3 things CEOs need from HR

Managing the HR department can be stressful, especially if a significant amount of inquiries and complaints come your way each day.

And when you’re dealing with so much at once, it’s easy to lose sight of what your CEO needs. But that’s risky, as you job may depend on it. After all, they’re balancing enough of the company’s affairs without having to pick up your slack. So how do you improve your managementstyle and keep your boss satisfied?

Keep your focus on retention…

Average employment tenure in the U.S. was about 4.2 years in 2016, down from 4.6 years in 2014. With numbers like these, it’s unlikely that many of the faces in your office will remain untilretirement age. But that doesn’t mean you should grow complacent; theexpense that goes into advertising vacancies, interviewing new candidates and training new staff is too great to resign yourself to turnover. Among otherthings, HR can prioritize checking in with employees regularly, providing avenues for bringing problems to its attention and solving any issues as efficiently as possible.

And when you do hire new candidates, consider prioritizing enthusiasm and willingness to learn over black-and-white qualifications, within reason; these are the employees that will stay even if times get tough.

…but also on yourself

Just as you encourage company staff to continue their education and develop themselves professionally, you also must allow yourself to grow. Whether you decide to get your PhD, attain online certifications, attend HR conferences, or keep up with journals on your developing field, it’s important to stay up-to-date on the shifts and changes in the realm of HR.

Not only will you feel a deeper appreciation for the inner workings of your position, but your employees and CEO will appreciate your innovative ideas and strategies for a more productive workplace.

And only use best practices as a template

This one may seem a bit counterintuitive; after all, they’re called “best practices” for a reason. But what’s best for one company isn’t necessarily what’s best for your company.

There’s nothing wrong with taking a look at another company’s manual; you may very well be able to glean some new ideas. But you can’t just adopt the entire document wholesale.

From policies to learning, everything your company does needs to tied to the culture you want. So instead, search for customized solutions to your workforce’s problems, and consider procedures and benefits that are tailored to your company, even if they don’t qualify as “best practices.”

Source: HR Dive

Date: 19th December 2017

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New motor law on the way

Passed by Lok Sabha, Bill removes cap on liability for third party insurance.

The Motor Vehicle Act (Amendment) Bill 2017, which proposes imposition of hefty penalties on auto companies found manufacturing faulty vehicles, is coming up in the Rajya Sabha in this Winter Session. The Bill also seeks statuary guidelines for cab aggregators and a 10% annual increase in penalties for traffic rule violations. The Lok Sabha passed the Bill in April this year.

The Motor Vehicle Act (Amendment) Bill 2017 is an important legislation as it will radically change the 30-year-old law. The following proposals in the Bill will probably change the way India drives in future:

Aadhaar will be mandatory for a driving licence and vehicle registration. For hit-and-run deaths, the government will provide a compensation of ₹2 lakh or more to the victim’s family.

In traffic violations by juveniles, the guardians or owner of the vehicle would be held responsible. The registration of the vehicle will be cancelled. The juvenile will be tried under the Juvenile Justice Act.

Those who come forward to help accident victims will be protected from civil or criminal liability.

Minimum fine for drunk driving will be ₹10,000.

Fine for rash driving will be ₹5,000.

Driving without a licence will be fined ₹5,000.

Fine for over-speeding will go up to ₹1,000-2,000.

Not wearing seatbelt would attract a fine of ₹1,000.

Talking on a mobile phone while driving will attract a fine of ₹5,000.

A Motor Vehicle Accident Fund will provide compulsory insurance cover to all road users in India for certain types of accidents.

It will be mandatory to alter vehicles for specially abled people.

Contractors, consultants and civic agencies will be accountable for faulty design, construction or poor maintenance of roads leading to accidents.

A time limit of six months has been specified for an application of compensation to the Claims Tribunal with regard to accidents.

The Bill removes the cap on liability for third-party insurance. The 2016 Bill had capped the maximum liability at ₹10 lakh in case of death and ₹5 lakh in case of grievous injury.

The time limit for renewal of driving licence is increased from one month to one year before and after the expiry date.

Government can recall vehicles whose components or engine do not meet the required standards. Manufacturers can be fined up to ₹500 crore in case of substandard components or engine.

Date : 18/12/2017

Source : The Economic Times

Insurance Industry Looks to Create Agri Insurance Pool

Will provide cover to insurance companies if global reinsurers refused to underwrite risks

Mumbai: Boosted by a sharp surge in demand for farm insurance, the general insurance industry is looking to create a buffer in the form of an agriculture insurance pool. Such an instrument will allow to retain the premium within the country, as well as provide cover to insurance companies if global reinsurers refused to underwrite risks. The government had set up two such insurance pools in India — the nuclear liability pool and terrorism pools — to retain business in India and provide capacity to the industry.

A report by Crisil said 77% of domestic crop insurance premiums were ceded to reinsurers in 2016-17. The premium income in the agriculture segment is expected to reach Rs 25,000 crore this fiscal year from Rs 21,000 crore last year, making it the fastest growing insurance business in the country. This, experts say, makes a case for having a local pool for farm insurance as well.

“Agriculture insurance in India needs a robust local reinsurance pool mechanism to cushion the Indian market from the volatile reinsurance situation,” said Sanjay Kedia, country head of insurance broker Marsh India. “Stable reinsurance capacity will help policy holders to have continuity and stability of agriculture insurance availability.”

Within two years of the launch of government’s crop insurance scheme, crop insurance has become the third largest segment for general insurers after motor and health. The agriculture segment contributed 16% to gross general insurance premium. In the budget, the government has increased the insurable crop coverage from 30% to 40% this year and will raise it to 50% next year, suggesting that the segment will continue to see strong growth.

Given the growth in the segment, reinsurance is expected to expand rapidly. But reinsurance support may not be available from global players due issues from absence of enough data to lack of proper spread of portfolio. In addition, there are questions around constant re-tendering on insurance business by states. Insurance companies can be part of crop insurance through competitive bidding.

In 2016-17, the sum assured has increased by 84% under the Pradhan Mantri Fasal Bima Yojana and weather-based insurance schemes. According to estimates by industry experts, shareholders deployed Rs 18 per Rs 100 of gross written premium in crop after taking into account reinsurance arrangements.

Meanwhile, the agriculture product segment is the fastest growth segment for state-run General Insurance Corporation, and is making profit for the only India-based reinsurer.

Date :  18/12/2017

Source :  The Economic Times

HR’s Commitment Is What Engages Blue-Collar Workers

As analysts and executives wring their hands about how to excite a younger andmore demanding workforce, out in the real world many HR professionals face another challenge: Engaging the older, less-connected blue-collar worker.

These are the truck drivers, warehouse staff and retail sales people who move cargo or work the cash register and, when you get right down to it, actually operate the business. They’re the semi-skilled and low-skilled workers who haven’t obtained a college degree and probably never will. To them, the point of working most often is to make a living and support their families, not to change the world and get rich doing it.

 

Too many employers assume these employees aren’t all that interested in their work, engagement experts say. That’s likely a mistaken assumption, according to David Shanklin, head of culture strategy for CultureI Q, an employee-engagement platform provider based in New York City. And if workers do have that kind of attitude, “you’re probably not leading them correctly,” he said.

The Blue Collar Is Here to Stay

Despite all the talk of automation displacing everyone from factory workers to truck drivers, blue-collar occupations aren’t going away. In fact, the demand formany is growing dramatically. Between 2016 and 2026, reports the Bureau of Labor Statistics <https://www.bls.gov/ooh/fastest-growing.htm> ,demand for derrick operators in oil and gas will rise 26 percent; the need for plumbers, pipefitters and steamfitters by 16 percent; and for ironworkers by 13 percent. All of these are faster-than-average growth rates.

Employers who neglect their blue-collar workers are risking trouble in terms of recruiting and retention, to say nothing of business results. “Engagement cuts across all ages, verticals and demographics,” said Kim Dawson, director of employee experience at the Austin-based engagement firm You Earned It. “We’re talking about it now in terms of engagement, but historically we talked about it in terms of job satisfaction. If you’re happy at your job and say you’re satisfied, whether that’s in 1980 or 2018, they’re all the same. The only difference is the focus on engagement is more refined now.”

But there’s only so much one can do to make loading trucks engaging, said the HR manager of a distribution warehouse, who asked not to be identified because he’s not an official company spokesperson. When it comes to engaging manual workers, he said, HR is “limited in how much creativity it has to work with.”

But it can be done. Low- and semi-skilled workers are engaged by many of the same things that appeal to white-collar workers, other HR professionals say. Perhaps most important: They want to be respected and feel valued. White-collar workers may have more opportunities to get positive feedback by attacking issues creatively, “but I don’t want loaders ad-libbing their work,” the warehouse manager said. “I’ve got a standard operating procedure for that.” At the same time, he said, he welcomes employees’ well-reasoned ideas and builds variety into the workday by cross-training employees and forming teams to tackle special projects.

Listen and Understand

The first step toward engaging blue-collar employees is to listen. “You have to have a good understanding of each individual and how they view their job,” said the warehouse HR manager. “Some may not want to learn. Others do. You have to start with a conversation to understand what they’relooking for.”

Lorry Parker, SHRM-SCP, an independent HR advisor in Chicago, goes further. “Ask your workforce what would engage them, and don’t ask just once,” she said. “Don’t think you always have to have the idea. That in itself is engagement.”

It’s also important to understand that blue-collar workers view their jobs differently from office-based employees. To them, “a career has a different meaning,” said Marilena Acevedo, vice president of human resources for PetroChoice, a distributor of lubricants based in Fort Washington, Pa. “To them, ‘career’ equals ‘professional.’ ” They may not aspire to management roles, she observed, “but they want to be constant professionals.”

Embracing that attitude is at the heart of PetroChoice’s approach to engagement. With 850 employees in 52 locations, Acevedo and CEO Shane O’Kelly make an effort to be visible, transparent and, above all, respectful. “Sometimes people think drivers are unsophisticated, and they’re not,” Acevedo said. “They know their work, the market, the 401(k). They have integrity and loyalty. They’re looking for us to treat them right and help them take care of theirfamilies.”

Acevedo points out that becoming a professional driver is no easy task: One must earn a commercial driver’s license, have a clean driving record, maintain hazardous-materials and other certifications, and often obtain government security clearances. PetroChoice aims to maintain a culture built around helping employees succeed and grow while operating safely and delivering products properly. “We tell them what we expect and in return they know what they can expect from us,” she said.

Little Things Go a Long Way

Day-to-daytransparency and communication are important, as well. “We tell them when to expect that a lot of overtime will be necessary, and we tell them as far in advance as possible,” said the warehouse HR manager. Also, his company tries to accommodate workers so they can, for example, go to a doctor’s appointment without being penalized.

Informally recognizing an employee’s expertise during the workday also makes him or her feel valued. For example, PetroChoice regularly has its drivers deliver work-related presentations during its monthly operational safety meetings. (The company also hosts formal events like driver rodeos, where the winner and his or her spouse receive an expenses-paid trip.)

Surprisingly simple gestures can also make a difference. PetroChoice gives employees a $5 Dunkin’ Donuts gift card for their birthday, and O’Kelly has been known to send personalized anniversary notes to individual workers. “We get a lot of thanks for [both of] those,” Acevedo said.

Finally, just mixing it up can add to a worker’s engagement. Shanklin noted how Trader Joe’s moves its store workers around so they spend no more than three hours a day on a particular task. That kind of strategy “keeps the job fresh,” he said.

Blue-Collars Need Development, Too

Shanklin believes continuous improvement programs help people, and thus the business, at any level.

Development is a major theme at PetroChoice. The company actively helps workers advance by defraying the costs of professional training. Its newly launched Commercial Driver Training Program makes it possible for internal associates to obtain the often-expensive credentials necessary to become a more-highly paid commercial driver.

Warehouse workers have the chance to begin learning about trucks almost as soon as they’re hired. “They’ll drive a truck around the yard and do things like practice backing up,” Acevedo said. “That way, they go to school already having some on-the-job training.”

The company pays attention to personal development, as well. “We talk to employees about where they want to improve,” she said. For example, one warehouse associate sought Microsoft Excel training so he could better understand the reports he regularly worked with.

Finally, Dawson believes engaging all employees requires understanding the changes that occur within workforces over time. That brings us back to listening. “You need to be diplomatic and honest simultaneously, and mostly you have to care,” she said. “There is no way to be successful in employee experience unless you are invested in the success of both the people and the business.”

 

Source:- Society for Human Resource Management.

Date:-15th December,2017-Friday

 

 

 

Banks Want to Revive Trade & Warehouse Insurance

Indian banks are lobbying with the Reserve Bank of India and the Insurance regulator to revive trade and warehouse Insurance as the rise of digital tracking and traceable payments has become a lot more robust under TReDS, unlike in the past where inventories could not be tracked and malpractices were rampant in the absence of tech-based tracking.

“We have represented to the RBI that trade insurance should be made available to banks as most of the factoring is done by banks, and we are taking the credit risk when financing lower-rated MSMEs,” said a banker who did not wish to be identified.

RBI did not respond to an email query seeking its response to the story. TReDS is an online electronic institutional mechanism which facilitates the financing of trade receivables of MSMEs through multiple financiers. The platform enables discounting of invoices of MSME sellers against large buyers through an auction mechanism that ensures prompt realisation of trade receivables at competitive market rates. Banks, till a few years ago, were eligible to get an insurance cover for any money lent to trade and trade receivables, but it was later rolled back after several instances of mis-selling, and bogus bills were brought to Irdai notice.

“If Irdai can extend the insurance cover for trade insurance to banks, it will help us in a big way,” said Kalyan Basu, MD, Invoicemart. “Today, banks want collateral for loans which is a huge impediment for MSME finance. Trade insurance can be taken by MSMEs and buyers, but it is not assignable… if the bank is taking a trade exposure and the insurance cover is not assigned to the bank, then it makes no sense.” “Today, banks are only taking risks on select corporates. In due course, this can be expanded to corporates with low rating and for those corporates this insurance risk will play a substantial role,” said Sundeep Mohindru, founder, M1Exchange.

Source:-The Economic Times-Mumbai

Date:-15th December,2017-Friday

Edelweiss Life Gets ₹670 cr from Fin Arm, Tokio Marine

Edelweiss Tokio Life Insurance on Thursday announced an equity capital infusion of ₹670 crore from Edelweiss Financial Services and Tokio Marine to fund business expansion, develop its bancassurance channel, and explore inorganic growth opportunities. The company is a joint venture between Edelweiss Financial Services and Tokio Marine Holdings where Edelweiss Financial Services owns 51% and Tokio Marine owns the rest 49%. In February 2016, Edelweiss Tokio Life Insurance had received ₹527 crore in capital from Tokio Marine.

The fresh capital shows the long-term commitment by Tokio Marine and growth potential of Edelweiss Tokio Life Insurance. “This will take our solvency to above ₹800 crore of the required capital requirement to support 40-50% growth for the next four years,” said Dipak Mittal, MD of Edelweiss Life Insurance.

“We are evaluating inorganic opportunities. Currently, there’s no transaction in the advanced stage and if there is a need, the promoters will be willing to invest more capital.”

Edelweiss Tokio Life Insurance looks to expand the number of branches to 180 from 110.

“Insurance serves the dual purpose of mobilizing long term savings into investments, and providing protection,” said Rashesh Shah, chairman Edelweiss Group.

“With the increasing financialisation of savings acting as a significant growth driver for Life Insurance, Edelweiss Tokio Life has laid a strong foundation, and is well poised to take advantage of this growth opportunity.”

Source : The Economic Times

Date : 01-12-2017