India’s job market is fiercely competitive. With over 1.4 million graduates entering the workforce annually and attrition rates in IT and BPO sectors hovering between 15–25% (NASSCOM 2025), retaining talent is a boardroom priority. While culture, growth, and compensation dominate retention conversations, one overlooked factor is quietly reshaping employee loyalty: payroll automation.
Accurate, timely, and transparent salary processing isn’t just an HR function — it’s a retention lever. A 2025 Mercer India survey revealed that 41% of employees who left their jobs cited payroll delays or errors as a key trigger. In contrast, companies using payroll software in India with employee self-service (ESS) portals reported 35% lower voluntary attrition.
This blog explores how payroll automation in India — powered by solutions like Tankhapay — is reducing turnover, building trust, and turning payroll from a pain point into a strategic ad…