Article: How payroll solutions drive employee financial wellness

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How payroll solutions drive employee financial wellness

As growing SMEs lose out on opportunities for growth and innovation with a financially stressed workforce, here’s how payroll solutions will play a critical role in achieving financial wellness for your employees.
How payroll solutions drive employee financial wellness

As employee well-being becomes a critical priority for organisations today, leadership always pushes for a holistic, integrated and interrelated approach. This entails taking care of not just your employee’s physical and mental wellness but also their financial wellness. Financial wellness is also quite broad, but focuses on empowering employees to manage their economic life efficiently. Several strategies are part of this initiative which include strengthening financial literacy, offering support and guidance on financial matters, compensation and benefits and most importantly: ensuring salary reaches on time. 

Statistics have shown that most employees across India live paycheck to paycheck; with 80% of them running out of salary before the month ends. For SMEs, challenges may arise in ensuring on-time salary payments, primarily because of the time-consuming nature of manual calculations in line with compliance regulations and a host of other enterprise financial variables. 

Additionally, as we discuss financial wellness, we cannot overlook its direct impact on employee productivity, their contributions to company growth and their capacity to drive innovations. SMEs are at a critical stage of development, and today’s landscape offers them multiple opportunities to achieve success. This is why it becomes imperative for SMEs to invest in a digital payroll infrastructure that streamlines their payroll processes and guarantees financial wellness to their people who are at the helm of creating that business impact.

RazorpayX Payroll comes at an opportune time as a solution that helps your growing enterprise achieve this. By rolling out an automated payroll platform that takes care payroll and compliances in less than 10 minutes, here’s how their solutions can help SMEs achieve financial wellness:

Expanding financial inclusion with accessible insurance claims 

Having the right mix of compensation and benefits is vital to the larger employee's wellness as well as their financial wellness. For SMEs, finding insurance coverage for their people, given their budget limitations, can be quite challenging. But to be a company that cares for its employees and supports them in times of emergency, including medical emergencies, is critical to creating a stress-free work environment brimming with productivity. With RazorpayX Payroll, this gets easy to implement.

The plans offered by RazorpayX Payroll not only factor in the current and future pandemic scenarios but also pre-existing health conditions of employees on select plans from day one. Along with ₹25 Lakhs worth of coverage starting at a baseline price of ₹300 per month, it includes maternity and newborn coverage on select plans.

It also allows employees of SMEs to raise their coverages with super top-ups of up to ₹20 lakhs for as low as ₹529 per year. 

Additionally, it ensures 24x7 support to address employee queries and get access to insurance claims in over 6500 hospitals across India.

Providing advance salary for helping in emergency situations

On-demand salary is a new concept, but is a highly potent way for employers to help their employees in a financially stressful situation by allowing them to meet their urgent requirements. 

Here again RazorpayX Payroll’s latest partnership with Jupiter, a neo-banking platform, offers features and benefits tailor-made for small and medium businesses. As the name suggests, employees can request salary on-demand by simply opening a salary account with Jupiter. Account holders can get instant disbursals and the feature is as easy as ‘apply now, get now.’ One need not worry about mid-month cash crunch and choose this option whenever they want. Also, it is totally interest-free.  

Empowering employees with a self-service model 

There are two very critical elements of employee self-service that RazorpayX Payroll accomplishes: automated tax declarations and investment proof submissions; and automated workflows with Freshteam and Slack integration. 

A benefit from the first feature resonates in the Dual Tax regime introduced in the country. Complications and errors are bound to arise from manual compliance calculations, along with the complexities of making the right financial choices. Hence, implementing a software that enables your people to see their projected taxes for the year based on their income and regime empowers them to make informed decisions in line with their tax liabilities and savings. 

Automated workflows are the bedrock of employee autonomy at the workplace. RazorpayX Payroll not only achieves this through seamless onboarding of new hires onto the platform while simultaneously empowering their current workforce to take charge of their attendance and leave management. This directly impacts their pay. As a result, what was once a complicated, time-consuming endeavor is now taken care of by payroll solutions to ensure on-time deposit of salaries.

Moreover, it is crucial for employees to efficiently record their work hours and find information about their payments from pay cycle, compliance calculations, PTO, added compensation, expenses and more. This is also a vital element of financial wellness as it empowers your people to take charge of their financial health by using this information for planning their expenses and building their savings early on.

Srishti Bajpai, AVP-Finance for Pixxell Space, also attests to this by emphasizing how RazorpayX Payroll’s simple interface ensures that employees understand their earnings in real-time and can optimise it on the go. In addition, Slack integration has also contributed to delivering an efficient reimbursement process.

Financial stress continues to be top of mind among the many stresses that employees encounter in their daily lives. And it is time that organisations make the right investments in improving the financial health of their employees. Payroll solutions will be pivotal to achieving this, especially in an increasingly digital, diversified workplace.

RazorpayX Payroll will play a critical role for SMEs in elevating the potential and productivity of their employees by addressing their financial wellness. By empowering their growing workforce to make the right financial choices and being by their side in emergencies through their affordable insurance plans, their software is designed to support a culture of organisational well-being. After all, a happy, stress-free workforce will become the key differentiator in leading growth and innovation. 

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Topics: Wellbeing, Compensation & Benefits, Payroll & Benefits Administration, Technology, #HRTech

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