Article: Payroll Tech Checklist: What SMEs must keep in mind before investing in payroll

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Payroll Tech Checklist: What SMEs must keep in mind before investing in payroll

As SMEs embrace payroll technologies to simultaneously lead payroll and HR transformation, here’s a series of questions they must ask before adopting any solutions.
Payroll Tech Checklist: What SMEs must keep in mind before investing in payroll

One thing is certain: fast-growing enterprises can no longer resort to manual calculations when it comes to their payroll. Studies show 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. Hence, it has become urgent for SMEs today to find and invest in new-age solutions that can not only automate their payroll processes but also lead to increased efficiency and productivity within the workforce. Given that 45% of such enterprises spend too much time on input collection, often extending business hours, all of these efforts can now be redirected to more strategic tasks when the right payroll solutions are implemented. 

However, investing in any digital solution is often a tricky task. Not only must it fit budgetary requirements, but it should also adapt to the unique needs of SMEs, which are very different from larger corporations. Moreover, the end goal of adopting such digital solutions is to drive product innovation and business growth which is why one needs to be strategic in deciding what to implement. Hence, to empower organisations in leading their journey of payroll automation and transformation with increased success, here are six questions that every leader must ask themselves: 

Does it automate all core payroll processes?

This is the basic and preliminary function of any payroll solution and includes tasks such as leave and attendance tracking, dissemination of employee benefits, auto-generated payslips and bank statements and, most importantly, the flexibility to set up the software aligned to your company policies. With RazorpayX Payroll, all of this is taken care of in one dashboard. This software, designed for startups and growing enterprises, not only automates payroll functions and reduces error but also revamps the larger employee lifecycle.

Automating payroll is a critical element of designing automated workflows for your employees. From HR professionals to every person operating at every level of the workforce, no longer has to deal with a tedious, time-consuming process. Instead, all they have to do is easily access a single platform and stay updated on their finances with a couple of clicks. 

Does the software stay updated with changing compliance regulations?

Having a software in place that takes charge of not only filing taxes but also compliance calculations is a must-have asset. For employees in India who have to make smart financial decisions when faced with a dual tax regime, RazorpayX Payroll’s model empowers your workforce by showing their projected taxes for the year based on their income and regime so that they can make an informed decision while keeping their tax liabilities and savings in mind.

Moreover, it’s a system that keeps track of changing compliance regulations and ensures that your reimbursements are not only on time but also error-free. It takes complete control and responsibility for compliance concerns by automating payments like TDS, PF, ESI, and PT and their periodic return filings. 

Is it built around the model of employee self-service?

Implementing a user-friendly interface that opens up efficient channels of coordination is critical for employee autonomy. The reason why payroll solutions must be centred around the model of employee self-service has a lot to do with improving workforce productivity. This is exactly what RazorpayX Payroll achieves through its model. Employees can easily update and upload their relevant documents and apply for leaves, insurance and reimbursements.

What’s interesting about RazorpayX Payroll’s platform is also its feature of insurance claims. Employee autonomy is relevant in this facet, too, because it not only allows employees to get easy, on-speed access to cashless claims in emergencies but also offers 24x7 support. When a workforce is spread out across the country, this feature becomes vital to ensuring ‘ease of existence’ in their overall employee existence. As we all know, a more effortless, efficient employee lifecycle is directly linked to heightened productivity and growth. 

Does it integrate with already existing platforms and incorporate core HR functions?

The long-term success of payroll solutions is guaranteed when they can be adopted by the digital infrastructure already implemented at the organisation. However, the desired outcomes from payroll automation are met only when it's aligned and integrated with other HR functions. With an efficient dashboard in place that manages and tracks leaves and also offers employees the opportunity to easily access payslips and other relevant documents, RazorpayX Payroll is the optimal solution for SMEs to have.

Its latest partnership with Freshteam has also ensured that hiring and onboarding gets seamlessly integrated with its payroll and HR management dashboard. Their intuitive software is designed to keep track of these HR functions in just three clicks, leading to a sharp reduction in administrative overwhelm. Additionally, new and current employee data gets efficiently synced across both these platforms. 

Is it easy to adopt and access by your workforce?

Boasting of implementing and onboarding the workforce on its platform in less than 10 minutes, RazorpayX Payroll prioritises user adoption. For any HR tech solution to thrive in a new work environment, adoption gaps must be addressed early on so that its benefits can reach all employees. Its Slack integration feature also is a unique bonus to a workforce that is at times hybrid by making communications, applying for leaves, accessing employee details, and applying for insurance claims and reimbursements easier. 

For an employee base that will grow and diversify in the coming months, having a software that they can quickly adopt and access will also lessen the administrative burden on the employees. The end result would be them having greater flexibility and energy to devote to more strategic, business-focused endeavours. 

Does it add value to your business in the long run? 

Adding value to the business involves keeping track of the digital solutions and leveraging that data to make necessary changes and improvements. As HR professionals espouse the importance of raising a data-driven organisation led by data-informed decisions, SMEs cannot be left behind. Payroll is a critical element of employee-centric strategies, and RazorpayX Payroll recognises that in its platform. 

It gives insights into the entire payroll process by preparing several reports that detail various things, such as 

  • Salary Register: details of past and upcoming payrolls; 
  • Master CTC Report: employee CTC break-up; 
  • HR Register: past & current employees and contractors; 
  • Variance Report: view & compare payroll, compliance, and employee count trends and so much more. 

These data are a critical resource for short-term and long-term workforce planning. However, its greatest value addition lies in how it makes the lives of employees in fast-growing enterprises easier.

With SMEs at a critical stage in their growth and development, their key priority is leading business functions efficiently and effectively while creating room for product innovation to keep up with the changing trends and demands in the market. To achieve this, what becomes fundamental is creating the right work environment for their people by encouraging their productivity and growth. Investing in the right HR tech solution and, in this case, payroll solutions will be crucial to this endeavour.

By reducing the administrative burden on your workforce, ensuring their financial wellness and expanding their access to compensation and benefits (in this case, group health insurance), RazorpayX Payroll is not just a driver of payroll transformation. Instead, it’s a driver of the overall employee experience within SMEs that enables and empowers your people to unleash their potential. Building a future-ready workforce that is open to grab opportunities for accelerated growth is urgent, but the question remains: How do we achieve that? For SMEs in particular, RazorpayX Payroll shows you how. 

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Topics: Payroll & Benefits Administration, Technology, HR Technology, #HRTech, #Future of Work, #DigitalTransformation

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