Interviews

Karma Global Leads the Way in Using Technology to Enhance Hiring Compliance and Best Practices for MSMEs

CXOToday has engaged in an exclusive interview with Mr. Pratik Vaidya MD & CVO, Karma Global

 

  1. What compliance measures did Karma Management take when starting its mission and establishing its company?

When Karma Management was conceptualized in the year 2004, as a regulatory compliance

Organization, we believed then and the belief still continues even today that Compliance Service Levels were framed by us on the basis of Performance Measures and Targets.  Like it is said, if the process is right in the beginning, then the end results also will surely be 100% right and there is no two way about it.

Therefore, it is our Performance Measures that put the Compliance Measures in place along with in-built Compliance cycle which established the Company’s Mission to emerge as the leading Management Consultancy and Solutions Enterprise in order to offer a comprehensive range of services and products at competitive prices.  Of course, over the years as we journeyed along, our mission too underwent a change and today our mission is to engage and enhance the customer experience in all our services and to create impeccable solutions by touching people’s life internally and externally with our strong value system.

 

  1. How is Karma Management ensuring compliance with recent HR laws that impact hiring trends?

Karma Management being the flag bearer and preacher of compliance and advisory on HR and labour laws, it goes without saying that practice begins from home before preaching. Karma is always abreast with knowledge on latest HR laws trends and first one to implement within the organisation. The current HR laws applicable to employees in any establishment depends on the numbers and applicability of the acts, mainly the Industrial Disputes Act, Factories Act, Shops & Establishments Act and Contract Labour Act and the Standing Orders Act. Going by the current legislation which has been in force all these years and are  applicable to new hires as well, the latest hiring trend picking up is (1) creating contract jobs (2) full time regular work from home or full time in office and/or  (3)  flexible working or hybrid working partly from office and home. In this given scenario for the new hiring trends setting in, different salary/wages and different HR laws will be applicable to new hires as per the above mentioned 3 types of hiring trends that will shape up in 2023.Karma Global has a well-established hiring policy in place that maps out all the rules and Government regulations for the new hires or existing employees need to follow while recruiting and interviewing candidates vis-a-vis making hiring decisions and taking them on – board.

  • Hiring Trend Impact – Contract hiring vis-a-vis Contract Labour Act :
  • Hiring Trend Impact – Full time working or work from home or hybrid working or moonlighting :
  1. In what ways is Karma Management leveraging technology to comply with hiring regulations and best practices?

Building up of technological capabilities has been the buzz word of our CVO  since last 5 years ever since  Karma Global contemplated to automate its products and services starting with the vendor compliance management tool which was a stand-alone product , that was converted to AI and ML with chat bot integration on a cloud platform.

Our HRIS Payroll handles all repetitive and time-consuming tasks including employee on boarding, payroll, timekeeping, leave, expense claims, salary processing, statutory payments and benefits administration to HR processes like performance management and self service module along with augmented analytics and dash board.

TOOLS OFFERED : WeChecked, WeProcess , Fulcrum and Bumblebee

 

  1. What policies and legal requirements do Karma Management and other companies follow regarding moonlighting by employees?

Karma Global’s stand on this is very clear and as the MD & CVO of Karma Global, my thoughts are that whether it is moonlighting or normal attrition, this happens when outside attraction or desires or even envy for that matter, allures the people to seek something better and good elsewhere.  People whose mind is not fully on the job or there is show of less productivity or interest or disengagement or breaches or revenue loss, these are outwardly signs that something is amiss.  Anything lacking, whether it is the company’s culture or engagement or right job roles or compensation or non-monetary benefits, or even empowerment for that matter, it is time for the Enterprises to pull up their sock in order to cover up the shortcomings which employees do not see in their work place and are able to see elsewhere and this is what is stirring controversy and debate among employers and workers. In fact, Karma Global has just received the certificate of honours for “Good Place to work” and the sincere feedback that comes from the employees, helps to redeem all the gaps, paving the way for changes and improvements. Karma Global is basically a Regulatory Compliance Organization besides its other HR related verticals like Staffing, Outsourcing, Facility services, Payroll, and once the new labor codes come into force, especially the  Occupational Safety, Health and Working Conditions Code, 2020 (which would inter alia repeal and replace the Factories Act , permitting  “ethical moonlighting” whereby employees may take up additional assignments which are not against the interests of the industrial establishment in which they are employed, subject to the employee obtaining prior permission from their primary employer.

 

  1. How has Karma Management adapted to comply with laws and regulations related to layoffs and what qualities are they looking for in potential hires?

As far as Indian laws are concerned, there are two parts to this.  One is the applicability of the current law under Section 2(kkk) of Industrial disputes Act, 1947   meaning the failure, refusal or inability of an employer on account of shortage of coal, power or raw materials or the accumulation of stocks or the break-down of machinery or natural calamity or for any other connected reason to give employment and who has not been retrenched. On the other hand , in the Industrial Relations code 2020 which encompasses 3 major central laws viz. Industrial Disputes Act, Trade Union Act and Industrial Employment Standing Orders Act,  contains the same definition as that of Industrial Disputes Act but with some changes as follows :

Non-seasonal industrial establishments (such as mines, factories, and plantations) employing 50 to 300 people must:

  • Pay 50% of basic wages and dearness allowance to a laid-off worker giving one month’s notice or wages for the notice period to a retrenched worker.
  • Non-seasonal industrial establishments with at least 300 employees must obtain prior approval from the federal or state government before laying off, retrenchment, or closing.
  • Non-seasonal Industrial Establishments with at least 300 employees must obtain prior approval from the central or state government before laying off, retrenchment, or closing.[2]

The applicability of Lay-off under The Industrial Relations Code, 2020 relating to layoffs, retrenchments, and closures do not apply to an industrial establishment with less than fifty employees or one that is seasonal or intermittent. So in this kind of a scenario, the Minister for Labour & Employment made it clear that any retrenchment and layoffs are illegal if not carried out as per the provisions of the Industrial Disputes Act, when it took cognizance of the mass layoffs in various multi-national and Indian companies in the IT, social media, Education, Health and related sectors.

As per the ID Act, establishments employing 100 persons or more are required to seek prior permission of the appropriate government before effecting closure, retrenchment or lay-off. “Further, any retrenchment and lay-off are deemed to be illegal which is not carried out as per the provisions of ID Act.    The ID Act also provides for right of workmen laid off and retrenched for compensation and it also contains provision for re-employment of retrenched workmen, “Based on their respective jurisdictions as demarcated in the ID Act, Central and State Governments take actions to address the issues of the workmen and protect their interests as per the provision of the Act.

Karma Global being an 18 year old Regulatory Compliance Organization up keeps all the prevailing laws as an abiding Corporate Citizen and also advises all its clients to work within the purview of the laws enacted for the betterment of employer – employee relationship who have come together to accomplish the common goals and objectives of the Organization that they are working for.

As regards qualities in potential hires, yeah some come for pay check and some come with passion.  I do agree that in today’s world to survive, means of income for livelihood is important and a must for everyone. At the same time, it is equally important for organizations to survive in the midst of extreme competition and technological advancement happening every 6 months with new developments being fostered around.  So in this manner, it necessitates for flow of funds inside an organization for meeting its expenses and paying decently to all its employees. With these thoughts in mind, Karma Global always aims to give priority to people who come with passion, reliable experience and problem solving skills with immense maturity and team work. Our focus is on (1) enterprise skills (2) communication skills and (3) workplace skills. It may often be that a potential employee may not have enough knowledge but if he/she is able to show evidence of ability and aspiration together with attitude for growth and a drive for success, we do recognize such potential candidates and make offers according to their background and experience so that they can be moulded to be effective leaders in the future.

 

  1. What disruptive tools and technologies can MSMEs adopt to ensure compliance with hiring regulations and laws?

As per ILO, none of the countries completely exempts MSMEs from the application of labour laws. Medium-sized enterprises are rarely excluded from the application of labour laws. The most common approach, regardless of the country income level, is the equal application of labour laws to all enterprises, with selective exclusion from some obligations. As per ILO, in all the countries studied, there is equal application of the law with regard to the prohibition of forced labour and child labour, the setting of a minimum wage, working hours, occupational safety and health, and sick leave.

MSMEs are a major contributor to the Indian economy, accounting for around 30% of GDP and providing employment to over 110 million people (Ministry of MSME, Annual Report 20–21) currently, many processes in micro-enterprises are manual, inefficient and not scalable. Hence, the requirement for technology to transform and spur growth in the MSME segment, in particular in the nano and micro enterprise segment is obvious. As per the 2020 Pew study, smartphone penetration and internet usage hovered around 24% and 25% compared to 45% and 60% in emerging economies

Digital knowledge gap and digital execution: One of the issues with introducing a new system would involve the introduction of new processes and formalities. The knowledge required to operate in this system will be entirely different and more technical in nature, which may prove to be a difficult transition Nevertheless, it is pertinent at this point of time especially when India’s economy is considered as the fifth largest , to shift  the business and process online; leveraging digital tools to automate workflows, reduce cost, and gain business insight; using social media platforms for marketing, sales, and recruiting; moving systems to cloud ecosystem and availing of SaaS applications, and taking advantage of data analytics for risk assessment, insight into business trends, and drive sales growth. More than ever, one should not look at simply digitalising the unproductive processes but it should be a cultural change that  challenges the old ways of working, by  accepting emerging technologies like AI, IoT, Robotics, AR, ML, etc., in all the areas including manufacturing, marketing, sales , services, regulatory compliance and  HR & Administration  that were either to

Done manually.  Especially, inducting the processes in manufacturing factories, in  scheduling production lines, monitoring inventory movements within the shop floor, managing procurement and distribution in the supply chain, and supporting customers and field services together with business applications like ERP, CRM and Data Analytics.MSMEs will also be required to keep themselves abreast with Cyber security and data privacy ecosystem as well as Udyam registration , GST portal , MSME Sampark ,Government emarketplace (GeM) and MSME Samadhan portal.

 

  1. How does the hiring industry in India ensure compliance with laws and regulations when other countries offer high salary offers to Indian candidates?

Karma Global has been operating in India for the last 18 years and about 2 years ago, in April 2021 exactly, it opened its offices in Canada, UK, USA, UAE and South East Asia. It can be said that for the same job, salary difference will be there if you are working in the UK compared to India.  This is so because the cost of living in India is one of the lowest globally while UK is one of the most expensive places to live. This can partly explain the difference in salary. The second factor is the rupee equivalent say against US Dollars. The third factor is the CTC concept in India where there is monthly pay-out along with annual payment and many other non-monetary benefits and perquisites like gratuity, ESOP, etc. And deductions further reduce the monthly net take home. One should not forget the fact that India is a developing country and our economy is agro based and so it is fallacious to make a comparison with the Western world.  But if you see, there are many ex-pats working in India and they draw an enormous salary with all types of perks given to them. Hiring industries in India go with fairness, transparency, motivation, engagement and finally pay budgets which depends on external benchmarking, internal job evaluation, and finally your existing current pay. Currently, the basic salary is in the range of 30-40% of the gross. The allowances make up the balance. But, the new code specifies that the basic salary should be a minimum of 50% of the gross salary and this is where the new dynamics of hiring will change once the new labour codes get implemented.

 

  1. What changes does Karma Management anticipate for the future of hiring and how are they preparing to comply with these changes?

Karma Global has already drawn up a sketch on how the future hiring will shape up and has also put its staffing strategy in place for all its foreign offices in Canada, US, UK, UAE and South East Asia  including Karma Global @ the heart of India. With changing employer and employee demands and expectations, the recruitment process has taken giant strides with incorporation of AI and ML. Traditional hiring techniques are losing relevance, and new-age solutions are driving recruitment methods with continuous experimentation and changes. In the new scheme of things, our focus will be on targeting the younger generation, enhancing further our digitization and automation to the next level, keeping options open for hybrid mode of recruitment, and strengthening the on boarding process with individualized attention both of a buddy as well as mentor and lastly stretchable performance targets that are measurable and achievable. It will also be worthy to mention that Karma Global will be working on syncing our deeply entrenched tech solutions with our people’s intelligence and expertise to continuously churn out the best solutions for future hiring by advanced screening of potential candidates, and data-backed decision-making. So naturally, Karma Global sees the future of hiring which is one of its strongest business verticals as a hunting ground for new job roles that will come up in health care, facility management services, hospitality industry, banking, financial services and insurance, manufacturing, of course tech propositions will be different with hundreds of new jobs stepping in, given the dynamics of technology changing overnight.

Karma Global on Recruiting Globally .Consequently, global recruiting will face demand, as companies need to source the skills they require. Karma Global will leverage their plan, structure and style on global recruitment strategies to widen their recruiting reach.  We have a huge reservoir pool of available talent to find the exact right fit, at the right place and at the right location as we have kept all our options open for being flexible and agile. At the same time, Karma Global takes responsibility by being adaptable, accountable, and proactive in order to navigate and steer clear of the challenges that lie ahead.

 

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