Mark Zuckerberg once said, “Treat your employees right, so they won't use your internet to look for new jobs.”
It means that when you treat your employees well, they become content and are less likely to seek other job opportunities. By fostering an environment where your team feels valued and appreciated, they are more likely to stay with your organisation and approach their work with a positive attitude. So, if you treat your employees right, you won't have to worry about them leaving for better jobs.
When you bring on your first employee, it's crucial to understand the legal and ethical obligations you have towards them and any future hires. This means ensuring they receive fair pay, suitable benefits, and a supportive work environment. By fulfilling these responsibilities, you create a foundation of trust and respect with your employees, fostering a positive and productive workplace.
In Malaysia, the Employment Act 1955 mandates these responsibilities for all employers, regardless of coverage. This act guarantees fair wages, sick leave, annual leave, and protection against unfair dismissal, ensuring a fair and protected relationship between employer and employee.
Whether you’re an entrepreneur with years of experience or a new business owner, there are several crucial responsibilities that employers must shoulder when it comes to their employees. These include:
1. Proper record-keeping
In Malaysia, meticulous record-keeping plays a vital role in maintaining a fair and transparent work environment. Employers are required to keep accurate records of their employees, covering personal details, attendance, medical information, accommodation, and salary payments.
Why? Well, it's like a roadmap. It ensures everyone knows what’s happening and keeps everything fair.
Maintaining these records allows you to monitor your team's performance, address concerns and identify areas for improvement, ultimately leading to a more effective and productive team. Conversely, neglecting meticulous record-keeping can lead to legal repercussions, erode trust among employees, damage the company's reputation, and disrupt day-to-day operations.
So, if you're aiming for a thriving business, don't overlook the importance of meticulous record-keeping.
2. Paying monthly salary on time
Think of yourself as a regular worker, like so many others. You work hard to make a living, but there's more to your life than just your job. It’s a constant juggling act, trying to balance work with everything outside of it, including your financial responsibilities.
Just as you need money to cover expenses like rent or mortgage, groceries, utilities, and bills, employees face similar financial commitments. Thus, it’s essential for employers to recognise this and fulfil their critical responsibility of paying their employees accurately and on time. In Malaysia, employers must pay their employees at least once a month, within seven days of the end of the wage period.
Besides, nobody wants to be left high and dry when it comes to their hard-earned money.
Employers should prioritise the establishment of efficient payroll systems, meticulous record-keeping, and transparent communication with their employees regarding salary disbursements. This not only ensures the fulfilment of legal obligations but also provides your employees with financial security.
e-Payroll, available on the i-Akaun (Employer) portal, streamlines and simplifies payroll and tax payments, and other mandatory deductions digitally. It enables fast, accurate, and efficient payroll management, eliminating manual calculations and the potential for errors. Moreover, e-Payroll assists employers in maintaining salary records and making digital EPF contribution payments, enhancing overall convenience and effectiveness.
With our e-Payroll system, managing your payroll becomes a breeze. We offer four key features that make it simpler and more manageable than ever before:
Making mandatory salary deductions may seem like a hassle, but they play a vital role in providing essential protections and benefits to employees. As an employer, it’s your responsibility to deduct and manage these contributions for the well-being of your workforce.
These deductions typically include monthly income tax, and contributions like Social Security Organisation (SOCSO), Employee Insurance System (EIS), and EPF. Thankfully, the integration between e-Caruman and e-Payroll simplifies the process of making EPF contributions, making it seamless and user-friendly. You can now manage these deductions efficiently through the e-Payroll system without the need for manual interventions or separate platforms.
Additionally, e-Payroll automates the calculation of income tax based on employees' salaries and tax rates, ensuring accuracy and compliance with tax regulations.
By ensuring timely and accurate deductions, you contribute to your employees' financial security and future. Embracing these deductions is not just a legal obligation but a responsible commitment to the well-being and welfare of your employees. It demonstrates that you value their long-term security and prosperity, fostering a positive and loyal workforce.
4. Providing benefits and incentives
In the workplace, offering employees a good mix of benefits and incentives, including financial security, health insurance, and retirement plans, is instrumental in shaping an environment where employees can thrive.
Additionally, providing opportunities for career growth and flexible work arrangements further enhances their overall well-being.
These benefits not only serve as a safety net in times of need but also promote a sense of security and stability, reducing financial stressors that can adversely impact well-being.
But it goes beyond just financial matters; it's also about nurturing your employees' overall well-being. This means ensuring they're not just financially secure but also in good physical and mental health, finding true meaning in their work. How can you achieve this? By introducing wellness programs and mental health support that cater to both their physical and emotional well-being.
Moreover, acknowledging and celebrating employees through performance-based incentives plays a pivotal role in shaping a positive work culture. This, in turn, significantly boosts overall job satisfaction and emotional well-being.
Want to take it up a notch? Consider enhancing your employees' benefits through Voluntary Excess (VE)!
What is EPF Voluntary Excess and how can you contribute?
Every employee, as well as every employer responsible for an individual classified as an employee, is obligated to make regular monthly contributions to the EPF. These contributions amount to 11% of the monthly wages for the employee portion and 12% or 13% of the monthly wages for the employer portion.
In addition to the standard rates, both employees and employers have the option to make voluntary contributions to the EPF, known as Voluntary Excess (VE).
By contributing beyond the standard rate, you not only acknowledge and reward their dedication but also make a valuable investment in their future. This demonstrates the immense value you place on their unwavering commitment and contributions to the organisation.
In today’s fast-paced business landscape, placing importance on the happiness and satisfaction of employees is not merely a sentimentalist view, but a wise business strategy. After all, they are the most valuable assets for any employer.
Creating a work environment that promotes employee engagement, motivation, and loyalty is your responsibility as an employer. By doing this, you can set the stage for your business to thrive, achieve its goals, and stay ahead of the competition.
So, let's be good bosses and make our workplaces awesome!
