In 2024, employee well-being has become a central focus for Indian organisations. A significant 62% of companies prioritise employee well-being, including financial stability and wealth creation, as the top consideration in their HR strategy for the year. 

This insight comes from The Future of Pay in India 2024 research, recently published by ADP. Financial well-being, a key component of overall employee well-being, encompasses various aspects such as income management, budgeting, savings, and wealth creation through financial planning and investment. 

“Companies now recognise they must prioritise their employees’ financial well-being to create a motivated workforce and boost productivity, employee retention and satisfaction,” said Rahul Goyal, Managing Director of India and Southeast Asia at ADP. 

“For most employees, pay is the foundation of their financial wellness and wealth creation. Knowing how much and when they will be paid provides them with greater peace of mind, allowing them to better manage life’s challenges and plan for the future,” he added. 

According to the ADP Research Institute's annual study, People at Work: A Workforce View, salary remains the most significant aspect of a job for Indian employees, with 55% prioritising it. However, the issue of underpayment persists, with a staggering 69% of Indian workers reporting that they feel underpaid at times.

To address these challenges, organisations in India are focusing on improving their payroll processes over the next year. The Future of Pay in India 2024 study reveals that enhancements in accuracy (91%), timeliness (88%), data security (89%), and privacy (89%) are top priorities for organisations. 

Rahul emphasised the importance of having a robust payroll system, stating, "Accurate and timely payment of employees requires meticulous attention to detail, industry expertise, and compliance with local laws. Many organizations find it challenging to manage payroll directly, leading them to rely on ADP's solutions for efficiency, compliance, and an improved employee experience." 

Employers are also looking to leverage new technologies to enhance payroll management, with 74% considering AI as a tool for this purpose. Despite concerns about bias and data privacy, over half (57%) are willing to invest in AI-powered payroll systems to improve accuracy and efficiency. 

Additionally, one-third of organisations are either using or planning to implement AI-driven tools within the next six months. The study also indicates a shift towards alternative compensation methods such as digital currencies and stock options, reflecting a departure from traditional practices and a move towards more personalised rewards. 

Rahul noted, "In the competitive landscape for talent, companies cannot rely on a one-size-fits-all approach to compensation. They need to innovate and tailor remuneration packages to meet the diverse needs of their employees."