HR Cost Control
Cost
control in HR management sounds so callous and inhumane. What we
meant by that is the way how to stay in full compliance with the
Indonesian labor law and to identify potential HR costs and ways to
structure it to be put in the accounting provision. Entrepreneurs
intending to do business in Indonesia should recognize that according
to the
World Bank and IFC
Indonesia ranks 60 in terms of cost of firing, which put Indonesia in
the same rank as Comoros, Guatemala, Bangladesh, Paraguay, Sudan,
Egypt, Equatorial Guinea, Mozambique, Ecuador, Sri Lanka, and Ghana.
Those countries pay equal or more than 100 weeks of pay to employees
who have accumulated 20 years of service.
It is
imperative, therefore, that prudent business practitioners put this
fact in the equation. We could assist you with the capturing the
total and structural costs of your current HR force and we could
propose compliant ways to address it. Our experience with many
NYSE-listed companies operating in Indonesia will assure compliance
with the Indonesian laws as well as with
USGAAP
and
IFRS
standards. When recognized, analyzed and addressed appropriately,
you could avoid unfunded past-service liabilities in your portfolio.
Please
do contact us for further information.
