FY’22 Saw A Whopping 123% Increase In Senior Exec & CXO Hires By Startups: RazorpayX Payroll
In FY’22 and now, businesses have been recalibrating their business strategies to optimize costs and efficiencies across the board. Payroll compliance continues to be a critical expenditure, but businesses, especially startups are increasingly seeing the convenience of using automated payroll platforms to eliminate manual effort, error and security lapses on employee databases. In the last one year, businesses using automated payroll software such as RazorpayX Payroll platform saved Startups around 151,680 man-hours over payroll and manual compliance processes in the last one year. The Payroll platform witnessed a 3.7X adoption rate in FY’22, allowing businesses to focus on their core functions, as opposed to worrying about compliance.
The RazorpayX Payroll Insights Report has derived some interesting observations from the payroll data of a sample of 25,000+ employees from 1,000+ Indian organizations; across 15+ sectors using RazorpayX Payroll platform.
One in Three Organizations Doubled in Strength this year: Despite the second and third waves of the pandemic, organizations saw growth of 84% in employee headcount from April 2021 to March 2022. In fact, 28% of the organizations grew more than double in strength over the year.
Chief Executive Offers: In the case of new hires, Senior-Executives and CXO level roles (monthly CTC>150k) saw the highest increase in headcount of 123% in FY’22, followed by junior level roles (monthly CTC 20k-40k) where employee headcount increased by 92%. Mid-level and Entry-level roles grew by 86% and 63% respectively.
Rebuilding and Heading Up: Operations & Logistics departments reported the highest increase in personnel of 172% in FY’22, witnessing more than a 2.5X headcount growth from FY’21. This was closely followed by Sales & Marketing departments which grew by 148%. Technology teams saw an increase in headcount by 80%. This trend indicates that while businesses have been on a revival phase, they are rebuilding their teams aggressively.
Hire and Hire: Salary spends doubled over the year, in fact grew by 102% over the year with a total of INR 1489 crores processed. Mid-Level and CXO level salaries grew by 8% and 6% respectively, in March 2022 as compared to April 2021, suggesting that organisations were hiring and promoting.
Gig-Economy On the Rise: Contractor payments increased by 132% and so did the number of contractors by almost 88% in FY’22. This indicates that organizations are increasingly relying on independent workers including gig workers and freelancers for some of their operations.
On The Road: Reimbursements paid to employees increased by 209% with hotel-related reimbursements seeing the highest increase of 629%, followed by travel related reimbursements that grew 5x (416%), and fuel reimbursements (233%). Internet Reimbursements dropped by 37% in FY’22, indicating that employees are returning to offices and work-related travel is back. Interestingly, Reimbursements for telephone bills increased by 157% over the year which is a possible indication of hybrid work arrangements for day-to-day work.
Happy Hours: Organisations have saved 151,680 man-hours over the year on payroll as well as compliance processes by automating compliance payments. The amount of compliance payments including TDS, PF, PT and ESI saw a 6.2X increase from the previous year, FY’21.
Commenting on the findings, Shashank Kumar, CTO and Co-Founder, Razorpay said “This year’s Payroll insights clearly show that start-ups are flourishing in full force post the pandemic crisis. More and more businesses are realising that moving to automated platforms such as RazorpayX can enable them to focus more on growth and less on payroll compliance. It is exciting to see that by simply automating reimbursements alone - one of the many components of payroll, businesses were able to save over 3100 hours, which amounts to over 120 days! However, thousands of businesses still rely on manual processes and excel sheets every single month to manage payrolls which increases operating costs, leaves room for errors and results in unnecessary delays. It is imperative that as businesses get digitized, it’s time to move on from these manual processes. We strongly believe that how businesses handle critical functions such as payroll, taxes and compliance, health insurance will be a key indicator of employee-centric workplaces.”
As organisations of all sizes expand their workforces, automating payroll management and compliance is no longer a choice to opt for but a need. RazorpayX currently serves over 30,000 businesses and in the last one year has seen the adoption of XPayroll platform increase by almost four times. RazorpayX is also seeing an average of 5X increase across different payroll requirements such as payslip generation, employee payments, salary transfers, among others.
