Month: October 2020

Payroll management is certainly a core function of every organization. It entails handling acompany’s administrative function including the finances, HR function and employee management. Successful payroll management services ensure cordial relations between the employees and the employer. Moreover, it creates a good impression about the financial goodwill of the company among its employees, who are further motivated to work harder in their designated roles.

Successful payroll management services is a must for every venture whether a start-up, small or medium sized company or even an MNC. The existing dynamic business scenario has come up with several challenges for delivering successful management services.

Let us go through some of the essential tips for maintaining successful payroll management services.

1. Implement a paperless payroll process: The digital age comes with the benefit of electronic transactions and database management systems. Manually, it is extremely difficult to maintain record and preserve data of numerous employees making it more prone to error. Hence, electronic transmittal of payroll is a must for successful payroll services. Also, security of data, ease of calculation and seamless disbursal of salary is achieved with the electronic payroll system.
   
   
2. Bring together different pay schedules: One of the means of ensuring successful payroll management services is to keep one pay schedule for all employees of your company. You might have come across companies who categorize employees such as contractual, permanent, freelancers and designate varying pay schedules for them. When a company decides one single pay schedule for all its employees, it removes multiplication of processes, executes seamless payroll management with no errors.
   
   
3. Install the right software: Leveraging digital technology is one of the significant ways of managing successful payroll services. However, the trick lies in installing the right software suited to meet your business needs and budget. You can either select from the multiple software options available in the market or built an in-house software which can be easily integrated with your business processes.

This digital software will ensure error free calculation of salary, tax deduction, leave balance, and so forth. Moreover, you can even generate electronic pay slips at the click of the mouse.

4. Make your payroll system compatible: It is extremely vital that your payroll software integrates well with your accounting system installed in your company, say, for instance, SAP. There needs to be compatibility between the two systems to ensure error-free and accurate calculation and disbursal of payroll services.
   
   
5. Stay updated about the latest rules and regulations: Efficient payroll management services can be delivered only when you stay updated about the latest rules and regulations implemented in your country with respect to employees, gratuity rules, EPF, medical reimbursement and other crucial salary components.  This will facilitate making accurate payroll assessment keeping your employees satisfied as well.
   
   
6. Outsource your payroll management service: One essential tip for maintaining successful payroll services is to outsource it. Yes, you heard it correct! These days, payroll outsourcing has become the norm especially after the outbreak of Covid-19. Outsourcing your payroll management function will give you the benefit of saving time, money, effort and most importantly no stress. These payroll outsourcing firms are equipped with financial and technical professionals who deliver seamless payroll services fulfilling your business expectations.
   
   

Conclusion

To conclude, efficient handling of payroll management services is considered as a hallmark of a successful and competitive company. It also keeps the workforce happy and motivated. Simultaneously, it creates a positive brand value for the company in the market.   

The sudden outbreak of the pandemic Covid-19 has put an unanticipated halt to almost all the economic activities across the globe. The Indian economy has also been bearing the brunt of this economic halt which came in the guise of lockdown imposed in the country for three to four months. In June 2020, the International Monetary Fund (IMF) announced that India’s growth rate would decline by 4.5 per cent due to slow recovery from the novel Corona virus and a longer period of lockdown. However, India’s economic growth is expected to bounce back to six per cent in the year 2021.

The novel Corona virus forced the economies of the world to impose extended lockdown which has had severe impact on the business scenario and hence, the livelihood of people. However, several countries have started to recover and have gradually restarted their economic activity. India is no exception to this activity. After approximately three to four months of extended lockdown, the Indian economy is gradually coming back on its foot. The government offices and several private business houses have reopened their office premises with strict adherence to safety measures of the employees.

The lockdown period in India witnessed tremendous growth especially in some sectors such as OTT platforms, e-commerce, FMCG, pharmaceuticals and others.

It is to be noted that the medicine and healthcare sector has been at the forefront of the fight against Corona Virus. For instance, the manufacture of masks, hand gloves and sanitizers witnessed tremendous growth in the country. Even the Personal Protective Equipment (PPE) and ventilators are getting manufactured in India in large numbers.

 The lockdown imposed by the Indian government proved to be a boon in disguise for the FMCG sector. The various companies operating in this sector such as Nestle, HUL, ITC, P&G, Godrej Consumer, Dabur, Amul and others expected a sudden rise in the demand of their products. In simple words, the general public decided to stock the essential commodities at home. However, it is to be noted that these companies faced supply chain challenges during the lockdown period for arranging the delivery of essential items during the lockdown period.

With the passage of time, the government permitted the online delivery service to function during the lockdown period. As a result, some of the companies such as BigBasket, Grofers, Amazon and Flipkart witnessed a sudden surge in the online delivery of essential items.

Another sector which witnessed unprecedented growth has been the consumption of online content. Since the general public was locked inside their houses, the companies such as Netflix, Amazon Prime and Disney Hotstar saw a rise in the consumption of their online content.

Likewise, the online education industry witnessed an unprecedented expansion during the lockdown period in the country. Since schools and colleges were shut down, the online medium of education witnessed a surge. The government even devised rules and guidelines for schools to impart online education to children.

Unfortunately, the start-ups were adversely affected by the lockdown which seriously impaired the business activity in the country. Several start-ups had to be closed down without notice leading to unemployment of employees. In addition, several companies who witnessed decline in their business activity (such as the hotel industry, aviation industry and others) were forced to disburse deducted salary to their employees during the lockdown period. Even the small businesses have suffered heavy losses due to the outbreak of the Covid-19 pandemic.

Therefore, to conclude, the state of businesses has been badly affected in 2020 due to outbreak of the novel Corona virus. With no medical solution at hand, one will have to live with this virus for some time now. After the unlock initiated by the Indian government, businesses have attempted to return to normal business operation but with precaution and safety. Undoubtedly, the business sector will bounce back with vigour and will exhibit growth in 2021.