The Impact of Payroll Automation on Employee Retention in India

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…

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Payroll Software for Remote and Hybrid Teams in India

In the post-pandemic era, India's workforce has undergone a seismic shift. As of 2025, over 60% of Indian companies have adopted hybrid or fully remote models, driven by talent demands in tech hubs like Bangalore, Mumbai, and Hyderabad, as well as the rise of gig economies. This flexibility boosts productivity and access to diverse talent but introduces complexities in payroll management. Remote employees scattered across states or time zones, hybrid teams blending office and home workers, and the need for seamless compliance with India's multifaceted labor laws make traditional payroll processes obsolete.

Payroll software in India emerges as the linchpin for these models. These cloud-based tools automate salary calculations, tax deductions, and statutory filings, ensuring accuracy and timeliness. For remote and hybrid teams, they integrate time-tracking, self-service portals, and multi-location support, reducing HR administrative burdens by up …

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