Onboarding Process: Step-by-Step Explanation

Step 1: Job Offer and Acceptance 📩

Trigger: After selecting the best candidate for the role.

• Action:
  • Job Title: Clearly define the employee’s position and reporting structure.
  • Compensation: Outline salary details, bonuses, and any additional benefits.
  • Start Date: Agree on a specific start date.
  • Working Hours: Detail the expected working hours and any overtime or flexible work policies.
  • Benefits Overview: Include health insurance, social insurance, and other mandatory or optional benefits.
  • Probation Period: Specify any probationary period, typically up to 3 months in Indonesia.
• Outcome: Once the candidate accepts the offer, proceed with drafting the employment contract.

Step 2: Employment Contract 📝

When It’s Used: After offer acceptance.

• Action: Draft a formal employment contract compliant with Indonesian labor laws. Include:
  • Job Description: Define role, responsibilities, and key performance indicators.
  • Compensation Details: Specify base salary, bonuses, allowances, and overtime pay (if applicable).
  • Leave Entitlements:
    • Annual Leave: Minimum of 12 days after one year of employment.
    • Public Holidays: Indonesia has 16 recognized public holidays.
    • Sick Leave: Paid sick leave in compliance with labor regulations.
    • Maternity Leave: Female employees are entitled to 3 months of maternity leave.
  • Working Hours: Standard 40-hour workweek with overtime rates for extra hours.
  • Termination Conditions: Define notice periods and acceptable reasons for termination.
• Outcome: Signing the contract formalizes the employment relationship.

Step 3: Tax and Social Security Registration 💰

When It’s Used: Before the employee’s start date.

• Action: Register the employee with Indonesia’s tax and social security systems.
  • BPJS Health Insurance: Register for mandatory health coverage.
  • BPJS Employment Insurance: Includes work accident, death, old-age savings, and pension programs.
  • Tax Identification Number (NPWP): Obtain an NPWP for tax compliance.
  • Employer Contributions: Ensure appropriate contributions are made to social security programs.
• Outcome: Compliance with Indonesia’s tax and social security regulations.

Step 4: Health and Safety Induction 🦺

When It’s Used: On or before the first day of employment.

• Action: Conduct health and safety training as per workplace safety regulations.
  • Safety Guidelines: Cover emergency procedures, hazard identification, and safety protocols.
  • Emergency Procedures: Explain fire exits, first aid resources, and emergency contacts.
  • Personal Protective Equipment (PPE): Provide necessary PPE based on job requirements.
• Outcome: Employees are informed and equipped to ensure their safety at work.

Step 5: Payroll and Benefits Enrollment 📊

When It’s Used: Within the first week of employment.

• Action: Set up payroll and benefits systems.
  • Bank Details: Collect the employee’s bank information for direct deposits.
  • Benefits Enrollment: Register the employee for mandatory and company-provided benefits.
  • Overtime Policy: Explain overtime pay rates and applicable conditions.
• Outcome: Successful integration into payroll and benefits systems.

Step 6: Workplace Policies and Training 📚

When It’s Used: Within the first month.

• Action: Introduce workplace policies and conduct initial training sessions.
  • Code of Conduct: Explain expectations for behavior, ethics, and professionalism.
  • Training Programs: Provide job-specific and compliance-related training.
  • Performance Metrics: Outline performance goals and evaluation methods.
  • Flexible Work Options: Discuss available remote work or flexible scheduling arrangements.
• Outcome: Employees are fully informed about policies, responsibilities, and expectations.

Step 7: Probation and Feedback Period 📅

When It’s Used: During the probation period (usually up to 3 months).

• Action: Monitor performance and provide regular feedback.
  • Performance Reviews: Assess employee performance and cultural fit.
  • Guidance and Adjustments: Offer feedback, coaching, or role adjustments as needed.
  • Employment Confirmation: Finalize the employment status after probation or provide improvement feedback.
• Outcome: Complete probation, leading to permanent employment confirmation or adjustments as required.

Summary Table of Key Onboarding Steps in Indonesia

Key Takeaways

• Employment contracts in Indonesia must include clear terms for compensation, leave entitlements, and employee responsibilities.
• Employers must ensure social security registration, tax compliance, and workplace safety training.
• Thorough onboarding with structured performance reviews and policy training fosters smooth integration into the company.