Over the last few months, we have frequently been hiring for sales roles. New joiners would have worked in blue-chip companies earlier. Some of their company policies will be very employee-friendly. Having an open mind and progressive attitude, Cocoguru management would like to bring those policies here. A few of the guidelines suggested were

• Bring daily allowance or food expenses outside the employee Cost-to-company (CTC) calculation.
• Make salary payments immediately after the end of the month
• Bring paid leave value outside the CTC

The first suggestion (Food expenses to be excluded from Employees’ CTC) was implemented a couple of months ago. The second suggestion is set to be implemented now. The third suggestion is being considered but not decided.

Till now, salary payments used to happen on the 7th of the following month. The reasons were

• Employees used to quit immediately after getting their salary and without serving a notice period. Having 7 days of salary with the company would reduce such behaviour.
• Calculating salary and approvals takes some time, though done through spreadsheets, it requires gathering data like attendance, commission and incentives.
• Reduces the company’s working capital requirement to the extent of 1 week’s salary

Now, we are paying salaries immediately to permanent employees because

• The loyalty they have shown towards the company so far is being valued
• The company trusts them to behave like responsible employees
• Help employees meet their financial commitments earlier by 1 week
• Calculations and approvals can be done faster because of the more refined and automated calculation process now
• The company’s improved financial position means it can afford the necessary working capital

However, employees under probation will continue to get their salaries on the 7th.