A professionally managed, fully integrated HR team can add value to any organization’s business by following latest “Payroll technologies” or “Payroll Practices”. The importance of a payroll system, whether in-house or outsourced, has been well accepted in today’s Indian corporate ecosystem. The same can be observed in the best payroll practices in India in 2018.
One of the top trends, which the HR function encountered, in 2017 was to decide how to separate pay from performance and still get the desired results. While solutions were created and successfully implemented, the year 2018 will see technology and compliance to local norms, as best payroll practices in India in 2018.
A. Technology as the Focal Point
The talk of the corporate environment is – How to use technology to make things faster, easier, and perceptive. This is how they do it:
i. Cloud Adoption
While 70% of all organizations reported having adapted to cloud computing in one form or the other, 2018 will see a rise in the percentage. Cloud computing facilitates managing technology without a burden, remains compliant and safe, and stays efficient. Cloud-based payroll software eliminates the possibilities of redundancies, data duplication, and inaccurate entries.
Technology adoption, as in case of cloud adoption, needs to be supported down the line for complete implementation and that gives rise to new and distinct needs like the availability of “Smartphone Apps”. The primary requirements of HR managers, payroll administrators, and now the employee is- Mobile-Optimized software. One of the best payroll practices in India in 2018 is to fulfil these needs to enhance the effectiveness of work even on the go.
iii. Safeguarding Data
With cloud computing and mobile-apps penetrating the payroll ecosystem the necessity of data security will be of prime importance. No doubt the ease of accessibility will get amplified with the usage of mobile apps and cloud computing and the exigency of securing the internal or outsourced online HR platforms will gain momentum.
The newest trend in last few years is “Blockchain” technology. By virtue of its inbuilt features like encryption, immutable data, real-time reporting, and accuracy it will get used in the HR and payroll world as one of the best payroll practices in India in 2018.
v. Next Generation AI gets Embrace
Just like manual task got replaced by automation, similarly, automation will get transformed by Artificial Intelligence (AI). 2018 will see HR and payroll embracing AI to acquire the ability to act independently without any human interference. It will facilitate improving the business output, making the workforce more efficient and engaged in the goal of the organization. A cost-effective initiative, it will augment overall employee experience.
B. Adapting to Local Norms and Understanding Legalities
With liberalized norms in FDI Indian market is ready to embrace global giants. These giants though need to adapt to the local norms and understand the legal requirements of the country to strike a balance between their best practices and Indian outlook. 2018 will witness these giants complying with local norms like:
- The Companies Act and the Contract Act 1872 that govern the employment terms and conditions in India.
- Follow the Minimum Wages Act, 1948 which directs employers to provide the basic cost of living to employee categories.
iii. Ensure Gratuity and Provident Fund under the Payment of Gratuity Act, 1972.
In addition to the above best practices, 2018 will see the use of social media and virtual reality for hiring, engagement and by year-end may witness “Conversational Platforms” getting used at large for employee retention and motivation. These platforms will further allow employees to employ self-service and automated responses to collect information on the payroll without the need to speak to a payroll manager or administrator.