Why small business in India contribute only 1% in total GDP though employs 40% of total workforce
In India, we have around five cr. small and medium enterprises. They employ around 40% of total workforce though they are not able to contribute more than 1% in Indian GDP as per Zinnov research. This means their operating efficiency is poor or not up to the mark.
There could be several reasons why they are not able to improve operational efficiency. One can be their inefficient, redundant and error-prone HR processes, small business running low on resources generally don’t streamline their HR processes although their main strength is an individual employee who contributes major in small businesses.
After some saturation point, it becomes unmanageable and chaotic for small business to manage their HR processes. It is due to overwhelming number of processes like compliance with govt for TDS, professional tax and compliance local PF office on monthly basis, maintain records of employee leaves and attendance, recruiting on critical positions, running payroll, full and final settlement of left employee, maintain books of accounts list just doesn’t end here.
Why do we need to ask this question? or Why we are interested in this fact? or Why should we bother about it?
Because, If we can improve their operation even in the small factor that small business has potential to contribute hugely to India’s GDP and make India fastest growing country.
To simplify and improve the efficiency of HR process, we at factoHR are committed and continuously strive to build fast, simple and integrated payroll software.
What is integrated payroll software?
In early years of computing, companies used multiple and fragmented systems to address HR process like hiring, maintain leave and attendance, running payroll, performance measurement and exit management. It was not efficient and require a lot of personals and separate information department to manage and running it. Today technology provides us a solution to tackle this problem through integrated Payroll software.
In another way, you can take care of your entire HR processes with a single login. Here are some ways an integrated payroll software can benefit your company :
1. Improve Communication
Integrated payroll software help to reduce confusion and improve communication between Employer and Employee. Both Manager and Employee can use a self-service portal to manage their leaves, in-out punches, timesheet, expense claim and income tax proofs.
This simplifies process like maintaining hard copy and submit leave application physically. An employee can see their own leave balance and apply for leave, the manager can check and approve them from a mobile app or from web and data will be submitted to payroll at the same time.
2. Increase Productivity
Maintaining hard copies of each and every record in payroll and HR is a long and inefficient process. Even doing manual data entries is time taking and error-prone. With factoHR data entry is minimized because you can upload excel files for data updates and all employee data is connected to payroll. You will also increase efficiency by using a single platform for all your HR needs.
3. Find Information Easily
When you are using integrated payroll software all your payroll and hr data are interlinked. So you can find employee data like salary structure, performance and leave data much faster and very easily.
4. Remain Compliant
With help of integrated payroll, you can generate all your statutory reports like TDS, Professional Tax and ECR from a single platform. Reports will be generated in a required format that can be submitted without any changes. So you will be assured of your compliance.
5. Reduce Error
Error in payroll can cost huge money to any company. Ensure your money goes to a right place. With accounting accuracy, factoHR can be integrated with any ERP or Accounting Software like Tally, Ramco ERP or SAP etc.
6. Mitigate Risk
In case of natural disaster, you want to ensure that all your data and documents are safe. Integrated payroll can ensure all your companies information is safe as all are maintained in SaaS.
7. Personalized Support
It crucial for any business to pay their employees on time. It is a headache if you have to follow up constantly for support with unfamiliar support executive. factoHR assign dedicated experience support manager who will be available for entire duration of account’s life.
If your company has employed considerable resources on maintaining multiple and fragmented HR software or trying to maintain everything in excel consider switching to integrated payroll software. By implementing it you can start saving time and money immediately and allow you to do more in less time.