How Did Demonetization Shake Up HR Practices in 2017 and What Can We Learn?

The Impact of Demonetization on Human Resources

In the last part of 2016, while the nation was anxious about who would become the next President of the USA, our Prime Minister delivered a surprise with demonetization. The entire nation was shocked, and every headline focused on this issue. The Prime Minister played his trump card!

Apart from the usual chaos that engulfed the nation, demonetization affected several sectors, including manufacturing, e-commerce, IT/ITES, tourism, infrastructure, and more. In fact, it impacted all sectors.

The Role of Human Resources Post-Demonetization

One department that needs to take significant steps forward post-demonetization is the Human Resources department. Human Resources has a crucial role to play, with many changes needed for implementation and upgrades.

Digitalization and Cashless Economy

The primary goal of demonetization was digitalization and creating a cashless economy. Despite the emphasis on going green, many HR departments still rely on paper for documentation. Offer letters and appointment letters are often issued as hard copies, with one signed copy for HR and one for the employee. Even recognitions and awards are presented in writing. Can't we fully embrace digitalization?

There are numerous software applications available to monitor work and store data in an organized manner. Popular systems like HRMS (Human Resource Management System) or HRIS (Human Resource Information System) can help reduce paperwork and enable complete digitalization.

Moving Towards a Cashless System

Many companies still pay housekeeping, gardening, or contract staff in cash, a common practice. Every employee should have a salary account, which would be beneficial for all.

Human Resources needs to step up and activate the entire digitalization process, moving towards a cashless system.

Addressing Employee Concerns

Human Resources must also address the fear and restlessness among employees due to demonetization. Reports suggest a potential 35% job loss within six months in certain sectors. This has caused anxiety among employees across all sectors. HR must tackle the challenge of restoring faith among employees, conveying that job losses occur when productivity is low, and the company is performing well post-demonetization.

This can be achieved by sharing positive organizational achievements online or organizing small outings or motivational training sessions.

Human Resources has a significant agenda for 2017. Let's get to work!

Read more at: Human Resources in 2017 - JantaKhoj

The impact of demonetization indeed brought significant changes across all sectors, and Human Resources was no exception. As you pointed out, it's time for HR to step up and adapt to these changes. Here are some practical ways HR can evolve post-demonetization:

📅 Adopt Digitalization: It's time to say goodbye to paper and hello to digitalization. Start using HRMS or HRIS software for all internal HR tasks. This will not only reduce paper usage but also streamline the HR process and improve the efficiency of HR operations.

📅 Go Cashless: Transition to paying all employees through bank transfers. This includes housekeeping staff, gardening staff, and contract staff who were traditionally paid in cash. Encourage all employees to open a bank account if they don't already have one.

📅 Address Employee Concerns: With the fear of job loss looming, it's important for HR to reassure employees. Regularly communicate with employees to keep them updated about the company's status and plans.

Step by Step Guide:

1. 📰 Research: Find the best HRMS or HRIS that fits your organization's needs. Look for features like payroll management, employee database management, leave management, etc.

2. 🎈 Training: Train your HR team to use the chosen system. Ensure they understand all features and can use the system effectively.

3. 📒 Digitize Documents: Convert all paper documents into digital format. This includes offer letters, appointment letters, etc.

4. 🏦 Bank Accounts for All: Encourage all employees to open a bank account. Collaborate with local banks to facilitate this process if necessary.

5. 🏔️ Regular Communication: Schedule regular meetings or send emails to keep employees updated about the company's status. Address their concerns and reassure them about their job security.

Remember, the transition may not be smooth or quick, but with consistent efforts and clear communication, HR can play a pivotal role in adapting to post-demonetization changes. 🙏