A payroll management system is software that allows employers to automate and manage their employee's financial records. A payroll software simplifies 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. 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 corporations save at least $600 million annually by 2021 using HR Technology.
Asemployers it is imperative that you pay your employees on time and correctly. In India most, enterprises are yet to adopt the automated method of human resource or 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 hassleWithoutdated spreadsheet methods, companies tend to get behind every time an employee is hired or leaves the company. Dealing with the paperwork can be burdensome.
4. Time-consumingTraditional/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 issueTraditionalmethods 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.
6. InflexibleAny 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 changeIndian 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?
1. Easy maintenance of records-With an automated system, organisations have access to easy record maintenance thanks to digitalization.
2. Comprehensivepayroll 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
If you are looking for a comprehensive and cost-effective payroll management service software also available as an app, check out Zenetial.