GreyFlex Weblog

• An individual can claim deduction of up to Rs15,000 towards the Health Insurance premium paid for your parents if they are below the age of 65 years.
• This deduction is applicable over and above the Rs15,000 deduction that you are entitled to as an individual under section 80D for health insurance taken for yourself. So in totality one can claim up to Rs 30,000.

If your parents are senior citizens, then the coverage can be up to Rs 20,000/, and an overall coverage of Rs 35,000/- including your cover.

Source : http://www.livemint.com/2010/01/22120313/Did-You-Know-Look-after-paren.html

GreyFlex Consulting announces the launch of its Career counseling & Academic Advancement Services, watch out for this space.

Freshers just out of under-graduate and graduate courses now have a comprehensive listing of career advancement options available here in short time. Come back for more in a while.

I wrote about the exemption of Fringe Benefit Tax in my post on 07, July, and here’s a report on yet another mid year addition of taxing perquisites offered to employees. The Direct taxation board and Finance Ministry works on absolute whims without being sensitive to the amount of change in process that a company would need to carry out in administering such whims.

All the talk about saral tax filing and simplification of taxation processes goes out of the window. There is an absolute commerce thriving in coming to terms with such whimsical turn-around by the government authorities. The report can be viewed in the link below.

tax-on-perquisites-et-191209

Among the many blogs on economic scenario, its effects and way forward one I have been following quite regularly is Seth Godin, here’s a link on a free-ebook from his blog site http://sethgodin.typepad.com/files/what-matters-now-2.pdf

Its a great read.

During these troubled times, here comes in a carrot, with the Finance Minister proposing in his budget on scrapping the Fringe Benefit Tax (FBT). Most medium to large companies were offering special allowances as a part of the bouquet of allowances to employees for claiming better tax benefits, which in turn attracted FBT on such allowances for the companies. The much hyped Stock Option Plans (ESOP’s) with many riders on to it, also was subjected to FBT, if they were to be exercised resulting in capital gains.  With FBT expected to be removed, Companies will now pass on the burden of tax directly to the employees.

In reality one would wonder if FBT really pinched the companies very hard, and did allow the employees to get better benefits. And if the withdrawal of the FBT, if this will actually help companies reduce much tax burden and help employees carry larger pay packet.

Well atleast on one count, the employees will benefit on exercising the stock options now that it will not be covered under FBT.

Just yesterday the small team of us present at office got together while the systems were getting serviced and I grabbed the opportunity of discussing with them, how post these times, the business scenario will change for ever. Like it is pretty much clear the rules of business process will and have transitioned to a much more pragmatic approach. The team appeared to agree that we had to leverage our expertise in managing process, its transactional sequence, the multiplicity of priorities, anticipating and preparing for trouble, and proactively approaching opportunities with not so much dependence on domain expertise or what we have done so far. I have always believed that domain expertise can be learned and the time it requires to learn the process is inversely proportional to the willingness of the individual or the team engaged in it.

I read Seth Godin regularly and he inspires confidence in troubled times and it just felt great that he happened to mention just what we discussed in his post, http://sethgodin.typepad.com/seths_blog/2009/01/what-are-you-good-at.html

While we have been seeing a frightful drop in the business margins since August 2007, our business process has shown a steady increase in the top lines. We have managed to keep our neck out of the flooding waters primarily due to our earnest efforts to follow process and ensure that we are one up on the critical deliverable. The future belongs to proactive approach on business processes and being able to deliver value to clients over and above the transactional part of the deal. This approach applies significantly and critically to small enterprises and entrepreneurs, which in turn signifies the shift in outlook of team members of these enterprises to be aware of this challenge and adapt to it.

I am awed with the speech that Barack Obama gave on his inaugural address, and it did not appear like he was reading it, nor did it look like he had some help from a prompter. There is a lot on the web on his speech and subsequent analysis of why, how and what he said in those 25 minutes. He is known for his oratory skills, but the way he went on from issues to another and the passion he generated with those words in light of the troubled times we are in, I guess, connected much with listeners across the globe.

I have always been fascinated by the US – Indo relations. It’s been blow hot… blow cold… Most Indians, and typically a very large part of the entire middle class here, want to visit US; have been to US (some a few many times); know a great deal about the US; have someone they know or are related to closely in the US, yet I am not too sure if we have been able to impress much on our interest in US and get the policy makers there to know of the impression. We also had some of our national dailies screaming Obama quote US Citizens as Christians, Muslims, Jews, Hindus and non believers. For some reasons I believe that Obama unlike most other Presidents seems to acknowledge the role of the sizable Indian native population in US, and therefore I guess he may want to tread a better approach to the relations with India.

On his foreign policy, http://www.whitehouse.gov/agenda/foreign_policy/, one gets to see the changed US policies on troubled countries mentioned in prominence. The web page may not want to include all other countries and therefore it could be why India; however time and again the tilt towards these countries, and no direct reference to us makes us the common citizens wonder, if they yet presume India not to be an ally? The United States has never,  and as, in the recent past ever shown a strong support to Indian concerns. Nor do we do so well from our end with our communist parties crying wolf whenever there is a trade agreement signed or an FDI is inked with a American multinational, which probably attracts negative media attention there in US. For that matter communist parties are just the same with any other western countries and Indian enterprises as well.

In course of our regular business we have interacted with a lot of professionals from US as clients and have imbibed processes which have helped us manage business from a generic manner locally to transacting and presenting business in structured and professional way to global clients. It is to the credit of such transactions we have learned through them that have enabled us to gain grounds with professionals from different other parts of the world. Our experience in the last decade, which I am sure is not surprising and not new to many others, as well, is that our  business prospects are proportionate to the strength of US economy and other markets also respond better then. The way we have been conducting our business and responding to global clientele has undergone a sea change for better and local clients have also experienced such welcome change. It is quite in the interest of the enterprising community that the US economy does well and our relations with US on both the fronts; economic and external affairs, improve.

Hopefully with http://www.whitehouse.gov/blog/change_has_come_to_whitehouse-gov/ we will see better  times to come soon. Will there be a learning for our policy makers in managing such a change ?

I believe that Human Resource is very strategic to any Business and the cost of acquiring, nurturing, maintaining and retaining them exceeds fairly in value compared to any other resource.

In troubled and tough times like this when businesses tends to seek the easy way out in downsizing and camouflage it as cost rationale, the HR Department and professionals managing such processes need to stand up and make it count.

They need to evaluate such options with tough performance parameters and be very aware of the quality of resource they retain and release. This is also the time employer brand can actually be fortified and a very clear message on the company loyalty be stressed upon.

I represent the other side of the table in bringing across the elusive talent most businesses frantically try to acquire during good times. Human Resource professionals should be able to forecast the troubled times better, build the resource maintenance strategy and relay to the margin obsessed management the importance of long term perspectives  and gains. This way they could avoid falling prey to knee jerk reactions that most organizations have resorted to during these times.

Most economists, management gurus, financial advisors and knowledge institutions have failed us in predicting such recessionary scenario, its duration and its cascading effects. A large part of this scenario is also the creation of HR Management fraternity through mindless inflation of HR costs over the last few years and should now own up the responsibility to temper it down to reasonable level for the benefit of all.

It should rather be left to our own competence in assessing business scenarios and working towards better results which in no way should be socialist or advocate cheap please everyone policy. A more rationale effort to manage the HR Costs and talent is probably the call of the day.

So that is it!

To begin with the chairman tries to buy his son’s company which is in doldrums, all the while consumed by the insatiable greed for land, all this fueled by the hard earned money that a group of people called the Human Resource of the company has sweat to generate over so many years. One might be tempted to say… So What! The company belonged to them….!

Well with all emotions yet kept apart, I will answer back So What! So what if a person has founded a company; has invested in it; has nourished an idea; turned it to a business proposition and has generated wealth out of it… it doesn’t yet give the right to the founder to treat it like his ‘baap ki jaagir’… yes sir… it still doesn’t give him the right to treat it like one….!

Whatever the Companies Act of 1956 might want to say, I believe a company, the moment one is formed is no longer a baap ki jagir.. it belongs to those who have toiled to build it… it belongs to the people who work there… it belongs to the clients it gets business from …it belongs to the vendors who service it…it belongs to the investors and shareholders…it belongs to the government it pays tax to… it belongs to the land where its infrastructure stands….it belongs to the process that it serves the purpose of… and yes it too has a personality of its own, a character of its own … and a life of its own… a founder who may have created it cannot claim his auto-right to play with it, squeeze its life off, and then say, I am sorry, I resign !!

And the speculation galore, they are loosing clients, they are loosing investors, no one wants to buy them, employees are beleaguered, employees are looking out….they are sending resumes to recruiters, competing firms will hire them at lower than market compensation !

Come on guys!! Can we not see it… it is so clearly visible …it is a hand in glove connivance, of all those who were involved, auditors, government, politicos, bank and the management, who stripped the company of its cash, that’s all that is happened… yes that’s all that has happened… the company has been robbed of its cash…its money…

Could they possibly rob the company of its character, its personality, its business process, its human resource and the talent it has. I have had the chance to interact with some extremely great talent at this company over the years when I would try to poach business intelligence, human resource strategist, finance analyst, process specialist and many such niche areas for our other clients. Come on guys … this is the time the company, if we consider for a moment the company to be living person who is calling you out…. “Go out and tell your clients… tell your vendors… tell your team members… tell the government officials…. tell your family members… we are in charge and we will drive it now on… don’t loose faith in us, they have possibly robbed us of our money but not of our skin and our skin is colored dark, dark with the experience we have had to build our business and our process over these years. Let me not get raped. I don’t want anyone to take us over. I don’t want to merge with anyone. I want to continue living my character, my personality, and my business. Revive me back for the sake of our clients, our vendors, for you and your family, for our investors, for the tax we are paying, and for the land I belong to. I know I will live as long as I have you guys!!”

Do not send your resumes to recruiters or competing companies now, they may not value your worth as much as your company will do….stay back if you possibly can and prove a point. I just did some my otherwise poor math and realized if each employee could possibly raise a 5- 10 lakh loan you could possibly raise the money your company has been robbed off ?  or am I wrong ?

Let this be the moment of your Satyam!

Some fresh opportunities with clients this week,

1. Head - Supply Chain Management / IT / Marketing / Human Resources / Finance / Sales / Operations / Customer Services ; Location : Cochin; Client is a new cellular operator in Kerala; All roles require incumbents to have a minimum of 12 years experience, the client is open to candidates with background from any industry..! Call us on 9945109555 or email : praveen@greyflex.com to know more. 
2. Head of Facilities & Services based at Bangalore, for a fortune 500 MNC; ideally somebody with Leadership Skills; sound Financial Acumen (Average Spend category at USD 125 Million); Exposure and conviction to manage various stakeholders; the role is more strategic and less operational hence, F&A Background is not mandatory.