Companies in metropolitan cities like Bangalore in India are looking for payroll management services to help solve their employee payment hassles.
A payroll management system is software that allows employers to automate and manage their employee's financial records. A payroll softwaresimplifies all payroll-related tasks like employee's pay, payslip generation,calculating net pay, benefits, bonus, conveyance charges and more.
The Indian situation
India has a massive workforce of 501 million people with an average of 57.5 % of the population engaged in some form of employment in companies. The HRM industry is expected to grow to a CAGR of 12.2% from 2021 to 2028 internationally. Studies also show that Human resources (HR) technology can help Indian companies save at least $600 million annually by 2021 using HR Technology.
Asemployers and a company, it is imperative that you pay your employees on time and correctly. InIndia most, enterprises are yet to adopt the automated method of human resourceor payroll management. But when it comes to payroll, multiple problems hold back an organisation.
1. Prone to errors-
Manual payroll processing is prone to errors that lead to expensive corrections.
2. Compliance issues
The new dual tax regime, introduced in 2020-2021 adds more to the table in terms of compliance which can be intimidating as well as complicated.
3. Too much hassle
Withoutdated spreadsheet methods, companies tend to get behind every time an employee is hired or leaves the company. Dealing with the paperwork can beburdensome.
Traditional/manual payroll calculations need to consider multiple aspects concerning a single employee’s payroll. Taking everything into account, staying updated, error-free, compliant will take too many man-hours.
5. Safety issue
Traditional methods are prone to easy security breaches and also prone to damage to physical documents. There are too many opportunities for errors and risks that can cause serious concern to the organisation.
Any small change to the system is a big hassle to traditional systems which leaves employees feeling frustrated with a company. Adapting to change faster if more efficient.
7. Rigid to change
Indian enterprises are too rigid to change to more updated systems because of which the efficiency takes a major hit.
Why do you NEED to switch to a Payroll management system?
Studies show that with a payroll system, companies canmaximize employee efficiency, reduce time in transactional HR areas andincrease profitability. It improves employee morale and increases independence.Here are more reasons why a payroll system will benefitorganisations of any size.
1. Easy maintenance of records - With an automated system, organisations have access to easy record maintenance thanks to digitalization.
2. Comprehensive payroll processing - The software streamlines the end-to-end payroll process that reduces work-hours for the organisation.
3. Faster calculations - Thanks to the integrated nature of payroll systems, salary calculations are automated leading to quicker processing.
4. Compliance made easy - The payroll system helps adhere to different government laws eliminating complex hassles.
5. Enhanced Data Security - With control over who has access to important files and information and a strong firewall on important aspects companies need to worry about data breaches or errors that can be painful to sort out.
6. Get valuable data - Have access to valuable data that can help you make an informed business decision that can further your business.
How to pick the right payroll management service
While choosing the right payroll management service there are 5 main concepts to keep in mind, is it
• flexible and
• easy to use.
If you are looking for a comprehensive and cost-effective payroll management service software also available as an app, check out Zenetial. They are based out of Bangalore and are experienced in creating cutting edge software to solve HR hassles.