What is Payroll Software?
Payroll software is a digital solution that can be cloud based or on premises system which helps HR professionals in managing, maintaining and automating the payroll processes of employees from end to end. It may seem like payroll software in India is all about processing payments by automating it, but any HR manager will apprise you that it makes their overall administrative workload such as payroll records, keeping up with compliances lesser and their strategic tasks more efficient.
Apart from helping HR managers in payroll processes it also helps them in recruitment, performance tracking, training and development etc., therefore automated Payroll Software contributes to strategic HR work as well depending upon which payroll software you go for your business. Alongside it also helps employees by giving them access to manage their details through employee self-service which eases the employee and their day-to-day query or leave requests.
Understanding Need of Payroll Management System for Indian Companies
India has workforce of over 500 million employees, can you imagine on an average how many hours it must take for HR professionals to process these payments and is it practical to perform manual calculations for payroll manually?
According to an article by G2 almost half of the employees who are paid late also received an incorrect amount. Timely remuneration of your employee's salary plays a crucial role in overall contribution to economic growth and in boosting employee satisfaction and as an HR manager, you know it requires a lot of hours to process payments and fulfill legal compliance without error from end to end. Many HR professionals do it manually due to which errors occur and this task becomes more time consuming but if you use cloud-based payroll software it can save 100s of hours each month by automatically calculating payroll, easily distributing pay slips, filing statutory compliance, and generating intelligent reports using our cloud payroll management software - Runtime HRMS.
After all HR managers are employees themselves if you will feel content in your work environment it becomes easy to further pass on the better experience to your employees. In addition to this, automated Payroll Software has many other ways to provide satisfaction to your employees, which we will discuss later in this article.
How can payroll software benefit Indian businesses?
You may wonder why automated payroll system instead of manually calculating payroll?
As compared to manual methods, automated bookkeeping and payroll software can reduce the risk of errors by 67%, being an HR, this can drastically make a difference for you and it’s also important to know that every business has different needs but some of the basic features of payroll management software for small business as well as large business to look for are:
- Automated payroll processing
You might be spending countless hours just managing payroll yet there is no guarantee it will be free of errors but with payroll software you’ll be able to automate payroll process like deductions, bonuses, computing salary etc. which can be a game changer for HR as other sectors are embracing new technology so does you need to.
Did You Know?
One of our client reduced their pay-cycle from 10 days to 1 day after switching from their old HRMS solution to Runtime HRMS.
- Cloud-based flexibility
Cloud based payroll software gives the freedom to access payroll related information from anywhere at any time, whether you want to access it from office or a cafe, you can get the related data with ease because cloud based payroll software is hosted and managed remotely over the internet instead on a company's local servers or computer.
Main concern of businesses is data security which shouldn’t be compromised while getting payroll software, while outsourcing payroll can streamline operations, 34% of companies remain hesitant. This reluctance comes from concerns about cost and the sensitive nature of financial data. However, in the case of online payroll management software data security is ensured because cloud-based payroll software has data encrypted from end to end, multi-factor authentication, secure login credentials and role-based access. By implementing such measures cloud-based payroll software ensures protection of financial data.
- HR and payroll integration
Automated Payroll Software makes it better to have your HR processes like attendance tracking, onboarding, leave management, query reports etc. and payroll processes like salary calculations, tax deductions, bonuses etc. to be combined so that data management becomes simplified. Now that HR can have these routine tasks automated they can focus on strategic tasks, and it will also be less expensive to manage all these tasks rather than getting it done individually, that is why payroll management software for small business is as important as any other business as payroll software minimizes unnecessary costs and maximizes work productivity for HR and their teams.
- Compliance management
Isn’t it scary to think about complying with ever-evolving labor laws, tax filing, employee benefits and the possibility of making a mistake that could result in fines or penalties, which could cost you and your company a lot of money? Well, the good thing is cloud based payroll software makes sure payroll cycle is accurate, error-free, and compliant with the latest regulations other than that it also brings transparency and builds consistency for the companies.
According to ADP's Future of Pay in India 2024 report, compliance continues to be a paramount concern for businesses. A significant majority of respondents (54%) are prioritizing the implementation of new labor laws, such as the Code on Wages. Additionally, 51% are actively seeking information and guidance on adhering to India's Digital Personal Data Protection Act, therefore automated payroll software is becoming increasingly essential.
- Scalability
Think of automated payroll software as a helpful assistant that handles your payroll for you, it’s like having a smart worker who can do the job quickly and accurately, no matter how small or big your business gets. Cloud-based payroll software is even better because it can work from anywhere, just like a remote assistant and this is especially great for small businesses that are growing fast.
How Payroll Management Software Enhances Employee Satisfaction in India?
Employee satisfaction has a direct impact on productivity, the more satisfied an employee feels in the workplace the more fruitful work results will be driven.
An article by G2 states that more than 62 percent of job seekers place significant emphasis on remuneration, to maintain smooth process of payroll, automated payroll software can be used to pay people correctly and on time, it makes employees happy as well make them work harder and do a better job. A well-functioning payroll software can play a pivotal role in enhancing employee satisfaction in following ways:
Role of Payroll Software in Enhancing Employee Satisfaction
1. Enhancing Employee engagement
- Safeguarding Effectiveness and Precision
As an HR professional, guaranteeing your employers prompt and precise remuneration is the basic element to keep their happiness level constant to do so you can simply use payroll software which can generate accurate pay according to your business’s payroll cycle be it on weekly, biweekly, semi-monthly and monthly. For that reason, payroll error could lead to dissatisfaction as they are serious matters which affect interpersonal relationships with employees drastically, especially when they occur frequently.
- Promoting Open Operations and Easy Accessibility
According to ADP's Future of Pay in India 2024 report, employees in India increasingly demand transparency in payroll systems, this shows how much Indian employees appreciate transparency in pay slip, as an HR you can provide your team with visibility into their earnings, taxes and deductions thereby creating trust among them through employee self-service portal.
- Saves Time for Employees and HR
Comprehensive payroll software comes with more than just payroll processing, it also has features like ESS (employee self-service) which enables employees to have access to their details and manage things like leave request, attendance, help desk etc. In this way employee can save their time without rushing to the HR office and every now then and HR professionals can also focus on the other aspect of flourishing work environment.
Now that employees have transparency and convenience, they’ll eventually feel a sense of job satisfaction which will improve their overall engagement and productivity.
- Ensuring Compliance and Data Security
In India, tax laws change occasionally making it difficult to track taxes and stay compliant with the latest ones. Automated payroll software helps companies to comply with updated labor & tax laws, hence minimizing errors and preventing chances of audits. The result is lower chances of non-compliance for organizations that have implemented automated payroll system which indicates fewer compliance issues among companies that made the transition.
- Payroll Information Ease of Access
Your employees can now see their payment details at any time; it’s a game-changing thing, through employee self-service portal your employee can have access to his payroll report which contains details of deductions, bonuses, gross salary and generate the soft copy of salary slip. Having access to complete information makes employees loyal to their organization, it’s better to cater to these needs rather than leaving them as it is traditionally.
2. Improving employee productivity
- Development through learning
Training and development are crucial for employees and as a HR manager you oversee these things to enhance career growth of employees, many payrolls software have features like learning management which creates courses and tracks, evaluate the progress. If employees get an opportunity to learn new things in their organization, they won’t feel trapped in their workplace and won’t leave the organization. Learning new things will help them in boosting their career as well as improve their productivity, but these payroll software features vary from software to software.
- Hiring and onboarding with ease
Being able to have smooth transition into a company makes the employees experience so much better from day one. Many payroll software have onboarding features which help in streamlining the onboarding process. This way HR can have ease in administrative tasks and employees can onboard themselves by registering into company’s ESS portal, by doing so it will enable the new employee to focus on his core responsibilities from the beginning itself.
- Setting Up Effective Feedback Channels
It makes your employees feel more valued if they can offer feedback on processes related to payroll and benefits. Feedback channels work as the source for employees where their voices can be heard, resulting in them feeling more engaged.
- Performance management for employee growth
Performance evaluation of employees is as important for HR as for the company; to fulfil organizational goals its foundation must be strong to reach the goal. As a HR professional managing performance and setting goals for every employee can take a long time but now a lot of automated payroll software has performance management which makes it easier to assign goals and targets, 360-degree feedback from managers and more. If employees can clearly see their targeted goals, it will bring more clarity in their work and increase their productivity hence HR can work on appraisal part after evaluating employee performance.
- Feed features
Features such as feed in payroll software considerably boost job fulfillment by creating a feeling of togetherness and involvement among the employees. Real-time updates available on a central feed allow the employee to know about the company’s current events, regulations as well as accomplishments of other employees.
Therefore, these updates foster feelings of bonding with one’s workplace and co-workers, hence leading to the much-needed belongingness for any employee’s career satisfaction. An employee who is recognized and updated is more likely to be loyal and content.
- Management of leave and attendance
By incorporating leave and attendance management into the payroll software, HR and employees get to have control over their attendance more effectively, as it reduces the burden of attendance management from HR side and makes the employee more aware of their attendance and leaves leads to making them productive.
3. Addressing Challenges and Implementing Best Practices
While using payroll software to enhance employee involvement, challenges such as data protection and system integration must be dealt with. Optimum methods can be provided by offering training, keeping software up to date, and altering procedures based on employee feedback for increased satisfaction and effectiveness.
Why Choose Runtime HRMS as a payroll software?
Before delving into the reasons that make Runtime HRMS payroll software the best option for your enterprise, let us first understand why it is important to have dependable payroll software in India. The need for automated HR and payroll systems is increasing rapidly. According to IMARC group, India HR technology market is expected to rise from US$ 1,040 million by 2023 to US$ 2,170 million by 2032 at a CAGR of 8.3%. Thus, the growing numbers signal how businesses should adapt advanced solutions particularly cloud-based payroll management software, to enhance their operations.
How does this affect you? One area that holds significant potential when it comes to business management includes payroll; thus, automating this task using an automated payroll software or cloud-based payroll software will reduce human errors while keeping in-line with complicated labor regulations governing India's workforce. Importantly small and medium-sized enterprises (SMEs) have different connotations attached to acquiring the best cloud-based payroll software in India since it can either mean smooth processing of wages or expensive mistakes that incur additional costs to these companies.
While choosing payroll software always go for the best and there is no better way to showcase that Runtime HRMS is the best payroll management software in India other than a customer testimonial:
"We used to do payroll in Excel and switched to Runtime HRMS in Aug'19. It turned out to be a great decision for our company. The best thing is that in case of any new requirement, the team try to add it in the next release." - Mr. Sujay, Nimbleopus Intelligent Solutions | Pune
Let's explore why Runtime HRMS payroll software is the right fit for your business:
- Scalable Solutions
As business expands, managing payroll frequently becomes more complicated. With automated payroll software from Runtime HRMS, we provide customizable solutions that adjust to your evolving requirements. From a handful of employees to several hundreds, our cloud-based payroll management software guarantees that no matter what size your organization is, it shall be able to process salaries for all; be it small or big business. This helps in organizational scaling without fear of noncompliance or inaccuracy.
- User-Friendly Interface
Runtime HRMS’s distinct characteristic is its user-friendly interface. We understand that payroll applications should be simple to operate even for individuals devoid of substantial technological knowledge at hand. Consequently, both HR personnel and employees in the organization will move around the system easily and thus save time while reducing mistakes made by them during their day-to-day operations.
- Comprehensive Payroll Management
Payroll involves more than just ensuring that payments are made on time; it has to do with accuracy and compliance too. Now, with Runtime HRMS, you can easily handle tax deductions, produce elaborate reports, comply with local laws and with quick access to 50+ analytical and explicit HRMS reports, so you can comprehend every aspect of payroll to make intelligent, strategic, and informed management decisions. We provide online payroll management software which simplifies these complicated processes for you allowing you to manage everything from one place using a few clicks.
- Safety and Flexibility Based on Cloud
Runtime HRMS is equipped with powerful security features to safeguard confidential employee data as security for data i.e. topmost concern. Payroll software cloud based in India guarantees that your data will always be safe, while having the option available to you of accessing payroll information from any location. As an added advantage you also have automatic updates that will help keep within the current laws. Therefore, it makes sense why so many businesses regard Runtime HRMS software as the best cloud payroll with high security.
Conclusion
Payroll software is not just about calculating salary anymore it has become an important part of workplace which contributes to your employee productivity, and it depends on a business how good of an automated payroll software they go for as it has power to either make or break their payroll process. According to the article by G2, 1 out of 3 companies face penalties due to payroll errors. These penalties can range from fines to interest charges, significantly impacting a business's bottom line therefore payroll management software for small business and medium businesses is as integral as for large businesses, or even more as SMEs (small and medium enterprises) cannot afford to have these manual mistakes which can cost them their employee satisfaction as well as result in loss of the company.
Don't settle for manual mistakes. Schedule a demo and discover the difference Runtime HRMS can make for your organization!
