Imagining repercussion of the global food crisis are coming to realty when one sees dreadful clippings of people suffering from malnutrition and diseases in different parts of the world and on various news channels. The reasons that are causing this global catastrophe range from political apathy to population explosion. Most such conversation end with the most common lament one gets to hear in such a situation. People watching these think of helping by some donations but as soon as the TV is switched off, all’s forgotten. Though our intentions are noble, we console ourselves into believing that we don’t have the time or let lethargy take over until a new tragedy struck event (read: tsunami, hurricane, floods etc) takes place. We all want to help those who are in need but most of us not sure of how one can go about it, Also, most feel that charities are the domain of Film stars, cricketers politicians, leading companies and the crème de la crème of the society .
However, the above perception no longer holds true as many organizations are making payroll donations or payroll giving an integral part of their CSR (Corporate Social responsibility) agendas. So how does this work? The employer deducts a specified sum from employee’s salary and hands it over to a NGO. This process ensures transparency and reduces apprehensions one has about their money being misused as these donations help track how every rupee is being spent through regular updates. These voluntary donations increase social awareness and instill a sense of pride in employees in being associated with a socially active organization. It doesn’t matter even if the donation is as less as Rs 50, for it is the deed that counts.
There are several people who want to be actively dedicated towards social causes and it’s this urge that propels many to do their bit towards the betterment of the society However, a busy schedule prevents many from committing them or seeking avenues to get started. Payroll donations serves as a simple platform that an organization to motivate employees and it also helps them achieve their goals in line with the firm’s commitment to noble causes. Employees feel good about the fact that their company is more than just a commercial enterprise. This approach that employees have towards their company not only raises the pride they have in their company but also triggers their social consciousness.
At JPMorgan the entire process of payroll deduction is technology driven to simplify use and encourage more employee participation. An employee just needs to log on to a system, enter his monthly contribution amount and authorize. To ensure right focus, each of JPMorgan’s business lines in India is committed to a specific charity as a team. A core team from each of the business defines the requirements of the supported charity and devises an appropriate plan of action. The team then prepares an annual plan with monthly objectives and also undertakes a fortnightly visit to the charitable trust. The core team decides the amount to be deducted on the basis of the developed plan. Also, HR ensures that payroll deduction is clearly reflected in the employees payroll slips.
The process of payroll donations is transparent and allows employees to select the cause/NGO of their choice and receive a feedback report which gives details of how the donated amount has been utilized by the NGO. Also, the employees who opt for the payroll giving program get a 50 per cent tax deduction certificate. First Advantage Payroll donation, besides being a key part of First Advantage’s CSR agenda, builds employee morale and helps to attract or retain staff who share the company’s passion for social up-liftment. In Masteks internally conducted polls, over 90 percent of their employees see Mastek as a socially responsible organization and over 70 percent are involved in Mastek Foundation initiatives in some way or the other. At Mastek an employee can contribute as little as Rs 100 a month. Mastek has a unique 10- module on-line sensitization programs that they can go through on their intranet. Once the individual is sensitized to the issues, he/she can choose the cause he/she wishes to support.
The above can motivate an employee if he or she feels contributing towards the betterment of society. The HR manager can take care of the rest.