Research findings released by Josh Bersin & Associates point out that 42% of HR Tech projects tend to fail after two years.

HR tech projects fail when digitisation strategies and initiatives are reactive rather than forward-thinking. With increased conversations around technologies automating HR functions for seamless workflows, businesses must double-check to ensure that their investments in digital solutions yield the desired results. 

A poll conducted by PwC also highlights how 39% of HR leaders identify data analytics projects and recruiting efforts as their organisations’ leading HR technology challenges, and 36% cited cloud modernisation of HR systems. 

For SMEs in India, the challenges remain in recruiting efforts and incorporating technologies, given the limited funds and skill shortages. To turn over the tide of potential failures and roadblocks and achieve the highest returns during this nascent stage of growth, here are the challenges that require special attention:

Overuse of digital platforms impedes workflows

One of the most pressing concerns when investing in any digital solution is to enable efficient workflows, which also applies to the recruitment process. Today, employers need to have a robust hiring process to attract the desired talent and keep the recruitment costs at a minimum, so they need to strategically choose when implementing a hiring platform. 

It needs to take care of the onboarding phase because it plays a crucial role in deciding whether employees stay for the long term; multiple digital platforms that are time-consuming and not user-friendly defeat the purpose of HR automation. Hence, it is urgent to intelligently and efficiently integrate any such platform into the employee’s day to day so that they too can carry out mundane administrative tasks at ease and with greater autonomy. 

Fast-growing companies will benefit from RazorpayX Payroll’s integration with Freshteam software which seamlessly syncs existing and new employee data across both platforms. Sourcing, screening, interviewing and hiring processes are integrated in the tool to ensure a robust hiring process. 

Administrative overwhelm in managing the employee lifecycle

While recruitment and onboarding is the first stage of the employee lifecycle, as the time passes, the administrative tasks increase. HR teams have to keep track of employee documents, from payslips, and tax declarations to managing processes such as processing payroll, attendance and leave. 

With RazorpayX Payroll, all these troubles get taken care of in just three clicks, saving time and energy that can be dedicated to more strategic endeavours. 

Their intuitive software is designed to keep track of these tasks efficiently and at speed from onboarding to exit. Moreover, it accommodates hybrid working models and re-directs focus on the organisation's goals and expectations. It also improves the employee experience by acting as an employee self-service portal.

Compliance issues due to a distributed workforce

Keeping up with federal, state and local compliance recordkeeping can be challenging for small enterprises. Added to this are the struggles of paying independent contractors and gig workers. However, staying informed and updated on regulatory changes can often be a full-time job, so a flexible payroll solution becomes urgent. 

Automating compliance payments like TDS, PF, ESI, and PT and their periodic return filings is a critical task; implementing RazorpayX Payroll ensures that compliance concerns are addressed and any unforeseen issues or calculating mishaps are fixed. Additionally, it also takes care of filing compliances and is the only fully automated payroll software in India.

HR leaders must not forget that payroll is a critical element of the talent retention agenda and creating the right employee experience, which is why it is important to invest in the right payroll solution. 

Limited opportunities for scalability of technologies

Integration is a crucial ingredient for seamless workflows, employee retention, and business expansion and growth when it comes to SMEs. Unnecessary distractions that divert focus from designing the business and people strategy must be avoided. This includes tracking and approving PTO and other leaves, scheduling and moving shifts, administering benefits, handling payroll, and updating employee forms.

These tasks will naturally increase in scale and complexity as the headcount increases. HR technologies have to be handpicked to allow your business to transition from a tactical to a more strategic mindset, where employees and HR are empowered to take on new initiatives and support the company vision and mission rather than be trapped in mundane administrative tasks. RazorpayX Payroll is designed to keep up and scale with you as your business scales. 

Managing inconsistencies in data reporting 

Data management is a fundamental task of any HR solution and is inclusive of both managing security concerns and detailed reports that will help increase HR efficiency.

For example, when payroll, compliance, and employee count trends are recorded, it will enable a more robust business strategy and design backed by essential insights on managing funds. 

However, data inconsistencies may arise even with the use of digital solutions, so it's crucial to invest in platforms that will produce comprehensive reports and accurate ones. In addition, important company data must never be separated into silos; this can lead to HR data gaps and inadequate reporting, preventing you from getting the complete picture and making informed decisions in an agile, timely manner. 

RazorpayX Payroll generates reports like salary register, reimbursements, attendance, employee documents, etc., all in one place so that there are no data gaps.

How RazorpayX Payroll guarantees success for your HR Tech Projects

Knowing the potential pain points that may arise when implementing any HR solution is essential to ensuring that you achieve the transformation you envisioned in your business for the short and long term. When you invest in the right solution such as RazorpayX Payroll, your chances of success are immediately increased. 

As a new company, our top priority is building the brand, product and achieving sales targets. Instead, a lot of valuable time is spent manually executing payroll. RazorpayX Payroll turned that on its head and helped us focus on what matters,” said Dhruv Gupta, Founder, Orange Health (YC 20)

It is imperative for growing organisations, especially SMEs to find vendors that focus on your business goals and expectations. It must then accommodate the holistic digitisation strategy that you have designed and accordingly address the challenges and forge pathways for enterprise growth. With RazorpayX Payroll, SMEs can efficiently manage their employee lifecycle and tackle compliance issues with ease and design a forward-thinking, proactive business strategy to achieve business excellence and lead digital transformation.