Have you ever heard of ‘the butterfly effect?’
A tiny butterfly flapping its wings in one location can cause a tornado in a distant place. Sounds fictitious?
Well, the idea behind this theory is that small things can have non-linear but huge impacts on a complex system. But where do payroll and startups fit into this idea?
There are correlations between your startup’s longevity, stability and the way you handle your employees’ payroll. After reading this blog post, you’ll agree.
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.
Growing financial stress in employees
The numbers speak for themselves.
And who do employees rely on to sail through financially murky waters?
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—a win-win.
Before diving into how you can offer better financial services to your employees, let’s understand what modern employees expect from you.
Modern employees’ expectations from employers
Pay flexibility and speedy transactions
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.
As they provide on-demand services, they expect your payroll management system to provide “instant” salaries. Not to mention, your payroll system should be flexible enough to adapt to changing requirements.
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. One miscalculation can cause a heavy delay in a paycheck. And I haven’t even started about keeping up with compliances like PF, TDS, ESI, and PT yet.
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’ll end up losing efficient employees which are the greatest asset to your startup.
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.
Also, a significant number of people are underprepared for the unexpected.
According to a survey, only 2 in 5 urban Indians consider saving money for unexpected hardships as their top financial priority in 2021.
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.
A survey by PGIM India Mutual Fund and Nielsen revealed that more than 51% of Indians had not planned for retirement at all. Further, another survey shows that employees prefer employer-provided insurance plans.
I know what you’re thinking. For now, I’m trying to secure my startup’s future. How can I focus on employee insurance or long-term benefits? Maybe I’ll do it later.”
People today have been spoilt with options. Financial security plays a big role in attracting and retaining talent. Having a financial cushion to fall back on will reduce employee stress and motivate them to work long-term.
The good news is, you don’t 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.
A new-age payroll software.An intuitive payroll software promotes a true partnership between you and your employees underpinned by a stable financial ground. Click To Tweet
RazorpayX Payroll: a conduit for employee financial wellness
RazorpayX Payroll is your gateway to a financially confident workforce. Let’s see how.
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’s account immediately. In just one click. Talk about fuss-free, right?
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.
Employee group insurance
RazorpayX payroll’s 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.
Here’s why you & your employees will love this feature:
- Covers COVID-19 and other illnesses
- 99.8% settlement rate, which is the best in the industry
- Re-assign unused seats across employee pool
- Best-in-class plans starting from just Rs. 1230/employee
- Hassle-free 3 click purchase
- 24/7 claims support
Your employees will be motivated and put in their best efforts when their finances are in check, making your business more efficient.
Better management & detailed reports
RazorpayX payroll is an excellent employee self-service portal as well. Your employees can do a multitude of things at the click of a button. They can apply for leaves, view & upload important documents, claim reimbursements, declare taxes and investments—all in one place. Our latest integration with Slack allows employees to execute all the tasks above from Slack itself.
It’s a better management tool not just for your employees but also for you. It comes with a robust reporting section that details various reports in which you can view several things such as
- Past and upcoming payrolls
- Current & older employees and contractors
- Variance report to compare payroll, compliance, and employee count trends
- Employee attendance
- Important information & documents related to employees
- TDS challans, filing acknowledgements, and calculations
So, all in all – we fit, don’t we?
Go ahead and experience the positive butterfly effect of payroll on your startup with RazorpayX.
As John Gribbin writes in his book, “some systems … are very sensitive to their starting conditions, so that a tiny difference in the initial ‘push’ you give them causes a big difference in where they end up.”
Are you ready to push your startup higher?