There has been a dramatic shift in the organizational cultures over the past few years. Employees are no more practicing the principle of beginning their job, serving the organization for decades and then retiring from the same one like that in earlier times. As a result, the organizations are more likely to experience employee exits. The process is not only critical but also complex. However, HR and payroll software can help minimize the worries of processes associated with employee exits.
The two major areas that need key consideration while doing employee exits in organizations are-
- Mapping the details of the resignation
Generally, all of the employees are listed under a common category for example ‘existing employees’. But, once the employee resigns, this category should change to may be ‘resigned employees’. To manage the exit formalities smoothly, the bifurcation between existing and resigned employees becomes a compulsion. Using a payroll software like PayWheel, managing employee data is streamlined. In only a few clicks, resignation details can be entered such as Date of Resignation, Last Working Date, Date of Full and Final Settlement etc. Moreover, the software allows marking an employee as ‘resigned employee’ so that they can be separately filtered and managed for associated processes.
- Initiating the Full and Final Settlement Processes
The Full and Final Settlement (F&F) process varies from company to company. While some choose to settle the dues right on the last working day of employees, others decide to execute the process 30 or 45 days later. This is a complicated process as it involves paying employees for the last month worked, any pending amount, LTA or Medical allowances in case of yearly payouts, Gratuity and other types of reimbursements. Yet, the F&F can be a cinch on availing the benefits of HR automation software.
The extensive software like PayWheel can assist the HR and accountants to calculate the exact amount for paying an employee (after the deduction of income tax and dues from employee’s side, if any). It also enables them to choose functions like payment mode etc. i.e. NEFT, Cheque or Cash as required.
PayWheel is a top-rated and most-preferred payroll software for SMEs in India that has eased the lives of hundreds of HRs through its wide ranging features. Not only full and final settlement, but also leave and attendance management, employee data management, automated pay-slips, Employee Self Service, salary process management, reimbursement and claim management etc. are other major complex functions it caters.
Do PayWheel’s capabilities impress you too? Why not work together! Set your organization for the many advantages of deploying a comprehensive payroll solution offered by us. Ask for a free demo by sending an enquiry today.