Saturday, March 01, 2014

HR Comic


Infosys may ask non-performers to leave: Narayana Murthy



Software services giant Infosys, which employs 1.5 lakh people, may hand over pink slips to those who "did not add value" despite "high salaries" as it looks to cut costs and increase operational efficiency.
    
Infosys executive chairman NR Narayana Murthy, who returned last June from retirement to head the firm and put it back on high growth trajectory, said that employees hired at huge salaries, but not performing, be asked to leave.
    
"One of my tasks was to ensure that the identified people who were receiving very high salaries but were not contributing as much as we wanted, were either given opportunities where they can add value to the company or they could seek opportunities elsewhere," he told analysts today.
    
Speaking at the Bank of America Merrill Lynch India Investor Conference, the Infosys co-founder said he was working on bringing a "certain level of cost optimisation" in the company.
    
"Our costs have ballooned very rapidly in the last 2-3 years. For example, on-site compensation was 36 per cent of the overall revenue in 2010-11 and it went up to 46.3 per cent in 2012-13... A part of it was because we hired people at high salaries outside India and these people did not add value to the company," he said.
    
Murthy assured analysts that the company is undertaking various initiatives to increase employee productivity and would continue to focus on reducing on-site costs by shifting more work offshore.
    
"Our desire is that Infosys should get back to industry leading growth rates. What that growth rate will be
is something that we will tell you as we move forward," he said.
    
Once the sectoral bellwether, Infosys' revenue growth rate dropped significantly in the last few years, raising concerns among investors and analysts.
    
On return, Murthy initiated a major organisational restructuring which saw eight top-level exits including that of Americas head Ashok Vemuri and BPO head V Balakrishnan in the past six months.
    
Murthy told analysts that Infosys would have a new chief executive by March 2015 when co-founder and present CEO SD Shibulal retires.
    
"The new CEO will be in place by the time Mr Shibulal is ready to leave, sometime in March 2015, and I will be available for him to ensure that there is a proper transition," he said.


IBM to cut 15,000 jobs globally, lay-offs start from Bangalore


Technology giant IBM has started a restructuring process, which would see as many as 15,000 jobs being cut globally, including India, Brazil and the European region.

"The estimate of jobs cut globally is 15,000," international coordinator at the Alliance@IBM (official IBM employees union) Lee Conrad told PTI.

Though the exact number of job cuts in each of the geographies is not clear, the impact could be huge in India as IBM has over one lakh employees in the country.

According to sources, over 50 employees at IBM's Systems Technology Group (STG) in Bangalore were handed pink slips on February 12 as part of its global 'Resource Action' or restructuring programme.

Last month, the US-based firm had said its top executives will forego their bonuses and the company will initiate a $1-billion restructuring programme in the first quarter of 2014 as it grapples with declining sales of servers and storage systems.

IBM employs over 4 lakh people worldwide.

"(There are) no number yet on India job cuts. We do not have a clear number of employees by location because IBM does not disclose that data," Mr Conrad said, adding that the IBM Global Union Alliance will be meeting soon to discuss its respsonse.

When contacted, an IBM India spokesperson said, "As reported in our recent earnings briefing, IBM continues to rebalance its workforce to meet the changing requirements of its clients and to pioneer new, high value segments of the IT industry."


"To that end, IBM is positioning itself to lead in areas such as Cloud, Analytics and Cognitive Computing and investing in these priority areas. For example, we have recently committed $1 billion to our new Watson unit and $1.2 billion to expand our Cloud footprint around the world," the spokesperson further said.

Source: HR.com

7 ways salaried individuals can save taxes

 At the end of every financial year, many tax payers frantically make investments to minimize taxes, without adequate knowledge of the various available options. The Income Tax Act offers many more incentives and allowances, apart from the popular 80C, which could reduce tax liability substantially for the salaried individuals. Here are seven smart tips to help you save more and reduce taxes.
           
1. Salary Restructuring

Restructuring your salary may not always be possible. But if your company permits, or if you are on good terms with your HR department, restructuring a few components could reduce your tax liability.

Opt for food coupons instead of lunch allowances, as they are exempt from tax up to Rs. 50 per meal
Include medical allowance, transport allowance, education allowance, uniform expenses (if any), and telephone expenses as part of salary. Produce bills of actual expenses incurred for these allowances to reduce tax
Opt for the company car instead of using your own car, to reduce high prerequisite taxation.
  
2. Utilizing Section 80C
Section 80C offers a maximum deduction of up to Rs. 1,00,000. Utilize this section to the fullest by investing in any of the available investment options. A few of the options are as follows:

    Public Provident Fund
    Life Insurance Premium
    National Savings Certificate
    Equity Linked Savings Scheme
    5 year fixed deposits with banks and post office
    Tuition fees paid for children's education, up to a maximum of 2 children

3. Options beyond 80C
If you have exhausted your limit of Rs. 1,00,000 under section 80C, here are a few more options:

Section 80D - Deduction of Rs. 15,000 for medical insurance of self, spouse and dependent children and Rs. 20,000 for medical insurance of parents above 65 years
Section 80G- Donations to specified funds or charitable institutions.
  
4. House Rent Allowance
Are you paying rent, yet not receiving any HRA from your company? The least of the following could be claimed under Section 80GG:

 25 per cent of the total income or
Rs. 2,000 per month or
Excess of rent paid over 10 per cent of total income
This deduction will however not be allowed, if you, your spouse or minor child owns a residential accommodation in the location where you reside or perform office duties.
   

If HRA forms part of your salary, then the minimum of the following three is available as exemption:

    The actual HRA received from your employer
The actual rent paid by you for the house, minus 10 per cent of your salary (this includes basic  dearness allowance, if any)
50 per cent of your basic salary (for a metro) or 40 per cent of your basic salary (for non-metro).

5. Tax Saving from Home Loans
Use your home loan efficiently to save more tax. The principal component of your loan, is included under Section 80C, offering a deduction up to Rs. 1,00,000. The interest portion offers a deduction up to Rs. 1,50,000 separately under Section 24.

6. Leave Travel Allowance
Use your Leave Travel Allowance for your holidays, which is available twice in a block of four years. In case you have been unable to claim the benefit in a particular four- year block, you could now carry forward one journey to the succeeding block and claim it in the first calendar year of that block. Thus, you may be eligible for three exemptions in that block.

7. Tax on Bonus
A bonus from your employer is fully taxable in the year in which you receive it. However request your employer for the following:

 If you anticipate tax rates to be reduced or slabs to be modified in the subsequent year, see if you could push the bonus payment to the subsequent year
Produce your tax investment details well before, to prevent your employer from deducting tax on bonus before handing it over

A Final Word
Keep in mind the below points, to avoid the hassles of last minute tax planning.

Give your employer details of loans and tax saving investments beforehand, to prevent any excess deduction
Check the Form 16 received at the end of each year from your employer thoroughly

It is important to start your tax planning well before 31st March, and to file your returns before the 31st of July each year.

Source: www.hrmorning.com

Uh-oh: Average interview process now longer than ever

Feel like it takes forever to come to a decision on new job candidates these days? That may be part of a troubling, growing trend. 

In 2009, the average interview process took about 13 days. By 2013, that number had nearly doubled to 23 days.

That’s according to Catherine Rampell with The New York Times, who asked jobs website Glassdoor to compile info on the duration of the job application process.

While there are major differences among industries, the upward trend of lengthier interview processes appears to be true across all companies and sectors.

Exhibit A: Restaurants, bars and food services went from a seven-day interview process in 2009 to a 12-day interview process last year — and that’s the shortest time span of the bunch.

On the other end of the spectrum: arts, entertainment and recreation positions. A 13-day process in 2009, applying and interviewing for one of those jobs took nearly an entire month in 2013.

And that’s bad news for employers. Rampell notes that longer interview processes are more expensive — your workers need to take more time to interview and vet people, and interviewees get frustrated by the feet dragging.

2 theories

Rampell explored two theories behind the extended process in the article:

Some people have blamed the so-called “skills gap” — the lack of available employees who can fulfill a company’s lengthy (and sometimes impossible) list of needs.

Rampell argues that that probably isn’t the case. If it was, wages would have gone up — but they’ve stayed about the same since 2009.

More likely: Employers are being super-duper careful: “Companies are really, really worried about making a mistake and do not feel pressure to fill openings right away so long as they can still dump more work onto their existing staff members.”

The problem, as Rampell notes: It’s basically impossible to find a cheap worker who can do everything an employer needs without some sort of on-the-job training.

The takeaway: In some instances it might be better to hire the “good enough” candidate rather than wait for the “absolutely perfect” one.

source: www.hrmorning.com