HR’s Out of Office Checklist

According to Sage’s report, 81% of HR professionals feel burnt out. This is no surprise as it is a lot of work managing the entire end-to-end employee lifecycle, but the upside is that HR professionals can relax and recharge through weekends, public holidays, and paid time-offs.

To ensure everything runs smoothly while you’re away, it’s essential to create an out of office checklist. While it sounds simple, it can often be tricky for HR teams to create a standardized checklist with rushed deadlines, impromptu meetings, and overdue tasks. 

Hence, we’ve created a comprehensive out of office checklist template to ensure a smooth transition from work mode to personal time off. 

Read next: Why Mental Health Days Are Essential for Your Employees

Your Out of Office Checklist Template

Whether it’s for a vacation or business trip, or you’re simply taking some time off for personal matters, you can still get things done in the office by following our out of office checklist template. Here’s everything to cover before heading out:

  1. Inform your team

This is the first item that should be on any out of office checklist. It’s crucial to tell your team members about your upcoming absence. This shows you respect them and gives them ample time to prepare for your absence. 

Inform them on the dates of your leave and when you intend to return. Also, update respective team members about added responsibilities, details regarding ongoing projects or responsibilities, and other necessary details to ensure your work is covered while you’re away. 

Set up an out of office message to ensure everyone is aware of your upcoming leave, and remind them again as the dates get closer.

  1. Wrap up any pending items or projects

Leaving behind unfinished projects can contribute to backlogs and create additional workload challenges for yourself upon your return. So, it’s good practice to conclude pending tasks before you go on your break. It helps ensure you complete any task that can disrupt workflow during your absence and when you return.

Furthermore, this fosters a positive work environment and increases efficiency as team members taking over your tasks are not overwhelmed since urgent items are already cleared. It also highlights your sense of responsibility over your work.

  1. Delegate ongoing projects and tasks to colleagues

Delegation is a good strategy to include in any out of office checklist. By delegating your tasks, it ensures projects and tasks are still completed on time despite your absence. 

Before taking your break, identify any important tasks and responsibilities that are urgent and need to be handled. Then, delegate them to capable team members and provide relevant information and details needed to carry them out. 

Omni Tip: Create a file or document with relevant information and links to ensure seamless delegations. It should state the tasks, timeline for delivery, and assigned employees. 

  1. Block out your leave days on your calendar

Update your calendar and block out your leave days to indicate your absence to relevant stakeholders. Doing this promotes transparency regarding your unavailability. For example, it saves your team members from scheduling meetings or appointments during your out of office days. Similarly, in the event where other stakeholders are unaware of your time off, they will be notified through your calendar settings. 

Blocking out your leave days also reduces disruptions and prevents conflicts that may arise if meetings or appointments are scheduled during your absence. Above all, it promotes work-life balance, giving you time to prioritize your well-being and enjoy your time-off to recharge and rejuvenate your mind.

  1. Set up an autoresponder

Before you leave for vacation, one item on your out of office checklist you shouldn’t miss is scheduling an automatic email responder either directly on your email system or with your company’s HR tools.

Your out of office checklist template should have a message indicating your absence dates and alternative contacts for urgent matters. This way, anyone contacting you via email will be aware of your absence and know what the next steps are. 

  1. Clean up your workspace

A clean and organized workspace speaks well of you as a HR professional and employee. It depicts professionalism and attention to detail. It also leaves a positive impression on colleagues and visitors who may enter your workspace during your absence.

But beyond that, cleaning up your workspace as part of your out of office checklist makes it easier for you to settle in when you return. It reduces stress and allows you to resume your duties more efficiently

In addition, cleaning up your workspace as part of the out of office checklist template ensures the team member covering for you can easily find all vital documents, files, and resources during your absence. 

  1. Set your ‘Away’ status and consider snoozing work email and notifications

This is another crucial item on your out of office checklist template. Setting an ‘Away’ status and snoozing work emails and notifications indicates to team members and stakeholders that you aren’t available and won’t be able to respond immediately. This way, it sets clear expectations and prevents any miscommunication. 

Furthermore, snoozing your notifications helps you concentrate on your break without interruptions. Ultimately, you set boundaries between work and personal time and disconnect from work-related matters. Hence, it gives you enough time to rest, relax, and tend to personal matters without getting overwhelmed with work.

Read next: HR’s Guide to Employee Leave Management

What to include in your out of office message?

out of office checklist template

As mentioned, it’s important to set an out of office message as part of your out of office checklist. This should be established in all your active communication channels, particularly email, voicemail and communication tools like Slack

The message should also be set as an autoresponder email for stakeholders or colleagues who aren’t aware of your time off. This is necessary to ensure everyone is informed about your leave and carries out their respective handover duties accordingly. 

Here are some important information that you should include in your out of office message as part of your out of office checklist:

Dates of your absence

Though this may seem obvious, most may miss out on including the dates of their absence when crafting their out of office message in a hurry.  

It is important to include the date that you will be away and when you will be returning within your out of office message. This helps to inform stakeholders and team members of the length of your absence and when they can expect to hear a response from you, helping them better plan their time.

Reason for absence (optional)

Another information to include in your message as part of your out of office checklist template is the reason for your absence. Although disclosing the reason for absence can help with clarity, it is completely optional. 

If you do choose to state the reason for your absence in your out of office message, you don’t have to go into details. Simply stating you’re on vacation or taking the time to tend to personal matters will suffice.

Availability for urgent matters

Your out of office checklist message should also state whether you’ll be available to tend to urgent matters. If yes, include your available hours in the message so recipients know when to contact you.. 

Include details such as whether you will be able to respond to emails in the mornings or evenings, or will be completely unavailable to answer calls or emails until your return. 

In the event where you are not able to respond to emails, it is best practice to include name and contact details for the alternate person in charge. This can be an assistant or team member who’ll be assisting during your absence. 

Professional ending

The final detail of your out of office checklist template is to conclude your message with a polite and professional closing. 

For example, “Best regards,” “Cheers,” “Warm regards,” or “Thank you,” followed by your name and position/title are one of the common sign offs. 

This shows courtesy and professionalism. It also shows you respect recipients’ time and attention. In addition, a professional ending boosts your credibility and authority as an employee in your organization who takes their role seriously.

Example of Out of Office Message

If you’re overwhelmed with your out of office checklist template, here’s an example that you can use to craft your out of office message:

Hi! Thank you for your email. I’m currently out of the office and won’t be back until [date]. During this time, I won’t be available to respond to emails or work calls. If you need immediate assistance for urgent matters, please contact [Name] at [email address] or [phone number]. They’ll be happy to help.

Warm regards,

[Your name]

[Position/Title]

Enjoy Worry-Free Time Off with Omni

out of office checklist

We get it, life happens and sometimes we need to take a break to reset and recharge for the long run. However, as you’re now aware, taking time off is more than just applying for it. It involves a series of events as we highlighted in our out of office checklist template above. 

With Omni’s time off management capabilities, managers can approve leave applications on the go, and keep track of who’s in and out of the office with at-a-glance scheduling. 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 time off balances in real-time without the intervention of HR. 

Our employee self-service portal allows employees to submit their employee time off request, which automatically routes to the appropriate manager thanks to customizable approval workflows. With automated calculations, employees and managers can easily view leave balances in real-time, and track how many vacation days they have left without having to go through HR.

Which Employee Onboarding Software is Right for Your Team?

The employee onboarding process can be an overwhelming experience, bombarding new hires, managers, and HR professionals with tons of information, paperwork, and meetings. However, using the right employee onboarding software can significantly streamline and simplify this transition, making it a more manageable and welcoming experience for all parties involved.

In this article, we’ll help you find the right HR onboarding software you can use and key things to note before choosing your software. Let’s get into it!

Additional resources: 8 Key Onboarding Documents for Your New Hire Journey

What is employee onboarding software?

Before talking about what onboarding software is, let’s recap what employee onboarding is all about. Employee onboarding integrates new hires into an organization, providing tools, resources, and knowledge for their success in the new role.

That said, employee onboarding software helps simplify and automate the new hire process, ensuring a seamless integration into the organization. 

With features like document management, checklists, automated emails, and progress tracking, HR onboarding software makes it easier for new employees to get started and understand what’s expected of them.

What are the benefits of using an employee onboarding software?

employee onboarding software

Integrating employee onboarding software into your HR workflow offers several key benefits: 

For employers

  • Improved efficiency: With the software, you can automate manual tasks, reduce paperwork, and save time with your onboarding process for new employees.
  • Reduced costs: You’re also able to minimize the expenses associated with manual onboarding, such as printing and shipping documents helping you save costs.
  • Make data-driven decisions: As an employer you can gain valuable insights into the onboarding process, to help you make data-driven decisions for more efficient HR strategies.

For new hires

  • Smoother transition: Most new employees are nervous during the transition, good onboarding software can help them enjoy a seamless and guided onboarding experience, reducing anxiety and uncertainty.
  • Improved engagement: Giving new hires a smooth onboarding helps them bond well with colleagues and integrate into the company culture. They feel connected and invested in the company from day one, leading to increased job satisfaction and retention.
  • Positive first impression: First impressions matter most, even for employees. Using a good hr onboarding software can help to set the tone for a positive employee experience for new hires. 

What are the key elements of employee onboarding software?

User experience

UX is one of the top things the best employee onboarding software should have. An intuitive HR onboarding software should provide a seamless experience that avoids unnecessary complexity that confuses users or difficult steps and navigation. Instead, it should offer a user-friendly interface that makes onboarding effortless and efficient.

Streamlined processes

The whole reason for using an employee onboarding software is to have a streamlined process. The best employee onboarding software should help out with automation and workflow optimization that enables you to eliminate tedious tasks, reduce administrative burdens, create a seamless experience for new hires, and free up valuable time to focus on other parts of work.

Integration and analytics

An onboarding software should be able to integrate with existing HR systems, such as HRIS, payroll, and performance management tools. These integrations make it easier to use, and combined with reports and analytics, the HR team can monitor relevant data related to the onboarding processes.

Customization and security

A good employee onboarding software should allow for customization to fit each organization’s specific needs. These can include branding and workflow automation to create a personalized and welcoming experience for new hires.

It’s also important that the software can protect sensitive employee data in compliance with data protection regulations, to minimize risk and ensure compliance.

What to consider when choosing your employee onboarding software?

Now that you understand the key elements of an employee onboarding software, it’s time to consider how to select the best employee onboarding software for your business. With a range of options to consider, it’s crucial to carefully consider different factors to find the best fit for your company’s unique needs.

1. Assess your company’s needs and budget

To start, it’s important to assess your company’s needs such as onboarding requirements, company workflows, remote or hybrid working models, and the locations of your global workforce.

The budget allocated should also be considered when choosing the best employee onboarding software, alongside additional costs that may occur for setup and training. 

With a complete company’s needs assessment, the decision process will be much easier when assessing which software is suitable for your needs, while remaining well within the company budget.

2. Determine the software functionalities that you require

Once the budget is all sorted, you should identify the features you want your software to have. It could be automated workflows, integration with other software like Slack, document management, and analytics. 

At this point, you’re considering the level of flexibility the hr onboarding software has to adapt to your internal needs. This is to ensure you don’t end up using software that doesn’t benefit your employee onboarding plan.

3. Is the onboarding software easy to use and provides customization?

Another factor you want to consider when choosing onboarding software is how easy it is to use for both the employee and employer. The best employee onboarding software should have an easy-to-use and seamless interface. 

Picking a user-friendly and intuitive tool that offers customization options to align with your brand and processes is a plus in this regard. 

4. Are there any reporting and analytics features?

Additionally, consider software with the ability to provide valuable insights such as time of completion, number or rates of completion, and new hire satisfaction in the onboarding process. 

HR onboarding software with reporting and analytics can help refine your employee onboarding strategy, identify gaps in the process, give room for improvement in employee management, and accurately measure your onboarding process.

5. Does the software adhere to data privacy regulations?

Collecting and storing employee data — such as salary, benefits, and contact details —  is a huge part of employee onboarding. 

Before choosing an employee onboarding software, you should verify that the software complies with relevant data protection regulations to ensure the security and privacy of sensitive employee data. Employee data management is important and the software you are choosing should prioritize this as well.

4 Employee Onboarding Software For Your Team

best employee onboarding software

Selecting the best employee onboarding software for your business can be challenging due to the numerous available options. To streamline your search, we have compiled and emphasized the essential features of the top tools you can use.

Here are some of the best employee onboarding software to consider:

Omni

Omni is a fully automated HRIS designed as a go-to tool to manage employee lifecycle — recruitment, onboarding, and employee management. Using this onboarding software gives you access to customizable automation to tailor the onboarding process to your needs, centralized data storage for easy access, and personalized onboarding experiences that cater to each new hire’s unique requirements. 

With Omni, you can create a memorable and engaging onboarding experience that sets the tone for a positive and productive employee journey. Our platform also effortlessly integrates with your existing HR tools, making it easy for both employees and HR teams to use. 

Pros, Cons, and Pricing

Omni is the employee onboarding software for you if you love easy features and a great user interface. At Omni, we believe in flexible and transparent pricing. Subscription plans start from USD $3/per employee/month of core platform and add-on applications based on your needs.

Enboarder

Enboarder is an onboarding software that empowers managers and new hires to create tailored experiences. With intuitive tools like drag-and-drop interfaces, task management, and automation, users can craft personalized journeys that foster connection and employee engagement

Pros, Cons, and Pricing

One of the enjoyable features of Enboarder is that it creates an engaging way to handle the onboarding process even though the customization options and settings can be tricky for some users to navigate. Enboarder offers a custom pricing system.

Coassemble

Coassemble is an software that helps organizations convert their content and ideas into engaging, bite-sized microlearning experiences that are both enjoyable and effective for new hires 

With Coassemble, you can create a wide range of interactive learning materials like step-by-step guides, process tutorials, checklists, video tutorials, and even AI-generated quizzes based on your content. Plus, you can monitor progress and engagement in real-time, ensuring that your learners are on track and fully engaged.

Pros, Cons, and Pricing

Coassemble allows you to build engaging onboarding training that new employees can interact with. But because it’s course-based it may lack some traditional employee onboarding features organizations require or prefer. 

They offer a free starter plan, enabling unlimited course creation, with the option to upgrade to the business plan for additional features like advanced course distribution, access control, insights, and a built-in image library. There’s also an enterprise plan for further customization and support.

Innform

Innform is a learning and management system for delivering fun onboarding experiences in the form of modules and journeys. It’s ideal for teams who aim to centralize their online training initiatives. With their available features, you can get new hires informed with useful information on your company, culture, and benefits.

Pros, Cons, and Pricing

With Innfrom, you can gamify your onboarding process with points, levels, and leaderboards, and this empowers new employees to take charge of their onboarding. Although there’s no option to customize user profiles or bios with this software. 

Innform offers a free trial, with four paid plans. You’ll only pay for active users, with the option to be billed monthly or annually based on your chosen plan. 

Unlocking Potential Through Streamlined Onboarding

Omni’s fully automated platform is the go-to solution for modern, growing businesses seeking reliable employee onboarding software. By automating manual onboarding tasks, Omni saves you time and effort, allowing you to focus on more strategic aspects of your business.

With Omni, you can easily collect and manage all the necessary employee documents in one secure location, eliminating the hassle of sifting through paperwork. But it doesn’t stop there — Omni goes the extra mile by enabling you to fully personalize the onboarding experience. With our customer care supported implementation process, you can tap into increased engagement levels for your new hires, setting the stage for their long-term success within your organization while receiving world-class support from our attentive support team.

If you’re ready to automate your onboarding process with the exceptional features of this HR onboarding software, book a demo with our team today and learn more! 

Employee Emergency Contact Form Template

Every year, organizations worldwide witness approximately 2.3 million workers experiencing workplace accidents or diseases. The International Labour Organization (ILO) report also highlights the dangers of safety negligence at workplaces. With such prevalent risks, employers are obligated to have health and safety protocols and documentation in place. One effective method to safeguard the well-being of employees is through the implementation of comprehensive emergency contact forms. When an employee is hurt on the job, supervisors can inform relatives or friends of the individual, ensuring they receive immediate assistance. 

This article explains the importance of having emergency contact forms in the workplace, and on top of that, we have provided a free emergency contact template to make collecting medical details and contact information easier for employees and HR leaders. 

What is an emergency contact form?

An emergency contact form is a vital document used by organizations to collect emergency contact information and medical history from their employees. This document is collected during the onboarding process and usually requires the employee to fill out a few key details, including their primary and secondary emergency contacts, along with any pertinent medical history or conditions.

It is also considered a workplace safety best practice, as the emergency contact form helps to protect both the employee and employer in case of an accident or medical emergency. 

For example, an employee at a construction site suddenly experiences an allergic reaction. With access to the individual’s emergency contact information, the company can immediately notify the designated contact, who can provide crucial medical details or rush to the scene with necessary medication. This swift action brings about the importance of maintaining updated emergency contact information to ensure prompt assistance and enhance workplace safety.

Additional resource: The Complete Employee Onboarding Checklist

Why is it important to have an emergency contact form?

Here are several reasons why you should make it a priority for your employees to fill out emergency contact forms. 

Faster communication during emergencies

Clear communication is vital during a workplace emergency. Having up-to-date employee contact information allows employers to reach loved ones and emergency services faster. This reduces confusion, gets help to employees quicker, and demonstrates the organization’s commitment to employee well-being. Effective communication can be the key to turning a crisis into a successful resolution.

Reduced stress

Knowing that there’s a plan in place for emergencies can alleviate stress for both employees and employers, providing reassurance that help can be summoned efficiently if needed.

Improved decision-making

Access to emergency contact information enables employers to make informed decisions during critical situations, such as determining whether to seek medical help or contacting family members.

What information should be included in the emergency contact form?

An employee emergency contact form should collect critical information that would be helpful in case of an emergency involving an employee. Here are the key elements to include:

  • Employee’s full name and identification: A basic yet essential starting point to ensure accurate identification.
  • Contact information of designated emergency contacts: Phone numbers, addresses, and any alternative means of communication.
  • Relationship to the employee: Knowing the relationship helps in understanding the dynamics and urgency of the situation.
  • Medical information or allergies: Critical details that could impact the type of assistance required.

Here is how an emergency contact form example can look like: 

Employee Information

Employee Name

Department

Emergency contact information

Primary Contact Name

Relationship to Employee (e.g., spouse,   parent, sibling)

Phone Number (work, cell, home)

Email Address (optional)

Secondary Contact Information (optional): Include the same details as above for another person to be contacted.

Medical Information (Optional)

Physician Name and Contact Information

Health Insurance Provider Name and Policy Number (optional)

Allergies to medications (optional)

Any other relevant medical information (with employee consent)–this could include pre-existing conditions or current medications.

Form Completion Details

Date

Employee Signature

To make it easier, we have created an emergency contact form template that you can customize to your organization’s needs. This allows your employees to conveniently fill out the form electronically anytime, anywhere.

When to reach out to an employee’s emergency contact?

emergency contact form

Knowing when to reach out to an employee’s emergency contact is vital for workplace safety. With emergencies possible at any time, it’s crucial for companies to maintain accurate contact information. However, the question arises: “When is the appropriate time to contact an employee’s emergency contact?”

Employers should contact an employee’s emergency contact in various scenarios, including:

Medical emergencies

When an employee falls sick, faints, or is in need of medical attention, having their contact information allows employers to quickly reach out for help and assistance. 

Employee is absent from work

In the event where an employee is absent from work without prior notice and cannot be contacted, employers can notify appropriate parties, such as emergency contacts, family members, and authorities. This can only be done when there is valid emergency contact information; otherwise, the employer may face challenges in promptly addressing the situation and providing the necessary support.

Work accident with unknown status

In the unfortunate event of a workplace accident resulting in physical injury to an employee, having accurate contact details enables the employer to promptly notify emergency services, initiate first aid procedures, and inform relevant parties such as supervisors, HR personnel, and family members, ensuring the injured individual receives the necessary support and medical attention.

Other important considerations

  • Severity of the situation: Always prioritize the employee’s well-being. If the situation seems life-threatening, call emergency services first. The emergency contact can be notified afterward.
  • Employee consent: Before contacting an employee’s emergency contact, make sure you have their consent. This ensures that their privacy and personal boundaries are respected. A good practice is to include a consent clause within the emergency contact form template to ensure compliance in the event where an employee is unconscious or unable to provide consent. 
  • Follow protocols: Your organization should have established protocols for emergency situations. Ensure you follow these guidelines when deciding to contact an emergency contact.
  • Use best judgment: Consider all the details of the situation and use your best judgment when deciding whether or not to reach out to an emergency contact. 

Best Practices for Managing Emergency Contact Forms

1. Communicate clearly the purpose of the emergency contact form

To prevent employees from being skeptical about the emergency contact form process, what HR leaders can do is to conduct training sessions. This training also goes for ensuring compliance with filling out the form and keeping information up-to-date.

During the session, they should explain the importance of the emergency contact form in ensuring the safety and well-being of employees. Additionally, HR leaders can emphasize the potential impact of having accurate emergency contact information on response times during critical situations. By providing clarity and addressing concerns through training, employees can be encouraged to actively participate in the process and maintain updated emergency contact information.

2. Assure employees that their information is confidential

When it comes to managing employee data such as emergency contact forms, it is important to provide employees with the assurance that their information is kept confidential. This is essential for building trust and maintaining a positive workplace culture. Ensure that only authorized personnel, like HR or designated managers, have access to these details. 

If sensitive contact information or medical records of an employee are disclosed or used inappropriately, it can cause significant distress and harm. They can become exposed to potential discrimination and stigmatization in the workplace. Employers can also face legal penalties and liabilities for this act alone. Therefore, it’s crucial to make every effort to minimize inappropriate use and disclosure of an employee’s private information.

3. Make the form easily accessible

In case of any changes, such as a new phone number or address, employees should be provided easy access to emergency contact forms. This helps them to promptly update and retrieve their contact information. 

By making these forms accessible, you’re preventing delays in reaching out to emergency contacts during critical situations. You’re also providing a smooth employee experience, ensuring that they can quickly and conveniently access the forms when needed, whether it’s through a self-service portal, designated physical locations, or mobile applications. Additionally, through a centralized and secure system, employees can easily locate and access their records anytime and anywhere. This contributes to a proactive approach to maintaining safety in the workplace. 

4. Encourage employees to update their emergency contact form

In the case of a workplace accident, afflicted employees cannot receive help if their contact information isn’t accurate and up-to-date. An employee’s information can change over time due to varying factors. For instance, if an employee changes their address or gets married and wishes to add their spouse as an emergency contact, it’s essential to update their emergency contact form accordingly. 

5. Conduct periodic reviews

Designated individuals should review and update the emergency contact list of employees on an annual basis, making updates and revisions as needed. This ensures that medical records and emergency contact forms are accurate, complete, and relevant. 

Efficiently Manage Your Employee Records with Omni

emergency contact form

All-in-one HR software like Omni is a powerful tool for unifying all of the disparate employee data such as emergency contact forms scattered across your company. As a single source of truth for employee data management, HRIS streamlines your HR processes and makes them more efficient, especially when accessing emergency contact forms during a crisis.

Powering Asia’s fastest-growing, modern companies, Omni’s employee database software scales alongside your company so you can customize and leverage the system to meet your evolving employee data management needs while ensuring compliance with regulations.

Omni’s intuitive and fully customizable platform integrates with your team’s favorite tools for a seamless and timely adoption. And at only $3/employee/month, you can leverage HR automation to decrease administrative costs.

Not ready for automation?

Book a demo with our team today to learn how Omni can help transform your businesses employee data management processes.

Navigating HR Compliance in Malaysia

Navigating compliance in Malaysia HR is vital as the business scene is always changing. With factors like technology and regulations evolving, HR leaders and employers must keep up to ensure both legal adherence and business success.This article aims to guide you through the essentials of HR Malaysia compliance. From understanding labor laws to staying updated on industry trends, we’ll cover everything you need to know to navigate HR compliance effectively. Whether you’re an experienced HR professional or a business owner, this article will provide you with the knowledge and tools to stay compliant in Malaysia’s ever-changing business landscape.

Why is HR compliance important?

In any given country or state, laws are provided by the government to regulate business operations. These laws include labor laws designed to safeguard the rights and well-being of employees, covering aspects like wages, working hours, discrimination, health, and safety in the workplace.

HR compliance ensures that these laws are understood, implemented, and followed within an organization. 

Failure to adhere to these laws are not only limited to legal issues but also reputational damage, loss of employee trust, decreased morale, and even operational disruptions. Therefore, compliance is crucial for maintaining a positive and productive work environment.

Additionally, HR compliance can vary from location to location due to differences in laws and regulations governing employment practices. For human resources in Malaysia, this involves understanding the specific requirements under HR Malaysia employment laws. This is crucial for ensuring your companies remain compliant. 

Read next: The 2024 HR Compliance Checklist: APAC Edition

What are the key employment laws for Human Resources in Malaysia?

1. Employment Act 1955

The Employment Act 1955 is the primary legislation for Human Resources in Malaysia that outlines the legal rights and responsibilities of both the employer and employees. It covers matters such as terms and conditions of employment, working hours, overtime, rest days, annual leave, and termination of employment, among others. 

The Act applies to employees engaged in manual labor, clerical work, or any other type of work, with a few exceptions such as domestic servants, certain categories of employees covered under other specific laws, and managerial or executive employees earning above a certain threshold. 

Under the Employment Act 1955, employers are required to meet the minimum standards set out for employment practices, which employers must adhere to for the benefit of their employees. 

2. Industrial Relations Act 1997

The Industrial Relations Act 1997 (IRA) is also one of the major HR Malaysia laws governing employment relationships, as well as trade unions and employers’ associations in Malaysia. The Act aims to promote and maintain industrial harmony and provide the regulation of the relations between employers, workmen and their trade unions. The IRA includes provisions addressing representation in cases of unfair dismissal, claims for recognition by trade unions, and the process of collective bargaining. 

3. Social Security (Socso) Act 1969

The Employees’ Social Security Act 1969, also known as the SOCSO Act, is a Malaysia HR law that created the Social Security Organization (SOCSO) to provide social safety nets for employees in the private sector and their dependents. 

Under this act, employees and their employers contribute to the SOCSO fund, which provides financial assistance in the event of work-related injuries, disabilities, occupational diseases, and death. SOCSO administers various schemes, including the Employment Injury Scheme, Invalidity Scheme, and Invalidity Pension Scheme, to provide benefits such as medical treatment, disability income, and rehabilitation services to eligible individuals.

4. Workers’ Minimum Wage Order

The Workers’ Minimum Wage Order is another key employment law HR leaders and employers should take note of when it comes to staying compliant with HR Malaysia laws. This is because the wage order sets a legal threshold for employee compensation. Failing to comply with the Order can result in penalties for employers. Another advantage this legislation serves is that it can help prevent disputes between employers and employees over wages. 

5. Other relevant regulations

Aside from the HR Malaysia employment laws mentioned above, some other relevant laws also include: 

  • Employment Provision Fund Act 1991: The EPF Act 1991 establishes the Employees Provident Fund, requiring both employees and employers in Malaysia to make monthly contributions. Its goal is to provide financial security for employees’ retirement through managed investments.
  • Occupational Safety and Health Act: This legislation ensures the safety, health, and welfare of employees at work.

Relevant reading: What is HRDF in Malaysia?

What are the benefits of compliance for HR Malaysia?

Malaysia HR
Malaysia HR

Malaysia HR errors cost businesses huge penalties. According to a statistical report, instances of non-compliance have led to significant fines, while employment lawsuits have seen a 200% increase over the past two decades. Compliance with HR Malaysia laws and standard practices help organizations steer clear of legal troubles. Non-compliant employers may also be subjected to audits and inspections by government authorities tasked with enforcing labor laws. These inspections can lead to further penalties and corrective actions mandated by the authorities.

Improve employee relationships and morale

Malaysia HR labor laws exist to protect the rights and well-being of employees. Compliance with HR Malaysia laws ensures that each worker is treated fairly and provided with essential rights and benefits. This includes ensuring your employees are being paid fairly and working under safe conditions within reasonable working hours. Companies who prioritize labor law compliance demonstrate their commitment to creating a supportive and respectful work environment. This in turn boosts employee morale, satisfaction, and efficiency of work

Stronger employer brand

Failure to comply with labor laws can tarnish the employer’s reputation. A negative reputation can have long-term implications on a businesses prospects and profitability. However, if the business adheres to HR Malaysia regulations, it builds a reputation of a responsible employer in Malaysia, making it more attractive to top talent in the job market. 

Improved business reputation

Nowadays, consumers, employees and stakeholders care more about businesses behaving ethically. This is because being ethical is really important for running a successful company. When a business follows HR Malaysia laws, it not only stays out of trouble but also builds a good reputation for being fair and transparent, which fosters community trust and support. 

Strategies to Stay Compliant in Malaysia HR

Now that we’ve established the importance of compliance for Human Resources in Malaysia, here are some strategies that you can implement to remain compliant with HR Malaysia laws and regulations. 

Stay informed

Staying compliant with HR Malaysia laws can be a daunting task due to the frequent changes and updates. It requires consistent effort and attention to stay informed about the latest regulations and ensure that the organization meets its legal obligations. 

Some practical ways Malaysia HR leaders and employers can stay updated on compliance laws:

  • Engage in networking activities with other HR professionals, either through formal events or informal gatherings, to exchange knowledge, share experiences, and stay informed about compliance practices.
  • Rely on media reports for updates.
  • Subscribe to updates from law firms specializing in employment law.
  • Conduct regular audits and reviews of HR Malaysia practices to ensure compliance.
  • Monitor these changes by reviewing official government websites that provide information and updates on compliance laws.

Develop clear policies

Another way to remain compliant with Malaysia HR laws and standard practices would be to develop consistent policies and procedures that adhere to these laws. The policies you create should be clear, comprehensive, and aligned with legal requirements and industry standards. 

This is because they serve as guidelines for employees and management alike, covering various aspects such as code of conduct, health and safety, leave and attendance, training and development, and more. 

Additionally, your policies and practices should remain accessible to all employees and should be properly documented.

Maintain accurate records

In regards to HR Malaysia, employers are legally required to maintain certain types of employee records under federal and state law. For example, as outlined by the Employment Act 1995 and employment regulations, employers must maintain records of employees’ salaries, wages, allowances, bonuses, and deductions, including records of overtime worked and any other remuneration provided. 

Relevant reading: Your Guide to Malaysia Payroll

Another example would be the Personal Data Protection Act 2010 which requires employers to maintain records containing employees’ personal information such as full name, identification number (e.g. MyKad number), contact details, and residential address. The records should cover employment contracts, attendance, salary and benefits, personal information, disciplinary actions, workplace safety, training, terminations and statutory filings. 

A well maintained record is important for these two reasons: 

  • Accountability and transparency: This demonstrates fairness and accountability in employment practices. Transparent record keeping builds trust between employers and employees.
  • Audit preparedness: With proper recording keeping, employers can easily undergo audits by regulatory authorities, or internal audits. This ensures compliance with statutory requirements. 

Invest in training on regulations

Investing in ongoing training programs for leaders and managers in Human Resources in Malaysia is important to ensure your company is compliant with HR Malaysia laws.

New hires should be provided resources and receive thorough orientation to ensure they understand their rights and responsibilities within the organization. They should also know how to report non-compliance. An environment where employees feel safe is also created when you provide regular training on preventing workplace injury. This shows your employees you care about their well-being.

Additional resources: The Ultimate Employee Handbook Template

Seek professional guidance when necessary

There are employment law attorneys that can provide your company with expert guidance on HR Malaysia compliance matters. This can help you avoid costly legal disputes and maintain a positive reputation as an employer. 

Importance of Tools for Malaysia HR Compliance

Streamlined data management

Staying on top of HR Malaysia compliance laws means investing in software that automate and streamline the record keeping process. Manual record-keeping is error-prone and time-consuming. HR tools allow for secure digital storage of employee data, contracts, policies, and other crucial documents. This makes it easier to track information, find what you need quickly, and ensure accuracy.

Read next: The Top 5 Payroll Software Malaysia Teams Are Using in 2024

Enhanced enforcement of regulations

HR software for processes such as payroll and applicant tracking include compliance measures that can make it easier for employers and HR leaders to stay compliant on HR Malaysia laws and best practices. 

  • Leave management: Managing employee leave requests can be a complex task. HR tools automate leave tracking, approvals, and balances. This saves HR time, improves transparency for employees, and minimizes errors.
  • Payroll management: Accurate and timely payroll is essential for employee morale. HR software can automate payroll calculations, deductions, and tax filings. This reduces the risk of errors and streamlines the entire payroll process.

Improved communication

HR tools enhance compliance for Human Resources in Malaysia through employee self-service portals. Announcements, policy updates, and payslip information can be easily disseminated electronically through a self-service portal. 

Aside from that, the portal streamlines processes by allowing employees to track leave balances, request time off, and access payslips from their end, reducing the burden on Human Resources in Malaysia.

Additional reading: Why an Employee Self-Service Portal is Your Silver Bullet for Engagement

Better decision making

With compliance management software, you can gain valuable insights to inform your strategic Malaysia HR and business functions. Workforce trends, performance metrics, and leave patterns can be easily analyzed for better resource allocation and talent management.

Building a Culture of Compliance with HR Technology

Human Resources in Malaysia play an important role in driving organizational success through effective talent management, compliance with labor laws, and fostering a positive company culture

Omni frees Malaysia 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.

Powering Asia’s fastest-growing, modern companies, Omni scales alongside your company so you can customize and leverage the system to meet your business exactly where you are — as well as where you’re going. 

With a full suite of modules to support every aspect of your business, Omni’s platform offers an intuitive and fully customizable platform that integrates with your team’s favorite tools for a seamless and timely adoption.

Book a demo with us today and learn how Omni can help you build a competitive advantage for Human Resources in Malaysia.

How to Build an Onboarding Process From Scratch

Congratulations! You just hired the best talent for a role in your company. What’s next? Building the perfect employee onboarding process for your business needs, welcoming new employees, and ensuring they get the hang of everything their role entails. This is also the best time to clearly communicate the company values and expectations for their position. 

The success of every employee mainly depends on the onboarding process. Many hiring managers and businesses, both large and small, sometimes fail to follow through after an employee accepts a job offer, getting too caught up in the hiring process. 

This oversight can lead to a poor employee onboarding experience, which is often reduced to a simple email or a brief orientation. A well-structured onboarding process should help new hires connect with colleagues, access necessary resources, and understand their role expectations. 

Based on recent workplace experiences, companies can no longer afford to throw employees into a job without proper support and guidance, expecting them to “sink or swim”. In this article, we’ll take you through how you can build an onboarding process from scratch and tools that can help streamline your work. Let’s dive in. 

What is employee onboarding?

Employee onboarding is a process done by companies to integrate new hires into their roles and the company. Depending on the company, the onboarding process may involve introducing them to the company culture, values, policies, and procedures, as well as helping them build relationships with teammates and familiarizing them with the workplace.

Read next: Create a Memorable New Hire Orientation: Tips, Checklists, and Best HR Practices

Why is the employee onboarding process so important?

The employee onboarding process is both important for employers and employees — new employees are seamlessly integrated into their new environment and tools are provided to help them be more productive while employers are able to foster a positive workplace culture and reap the benefits of increased efficiency of work

When employee onboarding is done excellently, everyone in the company has a lot to gain such as improved employee engagement, fostered collaboration, better administration, and promoted company culture. However, when done poorly, the new hire may struggle to integrate with its new workplace and tasks, especially in a remote environment

Companies and HR managers put a lot of time and resources into attracting and hiring the best talents. It’s a great advantage to use employee onboarding as a tool to create a lasting relationship with new hires and improve the overall ROI of the organization.

Additional reading: Navigating the Digital Divide: Enhancing Remote Team Communication

Building Your Onboarding Process

onboarding process

Now that you know the basics of employee onboarding, it’s time to build your company’s onboarding process and maximize the time to make your new hires comfortable in their new role. 

Pre-boarding

The employee onboarding process starts when you make your decision to hire a talent, that’s why pre-boarding is needed to prepare the company to receive a new employee. 

  1. Offer acceptance

The pre-boarding phase starts from the moment the new talent signs the employment contract — showing that they accepted the job offer —  to the first day on the job. 

During this time, new hires are typically excited and eager to start their new role. Effective pre-boarding helps to sustain this enthusiasm and momentum, setting the stage for a successful onboarding experience.

  1. Pre-onboarding tasks

It’s important to maintain clear and transparent communication with new hires, especially if there’s a time gap between signing the offer letter and the employee’s official start date. 

During this employee onboarding process, you can: 

  • Send necessary information in advance, including company brochure, employee handbook, company ethics, healthcare forms, company mission statement, policies, and more. 
  • Provide a welcome video or online tutorials pre-recorded by the HR or team lead for more information regarding the company and their new position.
  • Invite the new employee to team outings or company events to build relationships with other team members before their first day.
  • Complete necessary background checks and request for payroll and benefits information.
  • Deliver the company’s swag package (branded t-shirts, stickers, mugs, journals, and so on).

Additional resources: 8 Key Onboarding Documents for Your New Hire Journey (with templates!)

First week of work

In the first week of work, new hires get to settle in and start contributing to the organization. Here are some things to do in this phase of the employee onboarding process: 

  1. Warm welcome

Knowing how to welcome new employees is a skill every HR professional must learn. You can create a warm and friendly atmosphere for the new employees by introducing them to their team, providing a tour of the workplace, and letting them meet members of other teams. 

  1. Allocate assets and set up access

Also, employers must ensure the new employee has all the necessary tools and resources to perform their job in their first week as a part of the employee onboarding process. This includes setting up access to relevant software, computers, and company networks.

  1. Provide an overview of the role and company

As an employer, you can provide comprehensive information to the new hire about their role, responsibilities, and expectations. This helps them understand the target and goals the company has set for them and work towards achieving it.

  1. Provide necessary training

Giving essential training sessions to equip the new employee with the skills and knowledge needed for their role is also important in the employee onboarding process. This can be new hire orientation, workshops, or online courses to give them a good headstart for the position. 

First month and beyond

After the first month, it’s time to sit down with the new employee to properly evaluate their performance. Some companies do this in the first 90 days. 

This form of performance review is specifically for the employee onboarding process and aims to assess the new hire’s past performance, highlight areas of improvement, and set goals for the upcoming quarter. It can also be used as a formality to signify the end of the new hire’s probation period, and to realign new expectations for their role. 

During the first month of work, employers can:

  1. Offer ongoing training opportunities and support

The review allows the employer to learn how the new employee feels about the role and subsequently provide support needed for success.

  1. Schedule regular performance reviews

A performance review is important to gain insight into the new hire’s working experience, roadblocks faced, and develop strategies and goals to set them on the path for success. These regular check-ins signal to new hires that the organization prioritizes their well-being and in turn, boosts morale and employee satisfaction.

  1. Organize team-building activities or social events

Creating team bonding events for employees can help improve communication between teams, and increase overall productivity. Ensuring that there’s work-life balance further boosts employee retention and reduces the possibility of burnout

Additional considerations

The onboarding process doesn’t just end after the first 90 days. It takes time before new employees are totally integrated in the company. Here are some additional steps you can include in your employee onboarding process: 

  1. Encourage open communication

Creating an environment where new employees are comfortable to ask questions, share their concerns, and provide feedback is an important aspect of employee onboarding. Employers can encourage these communications through regular check-ins, open-door policies, and anonymous feedback channels. 

  1. Set up a mentorship or buddy program

Pairing new employees with experienced colleagues who can offer guidance, support, and knowledge can help them scale through their first few months in the company. The assigned buddies should be able to provide a friendly face, answer questions, and help with the social integration of new hires.

  1. Recognize and celebrate successes

No one wants to keep working in a place where their labors are not acknowledged. You should celebrate the achievements and milestones of new employees, no matter how small. This can be public team recognition, rewards, or a genuine thank you from the team leads.

Tools to Streamline Your Onboarding Process

The employee onboarding process of new hires for HR takes a lot of time and effort that’s why tools are created to make the process significantly easier. Here are some employee onboarding software you can use to streamline the employee onboarding process for your company: 

Project management software

Project management tools like Asana or Trello can be used by HR teams and managers to organize and assign tasks, set deadlines, and track progress throughout the employee onboarding process. The tools can help to create a structured and streamlined approach or reduce the risk of overlooking important steps in the process.

Learning management systems

There are platforms like Udemy, Innform, or TalentLMS that help companies create and deliver customized training programs such as video lessons, quizzes, and assessments. New hires can acquire the necessary skills and knowledge, and it’s a means of supporting the employee onboarding process.

Communication and collaboration tools

Communication and collaboration are needed in every employee onboarding process, tools like Slack, Microsoft Teams, or Google Workspace help with open communication, feedback, and teamwork among new hires, HR, and other teammates. There is also onboarding software that integrates with these tools.

Read next: Slack Tips and Tricks for More Productive HR Teams

Onboarding software

There are specialized software like Omni, that are designed specifically for employee onboarding, employee data management, and guiding new hires through the process step-by-step. These tools have robust features and automated workflows to make administrative tasks easier. This is effective for new employee engagement and productivity in the organization. 

Achieve a Smoother Onboarding Journey with Omni

onboarding

As you can see, the employee onboarding process is pivotal to ensure the seamless integration of your new hire into the organization. It is definitely not simple as there are countless action items to think about, tasks to follow up on, and paperwork to complete – even the most seasoned HR professional requires a strong system of organization to ensure a consistent and efficient employee onboarding experience. 

HR automation allows HR teams and managers to easily track, schedule, and follow-up on the various tasks and documents required during an onboarding process. With Omni, you can access customizable email templates to welcome new employees, schedule and automate personalized onboarding communications, track and follow-up on important onboarding documents, and eliminate cumbersome manual processes like data entry that are prone to errors and delays.

Omni frees HR from the many time-consuming tasks of the onboarding process, and provides a consistent and uniform experience for new hires, all in one, easy-to-use system.

Schedule a chat with our team and learn about how Omni’s automated onboarding workflows can increase employee engagement, and give you back your valuable time to focus on strategic planning that drives business outcomes.

The Best 360 Feedback Tools for Employee Engagement

If you’re looking in one direction, there’s only so much you can see. With a 360 degree feedback tool, you’ll have the complete picture of what’s going on around you. 360 feedback tools go to multiple sources to get the full view of your employee’s performance, and build a plan of action based on better information.

But this kind of feedback has a lot more moving parts than a simple performance review. With multiple sources to consider, and the number of people involved, more and more HR departments are turning to readily available 360 feedback tools to take advantage of the benefits 360 degree feedback can offer.

Here, we’re going to take a look at the best 360 feedback tools, and the characteristics you’re going to want to look for in them so that they make the biggest impact for your organization.

Relevant reading: A Guide to Mastering Performance Management

What is 360 degree feedback?

360 degree feedback (sometimes called multi-rater feedback) is a type of performance evaluation currently favored by many HR professionals. It gathers feedback from multiple sources about your employees performance, behaviors, and competencies and, unlike traditional performance reviews conducted by a single manager, 360 degree feedback involves collecting input from multiple team members.

The “360 degree” reflects the comprehensive nature of the feedback, which takes a look at all sides of an employee’s performance and contributions, with feedback taken from peers, subordinates and even sometimes external partners or clients. This holistic approach provides a well-rounded assessment of your employees’ strengths, weaknesses, and areas for improvement.

We’ve explored 360 degree feedback in previous blogs, but in short, it’s commonly used for everything from performance appraisal and leadership development to talent management, and employee development purposes. When effectively applied, it can promote self-awareness, identify blind spots, boost collaboration, and support professional growth and development.

Read next: Mastering 360 Degree Feedback: Definitions, Tips, and Tools

What are the benefits for 360 degree feedback?

As mentioned above, there’s a ton of advantages to 360 feedback. One person may have very specific insight into your employee’s performance, but not the full picture. Here’s how 360 feedback paints a complete portrait:

Provides a comprehensive evaluation

Rather than just one person giving their opinion, 360 degree feedback gathers input from multiple sources. This comprehensive approach offers a more holistic (and ideally accurate) assessment of your employees’ performance, behaviors, and strengths, providing insights from different perspectives, each with its own value.

Improves employee engagement and morale

Involving your employees in the feedback process can increase their sense of ownership and engagement with their own development. When employees feel that their opinions are valued and heard, they are more likely to feel motivated and committed to their work and the organization as a whole. On top of that, knowing their own feedback will come from their peers will encourage them to work collaboratively and bond as a team.

Enhances performance through targeted development

The feedback collected through 360 feedback assessments can identify areas of strength and areas for improvement for your employees. Armed with this information, they can create targeted development plans to address performance gaps, improve performance, and advance their career goals.

Foster a culture of open communication and feedback

Implementing a 360 degree feedback signals to your employees that your organization values open communication and continuous improvement. By encouraging feedback from multiple sources, your company can promote a culture where its employees’ are comfortable providing and receiving constructive feedback, increasing transparency, collaboration, and trust.
Overall, the benefits of 360 degree feedback extend beyond individual development to impact the culture of your organization, employee engagement, and performance outcomes. By leveraging multiple perspectives and promoting a culture of continuous feedback and improvement, organizations can unlock the full potential of their workforce and drive sustainable success.

What to consider when choosing a 360 degree feedback tool?

360 feedback

While the amount of technology available to choose from means lots of flexibility, it can also be a bit daunting, and make selecting the right solution for your organization difficult. Here are key aspects of the best 360 degree feedback tool you should consider:

1. Is it customizable?

Look for a 360 feedback tool that allows customization to align with your company’s mission, unique goals and performance criteria. The ability to tailor questions, rating scales, and feedback categories ensures that the assessment reflects your organization’s specific needs and objectives. It also means you can update the nature of the feedback your organization collects as it grows and evolves, reflecting its new aims.

2. Is it easy to use?

User experience is absolutely essential for the successful adoption of any 360 feedback tool. Choose a platform that is intuitive, user-friendly, and accessible across devices. Your employees should be able to navigate the tool easily, complete assessments efficiently, and access their feedback and development resources without unnecessary complexity.

3. Does it offer reporting and analytics?

A robust 360 feedback tool should provide comprehensive reporting and analytics capabilities to derive actionable insights from assessment data. Look for features such as customizable dashboards, trend analysis, and benchmarking tools to track progress, identify trends, and measure the impact of developmental interventions over time.

4. Does the tool prioritize data security?

Protecting sensitive employee data should be your top priority. Ensure the 360 feedback tool you choose adheres to industry-standard data security protocols and compliance requirements. Look for features such as encryption, role-based access controls, and regular security audits to safeguard the confidentiality and integrity of your employees’ data.

5. Can it integrate with your existing HR systems?

Seamless integration with your organization’s existing HR systems, such as performance management, learning management, and talent development platforms, is essential for data consistency and workflow efficiency. Choose a 360 feedback tool that offers robust integration capabilities or APIs to streamline data sharing and reporting processes.

6. Can the tool scale and adapt based on your needs?

As your organization evolves and grows, your feedback tool should be able to scale and adapt to accommodate changing needs and requirements. Consider factors such as scalability, flexibility, and vendor support when looking at potential solutions to make sure the 360 feedback tool you go with can grow with your organization and continue to meet your evolving needs over time.

By carefully considering these factors when selecting a 360 degree feedback tool, you can choose a solution that fits with your organization’s objectives, promotes employee engagement and development, and drives meaningful performance improvement across your workforce.

Best 360 Feedback Tools for 2024

360 degree feedback

With all that in mind, what are the 360 feedback tools which exemplify the characteristics we spoke about in the previous section? Here, we take a look at some of the best 360 feedback tools available and breakdown what they can do for your organization:

Omni

Omni offers a comprehensive suite of features for 360 degree feedback, including customizable performance assessments, real-time feedback tracking, and robust reporting and analytics. Our user-friendly interface and flexible customization options make it a popular choice for organizations seeking to enhance employee engagement and performance. And of course Omni is more than just a 360 feedback tool—it’s also a powerful HRIS which offers a comprehensive suite of high-caliber HR tools in addition to its 360 degree feedback enablement.

SurveySparrow

SurveySparrow’s 360 degree feedback tool is known for its intuitive design, tailored surveys, and advanced reporting capabilities. With features such as multi-rater assessments, automated reminders, and AI-powered insights, SurveySparrow helps different organizations gather actionable feedback and drive continuous improvement across their teams.

Peoplebox

Peoplebox is one of the top 360 degree feedback tool that integrates with your existing work tools like Slack, Microsoft Teams, Hubspot, and Asana to make your employees fall in love with reviews and feedback. 

Its integration with Slack and Microsoft Teams goes beyond just notifications and allows your employees to update goals, write reviews, schedule 1-on-1 meetings and receive feedback. Alongside features like built in templates, form personalization, customer weightage for goals and more, Peoplebox helps organizations to drive performance, retention and business outcomes.

Trakstar

Trakstar’s 360 degree feedback platform helps organizations streamline the feedback process, track employee performance, and identify areas for development. With customizable assessment templates, real-time feedback tracking, and configurable reporting options, Trakstar can help organizations leverage feedback to drive individual and organizational growth.

SurveyMonkey

SurveyMonkey offers a user-friendly and versatile platform for conducting 360 degree feedback assessments. With a wide range of survey templates, customizable questionnaires, and powerful analytics tools, SurveyMonkey enables organizations to gather actionable feedback, identify strengths and areas for improvement, and drive performance improvement.

Spidergap

Spidergap’s 360 degree feedback tool is designed to simplify the feedback process and promote employee development. Like other options on this list, it features customizable assessments, automated feedback reminders, and interactive reporting dashboards. Spidergap helps organizations create a culture of continuous feedback and improve the performance of its team members.

Consider these 360 degree feedback tools for your organization—they offer a range of features and capabilities to support your team in gathering actionable feedback, driving employee engagement and development, and achieving your performance goals in 2024 and beyond.

Driving Performance and Engagement with Omni

best 360 feedback tools

Utilizing a 360 degree feedback tool suitable for your business needs can significantly boost your approach to enhance growth, development, and collaboration. 

With a 360 degree feedback tool like Omni, managers, employees, and the HR teams that serve them can take full advantage of its many benefits. Omni simplifies the entire performance review process, making it easier for managers to customize performance review questions, schedule performance review cycles, and run performance review cycles. With our user-friendly interface and intuitive features, Omni ensures a seamless experience for both participants and administrators.

Omni’s performance review solution integrates seamlessly with the 360 degree feedback process, allowing you to consolidate feedback from various sources and present it in a comprehensive format. Our platform ensures anonymity and confidentiality, encouraging honest feedback from all participants for you to leverage for performance improvement.

Book a demo with our team today to learn more about how Omni is the 360 feedback tool for your business.

Certificate of Employment Requirements and Examples

Screening processes are integral to HR recruitment practices, ensuring that you hire the best talent. According to ASDReports, “the Asia Pacific employment screening services market is propagating at a CAGR of 9.37% from 2019-2027. India, China, Japan, Australia, South Korea and the Rest of Asia Pacific are considered for the market study.”

If you’re looking to facilitate your screening processes, work experience documentation via a certificate of employment letter and other verified documents helps.

Aside from helping HR leaders, this certificate also facilitates securing loans, getting approved for rentals, and qualifying for grants for employees. Keep reading to learn about the COE meaning and how this form can serve you.

What is a certificate of employment and who is eligible? 

To answer your question of “What is COE?” and unpack the COE meaning, it’s a formal documentation of the working history of a current or past employee in your company.

The certificate of employment letter is typically short and to the point. It includes the employment details, such as the employer’s name and details, and the employee’s personal information such as employment dates and employment status.

Under the Department of Labor and Employment (DOLE), every employee is eligible to request for an employment certificate letter as and when required. They also have a right to an intermediary certificate if they request it.

There are exceptions when it comes to COE, meaning that some individuals aren’t eligible for a certificate of employment letter. These may be contractual and project-based workers, and workers whose employment term you’ve terminated with a legal or fair cause.

What information does a certificate of employment include?

With that understanding of the COE meaning, what is a COE composed of? There’s no standard format, but it should include the following details:

  • Employer’s data: Such as company name, logo, contacts, and address and the employer’s name and contact information.
  • Employee’s data: The employee’s first name, family name, date of birth, and place of origin.
  • Employee’s curriculum in the company: A list of the positions, duties, and activities of the employee in the company and the start and termination of their employment term.
  • Additional information: Additional details requested by the letter’s recipient (like the employee’s overall pay) should be included in the letter.
  • Certificate-related details: The signatures of company authorities, the certificate issuance date, and the company stamp for verification.

What is the purpose of a certificate of employment?

Now, what is COE meant to achieve exactly? The purpose of this certificate is to authenticate any applicant’s data or verify data for past employees. To illustrate, you can use a certificate of employment letter:

To prove employment

What is COE if not proof of employment? An employee may request a COE, meaning that their employment in your company will be verified and that their work experience will qualify them for future positions. This way, future recruiters can fact-check their employment history.

For salary verification

What is COE able to prove about your employees’ finances? Future employers might want proof of your employee’s salary. Also, loan and mortgage providers, banks, and landlords might request a certificate of employment to verify their claims about their employment and salary. This way, they can assess their ability to make the required monthly payments.

Demonstrate length of service

The certificate of employment letter can also serve as a verification of the length of service for your current employees or potential hires. Their years of experience prove that they’re equipped for a certain position during a candidate assessment process.

When can employees request for a certificate of employment?

what is COE

Employees may request for a COE under varying circumstances. However, here are some common examples when an employee may request for one. Understanding these situations allows you to better prepare the documents required by your employees:

Job applications

Job applications are some of the most common scenarios where employees will request for a certificate of employment letter as Applicants need to prove their work experience.

This step acts as a subtle background check on their job performance. It can happen during the final stage of recruitment, increasing the trust of recruiters in applicants.

Loan or credit card applications

An employee may request a certificate of employment letter from you because a loan provider or bank requested it, in which case you’ll need to add their current pay.

But what is COE going to do to help them secure a loan, get approved for a mortgage, or adjust their line of credit? An employee can present a COE to indicate their ability to make payments on time, and the claims they’ve made about their income sources and employment status are authenticated.

Visa applications

Most immigration offices require a certificate of employment letter. Your employees applying for an employment visa might request a COE to prove that they are legally employed to work in the country that they are applying for.

Furthermore, the COE is also a form of verification that the applicant has the needed funds to finance their stay in the country, and will likely not stay past the travel period they’ve declared because they’re committed to a workplace.

Renting an apartment

Landlords may require a COE, meaning it serves as confirmation that your employee has a job. What is COE going to prove to a landlord? It proves that they have an income source and can pay rent monthly. In that case, you may need to include your employee’s current pay in the certificate of employment letter.

Government Requirements

What is COE in the context of government paperwork? Government bodies can request a certificate of employment letter to verify the identity of your employee. For example, they might be applying for a governmental program, which requires a COE, meaning it acts as a governmental document for submission purposes.

Requirements for Obtaining a Certificate of Employment

What is COE going to cost employees in terms of requirements? Understanding these three requirements will help you procure a certificate of employment letter in time.

Employee request

It starts with a request from your employee. In a relatively small company, the person responsible for creating the certificate of employment letter could be an office manager, direct supervisor, or accountant. In a large company, the HR department typically handles these requests.

This request comes in the form of a letter, but what should it include? It should state that the employee needs a certificate of employment letter and the reason for the request. It should also detail all the information that should be included within the certificate. Finally, they may add a specific date by which they need the certificate of employment letter.

Employer verification

Now it’s your turn to verify the certificate of employment letter. After all, what is COE if not verified? HR professionals or employers may write it, and the signature of authorities will verify the work details listed about the employee in the COE, meaning that the document becomes legally binding.

Omni Tip: Information within the certificate of employment letter must be truthful and based on your employment record. The Department of Labor and Employment (DOLE) can take actions against companies that provide false information.

Processing time

What is COE going to require in terms of time? There’s no specific processing time for issuing a certificate of employment letter, meaning that it differs according to factors like your internal policies, and any issues related to the certificate of employment letter.

For example, companies based in the Philippines should refer to the DOLE Labor Advisory No. 06 Series of 2020, which states: “a Certificate of Employment be released by the employer within three (3) days from the time it was requested by the employee.”

Otherwise, your employee might state a timeframe for the issuance of their certificate of employment letter. This may be due to a work visa deadline or applying for an educational program by a certain date.

Examples of a Certificate of Employment for Employee

If you’re still confused about “What is COE?” or COE meaning, we have provided a free certificate of employment template to customize and cater to all your employee’s needs. 

Aside from that, here are two common examples of when a certificate of employment will be required by an employee:

For an Employer

In this example, the point of the letter is to verify your previous employee’s employment period, position and salary. 

[COMPANY LOGO HERE]

CERTIFICATE OF EMPLOYMENT

This letter confirms that Rachel Tan was employed at NW Consulting Firm from 4 September 2022 till 21 March 2024, as an investment consultant with a monthly salary of SGD$ 5,000. She has displayed good work performance, a positive attitude towards the work environment, and great talent in handling clients.

If you require additional information or have any further questions, please contact me at 2437 7754 or reach me via email at s.liew@nwconsulting.com.

Sam Liew

Human Resources Manager

For a loan provider

When constructing a COE letter for your employees with the purpose of submitting it to a loan provider, it is crucial to include your employee’s start date and current salary to highlight their ability to repay the loan. 

[COMPANY LOGO HERE]

CERTIFICATE OF EMPLOYMENT

This letter confirms that Chloe Wong is a current employee of Quick Fix Solutions as an office manager, with a monthly salary of ₱38,500. Ms. Wong has been employed in the company since July 2021.

If you require additional information or have any further questions, please contact me at 5333 8749 or reach me via email at rsim@quickfixsolutions.com.

Rudy Sim

Human Resources Manager

Enhance Employee Satisfaction with Omni

Whether you’re an employee or business owner in Philippines, Omni makes it easier than ever to support employees requesting a certificate of employment letter. 

Our all-in-one employee database makes gathering the necessary data required to create the certificate of employment seamless and timely. With customized workflows and automated reminders, HR can help empower employees to manage the deadlines and documentation requirements for their certificate of employment request. A centralized document management solution and real-time data makes it easy for employees to access salary information and produce reports and documents necessary for verification.

Book a demo with our team to learn more about how Omni can enhance your employee satisfaction through streamlining your certificate of employment requests. Not ready for automation yet? Download our Certificate of Employment template now!

8 Steps to Conducting Pay Equity Analysis

Everyone deserves fair pay. This is why conducting pay equity analysis is significantly important in the workplace as companies strive to cultivate a transparent and fair culture

With increasing scrutiny from employees, regulators, and lawmakers, companies must proactively address pay disparities to avoid legal and reputational consequences. Pay equity analysis must be done to identify and treat potential issues. 

In this article, we’ll walk you through a step-by-step guide on how you can conduct a detailed pay equity analysis that can help you address pay gaps, ensure compliance with regulations, and foster a more inclusive and sustainable workplace.

What is pay equity?

Pay equity, also known as “equal pay for equal work”, revolves around ensuring that employees receive fair and equal compensation for work of equal value, regardless of their gender, age, race, or other protected characteristics. 

For human resources in Singapore, pay equity is promoted and protected under the Tripartite Guidelines on Fair Employment Practices and the Employment Act, which aim to promote a fair and inclusive workplace.

HR professionals in an organization are entrusted with ensuring pay equity within organizations. This includes developing and implementing fair and inclusive policies and practices, conducting regular pay equity analysis, and educating managers and employees on the importance of pay parity.

For example, in a tech company where a male software engineer and a female data analyst are both hired at the same level with similar qualifications and experience. Both employees should receive equal compensation according to pay equity unless there are clear, justifiable reasons for any disparities like performance, specialized skills, years of relevant experience etc.

Once the pay equity analysis is done and disparities are identified, recommendations for adjusting pay structures are presented to senior management and leadership teams to promote fairness across the organization. Pay equity analysis is usually conducted annually but can be done at any time as deemed necessary by the company.

Why is it important to conduct pay equity analysis?

pay equity analysis

According to the Labour Market Statistics, in 2023, full-time female employees aged 25 to 54 earned 14.3% lower than their male counterparts, narrowing from 16.3% in 2018. This statement indicates the gender pay gap has decreased, suggesting some progress in reducing the disparity in earnings between men and women over the five years.

Conducting pay equity analysis shows fairness and ethical practice, demonstrating an organization’s dedication to diversity, equity, and inclusion (DEI). It improves compensation and benefits structures, maintains competitiveness within the industry, meets shareholder expectations, and ensures adherence to legal standards.

However, there’s still the need to conduct pay equity analysis: 

  • Fairness: The analysis ensures that employees are compensated fairly for their work, regardless of gender, race, or other demographic factors. This promotes a more efficient workplace.
  • Legal compliance: Many countries have laws mandating equal pay for equal work. Conducting pay equity analysis helps organizations stay compliant with these regulations and avoid legal consequences.
  • Employee satisfaction: Fair compensation practices can contribute to higher employee satisfaction and retention. When employees feel they are paid fairly, they are more likely to be engaged and committed to their work.
  • Reputation: Companies that prioritize pay equity and transparency build their reputation both internally and externally. This can build a positive perception among employees, customers, and their community.

What is the difference between internal and external pay equity analysis?

Internal and external pay equity are key points to be included when conducting pay equity analysis and developing attractive compensation packages. 

External pay equity relates to how an organization’s employees’ salaries compare to those of competitors within the same industry or market. Internal pay equity pertains to the fairness and parity of compensation among employees within the organization.

Here are some distinguishing factors between both internal and external pay equity analysis: 

Internal pay equity:

  • It considers factors which can include job descriptions, experience, performance, and many others.
  • It strives for fairness and equity of pay among employees within an organization.

External pay equity:

  • It considers factors such as the size of the organization, location, and industry.
  • It involves the pay levels with other companies in the same industry or market.
  • It plays an important role in attracting and retaining top talent.

Read next: What is Benchmarking in HR?

What is comparable work in pay equity analysis?

Comparable work in pay equity analysis is defined as work that requires substantially similar skills, responsibilities, and job descriptions performed under similar working conditions. It means that employees who perform comparable work should receive equal pay. 

When determining comparable work, organizations consider factors such as skill set, responsibilities, qualifications, complexity, working conditions, career progression, market demand, and value to the organization amongst others. 

Steps to Conducting Pay Equity Analysis

  1. Define your goals and objectives

The first step to conducting pay equity analysis is to find the reason why it’s necessary for your organization. Is it to update your current pay practices and policies? Eliminate legal risks? Or check and remove pay inequality within your organization? 

Finding and clarifying goals and objectives will shape your analysis process. Getting a go-ahead from the management is also important for the analysis, this will help them understand the significance of the audit and its potential benefits. Conducting pay equity analysis does not only require the HR team, other teams like the finance and legal teams are often needed for proper analysis.

  1. Analyze your current pay practices and policies

The next step involves evaluating existing practices and policies to examine the structure of your compensation and benefits package. Your compensation and benefits team will have first-hand information about any discrepancies. 

You can start by assessing the fairness of current pay policies regarding gender and ethnicity, then expand your pay equity analysis. The analysis at this stage will help to point out the pay gaps both internally and externally.

  1. Determine what ‘comparable work’ is for your business

Moving on to the next step in your pay equity analysis, comparing the similar work done by employees is important. As we’ve mentioned earlier, the comparability of two roles is assessed based on a comprehensive job evaluation, examining the entirety of each position. 

Relying solely on job titles and descriptions is insufficient for determining compatibility, and it’s important not to discount the potential comparability of roles across different departments or teams. Both internal and external benchmarking should be done for comparable work, ensuring the pay equity analysis is accurately conducted.

  1. Gather relevant data

Gathering important data is the next step. Depending on your company needs, you might collect data like: 

  • Compensation details (salaries, benefits, and bonuses)
  • Employee tenure
  • Work hours
  • Demographics and secured data like age, gender, and ethnicity
  • Performance evaluations
  • Market data
  • Job roles and associated responsibilities
  • Educational and professional qualifications

The selection of factors to incorporate in your pay equity analysis should be tailored to the size of your organization. In smaller organizations, too much data collected can lead to inaccurate analysis, it’s best to prioritize factors that are most relevant to your employees and analysis objectives.

  1. Analyze and identify pay gaps

Once you’ve gathered all the necessary and relevant data, it’s time to analyze.

Identifying pay discrepancies in compensation requires a distinctive approach, using statistics and analytical methodology to figure it out. Although it doesn’t stop at just analyzing pay parity, but also finding the root causes which can stem from company culture, unconscious bias, systemic inefficiencies, and so on. 

  1. Assess whether pay differences are justified

The pay equity analysis can reveal important issues such as employees doing comparable work at lower wages than others, but some pay differences might be justified. 

Some regulations dictate that differences in pay are justified if they are based on seniority, merit, quantity or quality of production, or any factor other than gender. That’s why this step is important to understand if the pay gap is justified or not. 

  1. Take corrective action

The next step is to act on your findings. After identifying pay disparities, you should take action to address them, both morally and legally. Transparency in sharing findings with stakeholders and employees fosters trust and underscores the organization’s commitment to pay equity. 

Immediate actions can involve rectifying pay discrepancies and ensuring compliance with regulations, while long-term strategies which include preventive measures like bias training and transparent compensation structures are applied. 

Read next: Understanding and Administering Salary Adjustments 

  1. Regularly monitor and maintain

The end goal of your pay equity analysis is to ensure it doesn’t happen again. That’s why regular reviews and updates of the analysis are essential to maintain the newly adapted pay equity promptly.

The truth is the journey of pay equity analysis is far from over as it should be done in organizations frequently. You must continuously track identified metrics, KPIs, and OKRs using a data-driven approach, complemented by periodic audits of pay structures. 

Also, ensure that you communicate progress to stakeholders to promote accountability and inclusivity. Regular evaluations are crucial not only for legal compliance but also for meeting societal expectations and market demands. The objective is not just to achieve but to sustain pay equity, reaffirming your organization’s dedication to fairness, diversity, supportive work culture, and inclusion.

Create a Culture of Pay Equity with Omni

pay equity analysis

Creating a culture of pay equity is crucial if your business is aiming to foster a fair and equitable workplace environment. Conducting a pay equity analysis highlights the issues but bridging the gap requires more than just awareness – it demands actionable steps and effective HR tools. 

All-in-one HR software like Omni can play a crucial role in fostering pay equity by providing tools for tracking gender diversity metrics, identifying areas for improvement, and implementing policies that promote work-life balance. 

Our comprehensive payroll solution provides impactful pay equity analysis and insights to seamlessly review, address, and prevent pay parity issues. Advanced performance management modules provide real-time performance data, helping HR teams swiftly identify and address skill gaps, so you can provide your teams with the training and tools they need to help boost overall performance and nurture talent.
Join the 83% of Omni customers who have unlocked new, actionable insights after using our modern HR solution, book a demo with our team today.

The Employee Promotion Guide: Policies, Processes, and Best Practices

A survey from Bankrate shows that 56% of workers plan to look for a new job in the next 12 months based on important job qualities which include a pay increase and job satisfaction. Employee promotion is essential for any business as it shows you award your employees for their contributions and achievements. This enhances their overall satisfaction and employee morale

However, crafting a promotion policy that both supports your employees’ career development and benefits your organization can be difficult. This guide will walk you through the reasons to promote an employee, strategies for creating an effective employee promotion process, and promotion criteria.

What is an employee promotion policy?

An employee promotion policy is a set of guidelines for promoting employees, which should outline the promotion criteria and promotion process. This helps build trust between the employees and management and removes potential biases

To create an effective employee promotion policy, you must consider the major factors;

  • Eligibility Criteria: This section of your policy should state the promotion criteria and clearly explain who can be promoted using impartial factors like performance, seniority, and other relevant qualifications. Depending on your organization, the criteria for eligibility might vary. However, keep eligibility criterias simple and clear to ensure a transparent and fair promotion process.
  • Process Outline: The process outline explains what your employees can expect when applying for the employee promotion process. It can include how to submit applications, the evaluation process, timelines for each phase, and the eligibility criteria mentioned above. 
  • Decision Authorities: When creating your employee promotion policy, you must clearly identify the decision authorities. This ensures that promotion decisions are impartial and well-documented. Decision authorities can include HR managers, leadership/executives, and direct supervisors.

By considering the above when building an employee promotion policy, business owners and HR professionals can clearly show how the employee promotion process works. This is beneficial because it signals to employees that there is transparency and equality, which fosters a positive workplace culture and boosts employee satisfaction.

What are the types of employee promotions?

promotion process

There are various types of employee promotions within an organization and each promotion serves its own purpose. However, the three major types of employee promotions to keep in mind are: 

Internal promotions

Internal promotions occur when you assign an employee to fill a role within the organization, rather than hiring an external candidate. Internal promotions help demonstrate your organization’s culture of providing growth opportunities for employees. 

Horizontal promotions

Horizontal employee promotion refers to moving an employee to a different role at the same level within the company. For example, moving an Associate to a Senior Associate. This type of promotion is valuable because it allows your employees to gain new experiences without moving to a different position.

Vertical promotions

This form of promotion involves an employee moving to a higher-level position within the organization. This type of promotion increases the responsibilities of an employee. Vertical promotions used as a form of acknowledgement and recognition can lead to increased job satisfaction.

Overall, knowing the types of employee promotions is essential as it helps you make promotion decisions that benefit both the organization and employees.

What are the reasons to promote an employee?

Promoting an employee is an effective way to show you recognize and appreciate your employees’ dedication and hardwork. However it’s important to know the reasons to promote an employee. This ensures that your promotion decisions are fair and support the growth of your organization. Some reasons to promote employees include:

Meeting performance expectations

Your employees who have a proven track-record of meeting performance expectations are great candidates for promotion. Such employees have demonstrated they possess the skills and work ethic for accomplishing goals and are capable of succeeding in more challenging roles.

Developing relevant skills and knowledge

Promoting your employees who invest in developing their professional skills and knowledge is vital. This ensures a skilled worker with relevant knowledge handles increased responsibilities. It also motivates other employees to seek advancement in their skills and knowledge.

Demonstrating leadership potential

Employees who display leadership qualities like inspiring and motivating their colleagues are a great option for promotion. Such employees have the ability to promote collaboration between teams and foster a positive work environment.

Active participation and communication

Employees who actively participate with company activities and communicate show how much interest they have in the success of the organization. This quality contributes to effective teamwork and leadership.

Alignment with company goals

Your employees who see the connection between their work and the company’s success are great candidates for promotion. Such employees have a sense of purpose and motivation to do their best.

Understanding the reasons to promote an employee helps you as a business owner or HR manager make promotion decisions that foster employee development and promote a positive work culture.

What is the promotion process?

The promotion process involves several key steps you must consider to determine the eligibility of a potential employee for promotion. Your promotion process must be well-defined because it signals fairness and transparency to your employees. Here’s an example of how your promotion process can look like:

  1. Understanding promotion criteria

The first step in the promotion process involves understanding the promotion criteria. This includes performance metrics, leadership qualities, and specific certifications. It is essential you establish and clearly communicate these criterias to your employees, as it ensures your promotion decisions are fair and merit-based.

  1. Candidate expresses interest

Employees who express interest in a promotion by seeking feedback or discussing career aspirations during performance reviews, clearly show their enthusiasm to take on new responsibilities. Commitment to contribute to the organization’s success shows there’s alignment with company goals, a reason to promote an employee.

  1. Building a strong case

Candidates who build a strong case by compiling a comprehensive record of their qualifications and how it aligns with the company’s goals demonstrate their value. This directly relates to the promotion criteria. Remember, employees who build a case proactively express their readiness for a new role and how they can benefit the organization.

  1. Networking with colleagues and leaders 

Networking with colleagues and leaders within an organization displays an employee’s effective interpersonal skills and communication abilities. This shows their ability to collaborate with others which are essential qualities of a leader. Employees who connect with other experienced professionals have a better chance of receiving guidance and mentorship, enhancing their understanding and dedication to the organization’s priorities.

  1. Formal application

Employees who express themselves as the ideal candidates for promotion by presenting their work achievements showcase they understand the promotion criteria. Formal applications can include submitting cover letters or resumes. Employees who take the initiative to submit formal applications demonstrate they have the experience to succeed in a role with more responsibility. 

Understanding the key steps involved in the promotion process ensures you select the right candidates who align with the objectives of the company for higher responsibilities. It also reassures employees that you award promotion decisions based on merit and fit.

Best Practices for Employee Promotion

Establishing a solid structure for your employee promotions ensures that promotions are fair  and beneficial to the organization. Here are some best practices you should consider to keep promotions transparent.

Clear criteria and transparency

Defining clear, transparent, and measurable promotion criteria and openly communicating them to your employees helps them understand the requirements and timelines so they can set realistic expectations. 

Ongoing skill development and training

Providing your employees with opportunities for skill development and career growth allows them to stay-up-to date with industry trends. Commitment to providing growth opportunities to your employees demonstrates your commitment to them, which increases their job satisfaction.

Regular performance reviews and appraisals

Providing performance reviews enables you to give your employees feedback on their strengths and areas for improvement. This results in ongoing skill development and career growth. Regular reviews ensure that you award promotions to high performing individuals who align with the company’s goals, adhering to the established promotion criteria. 

Provide opportunities for growth and responsibility

Offering your employees growth opportunities allows them to develop new skills and expand their knowledge. Also, encouraging them to take on more responsibility makes them feel valued and more engaged. These opportunities contribute to your organization’s success as you nurture talents for future leadership roles.

Ensure transparency in promotion decisions

Ensuring your decision-making process for promotions are transparent is essential because it fosters trust among your employees and demonstrates that you award promotions fairly based on the established promotion criteria. This equitable approach motivates them to perform at their best and invest in their career growth. 

Foster a culture of career development

Cultivating a culture that values career growth and development motivates your employees to invest in their growth. Such a culture encourages them to perform at their best, since advancement opportunities are readily available. By establishing a culture of career development helps you identify and nurture internal talents who align with the company’s mission and goals.

Following these best practices will guide you in creating a promotion process that is fair and supports employees aspirations. Now that we understand the employee promotion process, let’s explore how we can leverage HR tools to make the promotion process more effective. 

HR Tools for Managing Employee Promotion

Using technology streamlines your promotion process by automating tasks, and provides data-driven insights. Here are some essential HR tools for managing your employee promotions.

Performance management software

Performance management softwares are tools that help you automate tasks such as tracking employee performance data and feedback collection. This softwares provides real-time feedback for evaluating employee performance. They ensure your performance evaluations are data-driven. 

Learning management system (LMS)

Learning Management Systems (LMS) are tools that enable you to track the progress and performance gaps of your employees. With this tool, you can learn about the strengths and weaknesses of each employee. This helps you tailor opportunities that will enhance their readiness for higher-level responsibilities.

Employee engagement tools 

Engagement tools are best for gathering data that monitors your employees’ sentiments. This data helps you understand how to increase your employees’ satisfaction and engagement. Employee engagement tools are a great asset for your business as they provide real-time insights on how to maintain your employees’ motivation.

In summary, HR tools help you manage the promotion process by tracking employee performance and gathering insights about their readiness for promotions. HR tools ensure promotion decisions are data-driven, which ensures a fair and transparent employee promotion process.

Empowering Employee Growth with Omni

Employee promotion is a great way to recognize employees for their contribution, and boost employee engagement. This affects every aspect of your organization, from culture to morale, productivity to innovation, investing in your employees is a sure fire way to improve your business functions and drive growth. 

In order to find the right reasons to promote an employee followed with a strong promotion criteria and promotion process, monitoring and administrative management from HR teams are crucial. 

Omni makes it easy to track employee performance in one, automated platform to make the employee promotion process much easier. Build employee profiles and receive automated reminders of milestones such as goal achievements, engagement metrics and other useful information that helps identify and justify the reasons to promote and employee.

With Omni, HR professionals can leverage automation and expert created templates to build seamless processes to support each stage of the employee lifecycle, and manage each function in a centralized, easy-to-use platform. Omni’s data analysis and smart-reports allow you to derive real-time, actionable insights on your employee performance and experience so you can build an award winning culture of growth, innovation, and engagement.

How to Use a Merit Increase in Your Compensation Strategy

Besides hiring and managing talents, compensation is one key area HR teams prioritize. However, retaining talents goes beyond paying just salaries. Employees also want to feel you acknowledge and value their efforts. 

As highlighted by Nectar’s report, about 84% of employees believe recognition enhances their motivation to succeed. And that’s where merit increase comes in. It helps employees feel appreciated and fosters a sense of loyalty to your organization.

But understanding what is a merit increase can be confusing, especially with the types of salary increases. It becomes crucial to know the merit increase meaning and difference between a raise. 

In this article, we’ll go through the basics of the merit increase meaning and also provide tips on deciding who gets a merit increase and what it takes to implement one in your organization.

What is a merit increase?

A merit increase is a salary raise an employee gets as a reward for outstanding performance and tireless contributions to achieving company goals. It is often a pay increase or bonus designed to encourage and recognize individual accomplishments within an organization. 

For example, say a marketing team member in your organization exceeds their KPIs by 30% for a marketing campaign. The HR team may increase their annual salary by 10% as recognition for an exceptional contribution to the company’s growth.

When properly implemented, this pay-for-performance method for employee appreciation boosts employee engagement and productivity. It also helps managers and HR teams determine which employees receive promotions or not. 

What is the difference between a merit increase vs a raise?

Now that we’ve covered what is a merit increase, another vital angle to examine is merit increase vs a raise.

Though merit increase vs raise are two salary adjustments, they aren’t the same. For one, by merit increase meaning, it’s a salary increment based on performance. It often rewards and recognizes top-performing employees while inspiring others to perform better. Furthermore, it’s usually given as a percentage of an employee’s salary, and it differs from one employee to another depending on their performance.

A raise, on the other hand, is a general salary increase that isn’t necessarily tied to employee performance. Instead, it’s based on tenure, inflation, or to improve employee standard of living. Also, it may be given to all or specific groups of employees as a fixed amount or a percentage of the employee’s salary.

What are the benefits of a merit increase?

what is a merit increase

According to Spring Works’ report, 57% of employees say they prefer recognition in the form of a cash bonus or raise. But what do organizations stand to gain from this? Here’s why a merit increase is beneficial for your organization:

Increase employee motivation

According to Springworks, 70% of employees believe motivation and morale will increase if employers appreciate them. And that’s one function of merit increase meaning. 

By recognizing workers’ achievements, performance, and contributions to the organization’s success, pay increase motivates employees to be more productive. This recognition boosts morale, not only for the employee but also for other team members.

Improve employee retention

Everyone loves to be rewarded for hard work. Offering top-performing workers a merit increase helps retain valuable talent within the organization. It also reduces attrition rates and keeps staff loyal to your organization. Furthermore, when employees are better motivated through a pay increase, they’ll enjoy their work environment and, as SHRM’s study found, will be 68% less likely to quit.

Enhance employee engagement

Findings from Nectar’s 2023 survey found that 82% of employees believe recognition for their efforts at work improves engagement. By offering pay increases by merit, you make talents feel seen. When this happens, they’ll better participate in work activities because they know the company values them. Ultimately, they’ll see no need to quit but remain with your organization and actively engage in their roles.

Read next: 20 Strategic Employee Engagement Survey Questions

Attract top talent

Appreciating top talents through a merit increase vs raise helps create a more productive company culture. And when employees perceive the company positively, it often results in lower turnover and attracts and retains more high-performing talent.

Glassdoor noted that 86% of job seekers review company ratings and reviews before applying. If current and former employees have positive views about your company’s compensation practices, it’ll encourage potential talent to apply. Thus, it’ll expand your workforce and enhance your organization’s competitive advantage in the labor market.

How to decide who gets a merit increase?

Now that we’ve established the merit increase meaning and its benefits, the next question in line is deciding who gets a merit increase. Here are some considerations to take into account for a fair merit increase while aligning with company goals:

Performance

To maximize the benefits of a merit increase, high performers should be prioritized when deciding eligibility. Thoroughly consider each employee’s achievement and evaluate your team’s output in terms of company goals, work quality, key performance indicators, and other performance metrics. 

Contributions and value

Employees who regularly exceed expectations or make significant contributions to the growth of your organization should be rewarded with a merit increase as a sign of appreciation.

Company performance

Company success is always a result of the collective effort of your team. So, when your organization smashes goals or generates more revenue, extend the success to employees through a merit increase.

Industry standards

Compare your company’s compensation structures to industry practices. This will help you understand salary trends and compensation practices within your sector. It’ll also ensure your salary raises by merit are competitive and fair enough to attract and retain top talent

Read next: Understanding and Administering Salary Adjustments

Employee potential

Assessing employee potential is crucial when determining who gets a merit increase, meaning you should focus on both past performance and future potential. Employees with high potential are likely to make substantial contributions to your organization’s success in the long run. 

By recognizing employees with high prospects, HR teams can support employee career development and motivate other employees to become top talents.

Things to Consider When Creating a Merit Increase Policy

1. Define criteria

Define the objectives of your company’s merit increase policy and identify eligibility criteria. This could be employee performance reviews, company budget, internal policy, skills development, contributions to organizational success, and the employee’s value in the job market.

By defining criteria, you can ensure a fair and transparent merit increase policy, saving the company from incurring unwanted losses or potential issues. 

2. Set a budget

Decide how much your organization is willing to spend on merit increase and create a budget for it. When allocating funds, consider available resources, market trends, budget restraints, and your company’s overall performance and existing compensation strategy.

3. Develop a performance rating system

Set up a performance review process to evaluate employee performance based on the established criteria. The review should include ratings that show employees’ performance levels which will help determine the size and distribution of merit increases. 

4. Clearly communicate the policy

You don’t want employees wondering what is a merit increase and how it applies to them. This can be avoided with clearly communicating the policy and providing adequate information. 

For example, provide clear guidelines on how merit increase vs raise will be determined, the frequency for awarding, how you intend to address concerns regarding the pay increase process, and other details. 

This will help strengthen transparency and encourage open communication and feedback systems between employees and managers.

Best Practices for Implementing a Merit Increase

To ensure a successful and transparent merit increase, here are some best practices:

Conduct performance reviews

Performance reviews provide insights into each employee’s performance and identify top performers who consistently deliver great work. It also ensures merit increase decisions align with company goals, allowing employees to receive feedback and spot areas for improvement.

Therefore, determine how often you’d conduct these reviews, utilizing performance management tools for 360-degree feedback, and how data will be collected and analyzed.

Read next: A Guide to Mastering Performance Management

Ensure process is fair and transparent

Implement your merit increase policy across all employees and departments. Ensure it’s fair, transparent, and void of favoritism by strictly adhering to established criteria. This pay parity and equity is necessary for a more productive and equitable company culture.

Provide justification and explanation

Besides setting and implementing your merit increase policy, you should also explain and justify them to employees. This promotes transparency and motivation. It also clarifies expectations to avoid potential misunderstandings. When employees understand the criterias for determining a merit increase, they’ll be more motivated and focused on the company goals.

Research industry benchmarks to ensure attractiveness

Researching benchmarks in your industry is crucial to remaining competitive in the labor market. It provides insight into regular industry compensation practices so your organization’s merit increases are neither too low nor too high but in sync with trends. 

Most importantly, offering increases that align with industry standards will differentiate your company in the market, strengthen your organization’s reputation, attract and retain top talent.

Focus on the future

Aside from recognizing high-performing talents, you should also consider workers with a high potential for success. Doing this encourages every employee to develop new skills, improve their capacity, and consistently contribute to the organization’s success. In addition, it signals to employees that the organization prioritizes their growth and satisfaction.

Fueling Employee Engagement with HR Tools

merit increase meaning

Administering merit increase requires careful consideration, clear communication, and adherence to company policies and regulations. While this can pose a challenge, utilizing the right HR tools can streamline the process, ensuring efficient management of merit increase.

All-in-one HR softwares like Omni can help you and your company efficiently tackle merit increases. By streamlining processes and gathering valuable insights through data analytics, our software can provide an ideal framework for businesses invested in creating a fair and transparent workplace. 

Omni allows you to design, schedule, and conduct performance reviews that offer insights on promotions and advancement. From defining performance metrics to conducting evaluations, our solution provides you with real-time feedback to enhance your merit increase process, foster high performance, attract top talent, and drive growth for your modern business. 

To explore why Omni is the preferred tool for modern businesses aiming to enhance employee engagement and foster an inclusive and fair workplace culture, book a demo with our team today.

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