HR Cottage

HR Cottage, an HR startup company that recently started operation in Nigeria has liberalizing HR services as part of their mission both in Nigeria and Africa.

In a bid to move closer to actualizing this mission of liberalizing HR in Nigeria and Africa at large, it has launched a free PAYE calculator that is designed to serve both HR Professionals and employees of organizations. This PAYE tool is based on the most recent Finance Act of 2020 – and will be adjusted each time that there is a change in tax regulation in Nigeria.

This free paye calculator is currently only available for our Nigerian users. We will announce when we develop similar tool for other African countries.

How to use HR Cottage’s free PAYE Calculator

We know that having something complex to solve this problem will not help us achieve our goal of liberalizing HR services. Hence, this tool is designed with user friendliness in mind. To begin using this simple yet effective tool, head over to the HR Cottage’s free Nigerian PAYE Calculator webpage. On that page, you will see a green button right at the center of the page with the inscription ‘Calculate PAYE’.

Click on it. A dialog window will pop up asking you to enter your annual salary – Please enter figure without any comma (,). Hit the enter or return button on your keyboard. The system will ask you to enter the percentage of your Basic Salary – to calculate your basic salary, simply divide the basic component of your salary by the total earnings and multiply by 100.

Please do not include the percentage (%) symbol – including that could lead to unintended result.  Hit enter or click ‘OK’ to continue.

The system will now ask you for the percentage of Housing component of your salary – I guess you can do this now. If in doubt, simply divide the total housing component of your salary with the total earnings and then multiply by 100.

Hit enter on the keyboard or click ‘ok’ to advance. This time, the system will request for the percentage of your transport allowance. Provide the information and click on ‘ok’ or hitting the return button on your keyboard.

Next will be to enter your Annual Leave Allowance followed by your 13^th Month amount. Then type ‘yes’ or ‘no’ depending on whether you are on NHF scheme or not.

Hit enter to display both the monthly and annual PAYE. We understand that businesses have unique peculiarities and may require to tweak this tool a little to meet their needs.

Our doors are open, reach out to us for bespoke tool that will meet and surpass the needs of your business by either filling out our Contact form or by sending us an email to info@hrcottage.com

I hope you will find this free Nigerian paye calculation tool from the stable of HR Cottage useful. Please note that this tool is still at the beta stage at the time of this writing. Therefore, we will need your input to continue improving and finetuning this aspect of our HR Software. Kindly use the comment section to leave your opinion about the tool.

Human Resources (HR), what I prefer to address as – The Human Asset (THA) is undoubtedly the most promising asset of any organization. Not managing this most promising asset of an organization with all the attention it deserves is a huge corporate mistake.

HR is a mission critical function within organizations that is saddled with the responsibility of managing the most valuable asset: the people. Over the years, the function of HR has evolved significantly thereby impacting technology, Values, Perceptions, laws, and organizational structures.

To be successful in HR management, you must be well versed and grounded in the fundamentals and basics of human resource management.

This article will provide an in-depth overview of the basics of HR, drawing from my more than two decades of HR experience across various sectors. You will gain an in-depth understanding of the basics of HR, covering various fundamental aspects.

Components of Human Resource (HR)

Recruitment and Selection: Recruitment involves attracting, sourcing, and hiring the right talent. HR professionals create job descriptions, advertise roles, and conduct interviews to assess candidates. Selection processes include various techniques such as skill assessments, personality tests, and background checks to ensure a good fit between the job and the candidate.

Onboarding and Orientation: Once a candidate is hired, HR oversees the onboarding process. This involves introducing the new employee to the organization’s culture, policies, and procedures, as well as providing necessary training and resources for a smooth transition into the new role.

Training and Development: HR is responsible for identifying training needs and implementing programs to improve employee skills and performance. This includes workshops, seminars, online courses, and other development initiatives to enhance the capabilities of the workforce.

Performance Management: HR sets up systems to evaluate and manage employee performance. This involves periodic reviews, feedback sessions, and setting performance goals to align individual objectives with organizational goals.

Employee Relations: Handling employee relations is a crucial part of HR. This involves mediating disputes, addressing grievances, and ensuring a harmonious work environment. HR also works to maintain employee morale and engagement through various initiatives.

Compensation and Benefits: HR is responsible for designing fair and competitive compensation packages, including salaries, bonuses, and benefits such as health insurance, retirement plans, and other perks. They conduct market research to ensure the organization’s offerings remain attractive.

Legal Compliance: HR ensures the organization operates within the boundaries of employment laws and regulations. They handle issues related to labor laws, discrimination, harassment, and workplace safety to mitigate legal risks for the organization.

HR Information Systems (HRIS): HR uses technology to manage employee data, payroll, performance evaluations, and more. HRIS software streamlines processes and allows for better data management and analysis.

Diversity, Equity, and Inclusion (DEI): Modern HR emphasizes creating diverse, equitable, and inclusive workplaces. HR plays a key role in implementing policies and practices that foster diversity and ensure equal opportunities for all employees.

Strategic HR Planning: HR professionals contribute to strategic planning by aligning HR practices with the organization’s long-term goals. They forecast future workforce needs and plan to ensure the availability of the right talent.

Employee Engagement and Retention: HR works on initiatives to keep employees engaged and committed to the organization, aiming to reduce turnover rates and retain top talent.

Change Management: HR supports organizational changes, whether it’s a restructuring, mergers, or any significant transitions. They help manage the people-side of change and ensure a smooth transition.

HR Department Structure

The size and structure of HR departments can vary depending on the organization’s size and industry. Common HR department structures include:

1. HR Generalists: These professionals handle a wide range of HR tasks, from recruitment to employee relations, making them versatile resources in smaller organizations.
2. HR Specialists: In larger companies, HR specialists focus on specific areas, such as recruitment, training, benefits, or labor relations.
3. HR Business Partners: These professionals work closely with other departments to align HR strategies with the overall business strategy.
4. HR Data Analysts: Some organizations establish dedicated centers with staff analyzing all forms of HR information.

Traditional HR Lifecycle

HR is involved in every stage of an employee’s involvement with the company, starting from recruitment to retirement in the following areas as already extensively discussed in this article:

• Recruitment and Onboarding
• Performance Management
• Training and Development
• Employee Relations
• Record keeping and Analytics
• Compensation and Benefits
• Termination and Exiting

Likely Career Path in HR

HR offers a wide range of career opportunities, from entry-level HR assistants to top-level HR executives. Advancement often depends on experience, education, and professional certifications such as the Professional in Human Resources (PHR) or Senior Professional in Human Resources (SPHR) designations.

Just a recap of all that we have discussed in this article, HR is a multifaceted field that revolves around managing the most crucial element of any organization: its people. Over the years, the function has evolved from being primarily administrative to a more strategic and integral part of an organization’s success. Understanding and implementing the basics of HR practices is fundamental to creating a thriving and productive workplace

Human Resources is a dynamic and multifaceted field that plays a crucial role in an organization’s success. HR professionals must balance administrative tasks with strategic planning, legal compliance, and fostering a positive work environment.

In today’s rapidly evolving business landscape, HR continues to adapt and innovate, making it an exciting and essential profession for those interested in the world of work and employment. This article provides a foundation for understanding HR’s basics, but continuous learning and adaptation are key to staying at the forefront of this field.