Novative

Hiring Employees in Hungary | A Complete Guide

Heba Bakr — Wed, 16 Oct 2024 13:59:26 +0000

Hiring remote workers in Hungary involves a series of key steps to ensure compliance and smooth onboarding. Whether you’re a company expanding your remote workforce or just starting to hire internationally, this step-by-step guide will help you navigate the process of hiring remote employees in Hungary effectively and legally.

Step 1: Understand Hungary Employment Laws

Before hiring, familiarise yourself with Hungarian labor laws, including minimum wage, working hours, leave entitlements, and termination rules. Hungary has strict labor regulations that protect employees, so compliance is crucial.

Good to Know!

Standard Working Hours: In Hungary, the standard workweek consists of 8 hours per day and 40 hours per week. Overtime is defined as work beyond these hours and is governed by employment contract
Probation Period: A probation period in Hungary is optional and can be included in the employment contract by mutual agreement. It cannot exceed three months.
Termination Notice: Both the employer and the employee must provide a written notice of termination, which must include a valid reason for dismissal. Employers must give at least 30 days’ notice, but this can extend up to 90 days for employees with more than three years of service.
Severance Pay: The amount of severance pay depends on the length of the employee’s service, with longer employment durations resulting in higher severance payments.

Step 2: Choose Your Hiring Method

In Hungary, as in many countries, hiring and paying employees directly as a foreign company without a local presence is not legally permissible. To comply with local employment and tax laws, you must either establish a legal entity or partner with a registered Employer of Record (EOR).

There is no one-size-fits-all answer—the right choice depends on your company’s needs, goals, and circumstances. Here’s a quick comparison to guide your decision:

Criteria	Establishing a Legal Entity	Employer of Record (EOR)
Control	Full control over employment contracts, policies, and staff management.	Limited direct control; the EOR is the legal employer.
Setup Time	Time-consuming (can take several months).	Quick setup (can start hiring within days).
Compliance	Full responsibility for compliance with local laws and regulations.	EOR handles compliance, reducing legal and financial risks.
Risk	Higher risk due to direct liability for compliance, taxes, and employment laws.	Lower risk; EOR assumes responsibility for compliance and employee management.
Employee Connection	Direct connection with the company, fostering loyalty and engagement.	Employees may feel less connected to the parent company due to EOR’s role.
Long-Term Suitability	Best for long-term operations and significant market presence.	Ideal for short-term, testing the market, or initial entry without commitment.
Business Operations	Allows direct business operations, including signing local contracts and opening bank accounts.	Limited to employment only; not suitable for conducting direct business operations.
Maintenance	Ongoing maintenance of the local entity, including payroll, legal, and tax filings.	Minimal maintenance; the EOR manages payroll, taxes, and local requirements.

Criteria	Establishing a Legal Entity	Employer of Record (EOR)
Control	Full control over employment contracts, policies, and staff management.	Limited direct control; the EOR is the legal employer.
Setup Time	Time-consuming (can take several months).	Quick setup (can start hiring within days).
Compliance	Full responsibility for compliance with local laws and regulations.	EOR handles compliance, reducing legal and financial risks.
Risk	Higher risk due to direct liability for compliance, taxes, and employment laws.	Lower risk; EOR assumes responsibility for compliance and employee management.
Employee Connection	Direct connection with the company, fostering loyalty and engagement.	Employees may feel less connected to the parent company due to EOR’s role.
Long-Term Suitability	Best for long-term operations and significant market presence.	Ideal for short-term, testing the market, or initial entry without commitment.
Business Operations	Allows direct business operations, including signing local contracts and opening bank accounts.	Limited to employment only; not suitable for conducting direct business operations.
Maintenance	Ongoing maintenance of the local entity, including payroll, legal, and tax filings.	Minimal maintenance; the EOR manages payroll, taxes, and local requirements.

Criteria	Establishing a Legal Entity	Employer of Record (EOR)
Control	Full control over employment contracts, policies, and staff management.	Limited direct control; the EOR is the legal employer.
Setup Time	Time-consuming (can take several months).	Quick setup (can start hiring within days).
Compliance	Full responsibility for compliance with local laws and regulations.	EOR handles compliance, reducing legal and financial risks.
Risk	Higher risk due to direct liability for compliance, taxes, and employment laws.	Lower risk; EOR assumes responsibility for compliance and employee management.
Employee Connection	Direct connection with the company, fostering loyalty and engagement.	Employees may feel less connected to the parent company due to EOR’s role.
Long-Term Suitability	Best for long-term operations and significant market presence.	Ideal for short-term, testing the market, or initial entry without commitment.
Business Operations	Allows direct business operations, including signing local contracts and opening bank accounts.	Limited to employment only; not suitable for conducting direct business operations.
Maintenance	Ongoing maintenance of the local entity, including payroll, legal, and tax filings.	Minimal maintenance; the EOR manages payroll, taxes, and local requirements.

Step 3: Draft a Compliant Employment Contract

Creating a compliant employment contract is a critical step in hiring employees in Hungary. Employment contracts must adhere to Hungarian labor laws, ensuring that both the employer and employee understand their rights and obligations.

In Hungary’s labor market, there are two types of employment contracts:

Indefinite-Term Contract

Description: This is a standard type of employment contract without a fixed end date. It is the most common form of employment in Hungary and offers job security to employees.

Flexibility: Provides both the employer and employee with more flexibility, as the contract continues until either party decides to terminate it, subject to the notice period.

Termination: Requires a notice period for termination, which is typically 30 days but can vary based on the length of employment and contract terms.

Indefinite-Term Contract

Description: This contract is used for a specific period or for the duration of a project. It has a clearly defined start and end date.

Duration: Cannot exceed five years, according to Hungarian labor laws.

Termination: Automatically ends on the specified expiration date without the need for notice. However, if the contract is renewed or extended beyond five years, it may be considered an indefinite-term contract.

Key Requirements for Employment Contracts in Hungary

All employment contracts in Hungary must be in written form to be legally binding. Verbal agreements are not sufficient and may lead to legal disputes.

The contract must include specific details required by Hungarian labor laws: Read more about contract mandatory details

Ensure the contract does not contain terms that are less favorable than those provided by Hungarian law, as these would be considered invalid.

The employee must receive a copy of the signed contract, and both parties should acknowledge that they have read and understood the terms. This can be critical in preventing future legal issues.

Step 4: Register with Local Authorities

Register with the Hungarian Tax Authority (NAV)

You will need to obtain a tax identification number for your company if you don’t already have one. You must also submit regular tax returns and comply with reporting requirements.

Register with the Social Security Administration (OEP)

You will need to ensure that you are properly registered with the OEP and that contributions are correctly calculated and submitted. This involves setting up the necessary systems to track and remit these payments.

Forms and documents required for these processes

Step 5: Set Up Payroll

Choose a Bank: Select a bank that offers payroll services suitable for your company’s needs.

Account Setup: Open a business bank account to handle salary payments and other business transactions.

Gather employee’s information: Collect employee details, including personal info, tax IDs, and bank details, for payroll setup.

Generate Payslips: Provide employees with payslips detailing their gross salary, deductions, and net salary.

Distribute paychecks and file taxes: Pay salaries, deduct Hungarian taxes, and submit social security contributions to the appropriate authorities.

Reconcile Statements: Regularly reconcile your bank statements with payroll records to ensure accuracy and address any discrepancies promptly.

Monitor Payments: Keep track of payment statuses and address any issues with delayed or incorrect transfers.

Keep Documentation: Retain copies of bank statements, payroll files, and transaction records for compliance and auditing purposes.

Step 6: Provide Mandatory Benefits

Register with the Hungarian Tax Authority (NAV)

1.Retirement Benefits

2.Paid Time Off (PTO) :

- Annual Leave: Employees are entitled to at least 20 days of paid annual leave, which increases to 30 days once they reach 45 years of age.

- Public Holidays: Hungary recognises multiple paid public holidays each year.
- Sick Leave: Employees are granted 15 days of paid sick leave annually, with the possibility of extended leave for severe health conditions.

- Parental Leave: Women are entitled to 24 weeks of paid maternity leave while men are entitled to 10 days within two months of birth, with 5 days at 100% pay and 5 at 40%.

3.Occupational health and safety training

4.Medical Examination

Step 7: Submit Tax and Contribution Reports

Monthly/Quarterly Filings: Submit tax and social security contribution reports to NAV and OEP monthly or quarterly, as required.

Annual Reporting: Prepare and submit annual reports summarising payroll taxes and contributions.

Step 8: Maintain Compliance & Employment Obligations

Regularly review your compliance with Hungarian labor laws, ensuring timely payment of taxes and social security contributions. Also, stay on top of employee-related obligations like annual leave, overtime, and changes in employment terms or terminations.

Conclusion |

In Conclusion, Hiring remote workers in Hungary can be smooth and compliant with the right knowledge and resources. From understanding local employment laws to setting up payroll and providing mandatory benefits, each step is essential for a successful remote workforce. Whether you establish a legal entity or partner with an Employer of Record (EOR), ensuring compliance is crucial to avoiding legal and financial risks.

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Parental Leave in the 2020s | Adapting to Modern Family Needs

Heba Bakr — Thu, 10 Oct 2024 10:29:00 +0000

This decade has brought significant changes to parental leave policies around the world. Governments and companies alike are recognising that to support modern working families, traditional leave policies need to evolve.

From expanded leave for both parents to flexible work arrangements, these changes are shaping a more inclusive environment.

This blog explores how laws are evolving to meet modern family needs, with examples of countries leading these reforms.

Expanding Parental Leave for Dads

In the past, maternity leave was the primary focus, while paternity leave was often limited or non-existent. However, in the 2020s, more countries are expanding policies to ensure fathers can take time off to be with newborns.

For example, in 2022, Japan introduced a new act granting fathers the right to take up to four weeks of paid paternity leave following the birth of their child. Since this act the Percentage new fathers taking paternity leave increased from has doubled according to Statista.

While also in 2020, the UAE became the first Arab country to offer paternity leave to private sector employees. This made fathers entitled to five working days of parental leave, to be taken within the first six months of their child’s birth.

Flexible and Inclusive Parental Leave

The 2020s are also seeing more flexible and inclusive parental leave options. This includes policies that allow parents to take time off intermittently rather than in one continuous block. As a result, flexibility helps parents juggle the demands of both work and childcare, making the return to work smoother.

Moreover, policies are becoming more inclusive of non-traditional families, such as adoptive parents.As of January 2023, Swiss parents who adopt a child under 4 can take two weeks of paid adoption leave. In addition, payments are handled through the Social Loss of Earnings Allowance System.

Remote & Hybrid Work

The pandemic at the start of this decade has normalised remote work, and this has had a significant impact on how working parents manage both their professional and personal lives. Consequently, many companies now offer remote or hybrid work options, allowing parents to work from home, which can ease the transition back to work.

The Future of Parental Leave

Looking ahead, the future of parental leave and support for working families appears promising, with advocacy for policy changes gaining momentum. Many organisations and movements are pushing for national government policies that support paid parental leave. Several trends and developments are shaping this evolving landscape, and here’s what we can expect:

Increased Focus on Inclusivity

Increased Focus on Inclusivity
Future policies will likely be more inclusive, recognising the diverse structures of modern families. This includes not just recognising non-birthing parents but also supporting single parents, adoptive families.

Enhanced Flexibility

Flexibility will continue to be a key feature of parental leave policies. Companies may offer various options, such as phased returns to work, extended leave periods, and the ability to use leave intermittently.

Integration of Technology

Advancements in technology will play a significant role in shaping parental leave. Companies might utilise digital platforms Such as Novasmrt’s to manage leave requests, provide resources for new parents, and offer virtual support services, making it easier for families to access the support they need.

Workplace Culture Shifts

The future will likely see a cultural shift within organisations, where supporting parents becomes a core value. This shift can foster an environment of empathy and understanding, encouraging open discussions about the challenges of balancing work and family life.

Conclusion |

In Conclusion, the 2020s have ushered in a new era of parental leave that is more inclusive, flexible, and responsive to the diverse needs of modern families. As companies adapt to these evolving expectations, managing parental leave efficiently has become more complex, particularly for global organisations navigating diverse regulations. To meet these demands, many are turning to technology for support. Innovative solutions like Novasmart’s absance management software offer a streamlined way to handle leave policies, ensuring compliance across regions while providing a smoother experience for both employers and employees in this rapidly evolving landscape.

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Short-Term Employment | Understanding Benefits, Types, & Legalities

Heba Bakr — Thu, 29 Aug 2024 12:30:10 +0000

As an employer, bringing in reinforcements during busy times can help achieve business milestones more efficiently. This practice is prevalent across many industries, particularly in customer-facing roles. In fact, in 2022, 20.8% of all temporary workers were employed as service and sales workers, reflecting the increasing reliance on temporary staff to meet business needs.

In this article we will explore what short-term employment is, the different forms it takes, the benefits it offers, and highlight key considerations to ensure you stay compliant with relevant laws and regulations.

⁤What is Short-Term Employment? ⁤

Short-term employment is a work arrangement where an employee is hired for a limited period. ⁤⁤Unlike permanent positions, these jobs are temporary and can range from a few days to several months, depending on the organisations needs. ⁤

⁤For example, if a company is organising an event they might hire temporary staff for roles like ushers, ticket sellers, or setup crew. ⁤⁤These positions are typically short-term, lasting only for the duration of the event and the preparation or teardown period surrounding it.

Types of Short-Term Employment

There are various types of short-term employment, allowing organisations to choose options that fit their needs. Each type has unique benefits, helping companies manage their workforce and address specific project demands.

Casual Staff: Hired as needed to cover for permanent employees on leave or to handle unexpected workload increases. Their work is not tied to a particular season.
Seasonal Staff: These workers are hired specifically to handle work that occurs at certain times of the year. This type is common in industries that experience predictable, cyclical increases in demand or only operate during certain parts of the year, like agricultural farms during harvest season.
Contract Work: Involves working on a single project from start to finish. Workers can be freelancers or third-party staffing agency employees.
Internships and Apprenticeships: Provide short-term experience, training, or education, often aimed at students or entry-level professionals.

Why is it Popular?

These flexible staffing solutions offer significant advantages, , making it popular among organisations. Here’s why companies opt for short-term employment:

Cost Efficiency: Hiring short-term staff saves on long-term costs like benefits and pensions, helping manage your budget.
Specialised Skills: Short-term staff provide specific skills and expertise for projects, which is useful for tasks requiring experience.
⁤Reduced Risk of Overstaffing: Hiring temporary staff allows you to adjust your workforce in response to immediate needs without the risk of overstaffing during slower periods. ⁤
⁤Increased Innovation and Diversity: Bringing in individuals from different backgrounds and experiences can foster a more diverse and innovative environment, enriching your team’s creativity and problem-solving capabilities.

Legal considerations

The legal considerations for short-term employment can vary significantly depending on the country and its specific labor laws and regulations. While there are common themes, the exact requirements and obligations can differ. Here are some general legal considerations:

Employment Rights and Benefits: Temporary workers might have different rights compared to permanent employees. Some countries require temporary employees to receive certain benefits, such as paid leave or social security contributions, while others might offer fewer entitlements.
Taxation: The tax treatment of short-term employees can differ. Employers need to comply with local tax regulations regarding withholding and reporting income taxes for temporary staff.
Termination and Notice Periods: The rules around terminating short-term employees can vary widely based on the type of employment agreement, employee classification, and jurisdiction.
Collective Bargaining Agreements: In certain regions and industries, temporary employees might be covered by collective bargaining agreements or union rules. These agreements could impact their employment terms, such as wages, working conditions, and rights related to job security.

Conclusion | Short-Term Employment

Short-term employment offers a flexible and cost-effective solution for businesses needing to address varying demands, manage special projects, or access Specialised skills. By understanding the different types of short-term roles. By understanding the various types of short-term roles employers can make the most of these arrangements to boost efficiency and stay adaptable in a shifting market.

However, it is crucial to navigate the legal landscape carefully to ensure compliance so staying informed and proactive helps businesses take full advantage of short-term employment while upholding fair and lawful practices.

Need help managing your short-term workforce efficiently? Novative Payroll and HR outsourcing services can simplify the complexities of hiring temporary staff, ensuring compliance with legal requirements while streamlining payroll and HR processes. Contact us today to discover how our solutions can support your business and help you focus on what matters most—driving success and growth.

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Partial vs. Full-Service | Which Is The Right Payroll Outsourcing Choice?

Heba Bakr — Thu, 18 Jul 2024 08:02:21 +0000

Payroll is a critical component of any business. The way you manage it significantly impacts your company’s efficiency, compliance, and overall success. In fact, according to the EY Global Payroll Survey, 64% of companies have turned to payroll outsourcing.

When considering this option, it’s essential to decide between partial and full-service payroll outsourcing. Let’s explore the differences between the two to help you determine which is best for your business.

What is payroll outsourcing?

It involves hiring an external orgnisation to handle all or part of your company’s payroll processing and related tasks. Payroll providers can handle everything from calculating pay and deductions to transferring money into employees’ accounts and filing associated taxes.

Partial payroll outsourcing.

Partial payroll outsourcing divides payroll responsibilities between an external provider and your internal team. This setup lets you oversee critical aspects while leveraging outsourced expertise for tasks like tax calculations and compliance. Some of it’s benefits include:

Control over processes: By managing payroll internally, companies have direct control over sensitive financial data and ensure compliance with internal policies and regulations.
Cost effectiveness: Depending on the scale and complexity of operations, managing some payroll tasks internally may be more cost-effective compared to full-service outsourcing.
Employee relations: Direct management of some payroll processes can foster better communication and trust between the company and its employees regarding compensation and benefits.

Full-service payroll outsourcing.

Full-service payroll outsourcing is when businesses hand over the entire payroll process to a provider, ensuring comprehensive payroll management. So, your employees can focus on other important aspects of the business without worrying about payroll compliance and administration. Some of its benefits include:

Time and resource savings: It offloads all payroll functions to a specialised provider, freeing up internal resources for other critical business tasks.
Regulatory compliance: Ensures adherence to all payroll regulations and tax requirements,
minimizing
the risk of legal issues.
Error reduction: Reduces the risk of errors and inaccuracies in payroll processing, leading to smoother operations and greater employee satisfaction

How to choose between partial and full-service outsourcing?

When deciding between partial and full-service payroll outsourcing, several key factors should be considered to determine the best approach for your business.

Assess internal resources and expertise: Assess whether your team has the expertise and bandwidth as payroll includes many specialised skills and meticulous attention required in payroll processing.

Consider control and oversight preferences: Consider how closely you need to monitor payroll activities and compliance.

Do a budget and cost analysis: Evaluate the financial implications of both partial and full-service outsourcing options by comparing costs against the potential benefits, such as reduced errors, compliance assurance, and time savings.

Consider scalability factors: When selecting an outsourcing approach for payroll, prioritise a solution that aligns with your long-term business goals and growth strategy.

Why Choose Novative?

Novative payroll services caters to both approaches, allowing you to choose the level of outsourcing that fits your needs. Here are several compelling reasons why Novative stands out as an excellent choice:

Scalability: Novative services adapt to your growth, whether you’re a small company starting with partial outsourcing or a large company needing full-service as you expand globally.

Widespread presence: Operating in over 30 countries, Novative offers a one-stop shop for international businesses.

Security: Novative prioritises data security and offers ongoing support, ensuring peace of mind and regulatory compliance.

Same-day support: Our team of experts are here to offer personalised and consistent support.

In conclusion, the choice between partial and full-service payroll outsourcing depends on your business’s specific requirements, resources, and objectives. Evaluate your payroll needs carefully and consider partnering with Novative .

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Collaborative Hiring | Hire Smarter, Together

Heba Bakr — Thu, 28 Mar 2024 09:18:11 +0000

Introduction Collaborative hiring | Hire Smarter, Together

Hiring the right talent is essential for the success and growth of any organisation. It’s great to see the way we work going through such an exciting transformation, thanks to technological advancements, a changing workforce, and evolving employee desires as 91% of recruiting pros say they focus on being agile to adapt to hiring needs.

Companies are always adapting, dealing with potential skill gaps, and the challenges of managing remote teams. But one of the most important things to consider is finding the perfect cultural fit.

This is where collaborative hiring steps in, transforming the approach companies use to discover and choose their employees.

What’s collaborative hiring?

Collaborative hiring is a recruitment approach where multiple stakeholders within a company work together to select suitable candidates for positions. This method varies based on company size and role nature, but it’s often used in candidate interviews and assessments.

For example, when a software development team hires a new programmer, team members work with HR, providing input on technical skills and culture fit. In addition to assisting in creating job descriptions and conducting technical interviews. HR ensures compliance with policies, offers guidance on candidate evaluation, and selection of best practices.

Collaborative hiring Vs traditional hiring

When contemplating a change in recruitment practices, hiring managers and HR departments often ponder the compelling question of “What prompts the switch?” The comparison between collaborative hiring and traditional approaches emerges: Is the former genuinely superior to the latter?

To answer this question, we compare collaborative hiring and traditional hiring:

	Traditional Hiring	Collaborative Hiring
Communication	little to no communication between departments and HR	clear and constant communication between HR and relevant departments
Decision making	Single hiring manager or recruiter	Team effort involving hiring manager, recruiter, and relevant team members
Process structure	Linear, with defined steps completed by specific individuals	Agile, with tasks shared and feedback incorporated throughout
Workload distribution	Recruiter shoulders most of the tasks (screening, interviewing, scheduling, etc.)	Recruiters delegate tasks like assessments, scheduling, and specific interview questions to relevant team members.
Legal Compliance	Less complex if standard HR practices are followed.	Requires ensuring all interviewers are trained in avoiding bias and legal compliance during the interview process.

Collaborative hiring Vs traditional hiring

When considering a shift in recruitment practices, hiring managers and HR departments often ask, “What drives the change? The comparison between collaborative hiring and traditional approaches emerges: Is the former genuinely superior to the latter?

To answer this question, we compare collaborative hiring and traditional hiring:

	Traditional Hiring	Collaborative Hiring
Communication	little to no communication between departments and HR	clear and constant communication between HR and relevant departments
Decision making	Single hiring manager or recruiter	Team effort involving hiring manager, recruiter, and relevant team members
Process structure	Linear, with defined steps completed by specific individuals	Agile, with tasks shared and feedback incorporated throughout
Workload distribution	Recruiter shoulders most of the tasks (screening, interviewing, scheduling, etc.)	Recruiters delegate tasks like assessments, scheduling, and specific interview questions to relevant team members.
Legal Compliance	Less complex if standard HR practices are followed.	Requires ensuring all interviewers are trained in avoiding bias and legal compliance during the interview process.

Collaborative hiring Vs traditional hiring

To answer this question, we compare collaborative hiring and traditional hiring:

	Traditional Hiring	Collaborative Hiring
Communication	little to no communication between departments and HR	clear and constant communication between HR and relevant departments
Decision making	Single hiring manager or recruiter	Team effort involving hiring manager, recruiter, and relevant team members
Process structure	Linear, with defined steps completed by specific individuals	Agile, with tasks shared and feedback incorporated throughout
Workload distribution	Recruiter shoulders most of the tasks (screening, interviewing, scheduling, etc.)	Recruiters delegate tasks like assessments, scheduling, and specific interview questions to relevant team members.
Legal Compliance	Less complex if standard HR practices are followed.	Requires ensuring all interviewers are trained in avoiding bias and legal compliance during the interview process.

Why adopt collaborative hiring?

Increases the chances of hiring a culture fit candidate

91% of US managers Prioritise a candidate’s cultural fit over their skills and experience. Involving multiple team members in the interview process provides a more complete picture of how well a candidate aligns with the company’s values & culture. This approach allows both the candidate and the recruiters to learn more about each other, leading to a more accurate assessment of cultural fit.

Limits bias

Biases are a natural part of who we are and can be quite challenging to overcome, but a helpful approach is to bring them into the light and share your reasoning with others—this is where collaborative hiring plays a key role. When multiple representatives are involved in the hiring process, they can collectively evaluate a candidate to ensure a fair and unbiased assessment.

Enable Referrals

As your team members become more at ease with the recruitment process, they will discover that it’s easier to suggest individuals they know. When handled properly, employee referrals can become a recruiter’s go-to method for finding top-notch talent. As employee referrals can lead to:

Faster Hiring
Enhanced Employer Branding
Improved Employee Engagement
Reduced hiring cost

Improved candidate experience

Recruiters often feel stressed when entering a candidate interview unprepared due to busy recruitment duties, which can leave a negative impression. Collaborative hiring, involving multiple team members, ensures better preparation, focuses on the candidate, and provides a broader view of company culture for setting realistic expectations and enhancing the overall experience, ultimately attracting top talent by creating a positive candidate experience in today’s job market.

How to Optimise your collaborative hiring for success?

Give your team recruitment and interview training

Successfully integrating new team members into the hiring process requires some training and coaching to help them grasp the fundamental interviewing principles, be mindful of biases, and comprehend their responsibilities.

Standardise Candidate Evaluation

Ensure team members evaluate candidates based on the same standards by setting clear evaluation criteria, avoiding potential friction within hiring teams and maintaining fairness and objectivity. It’s crucial to create an environment where everyone feels heard and their opinions matter, to prevent any resentment or erosion of confidence in the collaborative hiring process among peers.

Minimise scheduling friction

Ensuring availability for interviews can be tough, causing recruitment delays and potential candidate disinterest. Transparency, shared calendars, clear communication, flexibility, and technology like scheduling software are key to a smooth and efficient hiring process. Setting deadlines and maintaining open communication help create a collaborative and positive experience for everyone involved.

Leverage the right tech

Collaborative hiring thrives with the right technology, making the process more efficient and enabling seamless collaboration among dispersed teams. Software solutions such as Novasmart facilitate real-time communication, sharing of candidate profiles, feedback exchange, and collective decision-making, ultimately leading to better hiring outcomes.

Conclusion | Collaborative hiring | Hire Smarter, Together

In conclusion, collaborative hiring helps organisations in creating a talent acquisition strategy that promotes a team-based approach, recruits top performers, and fosters a welcoming environment. Embracing innovative technologies like Novasmart streamlines communication, shares candidate profiles, exchanges feedback, and makes collective decisions efficiently.

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The power of EQ | Building an Emotionally Intelligent Workplace

Heba Bakr — Thu, 29 Feb 2024 09:55:37 +0000

Introduction : Building an Emotionally Intelligent Workplace

Many believe that emotions and intelligence are opposites, but researchers in emotion psychology have recognised emotions as it’s Owen unique form of intelligence known as emotional intelligence (EQ). In the workplace these findings highlight that understanding and managing emotions is vital for a well-rounded and effective environment.

Forbes magazine emphasised this by mentioning that 90% of top achievers show strong emotional intelligence. This highlights the importance of fostering an emotionally intelligent workplace for an employee’s overall success.

In the following article, we will discover what emotional intelligence (EQ) is and how having an emotionally intelligent workplace contributes to the establishment and maintenance of a collaborative and high-performing work environment.

What’s emotional intelligence (EQ)

Emotional intelligence is the ability to understand, use, and manage your own emotions in healthy ways, recognise and understand the emotions of others, and use this knowledge to navigate relationships and interactions effectively. It includes 5 key skills:

Self-awareness

The ability to know what you are feeling and why—and how it affects what you are trying to do. You sense how others see you, so you align your self-image with a larger reality.

Self-control

The capacity to regulate disruptive emotions and impulses. Which ensures the effectiveness of your actions in the face of stressful or hostile conditions.

Empathy

The comprehension abilities of others’ emotions require the capacity to step into their shoes and perceive situations from their point of view.

Motivation

The drive to improve and achieve with a commitment to your goals, or readiness to act on opportunities, and optimism and resilience.

Social skills

The skills needed to handle and influence other people’s emotions effectively.

Advantages of having an emotionally intelligent workplace

By understanding and honing EQ skills, individuals and teams can navigate challenges and enhance performance. The recognition of EQ’s pivotal role is not merely coincidental. It‘s ranking in the top 10 most in-demand work skills by the World Economic Forum, reflects its integral part in helping to create:

Effective leadership & decision-making

Leadership decisions go beyond rational factors; it includes understanding the emotional implications of choices. Developing leadership EQ allows leaders to become more effective, provide support, maintain composure, and positively influence the emotions of those around them.

Supportive well-communicated work environment

Practicing EQ helps the team interact with each other professionally, modulating one’s tone of conversation based on the emotional state of the counterparty and communicating clearly to prevent conflicts. This fosters a supportive workplace and a positive culture.

Administrative efficiency

Emotional intelligence (EQ) enables you to understand your employees better, allowing you to tailor processes to improve efficiency in administrative tasks, handle challenges, and address inquiries. This, in turn, significantly enhances the overall efficiency of the organisation.

Enhanced performance & reduced turnover

Investing in EQ skills can unlock the full potential of every employee. Employees with strong emotional intelligence are better equipped to handle workplace stress, maintain productivity under pressure, and adapt to changes, resulting in higher levels of engagement, loyalty, and better long-term performance.

Holistic performance measurement

Emotional intelligence (EQ) is a valuable addition to performance measurement, considering not only technical skills and task accomplishments but also the interpersonal and emotional aspects of an employee’s performance. Providing managers with a broader perspective not only gauges current performance but also predicts future success.

How to create an emotionally intelligent workplace?

Building an emotionally intelligent workplace involves more than constant niceness; it’s about recognizing how emotions’ impact on thoughts, speech, and actions. Leadership support is pivotal for this cultural shift. Establishing specific, measurable goals for emotional intelligence development is key, as is providing a roadmap and ensuring organisational accountability.

work on emotional awareness

Emotional awareness, a key component of emotional intelligence (EQ), plays a crucial role in enhancing team dynamics by enabling teams to navigate the intricate social and emotional processes at play. This strengthens team cohesion and paves the way for success.

Teach emotional intelligence skills

Assess the team’s current emotional intelligence, identify challenges, and implement exercises that address it for ongoing emotion regulation. Involve every team member in the process and integrate this development exercise into everyday practices and interactions with clear metrics to measure progress in team members’ emotional intelligence development.

Implement conflict resolution strategies

Effective conflict resolution plays a pivotal role in building emotional intelligence. It empowers individuals to navigate disagreements constructively. This leads to positive resolutions that not only strengthen relationships but also create a positive emotionally inelegant environment.

Encourage your team to reflect and debrief

Reflecting on both positive and negative experiences fosters self-awareness and emotional vocabulary. Sharing reflections through open dialogue builds trust and a supportive environment. This collective effort strengthens your team’s EQ.

Conclusion | 4 Strategic Advantages of Global Hiring

In conclusion, the landscape of professional success has shifted, with technical skills alone proving insufficient. Recognising emotional intelligence (EQ) as the new differentiator is imperative.

As we move forward, encouraging continuous EQ growth becomes integral, ensuring both individual and organisational triumphs in the dynamic world of work.

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Global Operations Success | Insights from Novative CEO

Heba Bakr — Tue, 27 Feb 2024 07:39:23 +0000

Conclusion | Navigating Global Payroll

In today’s interconnected world, the pursuit of global expansion and operating on an international level is a common goal for many companies, spanning various countries and continents. However, the management of a global team introduces unique challenges that require adept navigation.

Over the course of three decades, Novative has consistently confronted and overcome the complexities of global operations. Today, our CEO, Khaled Sassi, shares tips that helped us succeed by addressing and using diversity in our global team.

#1 How has operating globally impacted the work culture at Novative?

We pride ourselves on our global presence in 30 countries, offering HR software and services that thrive on a foundation of localised knowledge. As the CEO, I’m dedicated to navigating the intricate landscape of managing an international team, recognising that success lies in understanding and embracing the diversity of cultures, ideas, and approaches across borders.

#2 How do you ensure effective communication and collaboration with your international team?

Managing an international team requires a flexible and adaptive approach. We emphasise clear communication, fostering a culture of understanding, and appreciating diverse perspectives. Regular check-ins, utilising technology for seamless collaboration, and respecting varying time zones are some strategies that keep us agile amid these twists and turns.

#3 What positive impact did Novative's global operations have on your professional journey?

Working with an international team has been a catalyst for innovation and growth. Our diverse workforce brings an array of viewpoints, enriching our solutions and services. The fusion of various cultural insights fosters creativity, enhances problem-solving, and leads to more comprehensive approaches tailored to our global clientele.

#4 How do cultural differences affect managing your international team? How did you handle it?

Yes, managing diverse cultural backgrounds is a challenge, but it’s one we embrace. Cultural awareness workshops, open dialogues, and encouraging a respectful environment for sharing experiences and traditions have been instrumental. Adapting management styles to accommodate cultural nuances is essential to ensuring everyone feels valued and understood.

#5 How do you ensure every team member feels heard and valued?

Actively listening and creating spaces for open dialogue are pivotal. Regular feedback sessions, inclusive decision-making processes, and recognising individual contributions foster a sense of belonging. We promote a culture where diverse opinions are not just heard but valued, ensuring each team member knows their significance in driving our collective success.

#6 How do you measure success especially when working across borders? Any unique twists from the usual office setup?

Success, for us, transcends borders. While traditional metrics like client satisfaction and revenue growth remain crucial, we also focus on cultural integration, cross-team collaboration, and employee satisfaction across all locations. Adapting KPIs to suit the unique dynamics of different regions allows us to gauge success comprehensively.

Conclusion | Navigating Global Payroll

In conclusion, Khaled’s insights from his experience at Novative emphasise embracing adaptability, championing collaboration, and celebrating diverse cultures, with the following key takeaways:

Takeaway#1 Managing an international team demands flexibility.

Takeaway#2 Utilising technology streamlines collaboration.

Takeaway#3 Cultural diversity enhances innovation and growth.

Takeaway#4 Adjust KPIS to the dynamics of different regions.

Contact Us | Navigating Global Payroll

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4 Strategic Advantages of Global Hiring

Heba Bakr — Tue, 16 Jan 2024 14:36:44 +0000

Introduction : 4 Strategic Advantages of Global Hiring

Global hiring has evolved beyond merely expanding access to a larger talent pool; it has become a strategic imperative for businesses seeking qualitative advantages. The European Union and European Free Trade Association alone boast a workforce of over 45 million individuals employed by multinational companies, underscoring the pivotal role of a comprehensive recruitment strategy.

In this article, we will explore the benefits of hiring globally and how it can be a game-changer for your business.

#1 Extend Operational Hours

Strategically distributing team members across different time zones enables extended customer support, smoother project handovers, and faster turnround times. Essentially, any sector dependent on swift responses and continuous service delivery can gain a significant competitive advantage from a globally distributed team.

This approach keeps the team agile and responsive in a dynamic and fast-paced global landscape

#2 Labour Cost Optimisation

Whole Lower wages may drive companies to hire internationally, Achieving real cost reduction requires a deep understanding of the overall financial landscape, including benefits and payroll taxes.

Customising your payroll strategy is key to cost savings. Partnering with a global payroll provider is the most effective way, providing flexibility to tailor processes, align with your needs, and maintain efficiency. This strategic alignment enhances international operations management, improving overall financial performance.

#3 Elevatd Brand Image

Global hiring enhances your brand image and transforms it into a symbol of innovation and resilience. By showcasing a strong commitment to diversity and global collaboration, you attract top talent and inspire customer trust.

This positions your organisation as a dynamic, global player and showcases your ability to adapt and thrive in different markets.

#4 Easier Market Expansion

By hiring employees from different countries, you gain valuable insights into local cultures, preferences, and trends. It also opens doors to strategic collaborations and investments, fueling your business growth on a global scale.

For instance, a North American company can expand into Asian markets by hiring diverse local employees, gaining insights, fostering collaborations, and ensuring successful global growth.

Conclusion | 4 Strategic Advantages of Global Hiring

While adopting a global hiring strategy brings transformative benefits, it’s crucial to acknowledge the complexities of international expansion. The lack of legal entities poses implementation challenges, necessitating a knowledgeable partner for compliance with local laws.

So you need to choose a trusted provider that ensures a smooth transition into new markets, addressing legal and regulatory hurdles with precision.

Take global hiring steps with confidence, knowing that Novative is committed to optimising your global hiring strategy and facilitating sustainable growth. Take the next step towards international success – partner with Novative today.

Ready to expand your business globally

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Navigating Global Payroll | Insights from a Novative Expert

Heba Bakr — Tue, 09 Jan 2024 07:36:51 +0000

Conclusion | Navigating Global Payroll

Expansion is an exciting endeavour, but one of its biggest challenges is managing global payroll. When organisations enter new markets, it’s crucial to understand the various tax systems, currencies, and cultural nuances.

Discover the importance of global payroll as the foundation for successful international expansion. with one of our payroll experts, Shawnessy Gaynor, shares valuable insights on how Novative can support your global operations for a seamless and prosperous expansion.

#1 As a payroll expert, how do you ensure compliance in global payroll operations?

You have to be cognisant of the differences in how governments work. Utilising a team of experts in each country is very helpful. In some countries, it is very easy to employ staff, but you have to be aware of the labour laws specific to that country. In other countries, there are unique challenges with taxation and what the minimum requirements are that need to be followed. You have to guide your clients through the differences to dispel any fears of employing people in different countries.

Payroll itself is pretty standard in all countries. You are paying your employees for the work they have done, regardless of where they are located. The challenge is understanding the different labour laws and tax regulations in each country that affect both the employee and the employer.

I find that being upfront about the challenges the client might face when employing in different countries expels their fears, and it becomes a team effort. They are not in this alone, and with our help and guidance, we can succeed.

#2 How do you measure success especially when working across borders? Any unique twists from the usual office setup?

You have to be in the mindset that you actually work in an office even if you are working globally. Engage with your team.

#3 Have you encountered challenges managing payroll processes in diverse cultural settings, and how do you navigate them?

I haven’t actually had any challenges working with diverse cultures. However, I am very cognisant that we are all different, and I try to find ways to make the process easier and less stressful for our clients. I find being honest, kind, and communicating effectively very helpful in navigating any challenges that may arise.

#4 How do you ensure every team member feels heard and valued?

Make sure to have weekly meetings so that global team members feel connected. Even if it is just for a few minutes, it makes you feel part of a team. Ask questions about their life. Show interest in them as a person. Always be willing to help and offer your assistance. I send messages to team members just saying “HI!” Maybe asking how their week is going. Reaching out to team members lets them know they are valued and considered.

Conclusion | Navigating Global Payroll

In conclusion, Shawnessy highlights the critical role of compliance, cultural awareness, and transparent communication in global payroll, all expertly provided by Novative’s team, in the realm of international expansion. As we reflect on her insights, these key takeaways stand out:

Takeaway #1: Prioritise compliance with local experts’ assistance.

Takeaway #2: Collaborate with clients, emphasising they’re not alone.

Takeaway #3: Navigate payroll with kindness and clear communication.

Contact Us | Navigating Global Payroll

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6 PTO polices for a smooth holiday season

Heba Bakr — Thu, 07 Dec 2023 07:09:12 +0000

With the holidays’ festivities approaching, it’s not unusual to see decorated desks left unattended. It’s the perfect time for people to go on trips or enjoy quality time with family and friends. Yet, for employers, it’s like everyone’s trying to catch the same holiday wave, and suddenly, scheduling turns into a bit of a festive puzzle.

So not to have a Silent night at the office while keeping your employees happy you can consider these 7 PTO polices that will get you through this PTO rush.

#1 Establish a cutoff date

Establishing a clear timeline for PTO approvals and requests within the team assures a celebration devoid of eleventh-hour astonishments. This a win-win situation, ensuring a holiday work crew’s precision by instituting unequivocal deadlines.

Maintaining proactivity in PTO processing becomes essential, guaranteeing seamless approvals and empowering employees to strategically organise around their schedules.

#2 Adapt a floating holiday system

In today’s workplace, Diversity is at its peak, reflecting varied cultural and personal backgrounds. However, during major holidays with extended closures, employees may feel pressured to use vacation time, even if these holidays hold little personal significance.

Introducing floating holidays eases the Christmas time-off rush and adds flexibility for everyone. For those not celebrating Christmas, it’s a chance to customize time off to personal preferences.

Imagine an employee happily taking time for family or cultural celebrations, creating joyful moments without you having the stress of scheduling gaps created by the holidays.

#3 Set a plan for Requests Prioritisation

Navigating time off during the holidays demands a fair process. Defining the criteria, you use to approve or deny leave ensures a seamless balance between festive celebrations and smooth operations.

You can take the traditional route, basing your assessment on employee hierarchy or seniority, or on a first-come, first-served basis, but this system might lead to operational disruptions, overlooking individual circumstances or varying workloads.

Embracing modern approaches like a rotational schedule for time off, aligning with business needs, and encouraging team coordination ensures that everyone gets a turn, fostering appreciation among your team.

#4 Encourage flexibility

Since everyone has different holiday plans, giving your employees some options to alter or adapt their workdays to match their needs to celebrate their usual holiday traditions while making sure you have enough employees on staff. You might consider:

Partial-Day PTO: Employees can contribute during crucial work hours while maintaining productivity levels even during peak holiday periods.
Remote work for those employees who can perform their tasks outside of the office allows them to participate in holiday festivities without taking a day off.
Shift swaps Employees can swap shifts to accommodate their holiday preferences.

For example, an employee can celebrate their usual holiday traditions then have a later shift during the day.

#5 Offer Incentives and Rewards for Working

While the idea of working during the holiday season might not be everyone’s cup of cocoa, high consumer demand requires us to be ready with more productive workers.

So, to encourage workers to take up the hours during the season, you might consider some incentives like:

Cash bonuses whether it’s a few dollars or a large sum it adds a touch of sparkle to your employee’s hard work
Holiday pay rate Holiday pay is a great way to make it worth your employees’ time.
Parties and events Alleviate the potential stress of working during busy holiday periods with celebrations in the workplace, creating a festive atmosphere.
Extra PTO encouraging employees to approach holiday shifts with a positive mindset, knowing that they have the opportunity to relax and rejuvenate afterward.

#6 Implement a clear request system

But before doing all the previous you must have a seamless process for employee time-off requests. This process includes guidelines outlining the method for requesting time off, identifying the designated recipient for these requests, and articulating the criteria governing the approval or rejection of vacation leave.

Conclusion - 6 PTO polices for a smooth holiday season

While using an Excel spreadsheet may seem convenient, it often proves time-consuming and susceptible to human errors, potentially leading to scheduling mishaps. Opt for a more efficient and foolproof approach to ensure a smoother holiday season.

Want a Stress free holiday season?

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