there’s more than a few regulations from the Employment Act Singapore you’ll need to keep in mind. Failing to follow them could lead to fines or legal consequences—something your organization will certainly want to avoid. Here’s some tips to ensure you are compliant:

Leverage HRIS for accurate recordkeeping

Implementing a robust Human Resources Information System (HRIS) will greatly assist in ensuring compliance with the Employment Act Singapore. An HRIS harnesses automation and streamlines many different HR processes, including payroll management, leave tracking, and employee data management.

By maintaining accurate records of employee information, work hours, salaries, and statutory benefits, an HRIS helps minimize risk and ensures thorough recordkeeping for potential audits. Additionally, it improves operational efficiency, enhances data accuracy and facilitates informed decision making through access to real-time analytics.

Read next: The 7 Best HR Software Singapore Has to Offer in 2024

Hire a local HR manager

Employing a local HR manager who is well-versed in the Employment Act Singapore and the regulations associated with it is a great idea for ensuring compliance. A local HR manager can provide valuable, first-hand insights and guidance on interpreting the provisions of the Employment Act, as well as other relevant legislation. They can also serve as a point of contact for your employees’ questions and concerns regarding their rights and entitlements under the law.

Seek expert guidance

Given the complexities of employment laws and regulations in Singapore, your organization might benefit from seeking expert guidance from legal professionals or HR consultants specializing in local labor laws. These experts can provide tailored advice on compliance, including interpreting legal requirements, conducting compliance audits, and addressing any gaps or issues before they become a problem.

Also, it’s a good idea to attend regular training sessions or workshops on employment law updates and compliance best practices to help you and your HR team stay informed and up-to-date on regulatory changes.

Omni Helps HR Leaders Stay Compliant in Singapore

HR managers have their hands full, and the ever changing Employment Act Singapore adds yet another layer of responsibility to their already existing workload. Tracking and calculating hours, managing employee records, and administering payroll requires a clear, secure, and accurate system to ensure compliant and timely payouts for your employees.

Omni’s all-in-one HR solution helps make these tasks streamlined and free of manual error to reduce the administrative burden on HR. With secure and centralized employee database, HR teams can easily store, update, and communicate employee information across departments and with employees. Our payroll solutions make it easier than ever to calculate accurate employee payments and tax calculations through automation that saves time and reduces errors. And with automated payroll information synchronization, end of month processing becomes a streamlined and seamless effort.

Start your free trial today and learn how Omni can help you remain compliant with regulations like the Employment Act Singapore and reduce your administrative workload for all of your People management needs.

Book a demo with our team now!

Fortune Business Insights forecasts that “the global OKR software market size is projected to grow from $1.15 billion in 2023 to $2.98 billion by 2030, at a CAGR (Compound Annual Growth Rate) of 14.6% during the forecast period.”

The Asia Pacific region is expected to experience the fastest growth in the global market, surpassing America, Europe, the Middle East and Africa. This growth is attributed to the increase in startups within the region. The increasing adoption of technology, including OKR management tools, enables companies to collect data and monitor performance effectively.

Companies of all sizes in countries like India, China, and Japan are also investing more in OKR software to enhance strategic operations. If you’re seeking the best OKR management tools for your business, this OKR software comparison guide will assist you in making an informed decision.

What is an OKR Management Tool?

OKR stands for Objectives and Key Results. Objectives are the goals you have for the company, and key results are the strategies you employ to reach these objectives. You can use the key results to measure your success level for your company goals.

While you can manage OKR via regular collaboration tools, OKR management tools facilitate this by giving you a time-tested framework. Plus, they go beyond goal setting to boost communication, teamwork, and organization.

You can use OKR tools instead of or alongside regular collaboration tools to support your organization. This way, your team members will be focused on company goals.

Read next: Modern Companies Need Performance Management System Software, Here’s What to Look For

Criteria for a Good OKR Management Tool

Understanding the criteria for OKR management tools helps you understand how we’ve created this OKR software comparison and even create your own based on what you value most.

Goal and Objective Management

Do the OKR management tools you’re considering help you manage your business goals? Which features support that? Think of aspects like key result tracking, goal setting and alignment with OKRs, scorecards, and monthly or quarterly reviews of your OKRs.

Furthermore, high-level OKR tools should be able to spot bumps from a mile away, enabling you to provide your team with the needed resources and support. They should also align organizational goals with individual or team goals so that everyone understands how they fit into the bigger picture.

Add to that regular nudges to keep employees focused on your company goals, and you’ll enjoy the improved goal visibility and urgency of OKR management tools.

Usability and Collaboration

You can run an OKR software comparison by seeing how well OKR tools support usability and collaboration. Make sure the software’s collaborative features support your business needs and goals.

Features to look for in OKR tools include integrated boards, collaborating on meeting agendas, sharing items and notes, and shareable dashboards to track progress. Not to mention, OKR management tools should support integrations with collaborative software tools.

Overall, one of the key requirements for OKR tools is to give your workers a positive, hassle-free user experience, regardless of the user device and degree of digital literacy. So, are the OKR management tools you’re considering easy to use with engaging interfaces?

Data and Analytics

A key to goal management is real-time progress tracking. You need up-to-date data and analytics on progress and relevant variables from OKR management tools.

With such data, you can see how well you’re doing, remain aligned with the objectives, and adapt to changes via timely insights. On top of that, the visual displays on dashboards make the data easy to digest.

Consider whether the OKR management tools in your OKR software comparison harnesses automation and supports streamlined data collection, meeting-ready reports, frequent reviews, and easy data exportation. Of course, you also want OKR management tools that keep your company data confidential and comply with data protection laws.

Additional Considerations

With that said, there are some less obvious considerations that’ll help you invest in the right OKR management tools and put together a balanced OKR software comparison.

Pricing

Making an OKR software comparison with the necessary functions for your business can help you stay within budget when you pick OKR management tools. Also, look for OKR tools with transparent pricing and no hidden charges.

Implementation and Support

An OKR comparison tool should show how easy OKR tools are to set up and add new users to these platforms. OKR management tools should have a clear layout and instructions and a solid, responsive customer support team by developers. They should understand the OKR software and strategy building; after all, it’s the people who design strategies (not the tools).

Customer Reviews

Naturally, user feedback in the form of customer reviews and ratings is informative and helpful in an OKR software comparison. It might inform you of any blindspots, how usable the OKR tools are, and how responsive the support teams are.

5 OKR Management Tools For 2024

Based on the criteria mentioned above, we have created an OKR software comparison guide for your reference and determine which OKR management tools accommodate your business needs the best.

Omni HR

Omni HR is an all-in-one HRIS platform that frees HR teams from administrative cycles by automating the entire end-to-end employee lifecycle—from recruitment and onboarding to employee engagement and payroll—allowing you to redirect your time to strategic work that drives business growth.

As one of the best OKR management tools, Omni’s intuitive performance management module provides advanced analytics, real-time insights, and streamlined processes. With Omni, set and track employee goals, performance review cycles, and access real-time actionable insights on employee performance in one, easy-to-use platform.

Features:

OKR customization for your unique business needs
Setting and tracking employee goals in real-time
Run performance review cycles on autopilot
Flexible performance cycles setup
Built-in templates and best practices
Customized OKR review forms
Real-time actionable insights and analytics
Seamless integrations with your team’s favorite tools and softwares
Dedicated customer support with quick turnaround

Suitable for:

Omni HR is suitable for modern and growing businesses looking to automate OKR management with seamless integrations with existing workflows, real-time actionable insights and customization. With our dedicated customer support with quick turnaround time, your business is in good hands.

Profit.co

Profit.co is a user-friendly OKR management tool. It combines OKR defining, tracking, and alignment with performance management, task management, and team engagement. In that sense, the platform supports organizational growth.

This OKR tool guides you through a Plan-Execute-Engage-Learn cycle. You can set customized OKRs, track them easily, use collaborative features to boost engagement levels, and use the tool’s generated data to learn and fine-tune the process.

Not to mention, Profit.co has integrations with Slack, HubSpot, Jira, Salesforce, and Microsoft Teams. If that isn’t enough, it allows you to customize integrations. The one drawback is that this software can be too complex for small teams.

Features:

Real-time progress tracking for organizational and individual goal alignment
Weekly informed check-ins to keep company goals at the forefront
Consistent performance monitoring for team workflow management
Skills and talent evaluation to streamline project execution
Collaborative features for higher engagement levels
Integrated with Slack, HubSpot, Jira, Salesforce, and Microsoft Teams

Suitable For:

Profit.co is one of the OKR management tools designed for not-so-small teams with employees who aren’t tech-savvy.

Weekdone

Weekdone is one of the notable OKR management tools in our OKR software comparison for weekly performance management. With its help, you can set and customize your structured goals and track them with constant pulse insights.

You can define, oversee, and align tasks and objectives and improve company-wide communication. We should also mention the platform’s support of quarterly OKR management and team collaboration on goals.

However, you can’t use Weekdone to establish mission or vision statements, and you can’t put together a competitive analysis. KPI tracking and OKR management are somewhat limited here compared to the others.

Features:

Visual dashboard to facilitate data consumption, share progress, and enable collaboration
Employee feedback support to enhance employee satisfaction
One-on-one sessions and OKR customization for effective OKR defining and tracking
Weekly plan tracking and quarterly OKR refresh tool to monitor real-time progress
Team planning support
Webinar resources and OKR training courses
OKR experts for assistance with the onboarding process

Suitable For:

Weekdone supports small and mid-sized businesses. It enables you to put together well-structured OKRs and oversee performance weekly.

ClickUp

Next on our OKR software comparison guide is ClickUp – a OKR management tool for businesses of varying sizes.

Its OKR framework template helps with goal setting, real-time tracking, goal alignment, and identifying potential obstacles. Accordingly, you can set and achieve SMART goals conveniently. Additionally, ClickUp comes with three different plans, accommodating your budget.

Its main drawback in our OKR software comparison is that, unlike some other OKR tools, ClickUp doesn’t support data exportation. It also isn’t the best for project feedback collection.

Features:

Weekly scorecards to divide big goals into smaller objectives for each week
Folders collecting weekly, monthly, and yearly goals for easy access
Real-time progress tracking and comparison to overall objectives for easy performance management.
Setting priorities so that employees know which tasks to start with
Numerous project use
Unlimited users allowed with the free version for all company sizes

Suitable For:

ClickUp works for everything from a startup to a big enterprise. It’s handy if you’re struggling to set, break up, assign, or manage tasks that serve organizational goals.

Viva Goals(Ally.io)

Microsoft contributes to OKR tools with its software solution, Viva Goals. Like other tools in our OKR software comparison, it aligns team and employee goals with organizational objectives, helping you identify complications in real time, notify teams automatically, and meet your business goals.

This solution is one of the OKR management tools that feature integrations with numerous tools, including Slack, Microsoft Teams, Asana, and Salesforce.

Not to mention, the dedicated support, training for managers and employees of all levels, and program and implementation support management. All of these features facilitate incorporating the tool into your daily processes without undermining productivity.

However, unlike other tools in this OKR software comparison, Viva Goals is not easy to set up, and its user interface takes some getting used to.

Features:

Goal alignment with organizational goals
Real-time problem identification
Automatic team notifications
Integrations with other platforms, such as Slack, Microsoft Teams, Asana, Salesforce, and Bamboo HR
Company-wide training
Dedicated and responsive support team

Suitable For:

Viva Goals is the OKR management tool for you if you run a big enterprise or a smaller but fast-growing business. It’s also perfect if your team isn’t very tech-savvy and needs detailed instructions for using OKR tools.

Read next: Your Guide to Successfully Pitching HR Software to Leadership

Achieve Strategic Growth with Seamless OKR Management

OKRs are one of the most effective frameworks for establishing business goals, and developing a sustainable tracking system will help your organization efficiently implement and sustain OKR goal setting for your entire business.

Integrating OKR management tools with HRIS can further enhance their effectiveness. Omni’s performance management system powers your business with access to reports and analytics that provide valuable insights for measuring key results. Easily set, track, and measure OKRs across your teams within one, intuitive dashboard.

To learn more about how Omni can help significantly improve organizational goal-setting and performance management processes, ultimately leading to better outcomes and success for your business, schedule a demo with our team today!

The Social Security System (SSS) in the Philippines is a safety net Filipinos rely on. It covers individuals and families in times of need, such as retirement, disability, sickness, maternity, or death. The trust in the system has considerably increased as its 2023 revenue surged to ₱362.20 billion, exceeding its revenue target of ₱330.80 billion by 9.5 %.

In fact, in 2022, SSS disbursed a total of ₱236.3 Billion in benefits from January to November 2022, a whopping growth of 13.2% from the ₱208.8 Billion for the same period recorded last year. If the numbers continue to increase annually, one can imagine the significant benefits that SSS provides to its members.

All registered businesses and establishments in the Philippines are required to contribute to SSS for their employees. Furthermore, employees regardless of their employment status are mandated to contribute SSS. Understanding how to calculate your SSS contribution is crucial. This article will delve into the calculations and rates, which vary based on several factors.

The Social Security System (SSS) fund refers to the pool of money managed by the Philippines’ Social Security System, consisting of contributions from both employers and employees. These funds are utilized to provide social insurance, retirement, and other benefits to employees and workers.

The goal is to ensure members are looked after both presently and in the future. The government closely monitors the fund and makes prudent investment decisions to maintain its health.

Who is covered by SSS benefits?

SSS benefits cover the following individuals, ensuring both theirs and their families’ protection against incidents such as sickness, disability, maternity and retirement:

Private employees: this category includes individuals employed by private companies or corporations. Whether you work for a large corporation or a small business, as long as you are employed in the private sector, you are likely covered by the SSS benefits.
Household helpers and domestic workers: these are the individuals who work in private households, assisting with household chores, childcare, or other domestic duties. It includes maids, nannies, cooks, gardeners, and other similar roles.
Drivers and operators of public utility vehicles: this group consists of people who operate public transportation vehicles such as buses, jeepneys, taxis, tricycles, and other forms of public transport. Given the nature of their work and the services they provide to the community, they are eligible for SSS benefits to address their social security needs.
Self-employed persons: self-employed individuals are those who run their own businesses or work independently without being employed by a specific company. It includes freelancers, entrepreneurs, consultants, and professionals who operate their businesses on a freelance basis.

Who can perform SSS contributions?

All individuals, including employees, self-employed individuals, non-working spouses, and Overseas Filipino Workers (OFWs) up to the age of 60 who possess an existing SSS number, have to make SSS contributions to either initiate or maintain their coverage. Moreover, employers are mandated to contribute on behalf of their employees.

It’s important to note that unemployed Filipinos can voluntarily make SSS contributions only if they have prior employment or self-employment or were previously OFW members with a verified history of at least one month of contributions. Moreover, SSS provides flexibility for certain members, such as farmers and fishermen, permitting them to contribute at any time within the twelve months preceding their payment schedule.

What is the SSS Contribution Rate for 2024?

In 2021, the SSS contribution rate was set at 13%. However, it increased to 14% in 2023 and stands strong in 2024 as well. Of this 14%, 9.5% of SSS contributions are made by the employer, while employees contribute 4.5% of their monthly salary credit.

The SSS Contribution Schedule was originally scheduled to increase by 1% every year starting January 2023, reaching 15% by January 2025. However, due to economic concerns and public feedback, the Philippine government decided to defer the planned increase for 2024.

As a result, both employers and employees will continue to contribute at the current rate of 14% throughout 2024. This applies to employees earning a monthly salary within the range of ₱4,000 to ₱30,000.

How to calculate SSS contribution?

The SSS contribution is made by both employer and employee when an individual is permanently employed by a company. For freelancers, self-employed individuals, overseas workers, and voluntary members, contributions are made differently. Let’s explore the specifics for each of these cases.

Regular employers and employees

The SSS contribution for regular employers and employees is covered based on the employee’s monthly salary credit (between ₱4,000 and ₱30,000). Both the employer and employee contribute to the SSS as per the contribution rate (14%). Out of the 14%, 9.5% of the monthly salary credit goes into SSS contributions by the employer. The remaining 4.5% is contributed by the employee.

For example, Christina earns a monthly salary credit of ₱20,000.

Employer’s contribution: 9.5% x ₱20,000 = ₱1,900

Employee’s contribution: 4.5% x ₱20,000 = ₱900

Total SSS contributions: ₱1,900 + ₱900 = ₱2,800

In addition to the regular SSS contribution, employers also make monthly contributions to the employee compensation (EC) program. Employees earning below ₱15,000 receive ₱10, while the ones making ₱15,000 and above receive ₱30.

Self-employed members

Self-employed members determine their monthly contributions based on their declared monthly earnings. The contribution rate remains the same (14%) in their case as well. Since self-employed individuals do not have an employer to contribute on their behalf, they are solely responsible for making their own SSS contribution. This ensures they are covered under the social security system and are eligible for the benefits it provides.

For example, Nathaniel makes a monthly salary credit of ₱4,000 per month.

Total SSS contribution: 14% x ₱4,000 = ₱560

Employee compensation (EC): ₱10

Self-employed individuals, in this case Nathaniel, can contribute the total amount of ₱570 using various payment channels provided by SSS. These include online platforms, authorized banks, or SSS branches.

Voluntary members and non-working spouses

Calculating SSS contributions for voluntary members and non working spouses is similar to regular employees, whereby the contribution rate remains the same (14%), However, the difference lies in determining the Monthly Salary Credits (MSCs).

For voluntary members, their MSC is based on their declared monthly income during registration. It can range from ₱4,000 to ₱30,000.

For example, Maria declared a monthly income of ₱12,000.

MSC = ₱12,000

Total SSS contribution: 14% x ₱12,000 = ₱1,680

As for non-working spouses, their MSC is based on 50% of their working spouse’s MSC.

For example, a working spouse has an MSC of ₱15,000.

Calculation of SSS contribution for non-working spouse:

MSC = 50% * ₱15,000 = ₱7,500

Total SSS contribution: 14% x ₱7,500 = ₱1,050

It is important to note that non-working spouses can choose an MSC between ₱4,000 and ₱30,000, but it cannot be higher than 50% of their working spouse’s MSC.

Household employers

Household employers are those who employ household helpers such as maids and drivers. The employer is in charge of making both theirs and the employee’s share of SSS contribution, with the employee’s share deducted from their salary.

For example, a household helper earns a monthly salary of ₱12,000.

Employer’s contribution: 9.5% x ₱12,000 = ₱1,140

Employee’s contribution: 4.5% x ₱12,000 = ₱540

Total SSS contributions: ₱1,140 + ₱540 = ₱1,680

Overseas Filipino workers

Overseas Filipino workers (OFWs) are individuals from the Philippines who are employed or working abroad. They may be employed in various sectors such as healthcare, construction, domestic work, hospitality, and more. The Social Security System makes it a point to provide a safety net and financial security for them and their families back home. OFWs have the option to become voluntary members of the SSS and can continue their coverage even while working abroad.

The SSS contributions are made based on their declared earnings abroad. They can make these contributions through online platforms, accredited banks, remittance centers, or through authorized SSS representatives in their host countries.

For example, Sophia has a MSC of ₱8,000.

Total SSS contribution: 14 % x ₱8,000 = ₱1,120.

These individuals are also provided assistance services specifically tailored to their needs. This includes information dissemination, assistance in processing claims and benefits, and outreach programs conducted in coordination with Philippine embassies and consulates abroad.

Learn more: HR’s Guide to Payroll Taxes in the Philippines

When to pay SSS contributions?

SSS contributions are typically made on a monthly basis, with the deadline varying based on membership type. While you can manually handle the payment procedure, it’s better to invest in a trusted HRIS in the Philippines. It automates the entire process and simplifies the payment breakdowns, which are as follows in different cases:

Employers and employees (monthly)

For employees, SSS contributions are deducted from their salaries by the employers and remitted to the SSS. Employers must pay the total amount, including their share, by the last day of the month following the applicable month. For example, contributions for April 2024 should be paid by 31 May 2024.

Household employers (monthly/quarterly)

Household employers can remit SSS contributions either monthly or quarterly, with the payment due by the last day of the month following the applicable period. Quarterly payments are generally preferred. Thus, contributions for January 2024 can be made by 30 April 2024.

Self-employed, voluntary, and non-working spouse members (monthly/quarterly)

Similar to household employers, self-employed, voluntary, and non-working spouse members can choose to pay their contributions monthly or quarterly. Payments should be made before the last day of the month following the applicable period.

OFWs (monthly, quarterly, annually)

Overseas Filipino Workers (OFWs) have the flexibility to make SSS contributions monthly, quarterly, or annually. They can make payments at any time during the year according to their preference.

It’s crucial to note that missing or late payments may incur penalties or interest charges. Therefore, ensuring timely payment of SSS contributions is essential to maintain good standing.

If you are unsure of how to pay your SSS contributions, check out the list of collecting agents for the period of January 2024 to 31 October 2024. These collecting agents ensure the efficient collection of funds from its members while complying with the necessary standards. In case you require an HR compliance checklist to ease out the whole process, here’s everything you need to know.

What are the benefits of SSS?

The Social Security System (SSS) offers a lot of benefits to its members and provides financial assistance in their time of need. Here are some of its major benefits:

Sickness

The SSS provides sickness benefits to support members who cannot work due to illness or injury. This benefit entails a daily cash allowance equivalent to 90% of the member’s Average Daily Salary Credit (ADSC). It is applicable for a maximum duration of 120 days within a calendar year.

To qualify for sickness benefits, here are the criteria one needs to meet:

The member must have been confined to the hospital or home for at least four days due to illness or injury.
Members can only claim sickness benefits if they have exhausted their company sick leave with pay for the calendar year.
Regardless of employment status (whether regular employees, self-employed, or overseas workers), members must claim sickness benefits from the SSS directly.

Maternity

Maternity benefits provide crucial support to expecting mothers during their childbirth journey. By submitting a maternity leave application, mothers-to-be can access paid benefits, determined by the type of delivery – whether natural birth or by cesarean.

These benefits amount to 100% of the member’s average daily salary credit, with variations based on circumstances: 105 days for normal delivery, 105 days for cesarean, 120 days for solo parents, or 60 days for cases of miscarriage, stillbirth, or terminated pregnancy.

Upon applying, beneficiaries typically receive benefits within 30 days. Moreover, an option exists for transferring up to seven days of these benefits to the father, regardless of marital status.

To qualify for these benefits, members must have contributed to the SSS for at least three months within the 12 months preceding the semester of childbirth or miscarriage. These provisions ensure that expecting mothers receive the necessary financial assistance to cover medical expenses, childcare costs, and other necessities during their maternity leave.

Disability

The disability benefits paid in either lump sums or monthly payments cater to the needs of disabled members of the SSS, whether partially or fully. Qualified members receive a monthly disability pension and a ₱500 supplemental allowance every month.

Again, the amount credited depends on the years of service.

Less than ten years: ₱1,000
Ten years of service: ₱1,200
20 years of service: ₱2,400 with an additional ₱1,000 benefit

The individuals are eligible to receive disability benefits if they have made at least one month of contributions before the disability semester. To receive monthly contributions, they must have completed at least 36 contributions. If not, they are only eligible for the lump sum amount.

Unemployment

Terminated members benefit greatly from the unemployment benefit of making SSS contributions. The total credited amount can be used by the member to look for another job. Generally, the amount received is 50% of the member’s monthly salary. However, the maximum limit is set at ₱10,000 even if the member has a salary or wage over ₱20,000 and exceeds the contribution limit. It’s crucial to note that resignations are not covered under this benefit. The members must be terminated to avail of the benefit.

Retirement

Retirement benefits are crucial to ensure you live a healthy and fulfilling life during old age. The SSS provides retirement money in a lump sum or monthly payments as deemed fit. Moreover, as a bonus, SSS grants an additional 13th-month pension to its members every December.

The amount received depends on the years of service: for 10 credited years, members receive ₱1,200, and for 20 years, they are entitled to ₱2,400 along with an additional ₱2,000 in benefits.

To qualify for these benefits, members must meet specific criteria:

For voluntary retirement, members must be at least 60 years old and have paid at least 120 contributions before the retirement semester.
For mandatory retirement, members need to be at least 65 years old and have made 120 contributions before the retirement semester.

For members seeking a lump sum payment, a minimum of 120 contributions is required. If this criterion isn’t met, members can continue making contributions until they reach the threshold necessary to avail further benefits.

Moreover, there are special provisions for specific categories of workers:

Surface and underground mine workers are eligible for voluntary retirement at 50 and mandatory retirement at 60, provided they have at least five years of service.
Racehorse jockeys can opt for retirement at 55, with a minimum of 120 months of contributions and five years of experience.

Death

The SSS makes it a point to cater to the needs of the family members of the deceased person. It gives cash grants, either monthly or a lump sum amount, to the deceased member’s beneficiaries. This is in addition to the 13th-month pension they receive every December.

The monthly amount depends on the years of service. However, the minimum amount stands at ₱1,000 for members with less than 10 years of service with additional benefits of ₱1,000.

The benefits are given to the primary beneficiaries, including the spouse and children. In the absence of primary beneficiaries, second beneficiaries, such as dependent parents, get the benefits. Family members are only entitled to receive the death benefit if the member has made 36 contributions before the semester of the death.

In the case of minor beneficiaries, an equivalent of 10% of the member’s contribution will be given or ₱250, whichever is higher.

Funeral

The funeral benefit is the total amount of cash given to the member who conducts the funeral services of the deceased. The amount received can be anywhere between ₱20,000 to ₱40,000, depending on the number of SSS contributions, years of service, and average monthly salary credit.

In case the member was employed, the employer should report the coverage. On the flip side, self-employed, non-working spouses, and voluntary members should make at least one month of contribution to become eligible.

Simplify SSS Contribution Compliance with Omni

Understanding and managing SSS contributions is important not only for the employers but also employees in the Philippines. Employers must comply with laws and ensure that employees are receiving the benefits they deserve, while employees on the other hand, rely on these contributions for social security and financial stability. That’s why it’s important to have automated HR tools on your side.

Omni’s all-in-one HR solution helps streamline payroll processes and free of manual error to reduce the administrative burden on HR. With secure and centralized employee records, HR teams can easily store, update, and communicate employee information across departments and with employees.

Omni offers a comprehensive payroll solution tailored to Philippines specific requirements. With features like support for Philippine peso, automated tax calculations, and managed SSS, PhilHealth and PAG-IBIG contributions, Omni can help HR teams simplify their SSS contributions and ensure compliance with ease.

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If you’d like to learn more about how Omni’s all-in-one HR software automates the entire end-to-end employee lifecycle, book a demo with our team.

What is a payroll template?

A payroll template is a document designed to help you organize and track essential employee payroll information for a specific pay period. It acts as a framework for calculating, recording, and managing employee salaries, wages, bonuses and deductions. Payroll templates are essential for businesses of all sizes to improve accuracy, comply with tax regulations, and enhance payroll management efficiency.

What does a payroll template include?

Well crafted payroll templates serve as a roadmap, aiding you through the process of keeping records of employee earnings and issuing accurate payments. A payroll template also serves to maintain organized records, save time, and minimize errors. Here are some basic components that a payroll template should encompass:

Employee information

This serves as the foundation, clearly identifying the employees through their name and employee ID, streamlining tracking and reference. Furthermore, clearly defining the current pay period’s date range sets boundaries for which earnings and deductions apply, laying the foundation for a streamlined and accurate payroll process.

Earnings & deductions

Here’s where the numbers come in. Gross pay captures every employee’s pre-deduction earnings. Furthermore, create dedicated sections to include mandatory tax withholdings such as CPF contributions, or payroll taxes, benefit contributions and other authorized deductions to ensure compliance and proper calculation.

Payroll calculations

This is where the magic happens. Your payroll template should automatically perform these vital calculations based on pre-filled data, resulting in the net pay – the final amount employees will be receiving. By ensuring minimal manual calculations, you receive accurate results every time.

Additional information

Your payroll template can be customized to cater to specific needs by adding fields. Possible suggestions include adding company information for reference purposes, tracking leave accruals for future planning, or customizable fields to capture specific data that is relevant to your business needs.

Omni Tip:
A payroll template can be as simple or as robust as you want it to be! The primary purpose of a payroll template is to simplify the payroll process and ensure accurate record keeping at all times. By including relevant details, a payroll template can facilitate data analysis and guide informed decision making.

Benefits of a Payroll Template

Now that we’ve covered the basics of a payroll template, let’s dive into the benefits of creating and using one.

Enhanced efficiency

A payroll template reduces the need for manual data entry and calculations. This eliminates any potential errors due to miscalculation and inconsistency. By streamlining the entire payroll calculation with a payroll template, HR professionals are able to save valuable time and effort from data collection up to issuing payment.

Improved accuracy

With predefined fields and automated formulas, a payroll template minimizes errors when performing calculations and deductions. It also provides a clear and organized record of all payroll transactions for audit and inquiry purposes. As a result, payroll accuracy is improved, ensuring compliance with tax regulations and other legal requirements.

When employees receive accurate and timely salaries, it not only ensures financial stability but also enhances employee engagement and trust with the organization. Knowing that their compensation is handled accurately and efficiently contributes to a positive work environment and boosts morale. In turn, this can lead to higher productivity, improved job satisfaction, and reduced attrition rates.

Cost reduction

An efficient payroll template helps minimize error and rework, leading to lower processing costs. By automating calculations and deductions, the template reduces likelihood of manual errors, saving time and effort. This efficiency also reduces processing costs and allows for better cash flow management within the organization.

Additionally, the streamlined process facilitates more efficient resource allocation. HR and finance teams can dedicate more efforts and resources to other strategic activities, improving overall operational efficiency.

Using a payroll template also improves compliance with tax regulations and other legal requirements. By accurately calculating taxes and maintaining organized records, organizations can avoid penalties and fines associated with non-compliance, enhancing reputation and credibility.

Time savings

A payroll template automates repetitive tasks, freeing up HR professionals to focus on strategic business activities. It simplifies data organization and retrieval, enabling quick access to necessary info for decision making. With automated formulas, information produced will always be accurate, reducing the time spent managing errors and discrepancies that often arise from manual calculations.

Additional benefits

As mentioned previously, payroll templates provide HR professionals with maximum flexibility, accommodating to specific organizational needs by adding customizable fields. Some templates may also offer functionalities for data analytics, providing insights into salary costs and trends.

Finally, a payroll template can also serve as a valuable repository for employee payment information, simplifying access and management.

Choosing the Right Payroll Template

When selecting the right payroll template for your business needs, it is important to maximize its benefits and efficiency. Here are some factors to consider when choosing the perfect payroll template for your business:

Number of employees: Simple templates can suffice for small teams, while larger workforces could require more complex templates.
Payroll complexity: Consider factors like different pay types, bonuses, benefits deductions that apply to your payroll structure.
Desired functionalities: Assess whether data analysis, time-off tracking, or ability to insert customizable fields is a priority when choosing your payroll template.
File format: Choose between spreadsheets, PDFs, or web-based templates based on your team’s preferences and current system compatibility.
Template accuracy and customization: Select templates that allow for adaptation to your specific needs and ensure predefined formulas and automatic calculations apply to your payroll structure.

Integration: Factor in whether the payroll template can integrate with your existing payroll software or accounting system.
Data security: Ensure that the template has secure features to protect your employee financial data.

Omni Tip:
Always a good idea to start with a basic template and add complexity as your needs evolve! It’s also important to involve other HR leaders in the selection process for a diverse perspective.

Payroll Template for Your Business in 2024

Now that you’re equipped with a comprehensive understanding of creating a payroll template, kickstart your process with our free Excel payroll template!

Ideal for small businesses with straightforward payroll needs or budget constraints, our template is user friendly and readily accessible. Its familiar interface and simplified feature allows for easy customization to perfectly align with your unique business needs and payroll requirements. Unleash your creativity and tailor the template to suit your needs, ensuring a seamless payroll processing experience.

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Streamline Your Payroll Processes with Omni

Payroll templates offer a valuable, cost-effective starting point for automating your payroll processes, improving accuracy, and saving time. They can cater to smaller organizations or those with basic payroll requirements. However, as your workforce grows and complexities arise, these payroll templates may be limiting, which is where HRIS takes center stage.

All-in-one HR software like Omni go beyond basic templates, offering a comprehensive and integrated solution for automating the entire end-to-end employee lifecycle—from recruitment and onboarding to employee engagement and payroll—allowing you to redirect your time to strategic work that drives business growth.

Omni offers a comprehensive solution that simplifies payroll processing by automating accurate employee payments and tax calculations, keeping you up to date on local laws and regulations. Our automated payroll information synchronization ensures that end of month processing is streamlined and seamless.

Omni’s time off and attendance features empower teams to automate data and generate detailed reports in minutes, making payroll calculations instantaneous and accurate. With payroll solutions that support local currencies and payment schedules, Omni offers an entire suite of solutions to make your payroll system seamless.

Ready to automate your payroll management?

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Book a demo with our team and learn how our automation can help you remain compliant and reduce your administrative workload for all of your People management needs.

Policies on maternity leave Singapore are crucial components of a company’s HR management, with Singapore’s Employment Act setting out the basic requirements for maternity leave entitlements. Effective management of maternity leave Singapore policies can contribute to legal compliance, workforce diversity, employee retention and keeping them motivated and engaged.

This guide provides the necessary information on the key aspects of maternity leave Singapore, including eligibility criteria, employer obligations, and special situations for maternity leave.

What is Government-Paid Maternity Leave?

The Singaporean government provides eligible working mothers with 16 weeks of paid leave to recover from childbirth and spend time with their newborn babies under the Government-Paid Maternity Leave (GPML) scheme.

Relevant reads: The Singapore Annual Leave Entitlement Guide

Who is entitled for maternity leave Singapore?

As per the guidelines from the Ministry of Manpower (MOM), working mothers are entitled to 16 weeks of Government-Paid Maternity Leave or 12 weeks of maternity leave Singapore under the Employment Act, depending on whether their child is a Singapore citizen and other criteria.

To be qualified for full 16 weeks of GPML, the employee must meet the following conditions:

Employee has worked for the organization for at least 3 continuous months before the birth of her child.
She is legally married to her newborn child’s father.
Her child must be a Singapore citizen at birth.

How many days are employees entitled to maternity leave Singapore?

As mentioned above, working mothers are entitled to either 16 weeks of GPML or 12 weeks of maternity leave. However, there are certain criterias that must be fulfilled.

Employed working mothers

For employed working mothers, they are entitled to 16 weeks of paid maternity leave if their child is a Singapore citizen and they’ve worked for the organization for at least 3 continuous months before birth.

If the child is not a Singapore citizen or if they do not meet the 3-month employment requirement, they are still eligible for 12 weeks maternity leave Singapore. However, this maternity leave is unpaid, unless stated otherwise in the employment contract.

Self-employed working mothers

Self-employed working mothers are not covered by the Employment Act and hence, are not eligible to paid maternity leave Singapore. However, they may be eligible for government grants such as:

Baby Bonus Scheme: provide parents with one-time cash payment upon birth of a Singapore citizen.
Self-Employed Person Income Relief Scheme (SERS): tax relief for self-employed individuals facing income loss due to pregnancy or childbirth.

Employee on probation

For employees still under probation, they are generally eligible for maternity leave as long as they meet the service requirement (3 months for GPML, any duration for Employment Act).

Some organizations might provide specific policies for probationary employees regarding leave entitlements.

Contract, temporary or part-time employees

When it comes to contract, temporary or part-time employees, maternity leave Singapore is pro-rated.

If entitled for GPML, the entitlements are pro-rated based on hours worked compared to full-time employees.

If entitled for maternity leave under the Employment Act, it is pro-rated based on days worked in the past 12 months. Again, these maternity leave entitlements are unpaid unless stated otherwise in the employee’s contract.

What are the employer’s obligations for maternity leave Singapore?

Employers are required to pay their employees during the maternity leave period. However, they can claim reimbursement from the Government in accordance with the GPML scheme:

For first and second births, employers pay the first 8 weeks at the employee’s gross rate of pay, with the Government reimbursing the last 8 weeks, capped at $10,000 per 4 weeks or a total of $20,000.
For third and subsequent births, employers are not required to pay, and the Government reimburses all 16 weeks, capped at $10,000 per 4 weeks or a total of $40,000.

Employees must provide at least 1 week’s notice before going on maternity leave and inform the employer as soon as possible of the delivery. If failed to do so, employees are only entitled to half the payment during maternity leave, unless a proper reason for not giving notice is given.

On the flip side, employers cannot request an employee to work during the first 4 weeks of her confinement and may face legal consequences for dismissing an employee while she is on maternity leave.

Omni Tip for managing maternity leave Singapore: If a migrant worker becomes pregnant, it is the employer’s obligation to notify MOM on such changes.

Maternity Leave Singapore in Special Situations

Now that we’ve covered the basics of maternity leave Singapore eligibility and entitlements, we’ll be taking a look at special situations that could arise:

Child is not a Singapore citizen

If your employee’s child is not a Singapore citizen, they are not eligible for GPML but are eligible for 12 weeks of unpaid leave under the Employment Act, regardless of nationality.

On the other hand, self-employed mothers not covered by the Employment Act may be eligible for government grants such as Baby Bonus (if mother is a Singapore citizen) as mentioned above.

Employee is not eligible for Government-Paid Maternity Leave (GPML) at the time of delivery

Employees who do not meet the 3-month service requirement or whose child is not a Singapore citizen are not eligible for GPML. However, they are entitled to 12 weeks of unpaid leave under the Employment Act.

It is worth noting that if an employee becomes eligible within 12 months of birth (e.g. child acquires Singapore citizenship), they can apply for GPML and may receive the remaining leave from the date they become eligible.

Foreign or permanent resident working in Singapore

Foreign or permanent resident employees working under a Singapore employment pass are entitled to the same benefits as citizens depending on employment type (employed or self-employed) and eligibility for GPML. However, specific company policies may vary for non-citizens.

Employers are also legally required to inform the Ministry of Manpower (MOM) of any changes if foreign workers become pregnant.

Birth of twins or triplets

For working mothers giving birth to twins or triplets, it will be treated as a single delivery and receive the same GPML or Employment Act benefits mentioned above. Employees are not entitled to double maternity benefits.

Single or unmarried mothers

Single or unmarried mothers are entitled to the same benefits as married mothers based on their employment status and eligibility.

However, there are additional resources and support available from social service organizations such as Baby Bonus and the ComCare Assistance scheme, offering additional financial support for single mothers.

Premature birth

Employees who meet the eligibility criteria and experience a premature birth should start their maternity leave on the birth date of their child or earlier if they mutually agree with their employers.

Employers can also offer additional medical leave benefits, such as hospitalization leave, if an employee needs to stay in the hospital after her baby’s discharge.

Complications or illness

Working mothers experiencing complications during or after childbirth are not eligible for paid sick leave while on maternity leave.

If they are not on maternity leave, they may apply for medical leave, which is subject to the doctor’s approval and company policy. Depending on the situation, hospitalization leave may be required, along with additional medical leave benefits that the company provides.

Adoption

As a mother of an adopted child, you are not entitled to paid maternity leave but instead, paid adoption leave. The MOM provides guidelines on adoption leave and mothers are entitled to 12 weeks of paid adoption leave if eligible.

Abortion or miscarriage

According to MOM guidelines, employees are not entitled to maternity leave if there has been an abortion or miscarriage.

However, some companies may offer compassionate leave in such situations based on company policies. Similarly, sick leave can also be provided for employees to recover.

Changing jobs while on maternity leave

Employees who change jobs while on maternity leave are not allowed to transfer any unused leave to their new company.

The new employer is also not obligated to honor the existing maternity leave. Employees may need to use up remaining leave with their previous employer or take unpaid leave with the new one.

Important things to note for maternity leave Singapore

Working mothers who are qualified for GPML can also share their leave benefits with their husbands under Shared Parental Leave (SPL) scheme.

Employees may choose to start maternity leave 4 weeks before the delivery date and no later. All maternity leave must be taken within 12 months from the child’s date of birth.
The first 8 weeks of maternity leave must be taken in one continuous block (including weekends and public holidays), while the last 8 weeks are flexible.
Employees are not allowed to use maternity leave to offset the notice period when they resign.
Employees are also not allowed to transfer unused maternity leave Singapore to their spouse or encash when they resign.

Streamline Maternity Leave Singapore Management

Maternity leave Singapore plays a crucial role in supporting working mothers during the childbirth period. Understanding the policies and ensuring compliance is essential for organizations to create a supportive work environment, boosting morale and employee engagement. Addressing these maternity leave Singapore challenges requires HR professionals to invest in modern leave management systems.

Read next: The 7 Best HR Software Singapore Has to Offer in 2024

Omni’s all-in-one HRIS makes it possible to manage the entire end-to-end employee life cycle in one platform. Our robust time off management capabilities allow HR teams to streamline the management process of maternity leave Singapore. With customizable leave allowances, employers can set maternity leave criteria based on Singapore standards, company policies, or individual eligibility, simplifying compliance efforts and standardizing benefit allocation for their teams. These automated processes help HR professionals track eligibility, manage maternity leave applications, and ensure proper reimbursement with ease, while ensuring employees get the time they need to recover and return to work productive and engaged.

Omni also seamlessly integrates with your team’s most loved work tools such as Slack, enabling managers to receive and manage time off approvals directly within the messaging platform, removing time-consuming steps from leave management with a quick push of a button. With automated calculations, employees and managers can easily view maternity leave balances in real-time without the intervention of HR.

Our employee self-service portal empowers employees to swiftly submit their maternity leave requests, automatically routing to the appropriate managers with customizable approval workflows. And our user-friendly mobile application allows for on-the-go approvals and communication, so you can manage leave balances and employee benefits from anywhere.

Our localized solutions and unified system merges your maternity leave Singapore management efforts with payroll processing, facilitating automatic, accurate calculations and compliance with local regulations.

Book a demo with us today to learn more about how Omni can transform your leave management processes, saving you time, reducing administrative burdens, and enhancing overall efficiency.

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Singapore is renowned worldwide for its laws. However, less recognized is the intricate network of statutes and legal requirements detailed in its labor laws, which HR professionals must grasp when considering Singapore employment.

From hiring and onboarding employees, to termination and retrenchment and right down to tax requirements, there’s a lot to know about Singapore employment. In this article, we take a deep dive into both the legal requirements, and some prevailing norms in Singapore, that you’re going to need to consider.

Legal Framework in Singapore

In Singapore, the legal framework governing employment is created and handled by two different entities—the Employment Act (which includes the Ministry of Manpower [MOM]) and the Central Provident Fund (CPF).

The Singapore Employment Act is the main legislation laying out the terms and conditions of employment for Singaporean employees. It codifies basic employment rights and protections for workers, like the regulation of working hours, overtime pay, rest days, annual leave entitlements, and termination. The Act applies to most employees, with the exception of positions such as managers and executives earning above a specified salary. Its coverage also doesn’t apply to domestic workers and government employees.

In addition to the Singapore Employment Act, the statutory board called MOM plays another important role in regulating Singapore employment. MOM is responsible for implementing and enforcing labor laws and regulations, including work pass regulations for foreign employees, workplace safety and health standards, and dispute resolution. Employers need to prioritize compliance with MOM’s regulations, which exist to provide fair treatment to all employees.

Another important statutory board is the CPF, a mandatory social security savings scheme for Singaporean and permanent resident employees. Under the CPF, both employers and employees are required to make monthly contributions to employees’ CPF accounts, which are used to fund their retirement, healthcare, and housing needs. Employers need to make timely and accurate CPF contributions to meet their obligations towards their employees’ social security.

For HR professionals working with Singapore employment, it’s important to stay up to date on the latest regulations, and keep a keen eye on compliance at your organization, so you don’t incur fines or other penalties.

Hiring and Onboarding Process

The hiring and onboarding process in Singapore involves several key steps meant to guarantee you remain compliant with local regulations and experience smooth integrations of new employees into your organization.

Types of work passes

One of the first considerations you need to make when hiring foreign workers for Singapore employment is the type of work pass they require. The most common work passes are the Employment Pass (EP) for professionals, the S Pass for mid-level skilled workers, and the Work Permit for foreign workers in construction, manufacturing, marine, process, or service sectors. Each work pass has specific eligibility criteria, and you have to ensure that foreign employees hold valid work passes as long as they work for your organization.

Learn more: Singapore Employment Pass: Updates & Requirements in 2023

Employment contracts

Employment contracts are essential for defining the terms and conditions of Singapore employment. These contracts should clearly outline key details such as job responsibilities, salary and benefits, working hours, leave, termination clauses, and other important employment details. You’ll need to make sure that your employment contracts comply with the requirements under the Employment Act.

Probationary periods

Including a probationary period into your contract is considered standard practice in Singapore. During the probationary period, which typically lasts between three to six months, you’ll have the flexibility to terminate employment with shorter notice periods if your employee’s performance or conduct is unsatisfactory. That said, you and your organization must adhere to fair employment practices and provide employees with reasonable support and feedback during their probationary period.

Onboarding practices

Like elsewhere, the onboarding process is incredibly important for defining the success your employees will have at your organization. This includes providing them with necessary information and resources to understand their roles and responsibilities, introducing them to key stakeholders and team members, providing training and orientation sessions, and addressing any questions or concerns they might have.

You should also use the onboarding process as an opportunity to communicate your company’s values, cultures, and expectations, helping them get up to speed with their new workplace environment and cultivate a sense of belonging from the get go.

Take your onboarding process to the next level: Download our comprehensive 30-60-90 Day Plan now!

Wages and Benefits

Paying wages and offering benefits are going to be at the top of your priority list when offering Singapore employment. Here’s what you need to consider:

Minimum wage and Local Qualifying Salary (LQS) Scheme

Unlike some countries, Singapore doesn’t have an official minimum wage. That said, the government has introduced the Local Qualifying Salary (LQS) scheme, which sets a minimum salary threshold for eligible local employees to qualify for various government support schemes, such as the Workfare Income Supplement (WIS) and SkillsFuture Credit. In other words, employers are incentivized to pay their employees a minimum amount, or miss out on government support.

Working hours

General: The standard workweek in Singapore is 44 hours, typically spread over five or six days. Actual working hours might vary depending on industry practices and individual employment contracts.
Overtime: Employees are entitled to overtime pay for work that extends beyond normal working hours. Overtime rates are specified in the Employment Act and typically range from 1.5 to 2x the hourly basic rate, depending on the employee’s designation and nature of work.
Working week: While the standard workweek is 44 hours, specific working hours and rest days vary depending on factors like industry norms, shift arrangements, and collective agreements.

Central Provident Fund (CPF)

The CPF is a mandatory savings scheme for Singaporean and permanent resident employees, as well as certain foreign workers. Both employers and employees are required to make monthly contributions to the CPF, which are allocated to different accounts for retirement, healthcare, and housing purposes.

Check out our free CPF calculator Singapore

Leaves and holidays

Paid time off: The Employment Act stipulates Singapore annual leave entitlements based on how long your employee has been with your organization, ranging from seven to 14 days per year. Employers can also offer additional leave benefits that go beyond the requirements outlined in the Singapore Employment Act.
Public holidays: All employees are entitled to paid Singapore public holidays (there are typically 11 each year.)
Sick days: Employees covered under the Employment act are entitled to outpatient sick leave and hospital stay so long as they’ve been at your organization for three or more months.
Maternity/paternity leave: Mothers are entitled to up to 16 weeks of government-paid maternity leave (within 12 months of giving birth) so long as their child is a Singapore citizen. Otherwise, mothers receive 12 weeks of leave without government pay. Fathers who meet certain qualifications are eligible for up to three weeks of Government Paid Paternity Leave (GPPL).
Parental leave: Beyond maternity and paternity leave, Singaporean employees are also eligible for shared parental leave, allowing parents to share caregiving responsibilities for their newborn child.
Bereavement leave: While not a statutory requirement, most Singapore employers typically offer 2-5 days of paid bereavement (or compassionate) leave to employees in the event of the death of an immediate family member.
Marriage leave: Like bereavement, marriage leave isn’t mandatory. But some employers may provide paid leave for employees getting married as an added benefit.
Voting leave: Employees are entitled to paid time off to vote in national elections or by-elections.
Military leave: Reservist employees may be granted time off from work to fulfill their National Service obligations, with some employers optionally providing paid leave during this time.

Employee Benefits

In addition to the statutory benefits, you may want to offer a variety of employee benefits to attract and retain the best available talent. These could include health insurance, retirement plans, flexible work arrangements, wellness programs, employee assistance programs, or other perks aimed at enhancing employee well-being and job satisfaction.

You should tailor your benefits packages to meet the diverse needs and preferences of your target workforce in order to remain competitive for Singapore employment. For instance, if you’re typically recruiting younger employees, consider adding on marriage leave as a potential benefit—it may be an attractive offering and even a deciding factor for top talent looking at your organization.

Performance Management and Development

As with HR best practices around the world, in Singapore effective performance management and development strategies are key to enhancing employee engagement, productivity, and employee retention. Here’s what you need to know to make the most of Singapore employment performance:

Setting objectives and performance reviews

First, you need to establish key performance indicators (KPIs) and expectations for your employees, aligning them with your organization’s goals and priorities. Regular performance reviews (conducted frequently, with an official one done annually) allow managers and employees to assess progress, provide feedback, and identify areas for improvement. These reviews should take a holistic look at all performance metrics, like job competency and culture fit.

Empower your team to reach new heights: Download our Total Performance Review Kit

Training and development opportunities

Successful companies recognize the importance of investing in employee training and development to enhance skills, knowledge, and capabilities. For your Singapore employment, consider offering a range of training programs, workshops, seminars, and certifications to support your team’s growth and career advancement.

Training initiatives should cover technical skills, soft skills, leadership development, industry-specific competencies, and emerging trends relevant to your employee’s job function or career aspirations.

Career progression

Career advancement opportunities are an essential part of talent retention and overall success in Singapore employment. There are multiple ways you can lay a path for advancement, including:

Internal mobility: Create internal job postings and transfers to help encourage career growth within your organization.
Promotions: Recognize and reward high-performing team members with opportunities for advancement to higher-level roles or positions with increased responsibilities.
Mentorship and coaching: Provide mentorship and coaching programs to support your employees in their career journey, offering guidance, advice, and support from experienced team members or senior leaders.
Career pathing: Map out clear career paths and progression routes for your employees, outlining the skills, experiences, and milestones needed for them to advance within your organization.

Employee Relations and Termination

For Singapore employment, managing employee relations and handling terminations requires careful attention to legal requirements, communication protocols, and conflict resolution strategies. Here’s what you need to know:

Termination of employment

When you need to terminate someone’s employment, you must adhere to the statutory notice period outlined in the employment contracts or the Employment Act. Typically, notice periods range from one to three months, depending on the employee’s length of service. You also need to provide payment in lieu of notice. Also, while severance pay isn’t technically mandatory, it is common for employers to offer 1-2 weeks of salary or more per year of service.

Redundancy and retrenchment

In cases of redundancy or retrenchment due to business restructuring, economic downturns, or technological advancements, you need to comply with a variety of statutes imposed by MOM. These include abiding by the notice period that should be outlined in their employment contracts, and paying severance—called a retrenchment benefit—to employees who’ve worked for your organization for at least two years.

While this might differ based on the particular employment contract, MOM states it is common to offer between two weeks and one month of salary per year of service. While employees who have worked fewer than two years aren’t entitled to a retrenchment benefit, MOM suggests, “an ex-gratia payment out of goodwill.”

Communication and conflict resolution

Effective communication is key for managing Singapore employment relations and resolving conflicts in your workplace. You should establish and promote open channels of communication to address the concerns of your team as promptly as possible before things escalate.

Additionally, your organization can offer training programs on effective communication, conflict management, and emotional intelligence to better equip its employees and managers with the necessary skills to navigate challenging situations.

HR Compliance and Reporting

Staying compliant is enormously important for businesses seeking success in Singapore. This is made far easier with well-kept records, and diligent data management. Here are a few points to consider:

Recordkeeping and reporting

Your HR department will need to maintain a comprehensive log of employee records, including personal information, employment contracts, payroll records, time off records, and performance evaluations. Accurate recordkeeping maintains compliance with requirements (and streamlines processes in the event of an audit) as well as enabling your organization to track employee information effectively. You should lean on available technology to establish robust recordkeeping systems, helping to ensure data accuracy, accessibility, and security.

Data privacy

Compliance with the Personal Data Protection Act (PDPA) is essential for protecting the data rights of your employees—and staying within the law. You’ll need to obtain consent before collecting, using, or disclosing personal data and meet the PDPA requirements for data retention, access, and security measures.

Implementing data protection policies, conducting regular privacy impact assessments, and offering your employees training on data privacy best practices will lower the risk of non-compliance all while protecting sensitive information.

Tax and payroll compliance

Like elsewhere, tax and payroll compliance are of the utmost importance for Singapore employment. This includes deducting and remitting employee contributions to the CPF, calculating and withholding income tax, and submitting accurate payroll reports to the Inland Revenue Authority of Singapore (IRAS). You will need to stay informed about changes to tax laws, payroll regulations, and CPF contribution rates to make sure your organization keeps compliant and avoids any penalties.

Read next: Payroll Singapore Reference Guide: Everything You Need to Know

Navigating Singapore’s Employment Lifecycle Management

It is crucial for HR leaders to stay well-informed about Singapore employment laws and regulations. This knowledge is essential for ensuring compliance and fostering a positive work environment for employees.

Looking for additional resources to improve your HR practices and employee experience? Leveraging technology such as AI tools for HR can decrease administrative tasks, improve the accuracy and security of essential HR functions such as payroll and employee records management, and streamline your employee’s access to the benefits that keep them engaged.

Omni’s automated payroll processing brings a new level of ease to the payroll process. With secure and centralized employee records, HR teams can swiftly access employment contracts and essential documents that support payroll practices. Our time and attendance features empower teams to automate data and produce accurate reports in minutes. And with payroll solutions that support SGD and Singapore pay schedules, Omni offers an entire suite of solutions to make your payroll system seamless.

If you’d like to learn more about how Omni’s all-in-one HR software automates the entire end-to-end employee lifecycle, saving People leaders from administrative tasks and increasing organizational innovation,

book a demo with our team today!

The concept of goal-setting isn’t new to the workplace. Organizations across different industries and sizes commonly employ goal-setting as a means to achieve a variety of objectives.

Research shows that when a formidable goal strategy is in place performance and productivity spike to new levels.

However, the more ambitious and far-reaching the goals, the greater the challenges in achieving them. At the beginning of the year, businesses embark on annual strategic planning sessions with the aim of accomplishing visionary and transformative goals.

Poor implementation remains the major reason why companies fail to hit their targets. Quarterly goal setting presents a more effective and streamlined process that helps businesses move from strategy design to implementation.

In this article, we discuss what quarterly goals are, examples, and the necessary steps to creating them for your organization.

What are Quarterly Goals?

Quarterly goals are objectives typically set within a timeframe of three months. These goals break down larger strategic initiatives into manageable and measurable targets that can be achieved within a short period.

In every business year, quarterly goals are set for 90 days or 12 weeks, depending on how you see it.

This includes:

Q1: (January to March)

Q2: (April to June)

Q3: (July to September)

Q4: (October to December)

The Importance and Benefits of Implementing Quarterly Goals

Breaking down long-term vision

Employees tend to lose sight of long-term objectives over time. Breaking them down into smaller goals makes them more achievable and realistic.

Enhancing focus and clarity

Objectives achieved within a short time frame provide clear direction, and empower teams and departments to laser-focus on specific tasks and responsibilities with a clear understanding of their contribution to the larger vision.

Boosting motivation and engagement

Smaller milestones and frequent check-ins provide a sense of accomplishment and maintain momentum. This momentum keeps employees engaged and excited about their work.

Facilitating improved performance

At the end of each quarter, individuals and teams can assess the progress they’ve made, receive feedback and make adjustments as needed. This fosters a culture of continuous improvement and innovation.

Learn more: The 7 C’s of Team Effectiveness (With Models to Drive Results)

Promoting agility and adaptability

Long-term goals are rigid and allow little to no flexibility but within a short time frame, organizations can adapt to changing market conditions and respond efficiently.

Strengthening communication and collaboration

Many quarterly goals require input and collaboration from different teams and departments. This naturally fosters increased interaction, knowledge sharing, and collective problem-solving, which is particularly crucial for enhancing communication in remote work settings. Teams learn to utilize each other’s strengths and expertise, fostering a more collaborative work environment.

Building a culture of accountability

Clearly defined short-term goals foster a company culture of responsibility and discipline within teams, ensuring everyone is aligned and working towards achieving specific, desired outcomes.

Examples of Quarterly Goals

Here’s what quarterly goal-setting would look like across these departments:

Marketing teams

Objective: Generate 15 leads through inbound marketing efforts

January: Develop and launch targeted social media ad campaigns.

February: Optimize website for lead generation.

March: Analyze marketing campaign performance and make adjustments.

HR teams

Objective: Reduce employee turnover rate by 15%

January: Conduct employee satisfaction surveys.

February: Implement mentorship or coaching programs.

March: Monitor employee engagement and address concerns.

By focusing on one key task per month, each department can make steady progress toward achieving their goals.

The Relationship Between Quarterly Goals and OKR

Objectives and Key Results (OKR) are a proven methodology used by leading companies to track and manage goals.

They help teams and individuals clearly define what they want to achieve (objective) and how they will measure progress (key results) within a specific time frame, such as a quarter. This clarity ensures that everyone is aligned on the goals and working towards the same outcome.

For example, If a company’s quarterly goal is to build their marketing channels to help grow their brand, this could be translated into an OKR as follows:

Objective: Make the company’s YouTube channel go viral within the first quarter.

Key Result 1: Generate 100,000 views on our YouTube channel

Key Result 2: Gain 10,000 new subscribers

Key Results 3: Get YouTube average click-through rate of over 5%

Here’s how you can break down your goals into objectives and key results:

Choose 3-5 objectives. These are ambitious and inspiring goals — your team should be stretched and pushed beyond their comfort zones. To achieve alignment on every level, individuals and teams should have a good understanding of what the company is trying to accomplish, sit down with your team, and brainstorm key things you want to achieve over three months.
Identify key results that align with the objectives. This should fall between 2-3 metrics. You should be able to measure your key results, so use numbers.
Regularly review progress toward the key results and make adjustments as needed to stay on track. To help implement and manage OKRs effectively, there are goal-setting tools and performance management software available.

Why Your Organization Should Set Quarterly Goals

Competitive advantage: Quarterly goals allow organizations to stay ahead of competitors by implementing timely initiatives and capitalizing on emerging opportunities.

Customer Focus: With the aid of quarterly goals setting, organizations stay focused on meeting customer needs and expectations by setting specific targets for product development, service delivery, and customer satisfaction. A software company aiming to enhance user experience would use this goal-setting method to release new features based on customer feedback every three months, ensuring that product development remains customer-centric.

Employee development: Opportunities for skill development and growth arise when quarterly goals are in place. Employees can work toward achieving challenging objectives within defined time frames.

Financial planning: Quarterly goals assist in financial planning and budgeting by breaking down revenue targets, cost-saving measures, and investment priorities into manageable chunks.

Strategic Alignment: Quarterly goals ensure that day-to-day activities are aligned with the organization’s long-term strategic vision and objectives.

Steps on Creating Your Quarterly Goals

1. Determine your objectives

You have to begin by defining your overall goals and objectives. What are the main things the company wants to achieve in the coming year?

Here are some common examples:

Launch a new product into the market
Increased revenue
Improved customer satisfaction

Remember to start small, most of the objectives outlined are important but not all are crucial. Analyze critically and set up a system or a screening process to simplify and prioritize your business objectives.

2. Set SMART goals

Ensure your objectives follow the SMART framework. This framework guides your goals and makes sure they are reachable.

Specific: Avoid setting vague and generic goals, clearly define what the department wants to achieve.

Measurable: Without the right metrics, it is difficult to assess whether you’re on track to reach your goal. Measurable goals must have numbers assigned to them against which you can measure progress.

Achievable: The target you set for each quarter must be realistic, considering your resources, capabilities, and market conditions. While ambitious goals might seem challenging at the start, they can become out of reach when they are not well-defined.

Relevant: One way to know if a goal is relevant is to assess its alignment with the organization’s overall objectives, mission, and strategic priorities. This means evaluating whether the goal contributes directly to advancing the organization’s broader purpose and long-term vision.

Time-bound: Define a clear timeframe for achieving the goals. Always include a start and finish date for the goals to be reached. The absence of time constraints can create a sense of complacency, making it easier to procrastinate and ultimately diminishing the likelihood of achieving the goal.

An example of a SMART goal for an organization would be, “Increasing gross profit by $50,000 in the next 12 months by gaining at least 10 new customers.”

3. Cascade goals across departments

In a business setting, the senior leaders or top management (C-level executives) set the goals for the year. From there, it is shared with departments, managers further break down the goals to employees. Make sure to get buy-in not only from leaders and stakeholders but also from employees. Involving everyone in this process increases commitment and provides alignment.

4. Develop action plans

Now that you’ve identified your objectives for each quarter, the next step should determine how you can get there. For each departmental goal, identify specific tasks, milestones, and deadlines needed for achievement. Use project management tools to track progress, manage tasks and facilitate collaboration.

5. Monitor and adapt

Have regular team meetings to monitor progress. Establish Key Performance Indicators (KPIs) to measure progress toward each goal and action step. Make sure to celebrate success and acknowledge challenges along the way. Adjust when necessary and restrategize for the next quarter.

Elevate Your Performance Through Quarterly Goal Setting

Setting quarterly goals serve as a powerful framework for obtaining organizational objectives, offering a structured approach to measuring progress and achieving goals.

In today’s dynamic work environment, the Human Resource Information System (HRIS) has become indispensable in effectively managing and aligning these goals.

Omni’s all-in-one employee management software empowers managers and People leaders to leverage automation, digitizing the people management process. Set and track quarterly employee goals, performance review cycles, and gain real-time, actionable insights on employee performance in one, easy-to-use platform.

Read next: Your Guide To Successfully Pitching HR Software To Leadership

Book a demo with our team today to learn more about how Omni can help you transform your business and help your teams achieve their quarterly goals.

As an HR professional, it is important to ensure your payroll process is not only about disbursing salaries but also about fulfilling tax obligations, especially concerning income tax Indonesia.

Staying compliant with tax laws is crucial to avoid legal issues. However, keeping updated with regulations governing income tax Indonesia can be quite challenging.

Recently, the Indonesian government revised the method for calculating employee income tax. These aim to simplify the tax calculation process for individual taxpayers, including your employees.

It is essential to stay informed to ensure that your organization and employees comply with the new income tax Indonesia regulations.

Here’s what you need to know about the new regulation and how to help your employees prepare for income tax Indonesia.

Income Tax Indonesia Rates 2024

The new regulation stipulates that going forward, withholding tax calculation for the months of January to November will be calculated using an Effective Tax Rate (ETR) and annual calculation performed in December will still be calculated using Progressive Income Tax Rate.

The ETR is the average percentage of an employee’s income paid as taxes, applied to their gross income without considering deductions like pension contributions or non-taxable income.

Conversely, the progressive income tax rate for annual calculations means that taxes increase as taxable income increases.

To calculate the final tax underpayment, subtract the tax withheld from January to November from the December calculation.

Classifications Of Effective Tax Rates

Effective Tax Rate on personal income is calculated based on the individual’s gross monthly income or, if they don’t receive a monthly compensation, their daily income.

The two classifications are explained below.

Monthly ETR
Daily ETR

Monthly ETR

This is applied to all income an employee receives on a monthly basis. Depending on the range of monthly income received and the employee’s marital status, there are three categories in this classification:

Category A for individuals with marital status of:
- Single with no dependent (S/0);
- Single with one dependent (S/1);
- Married with no dependent (M/0).
Category B for individuals with a marital status of:
- Single with two dependents (S/2);
- Single with three dependents (S/3);
- Married with one dependents (M/1);
- Married with two dependents (M/2).
Category C for individuals with a marital status of:
- Married with three dependents (M/3).

These monthly taxes are due for payment and lodgement on the 15th and 20th of the following month, respectively.

Annual tax returns (SPT) on the other hand must be lodged by 31st of March the following year.

View Full Breakdown for Monthly Effective Tax Rate

Daily ETR

A daily ETR is applied on income received by a non-permanent employee on a daily/weekly/unit basis.

And if this employee’s income is not paid on a daily basis, the daily ETR will be applied based on the number of working days.

The applicable daily ETR and their income range are shown below:

0% for daily income up to IDR 450,000;
▪ 0.5% for daily income above IDR 450,000 up to IDR 2,500,000.

Note that the new government regulation does not apply daily ETR for income above IDR 2,500,000.

It is clear that these new rates will alter the take-home pay of your employees. It is important that this is communicated to them to ensure transparency and smooth implementation.

Learn more: The 5 Best HR Software Indonesia Has to Offer in 2024

Who Needs to Pay Income Tax Indonesia?

Generally, there are two categories of individuals who pay income tax Indonesia:

Domestic tax subject
Foreign tax subject

Several requirements govern which category an individual falls into and how they are required to report their Indonesia income tax.

Domestic Tax Subject

For an individual to be regarded as a domestic tax subject for income tax Indonesia, that person must meet the following criteria:

The person must be residing in Indonesia, or
The person must have lived in Indonesia for more than 183 days within a 12-month period; or
The person must stay in Indonesia during the tax year and have plans to stay in Indonesia.

If an employee passes this criteria, they are taxed on their worldwide income regardless of where that income comes from or which service is performed.

There are instances where an individual might be exempted from worldwide income taxation.

An Indonesian citizen who resides outside Indonesia for more than 183 days will be treated as a non-resident taxpayer provided several conditions, like tax treaties, are met.
A foreign employee can also be exempted from worldwide income tax if they qualify based on the nature of their work or industry. The exception period will last 4 years, starting from when the employee first arrived in Indonesia.

Income tax Indonesia regulations also have requirements for couples.

Spouses can choose to file their taxes jointly or separately. But if the couples have separate Tax Identification Number, they are required by law to calculate their tax payable based on the combined family gross income, and then report the payable in each return based on their prorated income.

Foreign Tax Subject (Expatriate)

For an individual to be regarded as a foreign tax subject for income tax Indonesia, that person must meet the following criteria:

The individual doesn’t reside in Indonesia or has not resided in Indonesia for more than 183 days within a 12-month period. But they run a business or carry out activities through a permanent establishment in Indonesia; or
The individual don’t reside in Indonesia or have not resided in Indonesia for more than 183 days within a 12-month period but earn an income from Indonesia from means other than not from running a business.

Who is Considered a Tax Resident in Indonesia?

Tax residency refers to an employee’s legal status within a country. It is important that your organization is aware of the tax residency status of employees, especially if you have remote or expatriate workers, as it determines the extent of their tax obligations in Indonesia.

These are the requirements for being a tax resident in Indonesia:

You are domiciled in Indonesia; or
You’ve stayed in Indonesia for more than 183 days in any 12-month period; or
You’re present in Indonesia during a tax year and intend to reside in Indonesia.

If a foreign employee meets any of those requirements, that employee becomes a tax resident from the date they arrive in Indonesia till the date of their final departure from the country.

However, if the employee is already an Indonesian national, that employee is considered a tax resident from birth unless they leave the country permanently.

There are exceptions to this. There are cases where an employee might need to leave the country temporarily, for example, for a work assignment. In this case, that employee can be considered as a non-resident during the assignment and will only be taxed on their Indonesian-sourced income.

Every tax resident is required to comply with the following procedures:

Registration
Payment of monthly tax installments
Lodgement of annual individual tax return (SPT)
Deregistration upon leaving Indonesia permanently

Do Non-Residents Have to Pay Tax?

Yes, non-residents have to pay income tax Indonesia. However, there are some nuances that need to be taken into consideration.

Non-residents are taxed on their Indonesian-sourced income only, at a final flat rate of 20%.
Non-residents do not have an obligation to register for a tax ID number or file income tax return.
The obligation to withhold, remit, and report taxes on employment compensation rests with the local employer.
The income tax withheld by employers must be remitted on a monthly basis. It must be remitted by the 10th of the following month and reported by the 20th of the following month.

What to Prepare Before Submitting Income Tax Indonesia

Register as taxpayer and obtain Tax Identification Number (NPWP)

If you meet the requirements of a taxpayer in Indonesia, you need to register for a tax identification number (NPWP). You can either do this offline at a tax office or online at the website of the Directorate General of Taxes.

Gather relevant documents and information

Taxpayers in Indonesia are also obligated to file annual individual tax returns. Assist your employees in getting the following forms: Form 1770 S 1, SPT 1770, or 1770 SS. The forms to be used depend on the source and size of income that the individual receives.

When it is time to remit taxes, taxpayers are encouraged to e-file their SPT. This can be done anywhere and anytime as long as you’re connected to the internet.

You only need to include proof of deduction that has been provided by the employer as the main capital for submitting the annual tax returns (SPT).

Then fill in other information columns such as ownership of assets and debts.

Other documents every taxpayer need before they can submit income tax Indonesia include:

Proof of any additional income sources (e.g., rental income, freelance work)
Proof of tax-deductible expenses (e.g., medical bills, education expenses, dependent allowances)
Bank statements
Investment statements
NPWP card

You also need to have information on your total annual income from all sources, details of any tax-deductible expenses, and number of dependents.

Expatriates also need to get a tax identification number so they can file their tax returns. The documents required for their registration include:

Copy of passport;
Copy of work permit (Notifikasi);
A copy of limited stay permit;
Completed electronic registration form;
And some tax offices require a copy of the sponsoring company’s NPWP.

Navigate Income Tax Indonesia with Omni

Managing income tax Indonesia is a complex and detail-oriented task that demands a deep understanding of the region’s unique legal requirements and a commitment to accuracy and compliance. That’s why it’s important to have the right technology on your side.

Omni offers a comprehensive payroll solution tailored to Indonesian specific requirements. With features like support for Indonesian rupiah and automated tax calculations, Omni can help HR teams simplify their payroll processing and ensure compliance with ease.

Omni’s suite of features makes the requirements for running a compliant and efficient payroll system and taxes in Indonesia easy. With secure and centralized employee records, HR teams can swiftly access employment contracts and essential documents that support payroll practices.

Our time off and attendance features empower teams to automate data and produce accurate reports in minutes, making payroll calculations seamless and accurate. And with payroll solutions that support Indonesian rupiah and pay schedules, Omni offers an entire suite of solutions to make your income tax Indonesia seamless.

Start your free trial today!

If you’re ready to take your income tax Indonesia management to the next level, book a demo with us today. We’ll walk you through the platform’s capabilities and demonstrate how Omni can transform your payroll processing, saving you time, reducing administrative burdens, and enhancing overall efficiency.

Retaining your top talent is crucial, but there are times when employees need to move on. Whether they choose to leave or their departure is initiated by the employer, the notice period holds significant importance.

During this time, various factors come into play, such as the impression your departing employee will leave behind. Negative feedback from former employees can severely impact your company’s reputation, with studies showing that 50% of potential candidates won’t apply to a company with a bad reputation.

On the flip side, retaining these employees to avoid negative word-of-mouth isn’t advisable either. A Forbes study revealed that disengaged employees have a 15% lower profitability for a company, which equates to 34% of a disengaged employee’s salary.

If we consider the average salary of $47,000, your company could be losing nearly $16,000 per disengaged employee per year. This shows the importance of considering letting disengaged employees leave, either voluntarily or through termination. In this article, we will guide you on handling their departure with the right ways and measures of implementing the notice period.

What is a Notice Period?

A notice period is a predetermined amount of time that an employee needs to serve before leaving an organization. It’s mandatory for the employee to serve this period whether the employer decides to file for termination or the employee resigns. The process ensures a smooth transition of responsibilities without any hassle as the employer gets enough time to find a replacement while the employee searches for another job and prepares for his departure.

Types of Notice Periods

Some notice periods are clearly specified by the government, while others differ based on the employment contracts. Let’s have a close look at each one of them:

Statutory minimum notice periods

The local labor laws or government regulations set the statutory minimum notice periods. It states the number of days employees are supposed to work after resigning or being fired legally. It typically depends on the weeks, months, or years the employee has spent with the organization. The higher the number, the more the duration of the notice period.

Therefore, the length of the service and reason for termination are two factors that influence the length of statutory minimum notice periods.

Contractual notice periods

These notice periods are highlighted in the employment contract and agreed upon at the time of hiring. The duration is set based on the common understanding between the employer and the employee. It can be higher than the statutory minimum notice periods but cannot be lower in most cases. At the time of termination or resignation, the agreed-upon terms stay solid and must be complied with by both parties as they are legally binding.

Probationary periods

A probationary period is the trial period at the beginning of employment. This period helps the employer and employee understand whether the job fits well. Many organizations typically have a probation period of three to six months. However, the time can vary depending on company policies and industry standards.

During this period, the employee’s performance is evaluated against predefined standards, while the employee gauges their long-term alignment with the company.

At the end of the probation period, the employer might confirm the employee’s permanent position. Similarly, if the employee sees the organization fit, he accepts the offer. If not, he might negotiate or decide to leave the organization. However, the employer has the right to terminate the employment during probation with a 1-2 weeks notice.

Termination with cause

When you are associated with an organization, there are certain things in the company policy you do not cross or violate. If you do, the employer can issue your termination without any further notice. Some common instances where this happens include theft, harassment, insubordination, repeated violations of company policies, or failure to meet deadlines and other job responsibilities.

If the employee has received a fair share of warnings, the employer can issue a termination with cause. However, for it to pass through, the issue should be well-documented to withstand any legal battle. If there is no clear clause for termination, the employer must provide a notice period.

Garden leave

Garden leave is when employees must serve their notice period away from the workplace. They are formally employed but do not contact clients, customers, or colleagues during this period.

Employers typically put employees on garden leave when they are trying to protect the company’s interests and sensitive information or maintain stability during transitions. These leaves are generally issued to abide by the contractual laws and agreements.

How Long is a Notice Period?

The length of a notice period varies based on different factors, such as employment contracts, company policies, and labor laws in the relevant jurisdiction. Depending on the employee’s position within a company, it can range anywhere from one day to a couple of months.

Higher-level employees generally serve more extended notice periods as they need time to successfully transfer knowledge and responsibilities. In most cases, the duration of the notice period is clearly stated in the employment contract. If not, the employment act of the region stands firm, and both employer and employee shall fulfill the legal requirements of the notice period.

For instance, in Singapore, if there’s no pre-agreed notice period, the duration depends on the length of service as stated by the Ministry of Manpower (MOM):

For less than 26 weeks of service: 1 day notice period
For 26 weeks to less than two years: 1 week’s notice
For two years to less than five years: 2 weeks’ notice
For five years or more: 4 week’s notice

Employers have the freedom to set more extended notice periods than the ones mentioned above. However, they cannot go for shorter notice periods than the mandated period set by the MOM.

Factors in Determining a Notice Period

The duration of a notice period is dependent on a number of factors such as legal requirements, seniority, company policies, and more. Let’s take a look at all such factors:

Legal requirements

In many jurisdictions, there are legal requirements specifying the minimum notice period that employers must provide during termination. These legal requirements vary based on labor laws and categories of employees.

Employment contracts

Employment contracts set the overall terms and conditions for the period of employment as well as post-termination or resignation. Many contracts clearly specify the duration of notice required by either party to terminate the employment relationship. This duration can vary based on the employee’s role, seniority, and length of service. It also clearly states the consequences of failure to provide notice, such as penalties, forfeiture of benefits, etc.

Any sort of negotiation regarding the notice period generally happens during the formation of the employment contract. Employers may offer longer notice periods as a benefit or incentive, while employees may demand a shorter one for flexibility. But the clarity on the process, obligations, and duration in the employment contracts ensure there are no disputes in the future.

Employee role and seniority

Employee role and seniority play a crucial role in determining the notice period as the duration of the notice period increases with the levels in the organization. The higher the level, the more critical the job role is and the longer they are supposed to serve the notice period. Due to this, proper negotiation is crucial before coming to a mutually agreed decision.

Employees with higher levels of seniority often have critical job roles that require longer periods for transition. They cannot simply leave as a lot of high-level decisions lie in their hands which require effective delegation of responsibilities. It is also a way of acknowledging their long-term commitments and contributions to the organization. Therefore, the impact of the job role on the organization is a major factor in the duration of the notice period.

It’s worth mentioning that the current retirement age in Singapore is 63. Employers can choose to terminate employees who are approaching this age. However, according to the Retirement and Re-employment Act, employers must offer re-employment to eligible employees from age 63 up to 68.

Industry standards

Employers often look to industry competitors and peers to determine the ideal duration of the notice period. It becomes easier to set the duration when benchmarking against similar organizations within the industry. For example, let’s say there is a standard of one to three months notice period for technical roles based on seniority and tenure. You can consider this and use it in your negotiations. Similarly, industries with lengthy training requirements may have longer notice periods to account for the time needed to train replacement employees.

Company policies and practices

Company policies exist to ensure consistency and fairness in the treatment of employees. When determining notice periods, companies may set policies that apply uniformly across all employees to ensure equity in the termination process. Such policies are often set with specific business objectives in mind, such as minimizing disruptions and ensuring smooth transitions during employee turnover.

Let’s look at some things that could be stated in company policies regarding notice period:

“All employees are required to provide a minimum notice period of 4 weeks before resigning from their position.”
“The company reserves the right to place employees on garden leave with immediate effect in case of breach of company policies or code of conduct.”
“Employees may request a waiver of the notice period under exceptional circumstances, such as acceptance of an offer for immediate employment elsewhere.”
“The company reserves the right to request a longer notice period from employees in certain circumstances.”

Many more such clauses are put in the employment contract to give employees clarity on every situation that might fall through. With such clarity, you avoid unnecessary disputes at the time of resignation or termination.

Employee performance

Many organizations go for performance-based notice periods where employees with consistently high performance levels are entitled to shorter notice periods. Based on their performance reviews, employers identify the ones with consistently good performance. Similarly, those with lower performance levels must work for more extended periods.

It’s crucial to recognize and appreciate employees who show great dedication and commitment to the organization. You can also give bonuses as incentives to employees with high-performance levels, as it leads to enhanced employee retention.

Business needs

Your business needs play a crucial role in determining the notice period. More extended notice periods are required during periods of high workload as organizations require sufficient time for knowledge transfer and replacement recruitment. Project deadlines are another focus area, as you should set the notice periods such that current projects do not suffer from unnecessary delays.

There are many external factors such as changes in market dynamics, trends, and technological advancements. Notice periods are set to keep up with all these changing requirements.

Employee turnover rate

Industries with high turnover rates generally go with shorter notice periods as they require agility in fulfilling vacant positions. Shorter notice periods are also appealing to employees. Due to this, employers often offer these periods to attract and retain top talent.

Cost remains another factor for shorter notice periods as high turnover rates incur significant costs associated with recruitment, training, and onboarding of new employees. Shorter notice periods help mitigate these costs by minimizing losses caused by prolonged vacancies.

If your employee turnover rate is consistently increasing, it’s time you put managers into action to improve your employee work review, quarterly or annual. It’ll help you understand the areas of improvement better to ensure enhanced productivity and retention.

Understanding the Relevance of Notice Periods in HR

Notice periods are highly relevant for both employers and employees for the following reasons:

Smooth transition: the notice period ensures a smooth transition in both situations, whether the employee resigns or is terminated. It gives the required time to find a replacement, complete pending projects, and transfer responsibilities.
Continuity of operations: notice periods give employers adequate time to fill vacant positions. This leads to minimal disruption of workflow and sudden gaps in productivity while ensuring enhanced employee engagement.
Legal compliance: notice periods often have legal implications and are governed by employment laws and regulations. Adhering to these requirements helps employers stay compliant with labor laws.
Employee protection: just like adhering to notice periods protects employers from the law, it protects employees from unemployment. It gives them enough time to search jobs, arrange finances, and negotiate terms of departure.
Employer-employee relations: handling notice periods keeping in mind the needs of both parties helps build strong employer-employee relations. It preserves the company’s reputation and shows current employees how much the organization respects its people. Giving constructive feedback should also be prioritized to ensure no employee leaves with hard feelings.

Proactive Measures in Implementing Notice Periods

While implementing notice periods, employers must focus on all areas that lead to a content departure of employees. Whether it’s providing incentives, helping in smooth transition, or effective communication, employees should leave the organization in a manner that ensures positive word-of-mouth. Here are some proactive measures you can take for the same:

Clear communication

No one wants unnecessary disputes in the organization during notice periods. To ensure that both parties have clarity on how the process will follow, give clarity during the onboarding process. Communicate the details about the notice period, including the duration, conditions triggering its initiation, and any specific procedures to follow when giving notice.

Moreover, give clarity on the repercussions of not complying to the necessary requirements. With such clarity, employees can make informed decisions about their departure timeline, while employers can redistribute work and find suitable replacements. It also gives employees the time to ask any questions regarding the notice period policies or procedures.

Exit interviews

Exit interviews are crucial to gathering feedback from departing employees. It’s becoming increasingly important to understand why employees leave an organization, as research suggests that nearly 38% of employees quit within the first year of employment.

With exit interviews, you give them a chance to share their experiences, insights, and reasons for leaving the organization. It’s an excellent way of identifying the areas of improvement in your organization. Mainly because people are more honest with exit interviews, and you get a clear picture of what’s not working.

You can then use the information shared during these interviews to improve the employee retention rate and overall company culture. But to make that happen, you need to ask the right exit interview questions. Here are some ideas:

Reason for leaving: What factors influenced your decision to leave the company?
Job satisfaction: Did you feel adequately supported by your manager and colleagues?
Work environment and culture: Were there any aspects of the company culture you feel could be improved?
Growth opportunities: Were you provided adequate support and training to grow in your role?

Leadership: How would you rate the effectiveness of your immediate supervisor or manager?
Suggestions for improvement: What would it be if you could change one thing about the organization?

While asking the right questions is essential, ensure you create an environment where employees feel comfortable sharing their feedback openly and honestly.

Learn more: How to Make the Offboarding Process a Positive Experience

Effective transition planning

When an employee leaves an organization, a lot of responsibilities require reassignment. This is crucial to ensure essential tasks and projects continue without interruption during the notice period and beyond. Start by identifying responsibilities and the burden of work to assign interim or permanent replacements. As you transfer the responsibilities of one individual to the other, ensure you give proper training.

Along with that, ensure the successful transfer of knowledge and expertise from departing employees to their team members or successors. This involves documenting procedures, sharing core insights, and providing training. When there’s a transition involved, you also need to communicate with stakeholders, clients, and external partners about the upcoming transition. Once you successfully conduct the whole process, do a post-transition review to identify and work on areas of improvement.

Provide incentives

Employees tend to get relaxed when they are serving the notice period. This might become a hassle for managers who still need to finish work. That’s where incentives are essential for facilitating a smoother transition and motivating employees to fulfill their remaining obligations.

Looking closely into the needs and preferences of the employees is crucial when designing incentive programs for the notice period. Let’s now get into the details of some common incentives you can offer:

Bonus or additional compensation for employees who fulfil their notice period obligations satisfactorily.
Retention bonus for employees who agree to stay for an extended notice period.
Continued access to benefits such as healthcare coverage and gym memberships during the notice period.
Flexible work arrangements for departing employees, such as remote work options during the notice period for better balance.
Additional paid time off or vacations to facilitate a smoother transition and give them time to attend to personal matters.

Personalized thank-you gifts as a token of appreciation for their service.
Access to outplacement services such as resume writing assistance, job search support, and networking opportunities to help departing employees find jobs easily.

While it might seem counterintuitive to provide so many incentives to someone leaving the organization, it shows current and future employees that your organization values its people. It increases their loyalty and enhances your organization’s reputation.

Leverage performance reviews

Performance reviews can help employers set notice period expectations and smooth the transition process. It also gives employees a chance to voice their issues in fulfilling the remaining obligations as both parties have clarity on what needs to be done.

Such collaborations don’t leave room for potential obstacles during the notice period. Moreover, it also allows employees to connect individual performance goals with transition goals. When goals are linked together, performance and motivation to succeed eventually excel.

Learn more: 3 HR Leaders Share Performance Review Tips For More Impactful Review Cycles

Employee engagement

Make your employees feel valued and engaged, and witness the rise in productivity. The same goes during the notice period when you involve employees in discussions related to notice period policies and procedures. Seek their input on improving the transition process, addressing concerns, and ensuring a smooth handover of responsibilities.

The employees who successfully fulfill the notice period obligations should also receive recognition and appreciation. Acknowledge their contributions during exit interviews, team meetings, or send personalized notes. Keep an open communication channel where employees come to you with any concerns they have while you ensure progress is on track.

The Power of Streamlined Notice Period Management

Notice period is a critical phase that allows for a smooth transition when an employee leaves an organization. It provides time for both the employer and employee to prepare for the change and ensures a proper handover of responsibilities.

HRIS plays a key role in managing notice periods efficiently by automating processes, tracking timelines, and facilitating communication. Omni is your comprehensive solution that enables a seamless and efficient offboarding experience.

Omni’s all-in-one HR management software allows you to seamlessly update employee records, communicate to relevant stakeholders and departments, and facilitate the entire end-to-end offboarding process in one, easy to use system, putting an end to silos and miscommunication.

Omni brings teams together, fostering collaboration and transparency by enabling smooth communication across departments, ensuring everyone is on the same page throughout the offboarding journey.

With Omni, you can say goodbye to manual paperwork and administrative tasks with streamlined workflows and automated reminders to carry out every step of the offboarding process; from initiating offboarding requests to managing tasks, documents, and access revocation, and even starting the recruitment process to backfill open positions.

Ready to take your offboarding to the next level? Start your 14-day free trial today!

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