{"id":6879,"date":"2021-11-03T16:50:40","date_gmt":"2021-11-03T11:20:40","guid":{"rendered":"https:\/\/razorpay.com\/blog\/?p=6879"},"modified":"2022-03-31T15:11:09","modified_gmt":"2022-03-31T09:41:09","slug":"the-butterfly-effect-of-payroll","status":"publish","type":"post","link":"https:\/\/razorpay.com\/payroll\/the-butterfly-effect-of-payroll\/","title":{"rendered":"The Butterfly Effect of Payroll"},"content":{"rendered":"

Have you ever heard of \u2018the butterfly effect?\u2019<\/span><\/p>\n

A tiny butterfly flapping its wings in one location can cause a tornado in a distant place. Sounds fictitious?<\/span><\/p>\n

Well, the idea behind this theory is that small things can have non-linear but huge impacts on a complex s<\/span>ystem. But where do payroll and startups fit into this idea?<\/span><\/p>\n

There are correlations between your startup\u2019s longevity, stability and the way you handle your employees\u2019 payroll<\/a>. After reading this blog post, you\u2019ll agree.<\/span><\/p>\n

For starters, employees of any industry want financial hygiene. Even more so in times of economic instability like now. Global studies reveal that employees are feeling acute financial stress due to the pandemic.<\/span><\/p>\n

Growing financial stress in employees<\/h2>\n

\"employee<\/p>\n

The numbers speak for themselves.<\/span><\/p>\n

And who do employees rely on to sail through financially murky waters?<\/span><\/i><\/p>\n

YOU.<\/span><\/p>\n

As an employer, you can promote financial wellness among employees by providing financial services like employee group insurance. Ensuring an economically confident workforce means better business performance\u2014a win-win.<\/span><\/p>\n

Before diving into how you can offer better financial services to your employees, let\u2019s understand what modern employees expect from you.<\/span><\/p>\n

Modern employees\u2019 expectations from employers<\/span><\/h2>\n

Pay flexibility and speedy transactions<\/span><\/h3>\n

Today, the workforce demographics is complex. You might have freelancers, agencies, or contractors along with full-time employees. Though not permanent, still they are your part-time employees.<\/span>\u00a0<\/span><\/p>\n

As they provide on-demand services, they expect your payroll management system to provide \u201cinstant\u201d salaries. Not to mention, your payroll system should be flexible enough to adapt to changing requirements.<\/span><\/p>\n

If you disburse salaries through banks or process payroll manually using spreadsheets, trust me, you WILL not be able to keep up with these expectations.<\/span><\/i> One miscalculation can cause a heavy delay in a paycheck. And I haven\u2019t even started about keeping up with compliances like PF, TDS, ESI, and PT yet.\u00a0\u00a0<\/span><\/p>\n

Now imagine the plight of your employee dependent on that fixed paycheck at the end of the month. Not to mention, if this keeps happening, you\u2019ll end up losing efficient employees which are the greatest asset to your startup.\u00a0<\/span><\/p>\n

Hence, one tiny number on an excel is like that butterfly that can make the most efficient employees quit your company. Thus, leaving you a tornado mess to manage.\u00a0<\/b><\/p>\n

Also, a significant number of people are underprepared for the unexpected.<\/span><\/p>\n

According to a <\/span>survey<\/span>, only 2 in 5<\/a> urban Indians consider saving money for unexpected hardships as their top financial priority in 2021.<\/span><\/p><\/blockquote>\n

Hence, your employees might want advance salaries when facing certain situations. Offering early wage access or advance salary helps you meet the critical financial needs of your employees, be it part-time or permanent.<\/span><\/p>\n

Integrated insurance<\/span><\/h3>\n

A survey by <\/span>PGIM India Mutual Fund and Nielsen<\/span><\/a> revealed that more than 51% of Indians had not planned for retirement at all. Further, another <\/span>survey<\/span><\/a> shows that employees prefer employer-provided insurance plans.<\/span><\/p><\/blockquote>\n

I know what you\u2019re thinking. <\/span>For now, I\u2019m trying to secure my startup\u2019s future. How can I focus on employee insurance or long-term benefits? Maybe I\u2019ll do it later.\u201d<\/span><\/i><\/p>\n

Wrong choice.<\/span><\/i><\/p>\n

People today have been spoilt with options. Financial security plays a big role in attracting and retaining talent. <\/span>Having a financial cushion to fall back on will<\/span> reduce employee stress and motivate them to work long-term.<\/span><\/p>\n

The good news is, you don\u2019t need to invest in multiple tools or programs to ensure all the things mentioned above. You can provide pay flexibility, speedy salary distribution, and employee group insurance using just one tool.<\/span><\/p>\n

A new-age payroll software.<\/b><\/p>\n

[bctt tweet=”An intuitive payroll software promotes a true partnership between you and your employees underpinned by a stable financial ground.” username=”Razorpay”]<\/p>\n

RazorpayX Payroll: a conduit for employee financial wellness<\/span><\/h2>\n

RazorpayX Payroll is your gateway to a financially confident workforce. Let\u2019s see how.<\/span><\/p>\n

Advance salary\u00a0<\/span><\/h3>\n

In times of urgent needs, your employees can request a salary advance instantly. Once an admin approves the request, the salary is credited to your employee\u2019s account immediately. In just one click. <\/span>Talk about fuss-free, right?<\/span><\/i>\u00a0<\/span><\/p>\n

Moreover, while you recover this amount in the upcoming payroll, you can even choose the EMI option and recover it in smaller monthly instalments. This ensures your employees are not strained or face a financial crunch.<\/span>\u00a0<\/span><\/p>\n

Employee group insurance<\/span><\/h3>\n

RazorpayX payroll\u2019s insurance feature is tailor-made for startups as it provides group medical insurance to companies starting with as low as two employees! These insurance benefits are in partnership with Plum and ICICI General Insurance.<\/span><\/p>\n

Here\u2019s why you & your employees will love this feature:<\/span><\/p>\n