Month: September 2022

You must have certainly come across an instance wherein a former colleague of yours joined your company after having worked elsewhere. Does this surprise you! Why is it that the employee who left the company for a better pay package is willing to join his former company? Mostly, employees quit for a better organization due to personal reasons such as pay hike, career growth, flexible working hours and other reasons. It is to be noted that if you share a good rapport with your former manager or HR personnel then chances are there that you can be welcomed back in your former company.

Benefits of Rehire

In the present uncertain scenario, the HR is increasingly adopting innovative ways of recruiting skilled manpower who deliver best results for the organization. One such method is that of rehiring former employees. Indeed, it sounds unbelievable! But, rehire has its own benefits. Primarily, the employee is familiar with the work culture of the company and will thus easily get attuned with the company environment. Moreover, the employee returns with enhanced experience, knowledge and adds value to the company. The HR personnel needs to keep in mind few points to ensure that the process of rehiring candidates turns out to be a win-win situation for both the company and the former employee.

• Maintaining an Efficient Database of Employees: It is vital for the HR of your company to maintain an efficient database of employees. This should include all categories of employees such as on payroll, contractual, freelancer or even a consultant. You should have their updated contact details in your record so that you can keep them posted about the latest developments and any vacancies coming up in your company.
• Formulate a Rehire Policy: The HR of your company needs to formulate a rehire policy in order to ascertain clearly the criteria for rehiring former employees. For instance, an employee who left the company due to violation of company policies, poor performance or due to allegation of misconduct will not be rehired again.In simple words, a list of guidelines has to be prepared to ease the process of rehiring former employees for your company.
• Schedule an Interview before completing the Rehiring Process: The HR of your company should ensure that the former employee gets interviewed just like any other new hire candidate. In the interview, you can cross-check the reasons given by the former employee for making his exit from the company. In addition, you will get to know about the experience and knowledge that he has acquired during this time which would be useful to your company.
• Reboarding: The reboarding process is the way of reintroducing the former employees to the ways in which the company has been functioning all these years since the employee left the company. Moreover, since the outbreak of Covid-19, several companies have reformulated their policies and procedures.The HR personnel would need to introduce the former employee to the following features of the company:
  • The latest technologies and softwares being used in-house
  • Office working hours along with work from home policy
  • Collaboration with team members
  All this can be done easily by incorporating the former employee in the existing onboarding process involving the new recruits.
• Open Deliberation about Compensation and Benefits: Once the HR of your company has been satisfied with the interview process of the former employee, it is time to hold discussion about compensation and benefits. Moreover, it is advisable to be candid with the former employee as the latter might be expecting a senior position in the company. Else, the employee could be on the lookout for a far better package than that in hand.

In simple words, the HR has to absolutely clear with the former employee in terms of compensation and additional benefits which the company would offer him in case of a rejoin. Therefore, to conclude, the idea of rehiring former employees is indeed catching up in India. For instance, companies like Tata have a track record of hiring former employees back into its organization. Moreover, the Covid-19 scenario has prompted the employers to bring back former employees (especially who left with a good rapport) in their organization.

PEO outsourcing refers to a third-party company with whom a client enters into an agreement with the objective of handing over the HR related and employee related liabilities to it. A PEO enters into an agreement known as the Client Servicing Agreement (CSA) wherein, the two parties clearly decide upon the terms and conditions to be adhered to for a financial year. The contract gets renewed or terminated after a year depending upon the satisfaction level of both the parties.

So, everything you need to know about PEO outsourcing is going to be clearly stated in this article.  When you avail the services of a PEO, it provides you with the requisite professionals, infrastructure and resources through which you can focus primarily on expanding your business.

How does a PEO operate?

It is vital to understand that the two parties enter into a co-employment’ kind of relationship. In this kind of business relationship, the client enters into an agreement with a PEO, according to which employee responsibilities and liabilities are shared by a PEO. The fee of this (CSA) agreement is calculated either on per employee basis or as a percentage of the payroll.

What are the benefits of using a PEO?

A PEO is the one-stop outsourcing solution for all your HR related and employed related responsibilities. By using the services of a PEO, your company happens to

• Saves time and money;
  
  
• Minimize exposure to risk;
  
  
• Avail proficient manpower in foreign lands
  
  

What are the services provided by a PEO?

Every kind of organization—big, small and medium—all set to gain from the plethora of services provided by a PEO.

1. 1. Primarily, small enterprises hire the services of a PEO to be able to provide medical, life insurance, retirement plan and other benefits to its employees. This will help them to attract talent and retain them as well.
      
      
   2. Secondly, a PEO helps to provide coverage to you from any kind of exposure to risk. For instance, any kind of employee claims on termination, or unemployment are tackled by a PEO. Also, tax deduction and submission as per the laws of the respective country are done by a PEO.
      
      
   3. Thirdly, a PEO supports your HR team as well by working on payroll management, recruitment, training and development, preparing and sharing employee handbooks, performance management and so forth.
      
      

Misconceptions about PEO

Everything you need to know about PEO outsourcing includes the wrong notions or misconceptions held about this entity. Several believe that once you enter into an agreement with a PEO, you tend to lose control over your employees, in short, your business. Here, it is necessary to comprehend that while a PEO handles all employee-related tasks and risks, you maintain control over your business and its operations.

Many also believe that the hiring of a PEO implies the removal of HR staff. Well, it is vital to understand that a PEO provides the necessary support and assistance to your company HR staff in running the business operations seamlessly. A PEO comes very handy to the HR in cases related to employee compensation, resolving conflicts and designing training programmes.

Lastly, a PEO does not hamper or intrude in the normal way of functioning of your organization. All the more, it aids, facilitates and improves the employee-employer relationship with entire focus on the growth and expansion of your organization.

Conclusion

Everything you need to know about PEO outsourcing is essential before you to set to avail the said benefits of a PEO. Also, remember, PEO outsourcing is of immense help if you wish to expand your business across new horizons without getting stuck in legal complications and without losing focus on your business goals.