52% of employees believe the new labour codes will impact HR policies: Report
According to the latest survey conducted by Grant Thornton Bharat, 60% of the respondents say they use multiple apps and portals for employee engagement. The report states that about 70% of the employers have not made any changes in the compensation structure post-pandemic.
The findings of this survey reflect that 50% of employers prefer the hybrid model of HR operations (in-house and outsourced)
An increasingly virtual work environment brings challenges related to employee engagement, governance, compliances, etc., and therefore, it is essential for organisations to gear up their internal systems to meet these challenges. The report highlighted over 60% of the respondents believe that payroll/compliances can be outsourced or managed in a hybrid manner.
The survey found that 65% of respondents believe that delayed approval is one of the biggest challenges they face with HR systems today. Emotional connections amongst employees, quick approvals, less miscommunication etc., have become as important as ever and it is paramount for HRs to cater to these issues through solutions like AI for faster approvals, facial recognition for attendance, mood bots and happiness index evaluator, rewards and recognitions etc. Additionally, 62% of the respondents prefer using multiple apps and portals for employee engagement. The rest of the respondents hinted at the need for a single tool that acts as a gateway to connect organisations and employees for formal and informal connections, physical and mental wellbeing, etc.
The report shows that employees (52%) respondents believe new labour codes will have a high impact on HR policies and processes.
As the pandemic pushed employers to explore and adopt new ways to stay in the business; Grant Thornton Bharat’s GPS team carried out a survey to gain insights on the challenges being faced and areas for re-aligning employee engagements.
Furthermore, the survey found out that many employers are concerned about the impact of new labour codes. Apart from the impact on employee cost, the new labour codes would also impact HR policies, processes and all related compliances. The industry at large has also acknowledged the same and over 50% of respondents believe that the new labour codes would have a high impact on the existing HR policies and processes.
Commenting on the findings, Akhil Chandna, Partner, Grant Thornton Bharat said, “It is imperative that organisations review and evaluate the impact areas under new working arrangements, evolving regulatory landscape, and changing employee expectations. This would help ensure that the HR systems and processes are designed and integrated to support the requirements of both internal and external stakeholders.”