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Investment & Tax Saving – Make your Hard earned money earn for you!!

May 30, 2013 in Knowledge Cell, Legal

All of us look back at the year gone by, sigh at the mistakes made and swear not to repeat them in the new year. In India, the financial year ends in March, and the new financial year starts with April, its time we make some “Financial resolutions” for the coming year so that we do not repeat the old mistakes and make better decisions with regard to investment and tax saving. Savings of tax is an effective measure to certify that people save some of their tax liability.

Some Quick Saving Tips

Don’t hold Too Many Credit Cards

I am not saying that you should stop having a credit card. But use it for emergency purposes like booking a train / flight ticket & online buying where you are required to pay by a card. Also, limit the number of credit cards you possess to two, so that you are not caught in a debt trap. Having multiple cards and spending with all of them, you tend to lose track of the payment dates and would be required to pay heavy finance charges and late fees.

Spend what is left after Saving

Whatever you earn, if you decide to save after spending for the entire month, chances are, you may be left with peanuts. Rather, decide on an amount you would be saving every month so that it automatically control your spends.
You should save at least 26% of your annual earnings. If you are not saving this much, it is time you revisit your spends and cut down on unnecessary things. This will ensure not only a comfortable retirement planning but also give you some back-up in case of an unfortunate situation.

Don’t rush for March

Most of us have a habit of procrastinating investments, insurance, tax savings etc. for the last month of financial year i.e. March. What we actually end up with, is buying a wrong product (generally ULIP). My personal opinion is to keep insurance and investments as two separate avenues to get good life risk cover and get good returns. Best idea is to start making your investments in April itself.

Be an alert investor

We have some basic responsibilities of our own money. Few of them include, keeping a track of the bank account statements, credit card statements, mutual fund account statements, insurance policies, income tax returns etc. A regular review of each would keep us updated about the current position and would prompt us to take a timely action in case of something not being in place. Paying charges such as late payment charges on credit cards or late charges on insurance policies or interest on tax not paid on time would be a sheer insult to our hard earned money.

Tax Saving

Here I have recommended some investment options which can help you save taxes. Tax saving is a part of tax planning. Tax planning is different from tax avoidance and is legal. You should plan your taxes to become affluent over a period of time.

National Saving Certificate (NSC)

NSC refers to National Savings Certificate where you can invest an amount staring form Rs.100 and enjoy the same interest rate of 8.60%. The exemption applies to 100% in such context and moreover, NSC is the best option to save tax. NSC is the popular tax scheme among tax payers.

Public Provident Fund (PPF)

The PPF is one of the most attractive ways where you can reduce your tax liability. This option is open for all the employees who belong to the public or the private sector. A minimum of Rs.500/- to a maximum of Rs. 1,00, 000 can be invested to PPF. You are eligible for an interest rate of 8.80% on these investments & interest amount is tax free. For this purpose, you can go to any public sector bank or post office and avail the option.

Life Insurance Premium (LIP)

Life Insurance serves dual benefit  as it not only acts as a cushion for people at the time of uncertain sad events but also helps them to save a regular amount by way of tax deductions. You can make investment in LIC policies either on your own life or on your dependents such as children and wife to avail this benefit.

Mutual Funds

Mutual Funds are right way to invest into because it provides affordability, liquidity, tax benefits, professional management and most importantly it is a simpler and cheaper option for wealth creation.

Bank Deposits (Fixed Deposit)

Government had announced Tax benefits to Bank Term Deposits which are of over 5 years tenure.
Most of the above mentioned savings directly fall under the section 80C, where the maximum permissible limit is up to Rs.1,00,000 and henceforth, the total amount as a collective of all the available schemes would be taken into consideration. It is different from general fixed deposits and requires depositor’s certain sacrifices. Depositor needs to mention the word “Tax Saver Fixed Deposit” at the time of depositing the amount. Bank Official puts a stamp on FD receipts which ensures 5 year lock-in and depositor cannot avail facilities such as premature withdrawal.
One can also use Investments made towards payment of health insurance premiums to qualify for a tax deduction under section 80D up to Rs.15,000/-.
Also individuals can select other options such as 80DD, 80G, 80E etc to save some part of tax. Tax amount saved can be maximized by choosing the tax saving options efficiently which is only possible after knowing each of the options completely. Thus anyone who is looking forward to save tax in financial year 2013-14 should choose the most suitable option from the list of options mentioned above and invest in the best suited one.

Digital Marketing – Simple Yet Effective

January 23, 2013 in Services

It was the first day of the week in office. As usual, everyone including myself was suffering from Monday Blue Syndrome. That’s when I saw a mail from our corporate team stating a contest for brand promotion. The contest was named as “BRAND EQUITY” challenge. Quite jazzy for a name!!

Firstly, I completely ignored it and transferred it to my junk box. As the day progressed and the mails started pouring in, I just couldn’t ignore the fact of this contest. Each and every co worker of mine was promoting our organization’s services using Internet. Everywhere on the social networking sites such as LinkedIn, Facebook, Twitter, etc. I could see a post, status, tweets regarding my company. But the fact that made me write this blog is the kind of response it created was just mind blowing.

Technically, this kind of marketing by the use digital modes is termed as Digital Marketing. It is one of the most vivid and cost effect methods to market products, services, etc. to consumers. These days, most of organizations, appoint a team to tap the enormous benefits of digital marketing.

After understanding what Digital Marketing means, my inquisitive nature pursued me to know more how it works. I got down to my research and was quite amazed at the facts. Digital Marketing is done with the help of search engines on the Internet. Marketers create a template according to need of the consumer and use it on various different websites to make their products or services visible. The ultimate goal for digital marketers is to make their presence felt on Google. By this I mean that if a consumer tries to search using particular keywords, the search results should direct them to the marketers’ website.

Using digital marketing on Google in other words is called as SEO (Search Engine Optimization). Proper strategic use of SEO can indeed help in improving the website rank, diversion of traffic using appropriate keywords, etc. Digital Marketers extensively use SEO in order to promote their organization to a larger extent.

How can marketers miss out on Social Media usage. Social Media is the latest tool used for digital marketing. Social Media empowers traffic tracking and ROI. The most commonly used social media websites are LinkedIn, Twitter, Facebook, Google+, Pinterest, etc. Social media offers a enormous platform to marketers to target a huge number of audiences. At the same time keep a track of whats happening with the competition. Social media allows to share the latest activities a company is undertaking to all its followers and fans.

Social Media works as a two way road system. Audiences have the option of posting suggestions, praises, complains on the companies social media page. This helps the organization know about their brand image and connect with the audiences directly.

Hiring through social media

Right Communication Strategy for your Brand

Digital PR is also used by marketers to connect with the target audiences. It works in a similar fashion as conventional PR. Digital PR can be done by writing press releases and industry related researched articles. These can be then posted on the company and social media websites in order to propel the brand image.

Well written blogs are an ideal way to direct traffic on an organizations website and promote the brand.Well written blogs which contains appropriate weblinks can lead to the visibility of brand on Google. Its not necessary to write each day but a couple of well written blogs is more than sufficient to be visible on search engines.

We live in an “JUST A CLICK AWAY” era where everything is related and connected to the internet. Advertising a company’s brand and services is very essential for diverting a good amount of traffic to a website. These days startups and well as SMEs are turning their attention to advertise themselves. They surely wouldn’t have a enormous budget to float an advertisement on television but instead can use Google Adwords. These use specific keywords to create banner, text and / or image ads. Advertisement can also be used on Facebook which opens the portal to a larger number of audience of different geographies, age, etc.

After understanding how Digital Marketing works and which media can be used, its very much evident that it reaps greater benefits. Now I get it why our organization started this contest. Digital marketing instantaneously gets an organization to connect to million worldwide. It is also very cost effective if an organization can make utmost use of the Internet. It helps organization to know their market share and standing on a regular basis. As the results can be tracked very easily.

Operational overheads can be curbed drastically as there wont be minimal use of printing of flyers, brocheurs, banners, etc. Digital marketing also helps an organization to target global markets to sell its produc and services.

Though you will find numerous instances of successful digital campaign I am giving here few facts about internet advertising: In 2008, Dell reported that it had made $1 million selling reconditioned computers from its outlet store by offering discount vouchers on Twitter. Dell has a dedicated team of recruiters who attract potential employees only from professional networking website LinkedIn. Another success story: Paramount Pictures estimated that in a copuple of hours on Twitter it sold $1.5 million in tickets for the opening day of its film Super 8. If Facebook were a country, it would be the world’s 3rd largest country. 80% companies use LinkedIn as a recruitment tool.

To conclude, digital marketing is the most cost effective of all advertising media. Having said that, I am not suggesting that companies should not use other channels of communications like TV, News Paper, radio etc. Rather marketers should use right mix of traditional as well as digital media to maximize their communication impact. Today digital media is not an option rather it is essential.

Signing Off!!

HR Initiatives to meet new challenges

January 23, 2013 in Services

Human resource management is a process of bringing people and organizations together so that the goals of each other are met. The role of HR manager is shifting from that of a protector and screener to the role of a planner and change agent. Personnel directors are the new corporate heroes. The name of the game today in business is personnel. Nowadays it is not possible to show a good financial or operating report unless your personnel relations are in order. Over the years, highly skilled and knowledge based jobs are increasing while low skilled jobs are decreasing. This calls for future skill mapping through proper HRM initiatives.

Indian organizations are also witnessing a change in systems, management cultures and philosophy due to the global alignment of Indian organizations.


HR Initiative to meet new age organizational challenges

Contemporary Initiatives taken by some of the companies:-

At HUL.  A majority of its customers are women but till 2000 women constituted just 5% of its management. Alarmed by that number, the company put in place a plan to aggressively hire more women HUL started several initiatives like a six-month fully paid maternity leave as well as 5 yr sabbatical. It also grabs maternity leave in cases of adoption. The results are beginning to show; today the number of women in HUL has gone up to 16%. IBM India now has 26% women in its workforce.

At Wipro, managing diversity means accommodating people of different backgrounds and work experiences. Wipro has 1500 people of nationalities as diverse as Portugal, Austria, Sweden and Finland in its workforce.

At Microsoft, the focus of the incentivised hiring is at entry and senior levels. Says Microsoft India HR director Joji Gill: “Diversity is a source of strategic business advantage. It enables us to cater a diverse customer base.” Microsoft also does specialized events focused on hiring diverse talent.

“Temping at the top, or interim management, is a very new concept in India. MNCs entering the country and looking for a local person to set up operations, domestic companies floating new ventures or small and mid-sized firms who can’t hire a full-time CEO due to cost constraints, all opt for CEOs-on lease”

Nothing talks like money, and the employees of consumer durables major LG Electronics know what that means. The company gives out six bonuses in a year, which work out to between 200% and 700% of basic salary, to all its 4,500-plus employees in India. It strongly believes that this is the best way to reward its employees and drive performance in a cut-throat industry.

HCL Infosystems has a formalized monthly reverse mentoring session, ‘GenNext’, where junior managers share their knowledge on diverse gennext topics with senior HCL leaders, enabling them get an insight into the perspectives and learn from the young talented workforce. This provides insights to understand next generation customers and team members and fresh ideas and perspectives

Software major Infosys Technologies is rehauling its decade-old hierarchical system and making internal processes more flexible for young employees this year to stem attrition and attract talent. The $6-billion firm has come up with a programme called Talent Strategy for 2015, The idea is that decisions taken by groups is often better than those made by an individual. Infosys will apply this principle to improve revenue per employee, deal with the large number of global hires and stem attrition.


Our Experience with MANCER

January 21, 2013 in Customer Accolades

We have used MANCER several times when our clients have extremely hard positions to fill.

Not only have they delivered every time with quality candidates that meet the technical specs but they took the time to understand our clients’ culture and met those requirements also.

What makes them different than other firms is the great leadership team they have put together. Great organizations start from the top and that is why we think they have such a great track record.

I would highly recommend MANCER for any hiring needs you may have.

Mark Clevenger, CEO Quintegra

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