Compensation will always remain central in building an engaging and impactful employee experience. In the current disruptive climate where competition for critical talent is at an all-time high, organisations must devise innovative ways to engage and most importantly, retain their talent for the long term. A survey by Deloitte highlights how 68% of SMEs in India leverage compensation and benefits to retain their talent and rightly so, because a compensation culture that is accessible, transparent, timely and seamless is bound to pay dividends across the talent cycle.
But this is easier said than done. Given India’s complex taxation system especially with the introduction of the dual tax regime, SMEs find it challenging to meet the demands of compliance. KPMG’s research attests to this by pointing out how 75% of them struggle to comply with payroll regulations. Additionally, as these fast-growing organisations evolve and scale up, manual processes will become a hindrance resulting in an error-prone and time-consuming process. What’s the way forward, then?
The answer lies in payroll solutions. As SMEs slowly and steadily move towards investing in HR software in India, compensation is a critical component that must not be overlooked. It is equally important to strategically invest in payroll management software, and here’s how SMEs across India will benefit from payroll solutions:
Doing away with manual processes
Research reveals that 65% of SMEs in India use manual processes for payroll management but studies have also shown that the incidence of risk is higher in such cases, with the annual average loss depending on legacy systems being INR 67 lakh per SME. When SMEs decide to invest in payroll solutions such as PeoplesHR Turbo, their employee paychecks are taken care of on time. This ensures that their people get the right pay at the right time, which in itself is a crucial factor impacting the compensation culture.
Staying up-to-date with compliance
Whether it’s maintaining compliance with labour laws, tax regulations or statutory deductions, having a payroll management software that takes care of all these concerns is vital to creating seamless workflows for the HR function especially and the employees overall. It reduces the administrative burden on HR to a great extent and ensures that they spend more time crafting people-centric strategies that elevate the employee experience. Payroll solutions also make it easier to accommodate changing regulations at speed and play an invaluable role in incorporating local statutory compliance of regions even beyond India, as remote work rises.
Strengthening data security
Payroll does indeed work with very sensitive data, and with rising cybersecurity concerns, SMEs must pick the best-in-class payroll solution that addresses these concerns. With PeoplesHR Turbo, they are offered data dashboards that can craft impactful compensation strategies for the long term and manage organisational budgets. But at the same time, this solution ensures that the data collated is secure, making both the organisation and the employees feel at ease as they begin to access their payslips from anywhere.
Driving employee engagement
From a mobile app to an AI-powered chatbot, PeoplesHR Turbo comes jam-packed with features that make it easier for SMEs and employees to manage timeslips and payslips. As everything happens with a click of a button, people find it easier to carry out their tasks and are motivated, engaged and satisfied. They are no longer burdened by questions about their paychecks. Compensation is definitely the cornerstone in increasing performance and productivity at the workplace because it strengthens a foundation of trust and reinforces that your employees' work and time are valued.
Improving financial wellness
No conversation about compensation culture is incomplete without talking about financial wellness. It is also foundational to designing the right employee experience. When SMEs implement HR software in India that also cater to their payroll needs, employees are paid on time and correctly. This adds value to the corporate wellness agenda because getting their due payslips, appraisals and benefits is integral to enabling and empowering financial wellness at the workplace. Given that research shows how 72% of SMEs in India cited attracting and retaining talent as the most significant driver of compensation decisions, financial wellness empowered by payroll management software will be important.
Undoubtedly, payroll automation is critical to designing the right compensation culture which feeds into the overall employee experience. It attracts critical talent, retains them and most importantly unlocks their potential and performance by driving engagement. As organisations become remote or embrace hybrid working models, this engagement becomes even more critical. Having a robust payroll management software in place will ultimately lead to thriving SMEs. This is because when the workforce is driven, the organisation is empowered to succeed even in a disruptive and competitive economy.
But along with this, payroll solutions catering to SMEs solve several challenges for them which is vital to running, competing and expanding their businesses in the current landscape. If you want to know more about how PeoplesHR Turbo will meet all your current and future payroll needs, click here and get started on your building an impactful compensation culture today!