Corporate Wellbeing

The Silent Treatment: The Job Search Spiral of Ghosting

February 19, 2023
The Wellness Tribe Team
The Silent Treatment: The Job Search Spiral of Ghosting

Picture this: You’ve been searching for your dream job for months and finally found the perfect opportunity. You send in your application and wait anxiously for a response. Days turn into weeks, and your inbox remains eerily quiet. 

You start to wonder if your application was even received. You check the job posting, and it's still up, giving you hope. But as the days turn into weeks and you hear nothing back, your hope turns into frustration, anxiety, and uncertainty. You've been ghosted. Once reserved for bad dating etiquette, ghosting has infiltrated the job search process, leaving job seekers and employers trapped in a spiral of silence. 

In this article, we'll explore the negative impact of ghosting in the job search process and the reasons why it's happening. We'll also provide tips for improving communication during the hiring process and how technology can play a role in ending this frustrating trend. 

Left in Limbo

The Silent Treatment: The Job Search Spiral of Ghosting
Photo by Vlada Karpovich

The silent treatment of ghosting in the job search process is not just discourteous, but it can also have significant negative impacts. Firstly, when job seekers receive no response from potential employers, they are left feeling abandoned in the dark, wondering what they did wrong or if they are still being considered. In addition, the lack of communication can lead to frustration, anxiety, and uncertainty, making the job search process even more daunting.

Secondly, ghosting can damage an employer's reputation as potential candidates share their negative experiences with others, leading to missed opportunities for finding the right candidates. 

Lastly, the long-term impacts of ghosting can be significant for both job seekers and employers, as it can create a lack of trust and transparency in the hiring process. Therefore, it's time to acknowledge the negative impacts of ghosting and take steps to improve communication during the hiring process.

"When you ghost a candidate, you're not just losing them for this job, you're losing them for any future opportunities as well." - Jessica Merrell, Founder of Workology

Wandering Eyes

The rise of ghosting in the job search process begs the question: why is it happening? There are several potential reasons why job seekers and employers alike may be guilty of going radio silent.

Firstly, some job seekers may not be fully committed to the hiring process and may be exploring multiple opportunities at once. This can lead to disinterest in a particular role or company and a lack of motivation to follow up on the application.

On the other hand, employers may not prioritise communication with candidates or may be juggling multiple tasks and responsibilities. The result can be a lack of communication, leaving job seekers in the dark about their application status.

Another potential factor is the role of technology. With the rise of automated job search platforms and social media, communication during the job search process has become increasingly depersonalised. This can make it easier for job seekers and employers to avoid direct communication, leading to a higher likelihood of ghosting.

Regardless of the reasons behind it, the negative impact of ghosting in the job search process cannot be ignored. It's time to explore solutions for improving communication and preventing ghosting altogether.

Communication is Key

The Silent Treatment: The Job Search Spiral of Ghosting
Photo by Tima Miroshnichenko

It's clear that ghosting during the job search process is a frustrating and damaging trend for both job seekers and employers. Fortunately, there are steps that both parties can take to improve communication and prevent ghosting.

For job seekers:

  • Follow up after submitting an application to ensure it was received and express continued interest in the role.
  • Be patient and understanding but also assertive in following up on the status of the application.
  • Keep track of all applications and responses to stay organised and avoid confusion.

For employers:

  • Create a clear communication plan and stick to it, providing updates to candidates at every step of the hiring process.
  • Set realistic expectations for response time and follow through on commitments.
  • Utilise technology, such as automated responses and candidate tracking tools, to streamline communication and reduce the likelihood of ghosting.

By taking these steps, both job seekers and employers can work together to create a more positive and productive job search experience.

A Call to Action

In today's job market, ghosting has become an all-too-common occurrence. However, it doesn't have to be this way. By understanding the negative impact of ghosting and taking proactive steps to improve communication, job seekers and employers can work together to create a more positive and productive hiring process.

At the end of the day, clear communication and mutual respect are key to preventing ghosting and building strong relationships between job seekers and employers. So let's prioritise these values and put an end to the ghosting spiral once and for all.

As a corporate wellness company, we at The Wellness Tribe understand the importance of clear and respectful communication in all aspects of our lives, including the workplace. We believe that a positive and productive work environment starts with healthy communication, and we encourage employers to take the lead in preventing ghosting and creating a more positive hiring process for all.

Finance

Maximizing Tax Savings with HRA Exemption in 2023-24

May 6, 2023
Mohit Sahni
Maximizing Tax Savings with HRA Exemption in 2023-24

The House Rent Allowance (HRA) exemption is a valuable tax-saving tool for salaried individuals in India who reside in rented accommodations. However, to avail of this benefit, one must opt for the old tax regime. This exemption can lead to substantial savings on your taxable income, easing your financial burden. If the annual rent exceeds ₹1 lakh, the landlord's PAN must be submitted. 

Interestingly, even if your employer does not provide HRA, you can claim a deduction under specific circumstances. This article will provide an in-depth understanding of HRA exemption and its benefits for Indian employees.

HRA Exemption Calculation: Factors to Consider

The HRA exemption is determined by the lowest of the following three criteria:

  • Actual HRA received: This is the actual amount you receive from your employer as a part of your salary package toward house rent.
  • People living in metro cities (Delhi, Kolkata, Mumbai, or Chennai) receive 50% of their basic salary, whereas those living outside of metros receive 40%. Metro cities are considered more expensive in terms of living costs, which is why a higher percentage is allowed as an exemption for those residing in these cities.
  • Actual rent paid minus 10% of basic salary: This criterion ensures that a certain portion of your rent paid is considered taxable income.

Use the HRA deduction calculator on the Income Tax Department's website to calculate your HRA deduction. By entering your basic salary, HRA received, and actual rent paid, you can determine the exemption amount and adjust it against your taxable income.

Required Documentation for HRA Tax Exemption Claims

To claim HRA exemption, you must submit certain documents to your employer, including rent receipts and rental agreements. These documents serve as proof of your rented accommodation and the amount paid as rent. If the annual rent exceeds ₹1 lakh, your landlord's PAN must also be provided. This helps the Income Tax Department track high-value transactions and ensure tax compliance.

Based on these proofs, employers will grant HRA exemption in Form 16. Form 16 is a certificate issued by your employer, providing a detailed summary of the salary paid and tax deducted at source (TDS) on your behalf.

Claiming Deduction without Employer-Provided HRA

Rent paid without HRA can still be deducted under Section 80GG of the Income Tax Act if you do not receive HRA from your employer. However, you must meet certain conditions:

  • You must be self-employed or salaried and have not received HRA during the year you claim 80GG. This implies that if you receive HRA for part of the year, you can only claim the 80GG deduction for the remaining months.
  • You, your spouse, or your minor child must not own residential accommodation in your current city of residence or employment. This condition prevents taxpayers from claiming a double benefit on both self-owned and rented properties.

In addition to the maximum deduction of 5,000 per month, Section 80GG also limits deductions to 25% of adjusted total income.

HRA Exemption for Individuals Living with Parents

You can also claim HRA if you reside in your parent's house. To do so, sign a rental agreement with your parents and transfer the rent to them monthly. Your parents must report this income on their tax returns. 

This can result in tax savings on the family income if their other income falls below the basic exemption limit or is taxed at a lower rate. Ensure to maintain proper documentation, such as rent receipts and bank statements showing rent transfers, to validate your claim.

Claiming Both HRA and Home Loan Interest Deductions

Even if you have a home loan, you can claim both HRA and home loan interest deductions if the houses are in the same city. To do this, you must demonstrate that the rented house and the house with the loan are at different locations. There must be valid reasons for not residing in your self-owned house, such as:

  • Living in another city for work or other personal reasons.
  • Proximity to your workplace or children's school makes residing in the rented house more practical.
  • Your purchased home is under construction, requiring you to rent a temporary residence.
  • Renting out your own house for additional income and living in a different rented property.

In such cases, you can claim deductions under Section 24(b) for home loan interest payments, up to ₹2 lahks per annum, and Section 80C for principal repayments, up to ₹1.5 lahks per annum.

It is important to note that such claims are frequently scrutinized by tax officials, who may reject part or all of the claim if dissatisfied, especially if the claimed amount is relatively high. To substantiate your claim, maintain proper documentation, including rental agreements, home loan certificates, and rent receipts.

Important Tips for Maximizing HRA Exemption Benefits

  • Timely submission of rent receipts and rental agreements to your employer is crucial to ensure the seamless processing of your HRA exemption claim.
  • Regularly review and update your rental agreement, especially if there is a change in rent amount or rental duration.
  • Keep a record of rent payments made through bank transfers, as cash payments might not be considered valid proof by tax authorities.
  • If you are claiming both HRA and home loan interest deductions, maintain separate documentation for each to avoid confusion during tax filing.

To sum this up, the HRA exemption can be a powerful tool for tax savings for salaried individuals in India. Understanding the various aspects of HRA exemption, including calculation, documentation, and eligibility, can help you make the most of this benefit and reduce your tax liability.

Corporate News

Report: Indian startups reduce full-time hiring by 61%

November 18, 2022
The Wellness Tribe Team
Report: Indian startups reduce full-time staffing by 61%

India is experiencing severe hiring cutbacks, according to a recent study released on Monday, showing that permanent staff recruitment has decreased by 61 percent over the last 12 months.

From October 2021 to September 2022, data were collected from more than 25,000 Indian workers working at more than 1,000 companies in 20 different industries.

A recent report from Razorpay's business banking platform RazorpayX Payroll reveals a 1,300% decline in hiring for chief experience officers (CXOs).

Due to the changing dynamics of the startup environment, employment trends have changed significantly over the last year.

The Indian startup ecosystem has proven to be robust and adaptable despite recent challenges. Taking macro forces into consideration, entrepreneurs have formed smaller but more powerful teams to maximize their workforce. Many businesses are cutting their workforces in the midst of the financial winter.

Indian Startups Cut 61% off Permanent Hiring: Razorpay Report
Photo by Clem Onojeghuo on Unsplash

Another report from my back-of-the-envelope assessment indicates that startups and major tech firms have laid off more than 5,000 Indians in the last month. 

According to some predictions, the Indian economy is anticipated to lay off 16,000 workers by the end of 2022. It seems nobody's job is safe, not even at global behemoths like Twitter or Byju's.

Even though there was a decrease in hiring, the total wage paid to full-time employees increased by 64.7%. It was noted in the survey that the increase in income, particularly among the highest-paid professionals, is not distributed equally between the sexes.

Although employment has declined overall, technology hiring appears to have been the least affected. Technology-related occupations have managed to slightly boost their contributions to the total workforce by 4%, even though the hiring trend has generally slowed down.

A Look at the Gig Economy

It is apparent that companies prefer gig workers over permanent employees as the number of permanent employees has declined. The number of payments made to gig workers has grown by 153% since October 2021. A semi-gig worker model is now being used by 15% more businesses than it was previously.

According to the survey, the majority of semi-skilled gig workers employed by startups earn less than Rs 20,000 per month, followed by those who earn between Rs 20,000 and Rs 40,000.

Interestingly, these employees have among the weakest growth rates, averaging 26% and 52%, respectively.

Research shows that competent gig workers with earnings between Rs 85,000 and more than Rs 150,000 have experienced the fastest growth over the last year, even though they contribute the least to the overall pool.

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