ADP Report 20 Feb 2024

Future of Pay in
India report 2024

A comprehensive study on the state of
pay in medium and large enterprises
Contents
03 Foreword
04 Preface
05 Key findings
Reimagining pay
Data, compliance and payroll
The demand for ‘sensible’ AI
Setting the tone for the year ahead
18 Industry insights
39 Conclusion and recommendations
41 About the study

Foreword
Pay is the core foundation of financial wellness. Employees have greater peace of
mind if they know when they will be paid and how much, which helps them deal
with their myriad of life’s challenges and plan for the future.
ADP’s Future of Pay in India 2024 research delves deep into the heart of
contemporary HR and payroll practices. It provides valuable insights into current
trends and can serve as a compass, guiding India’s HR and business leaders
towards informed decision-making and sustainable growth. This second edition
captures the perspectives of senior leaders with responsibility and oversight for
payroll in Indian organisations with 500 to 2500 full-time employees. Key topics
span 2024 top HR considerations, reimagining pay, pay equity and parity, major
initiatives impacting payroll and impact of AI.
India’s growth story is testament to the nation’s resilience, innovation, and

sustained economic reforms propelling it towards becoming the third largest
economy in the world by 2030. Over the years, India has implemented a series of
economic reforms aimed at liberalising various sectors, rapid digitisation,
fostering ease of doing business and attracting foreign investment. We are also
seeing a rapid shift in the informal workforce joining the formal economy. For HR
and payroll professionals, 2024 is about balancing conflicting priorities,
challenges and opportunities, and risk versus reward as economic uncertainty
continues.
This initiative by ADP India aims to help mid and large organisations in India
understand the changing landscape of pay as they embark on their growth
journey. We hope you find this report valuable and useful.
Preface
In the dynamic landscape of the Indian workforce, understanding the intricacies
of pay and payroll processes has never been more crucial. As we stand on the
cusp of a new era, marked by rapid technological advancements and evolving
employee expectations, the release of the ‘Future of Pay in India Report 2024’
represents a significant milestone in our collective journey towards a more
informed and equitable future.
The collaboration between The Economic Times HRWorld and ADP has yielded a
groundbreaking study that delves deep into the heart of contemporary HR
practices, offering invaluable insights gleaned from meticulous analysis and
extensive industry engagement. This report not only sheds light on current
trends but also serves as a compass, guiding HR and business leaders towards
informed decision-making and sustainable growth.
As we pore over the key highlights of this report, it becomes evident that the
quest for equal pay, fairness, and transparency remains at the forefront of
organisational priorities. From the adoption of performance-based compensation
models to the integration of AI-driven tools, organisations are navigating
uncharted waters in their quest for precision and efficiency.
Moreover, the report underscores a paradigm shift in the approach towards

employee well being, with financial wellness emerging as a top HR consideration
for 2024. This shift is mirrored in the growing emphasis on alternative methods
of compensation, such as digital currencies and stock options, signalling a
departure from traditional norms towards a more personalised approach to
rewards.
As we embark on this journey into the future, armed with the insights gleaned
from this report, let us embrace a new ethos of data-driven decision-making. This
report is not just an information source; it's a powerful tool for navigating the
future with confidence and foresight. By equipping HR and business leaders with
data-driven insights and actionable recommendations, we aim to catalyse
meaningful change and shape a future where pay practices are fair, transparent,
and empowering for all. Let us leverage the power of knowledge to steer our
organisations towards greater resilience, agility, and success. Together, let us
chart a course towards a future where pay parity is not just an ideal but a reality,
and where every individual is empowered to reach their full potential.
Hope you enjoy reading it as much as we enjoyed creating it for you!

Key findings
Reimagining pay
06
2024 top HR considerations

There is a shift in prevailing issues of top concern to leaders in 2024:
Employee well being and inclusion are new to the list of top HR considerations this year. 62% are now prioritising
financial well being and 46% are advocating for equity across HR practices.
Technological innovation in HR remains this year, with 59% considering Gen AI for HR processes and 32% adopting
new technologies for remote work management.
Talent retention and attraction strategies remain centre stage, with over half of the respondents evaluating
compensation programs and an equal percentage introducing innovative structures and benefits.
Compliance remains a top priority, with 54% focusing on new labour laws like the Code on Wages and 51% focusing
on what’s required to comply with India's Digital Personal Data Protection (DPDP) Act.
What are your top HR considerations for 2024 given the current economic
and geopolitical environment?
Focus on employee wellbeing including employees’ financial
62% wellbeing & wealth creation
Assess the impact of compensation programs geared

59% towards the retention of talent
59% Introduce Gen AI to manage HR processes
Introduce innovations to existing compensation structures

58% and benefits to attract and retain talent
Assess the impact of and implement compliance requirements for

54% new labour laws, and Code on Wages
Assess the impact of India’s DPDP Act, 2023 and implement

51% compliance requirements
Reconsider and realign employee benefit offerings based on value in the

49% future
Prioritise equity and inclusion in hiring, development, pay, and retention

46%
Evaluate remote working policies and their impact on multi-jurisdictional

44% HR and payroll compliance
Introduce new technologies to track and manage employee work locations to

32% remain compliant with local and global regulations
27% Address compensation policies based on new work locations
Assess current workforce management solution and impact on our

25% distributed workforce
2% Others
Future of Pay in India Report 2024

07
2024 top payroll considerations

Key priorities for organisations aiming to enhance their payroll services within the next year centre around compliance
expertise, accuracy of payroll, and employee experience, with technology integration and process simplification also
garnering significant attention from respondents.
Compliance expertise, accuracy of payroll, and employee experience are considered the top areas of focus or
improvement relating to payroll, with 56%, 56%, and 55% of respondents respectively highlighting them as
important.
Technology integration, simplification of processes, and self-service capabilities are also significant areas for
improvement, with 50%, 49%, and 40% of respondents expressing their importance, respectively.
Employee queries, cost savings, and upgrading or modernising technology are also notable areas for focus or
improvement, though they rank slightly lower in importance compared to the aforementioned areas, with 35%, 35%,
and 39% of respondents respectively highlighting them.
Which of the following do you consider the top areas of focus or improvement
relating to payroll?
56% Compliance expertise
56% Accuracy of payroll
55% Employee experience
Technology integration (integration/input

50% from HRMS output integration)
49% Simplification of processes
40% Self-service capabilities
39% Upgrading or modernising technology
35% Employee queries
35% Cost savings
26% Reporting capabilities
16% Quality measurement
10% Consolidation of vendors

08
Pay frequency, flexibility and alternative methods

Direct deposit remains the favoured payment method among employees, with 94% supporting its continuation. However,
there is growing willingness to explore alternative non-traditional payment methods, and readiness to embrace newer
payment technologies like mobile wallets and pre-payment cards. These sentiments echo the conclusions of the Future of
Pay in India Report 2023, where 54% agreed they’ll be incorporating a combination of alternative non-traditional payment
methods.
There’s more divided sentiment towards pay frequency and flexibility. Over half of the respondents are interested in
offering flexi options for pay dates and providing more frequent pay cycles, but there's a portion (18%) of respondents who
strongly disagree. While some organisations are pivoting towards greater flexibility, others still prefer more traditional pay
structures, likely due to the anticipated complexity it would pose to their existing operations.
Notably, there is a widespread agreement among organisations on the significance of financial wellness. Nearly 84% now
acknowledge the importance of providing expedited access to wages for unforeseen emergencies or expenses, up 5% over
last year.
With pay and access to pay being crucial and fundamental to employee
experience, what payment methods and frequencies do you believe your
organisation is exploring for adoption over the next 5 years?
Continue with direct deposit to employee salary bank accounts

94%
as the only pay method
To achieve financial wellness of employees, provide faster/early

84% access to wages to fund for “emergencies” or “unplanned expenses”
Introduce a mix of alternative non-traditional pay methods like

54%
mobile wallets, pre-payment cards, etc.
Offer more frequent pay cycles (weekly or semi-monthly) like

53% in few other countries
Offer flexi options and let employees choose their pay

44% date like in few other countries

Key findings
Data, compliance and payroll

10
Assessing impact and response

The data gathered, suggests organisations are adopting a multi-faceted approach to improving payroll function within
organisations – encompassing HR, digital, and payroll transformations – as well as the integration of advanced technologies
like AI. All initiatives reflect a proactive response to the evolving demands of the modern workplace, aiming to enhance
payroll efficiency, accuracy, and strategic alignment with organisational goals.
More than half of respondents highlight a commitment to continuous HR transformation, signalling a strong
emphasis on reforming human resources practices within their organisations. This indicates a dedicated endeavour
to modernise HR functions, likely including aspects such as talent management, employee engagement, and
performance evaluation, all of which could have a direct impact on payroll processes. Alternatively, payroll data
serves as potent information for HR transformation efforts, such as offering insights into how to improve retention
and turnover rates.
An equal proportion of respondents also highlight digital transformation as a major initiative impacting their payroll
function. The emphasis on digital transformation suggests a shift towards automated, data-driven payroll systems
that can improve accuracy, efficiency, and compliance.
More than one-third of respondents mention Gen AI integration into HR processes as a significant initiative
impacting their payroll function, reiterating the growing trend towards incorporating artificial intelligence and
advanced analytics into HR operations and payroll management.
What are the major initiatives going on in your organisation now that impact
your payroll function?
51% HR transformation
51% Digital transformation
35% Gen AI integration into HR processes
33% Payroll transformation
12% Finance transformation
7% Others

11
Business resilience in action

The level of preparedness for business interruptions has remained relatively static. This may be a cause for concern,
especially considering the increasing threats of cyberattacks and critical systems outages impacting payroll operations.
In 2023, 45% of respondents had some kind of playbook or plan in place, while in 2024, this this rose to 47%. This
indicates a marginal increase in number of respondents adopting contingency plans year on year. Notably, the
percentage of respondents with comprehensive pan-India playbooks remains almost at par with over one-third
claiming to have one in both 2023 and 2024.
The percentage of respondents with playbooks and plans for some regions increased to 12% in 2024, up from 7% in
2023, indicating a consistent approach to contingency planning at a regional level.
More organisations are moving to put contingency plans in place. This data shows fewer organisations have
considered but not yet implemented a contingency plan, dropping from 34% in 2023 to 28% in 2024.
Still, fifth of respondents have not contemplated constructing contingency plans. This number has not changed
from last year indicating a quorum of companies that remain at high risk of potential cyber threats and system
outages affecting payroll operations.
Considering the increase of cyberattacks and critical systems outages,

what contingency measures do you have in place to protect
your payroll operations?
12%
35% We have developed a pan-India

playbook and contingency plan
We have considered building a plan, but

nothing in place at the moment
25%
We have not considered building
such plans
We have developed playbooks and

plans for some regions
28%

12
Analysing shifting preferences

The data reflects a predominant reliance on in-house payroll operations, with only a small proportion opting for fully
outsourced models, suggesting a preference for internal control. However, insights from C-suite interviews indicate a
growing recognition of the benefits of outsourcing, which may drive future shifts towards hybrid or fully outsourced models.
More than half of the respondents say they currently have an in-house service delivery model. In contrast, 9% utilise
a fully outsourced service delivery model, similar to last year.
Interestingly, insights gleaned from in-depth interviews conducted with C-suite industry leaders – as detailed later
in this report – reveal a growing acknowledgment of the need to leverage payroll outsourcing partners to mitigate
risk and gain access to a broader pool of experienced compliance experts who are dedicated to staying abreast of
regulatory changes.
About 23% of respondents employ a mix of in-house and outsourcing for their payroll operations and 17% of
respondents utilise a partially outsourced model, complemented by dedicated internal HR capabilities for basic
operations.
What service delivery model do you primarily follow for payroll operations
in your organisation?
1%
9%
In-house
17%
Mix of in-house and outsourcing
Partially outsourced, with dedicated internal

51%
HR capabilities for the basic operations
Fully outsourced
Others
23%

Key findings
The demand for ‘sensible’ AI

14
AI's impact on payroll operations

The majority (74%) of respondents clearly recognise AI’s potential benefits in optimising payroll operations and ensuring
competitive salary structures.
In breaking down this further, the data indicated varying impact of AI on specific payroll processes within organisations:
Attendance/overtime calculations have been most positively impacted by AI, with 17% of respondents
acknowledging its positive influence.
Compliance monitoring follows (13%), then calculation of deductions and salary disbursement (12%), managing
payroll/compliance-related queries (11%) and pay equity (8%) respectively.
Claims processing and employee enrolment to social security benefits are not seeing AI’s positive impact to the
same degree with only 4% and 6% of respondents citing these respectively.
To what extent do you agree or disagree with the following statement?
We are likely to consider AI as a tool to benchmark and enhance the

company's salary structure for better management of payroll.
4%
6%
Strongly agree
16%
Somewhat agree
42%
Neither agree nor disagree
Somewhat disagree
Strongly disagree
32%

Key findings
Setting the tone for the

year ahead
16
Embracing innovation for efficiency and equity

The insights reveal a promising trajectory marked by a growing receptiveness towards embracing innovative technologies
and advancements within the realm of pay and payroll operations. This signifies a proactive stance adopted by organisations
to explore and incorporate cutting-edge solutions aimed at enhancing the efficiency and precision of their payroll processes.
The majority of organisations (57%) express willingness to invest in AI-powered payroll systems despite concerns
about bias and data privacy, recognising the potential benefits in improving accuracy and efficiency in payroll
processes.
There is a positive trend in addressing pay disparities, with the majority of organisations either having formalised
processes or considering their implementation, reflecting a proactive approach to equity in compensation practices.
Approximately two-thirds of employees are open to considering non-traditional payment methods as part of their
compensation package.
However, only 22% of organisations feel well-prepared to explore and integrate alternative payment methods
beyond traditional models, indicating a minority with high readiness for innovation in pay structures.
Approximately two-thirds of organisations, either moderately prepared or remain neutral regarding the adoption of
innovative payment methods currently.

Our organisation is willing to invest in AI-powered payroll systems to
significantly improve accuracy and efficiency, despite concerns about
bias and data privacy.
8%
9% 29% Strongly agree
Somewhat agree
25%
Somewhat disagree
Strongly disagree
28%

17
Our employees are open to consider non-traditional payment methods

(e.g., digital currencies, stock options, grocery/shopping vouchers,
travel vouchers, additional paid time off, etc.) as part of their
compensation package.
5%
9% 23% Strongly agree
Somewhat agree
23%
Somewhat disagree
Strongly disagree
41%
Please select the statement that best reflects your organisation's

readiness to implement innovative pay components tailored to diverse
employee preferences.
14%
22%
Our organisation is well-prepared to explore and
integrate alternative payment methods beyond
traditional models
We are moderately prepared to consider new

payment methods but require further assessment
30% We remain neutral regarding the adoption of

innovative payment methods at this time
We are not prepared to implement innovative

payment methods within our organisation
34%

Industry
insights
19
Simplify the benefits claiming process to

improve employee satisfaction
Evolution of payroll strategies
The past year has witnessed significant shifts in payroll strategies within the IT
industry. Firstly, hiring and salary increases have slowed considerably compared to the
previous two years. New hires and existing employees are seeing significantly lower
Vivek Tripathi
percentage increases – almost half of what was observed last year. Secondly, there's a
CHRO
growing trend of associating variable pay with company outcomes at senior levels.
Newgen Software
While individual achievements still hold value, a larger portion of variable
compensation is now tied to company-wide metrics like profitability and revenue
growth. These changes reflect the evolving economic climate and a focus on aligning
individual rewards with broader organisational success.
Advancing pay transparency

We've made significant strides in pay transparency this year. Previously shrouded in
mystery, we implemented clear salary ranges based on market data. These salary
ranges empower managers by providing a framework for pay decisions while ensuring
fairness and alignment with market trends. This grants them flexibility within the
range to reward performance based on individual merit.
This transparency shift marked a major change for our 230-year-old company, but it's
been successfully implemented. Now, managers clearly understand the pay bands for
each position, eliminating ambiguity and fostering trust. This empowers them to make
informed pay decisions that reflect performance and market value.
Revamping benefits for a diverse workforce

Our diverse workforce spans from young graduates to seasoned professionals.
Recognising this, we've revamped our benefits structure and administration to cater
to their varied needs:
Reduced hierarchy dependence: We transitioned from a level-based system to a

"bouquet" of benefits accessible across various roles. For example, Carly's writing
service, previously exclusive to managers, is now available to project leaders and
above.
Family-based options: Medical insurance now adapts to family size and specific
needs, not just job level.
Simplified claims process: We're exploring AI-powered apps that automatically

recognise and reimburse eligible expenses like phone bills or internet payments,
eliminating cumbersome paperwork. This should be implemented by the next
fiscal year.

20
One of the key challenges that we’ve observed is claiming benefits can be a hassle. By
simplifying the process and offering more tailored options, we aim to improve employee
satisfaction and encourage full utilisation of available benefits. Additionally, we're
exploring AI-driven analytics to understand benefit usage patterns across various
demographics. This data will help us further customise both benefits and salary
structures to better serve our diverse workforce.
Prioritising employee data security

Our organisation prioritises employee data security, especially payroll information,
through in-house systems with access controls and regular audits. Compensation
details are strictly confidential, shared only with individuals and their managers.
Finance receives anonymised data for analysis.
As we expand globally, complying with local data privacy laws is crucial. For instance,
we outsource payroll in Singapore due to its stringent regulations. We advocate for
comprehensive standards across all regions and monitor legal changes to ensure
compliance. India's recent data protection legislation is a positive step, but stricter
measures might be necessary for stricter privacy regimes. We actively monitor legal
changes and adapt our practices accordingly. Ensuring employee data security and
compliance will remain a top priority as we navigate the increasingly complex global
landscape.

21
Adopt a data-driven, non-generic approach

to personalise pay and benefits
Navigating cultural diversity
The need to adapt to constantly changing local regulations due to shifting country
alliances poses a data security and compliance challenge. Additionally, maintaining a
positive employee experience across a diverse workforce in various regions with
different cultural norms and expectations proves difficult. This becomes especially Vaishnavi Shukla
crucial when attracting ambitious talent who demand excellence. You face the dual Head HR
challenge of balancing global consistency with local regulations and cultural Comviva
sensitivities, all while ensuring a seamless employee experience across a diverse
talent pool.
Building fairness and trust

Fair pay and transparency are complex topics with significant cultural nuances. At
Comviva, we believe true transparency requires leadership commitment, not just HR or
finance department initiatives. Our leaders are deeply invested in fair pay practices,
and we have several strategies in place to ensure this:
Tailored transparency: We customise transparency efforts, incorporating

constant goal reviews and fast feedback loops to keep employees informed while
fostering trust.
Deep analytics and process: Regular pay audits and in-depth analytics guide our
compensation strategy, allowing for adjustments during industry booms and
implementing special compensation cycles if needed.
Leadership-driven committee: Senior leaders review compensation strategy,

employee well being, and benefits before budget rollouts, ensuring transparency
and fairness in decision-making.
Robust communication: We clearly communicate goals, incentive plans, and

performance metrics through multiple channels, empowering employees to track
progress and understand the value of their contributions.
Unlocking the potential of AI

The inevitability of AI's integration into talent management underscores its
perceived importance. Rather than as a replacement, it should be viewed as
augmented intelligence, capable of enhancing support and driving improvement.
Picture leaders utilising AI for faster onboarding, recruiters leveraging insights to
craft personalised experiences, and compensation teams making informed decisions
through data analysis. This evolution will redefine fundamental areas like
compensation and recruitment. Success will favour those who embrace AI as a tool,
equipped with data literacy and critical thinking skills. They'll adeptly interpret
reports, comprehend data models and algorithms, and translate findings into
actionable strategies. Mere possession of data is insufficient – the true power lies in
comprehending and leveraging it effectively. This paradigm shift empowers leaders
and teams to make informed decisions, transforming potential disadvantages into
substantial advantages.

22
Proactive planning and ethical considerations

As we discuss future-proofing our workforces, proactive planning and ethical
considerations are paramount. Firstly, creating a comprehensive plan for AI
implementation prioritising ethical principles and internal expertise is crucial for
responsible use. Collaboration through cross-functional committees can address data
security and compliance challenges, ensuring a 360-degree assessment.
Digital literacy is essential for leadership in this age. We track it through a "digital
literacy dashboard" to bridge the gap between technical expectations and employee
capabilities. Flexibility, especially through hybrid work arrangements, is now
essential, informed by digital literacy data. Success in the future of work hinges on
data-driven decision-making, adaptability, and continuous learning, fostering a
culture of transparency and ethics for thriving in an evolving landscape.

23
Fairness in pay goes beyond mere numbers

Resilient pay strategies
The global talent pool challenges stem from a rapidly changing landscape, with diverse
generations demanding flexibility, personalised benefits, and exciting work. Businesses,
meanwhile, seek innovation while clinging to comfort and guaranteed success. This
creates a stressful environment where resilience is crucial.
Sunitha Lal
Building organisational resilience in context of pay, we can look at following elements: CHRO
Ather Energy
Differentiated pay: Articulate clear pay models based on performance, potential,
skills, and market realities. Recognise tenure but ensure performance management
accurately identifies top performers and high-potential individuals.
Diverse instruments: Utilise a basket of instruments like cash, variable pay,

ESOPs, and short-term rewards to cater to individual needs.
Total rewards philosophy: Develop a clear and communicated philosophy for

compensation, benefits, and provisions, aligning them with the organisation's
vision and objectives.
Adapting total rewards

Our total rewards strategy is undergoing significant experimentation due to the
changing needs of a multi-generational workforce and evolving industry. We're
actively exploring new instruments, understanding their effectiveness, and building
a comprehensive benefits and wellness programmes. While budget limitations exist,
we strive to create a seamless connection between benefits and personal needs.
Additionally, we're revamping our job architecture to reflect our industry's nuances
and better recognise diverse competencies across departments.
Currently, programs like our employee assistance program lack the integration
necessary to seamlessly support major life changes or ongoing personal struggles.
Addressing this stigma and ensuring accessibility remains a priority. Collaboration is
crucial. Both our talent management and total rewards teams understand the need to
work in tandem when developing frameworks and policies.
Fair pay and transparent communication

Fairness in pay goes beyond mere numbers. While individual roles within a range
deserve different pay points based on performance and potential, transparency and
clear communication are crucial for building trust. We believe regular performance
reviews should be a genuine dialogue, not just yearly formalities. While data privacy
is essential, fostering understanding of what is private helps protect sensitive
information. Building trust in the pay system requires multiple steps like:
Transparency: We advocate for clearly communicating the budget, allocation

rationale, and department benchmarks right from the beginning of the program.
Collaboration: Involve departmental leaders in budget allocation and
differentiation based on skills, competence, performance, and potential.
Communication: Ensure employees understand their position relative to

performance expectations and how that translates to their pay.

24
Closing the loop: Report back to leadership on budget utilisation and progress
towards objectives.
Navigating data privacy

Data privacy in workplaces, especially in countries like India, faces challenges due to
blurred boundaries between personal and public information. Companies lacking
experience with international regulations may overlook data protection protocols,
leading to concerns about data security and employee trust. Regulations prompt
organisations to establish clear boundaries regarding data access and protection.
Managers should adopt a risk-based approach, granting access only to necessary data
rather than viewing it as control. Transparency in defining monitored employee data
builds trust and ensures data privacy is respected as a fundamental right.
Overall, achieving data privacy requires a mindset shift and clear understanding of
essential data and protection measures. Organisations must actively define
boundaries and promote trust through transparent and responsible data handling
practices.

25
Embrace innovation while upholding ethical

standards
Tech-enabled fair pay
Technology plays a pivotal role in both transparency and fair pay within our
organisation. For transparency, it is essential to ensure that individuals have a
comprehensive awareness of various components, and our technology tools are Sachin Khurana
designed to be intuitive and user-friendly. This user-centric approach is vital to CPO
providing employees with accessible information about their payroll. Happiest Mind
Technologies
In terms of fair pay, our compensation platform, including payroll and compensation
tools, enables us to provide nudges and conduct comparative analyses. This
functionality assists in aligning decisions with performance and promotion guidelines,
contributing to fair and equitable compensation practices.
However, it's crucial to address data protection within this technological framework.
With the growing emphasis on data protection, our tools prioritise robust security
protocols. This ensures the secure storage and processing of personal information,
meeting legal requirements and safeguarding both individual and organisational
interests. The technology platform not only enhances efficiency by reducing personal
intervention but also ensures the confidentiality and integrity of the data, aligning
with legal and ethical standards.
Strengthening efforts and ensuring accountability

Our recent audit focused on Digital Personal Data Protection Act (DPDP) compliance
revealed that 90% of the required efforts in ensuring compliance come from the
people practice and finance (payroll) functions. To ensure strong adherence, our team
members with access to data or relevant platforms underwent individual training
using HRM's preferred tools, obtaining certifications and building awareness.
Awareness and training extend to leadership, emphasising the significance of
compliance. Our commitment is evident through regular audits, given that we are in
the business of managing people, constituting 70% of costs.
Operating in the US and UK, we were prepared for data protection acts, having
adopted these initiatives early on. The audit, encompassing compliance checks for
tools and technology partners, was successful, highlighting our dedication to
maintaining necessary certifications. While acknowledging a few improvement areas,
we are confident in our compliance efforts, recognising that ongoing audits, partner
certifications, and individual training remain pivotal in ensuring data protection.
Striking a balance
Balancing technology innovation with ethical considerations is a complex task.
Acknowledging the presence of bad actors in every technological advancement, I draw
parallels with instances like e-commerce and blockchain, where illegal activities
coexist with legitimate use. In the realm of AI-generated content, potential misuse is
apparent, highlighting the importance of ethical guidelines. A robust legal framework
is essential to define ethical boundaries and enforce consequences for violations.
Fostering a culture that promotes ethical practices within organisations is crucial for
encouraging responsible innovation.

26
As an IT services company actively involved in the Gen AI business services unit, we

understand the transformative power of AI. Despite associated risks, we prioritise
responsible innovation to prevent negative exploitation of the technology. Swift
establishment of legal frameworks is key to managing and controlling the ethical
dimensions of evolving technologies, facilitating responsible and beneficial innovation.
Embracing gen AI
While I cannot predict the future, we have begun integrating Gen AI into our
workforce culture. I have personally encouraged hands-on experience with Gen AI tools
among the team, supported by recent studies showing increased personal adaptation
of these tools, particularly among CXOs for effective communication.
Looking forward, I envision Gen AI playing a pivotal role in coaching and mentoring
people managers for more effective team management, enhancing HR professional’'
communication skills and facilitating problem-solving and program evolution for quick
decision-making. Anticipated efficiency gains of 30% to 40% within the next twelve
to 18 months, with McKinsey suggesting a 50% reduction in employee workload
through Gen AI adoption, are promising. However, managing expectations is crucial,
considering factors such as business context, ethics, and data safety.
The current high cost of building programs on Gen AI tools necessitates a gradual
reduction for broader organisational adoption. While the potential for significant
efficiency improvements in this technological space is exciting, a pragmatic and
phased approach is essential for effective integration.

27
Customised benefits are crucial to offer

sustainable, value-added perks to employees
Pay and payroll strategies in India
Employees increasingly demand transparency in payroll systems, prompting businesses
to opt for high-end customer services in payroll outsourcing. The rise of the gig
economy, expected to include 23.5 million workers by 2030, requires precise and
Dr. Reena Das
flexible payroll systems. This shift extends to managing payroll for both formal and
CHRO
informal workers, with modern systems updating to comply with tax regulations.
Keolis Hyderabad
Additionally, AI is revolutionising payroll management, enabling data-driven decisions
and enhancing labour management. Cloud-based systems ensure data security and
streamline processes, while emerging payment methods like digital currencies and
stock options cater to diverse employee preferences.
Data protection and compliance

The DPDP Act is India’s first data protection act and any information used to identify
an individual, including IP addresses, names, data, date of birth, email IDs. It
establishes a framework for processing of personal data offline and online. Every
organisation will have to provide a privacy policy that informs employees and
applicants of the data that is collected, why it is collected, what is its use and how
long it will be retained. The policy should be simple, easily comprehensible and in a
local language if necessary.
HR handles a high volume of sensitive data that includes personal information and
salary details. If that data is leaked it can cause issues to both employee and
organisation. HR professionals should implement data protection measures, control
employee data access, and maintain records of processing activities. The DPDP Bill
grants individuals’ rights over personal data, allowing employees to correct
inaccuracies and remove unwanted data with management permission.
AI-driven workplace
Gen AI can automate repetitive tasks and give employees more time to focus on their
strengths and manage work that is beyond monotonous and mundane. It frees up time
for a better work-life balance and thereby increases productivity.
The impact of Gen AI varies across employee groups. Entry level employees are
expected to see the biggest shift. It can open more possibilities by enhancing their
capabilities.
HR leaders can play a critical role in how organisations adapt to changes driven by
generative AI. Work can be redesigned with a new operative model. Bottlenecks and
inefficiencies should be identified to get more productivity. There should be
investment in both talent and technology. The workforce should be prepared for
technology disruption. HR leaders can strategies workforce planning and design by
identifying critical roles and skills of the future. Improving and imparting skills should
be a priority. Leaders should concentrate on how to increase the technical skills of the
workforce. Employees should have a basic understanding of AI and its capabilities.
Workers should be trained to be familiar with AI solutions.

28
Revolutionising compensation models

Growing turnover rates within organisations underscore the urgency for improved pay
and benefits. Adopting a pay-for-performance model involves rewarding employees
based on individual achievements, departing from traditional fixed salaries. These
rewards encompass various forms such as annual, quarterly, or monthly bonuses, spot
awards, project bonuses, and team awards. Variable compensation serves as a driver
for motivation and engagement, assisting companies in managing long-term fixed
costs and objectives. Emphasising pay transparency is crucial, with clear alignment of
goals and objectives with organisational strategy. Amidst the push for gender equity
and inclusion, ensuring pay parity and addressing gender or racial disparities is
essential. Personalised compensation packages are gaining popularity, alongside the
rise of skill-based pay. Real-time acknowledgment and appreciation for exceptional
performance are increasingly valued, enhancing efforts to retain talent. Utilising
variable pay structures like bonuses, commissions, and profit sharing further
incentivises growth and retention.

29
Data-driven approaches are shaping

competitive compensation
Adapting pay strategies to a changing workplace
As the workplace evolves, several key trends are shaping pay and payroll strategies.
Remote work challenges traditional compensation models, emphasising the need for
fairness across different locations. Organisations are increasingly focusing on
employee wellness, recognising its impact on overall compensation. The rise of Gen AI Radhika Arora
introduces new considerations in strategy adaptation to meet the preferences of this Group CPO
generation. Data-driven approaches are shaping competitive compensation aligned Jackson Group
with industry standards. Flexible benefits now include non-monetary incentives,
enriching the overall compensation structure. Ethical AI usage is crucial, especially
with the emergence of Gen AI, to ensure fairness and transparency for employees.
Leveraging gen AI
Using Gen AI-driven analytics in shaping compensation strategies offers a key
advantage by generating specific and targeted data for benchmarking, enabling
organisations to make precise adjustments to salaries and craft tailored packages that
attract and retain talent. Moreover, Gen AI facilitates the development of highly
personalised plans, meeting the unique needs of employees, particularly those of the
Gen Z workforce. This adaptability allows for customised compensation structures
incorporating features like skill-based pay or ESOPs, aligning with individual
preferences. Furthermore, Gen AI enables predictive analysis, forecasting trends in
employee behaviour such as job exploration or the risk of top performers leaving the
company. Leveraging Gen AI for predictive retention analysis empowers organisations
to proactively address potential challenges. Despite high expectations, the full
implementation and impact of these capabilities remain a work in progress,
necessitating ongoing exploration and adaptation within organisations.
Promoting fair compensation and transparency

To ensure equity and openness in compensation, we establish a clear grade structure
with defined pay bands for each level. While pay ranges may differ between
businesses, we maintain clarity for specific roles within our organisation. Furthermore,
we conduct biennial compensation benchmarking exercises, providing Heads of
Departments (HODs) with detailed reports and compensation ratios. This empowers
them to adjust salaries based on market standards. Regular HR sessions offer a
platform for employees to address any pay-related inquiries.
Our compensation framework is straightforward, avoiding the complexity often

associated with Cost to Company (CTC) structures. We maintain a transparent pay
model that is easily understandable for employees. Leveraging the Darwinbox system,
our employees have access to their complete compensation details, including a flexible
pay basket to customise their benefits. These measures collectively promote fairness
and transparency in our organisation's compensation practices.

30
Trends in pay-for-performance models

In pay-for-performance models, the primary trend is the expansion of variable pay
beyond sales roles to various support functions. This variable pay incorporates
individual, team, and business performance metrics to motivate and retain employees.
Another emerging trend is directly linking variable pay to the return on investment
(ROI) generated by employees, utilising data analytics to assess individual
contributions. Skill-based pay is also gaining traction, encouraging employees to
acquire specific skills through courses with monetary benefits. Retention bonuses,
particularly for top performers, are increasingly common, distributed over multiple
tranches. In leadership roles, Employee Stock Ownership Plans (ESOPs) are a notable
component of compensation packages, indicating a clear trend. At the senior level,
variable pay is typically tied to business performance, with leaders receiving bonuses
only upon meeting specific business targets like profit before tax (PBT). Joining
bonuses are prevalent, especially for mid to senior roles, particularly among graduates
from prestigious colleges. These trends collectively shape the evolving landscape of
pay-for-performance models.

31
Critical to establish proactive data governance

capabilities
Evolution and innovations in pay
In our organisation spanning Fast-Moving Consumer Goods (FMCG), technology,
Agritech, and logistics, pay and payroll strategies vary by industry segment. Notably,
there's significant innovation in startups, where a shift towards variable pay is
Naveen Kumar N
observed, fostering instant recognition of employee efforts.
Head HR
Licious
Historically, startups relied heavily on fixed pay and Employee Stock Ownership Plans
(ESOPs) to incentivise risk-taking. However, ESOPs have evolved towards more
balanced structures, with startups offering substantial allocations to senior talent.
Some, including ours, provide ESOPs to all employees after a year. Our innovative
practices, like daily ESOP vesting, reflect industry trends in adapting to
multigenerational workforce preferences, prioritising stability while accommodating
calculated risks for younger generations.
Additionally, innovations extend to payroll methods, particularly in our logistics sector

catering to a gig workforce. We've experimented with more frequent pay models,
aligning with preferences for quicker compensation cycles. These adaptations are vital
in meeting the diverse needs of a multigenerational workforce, fostering an
environment that attracts and retains talent across industries.
Driving retention and motivation

Exceptional talent serves as a crucial competitive advantage for businesses,
necessitating investment in talent development, motivation, and engagement. Variable
components, such as performance-linked ESOPs, are instrumental in acknowledging and
retaining top performers.
Regular performance reviews, now conducted more frequently than just annually, are
essential for distinguishing between high, solid, and average performers. Reward
differentiation is pivotal, with trends indicating up to a 100% variance in budget
allocations.
High achievers may receive double or even more than the average budget allocation, a
trend particularly pronounced in startup environments where differentiation extends
beyond cash rewards to include wealth creation tools like ESOPs. ESOPs, tied to
liquidity events for consistent performers, serve as mechanisms for wealth creation,
aligning with the goal of providing opportunities for individuals who significantly
impact the organisation.
Each organisation's approach to differentiation varies, with a focus on continuous

learning and improvement to ensure effective talent management and retention
strategies.

32
Employee financial well being

The DPDP Act introduces a stricter framework for data privacy, particularly in India.
Drawing on our experience in multinational corporations adhering to OECD and GDPR
norms, our organisation has proactively developed capabilities in data governance. As a
technology-driven company, we understand the importance of data, viewing it as the
new currency. From the beginning, our focus has been on responsible data usage,
ensuring consent and compliance with regulations. Our technological infrastructure
follows global best practices, including GDPR compliance implemented before its
Indian mandate. This approach extends to our people infrastructure and technology
platforms, all tailored to meet stringent data privacy requirements. While GDPR
compliance lays a solid foundation, we recognise the need to reassess our capabilities
considering the DPDP Act's specific requirements. Continuous validation ensures our
preparedness for the evolving regulatory landscape.
Gen AI and its impact

Navigating technological advancements such as Gen AI requires acknowledging
change as a reality to maintain competitiveness. Meaningful embracement involves
considering personal perspectives while prioritising effectiveness within the
organisational context. Despite the learning curve of AI, providing support to enhance
system knowledge and sensitivity is crucial, especially in organisations with a strong
emotional aspect. While AI effectively manages repetitive tasks and enhances
learning experiences, preserving personal connections and the unique organisational
language is essential. However, the human element remains indispensable for nuanced
decisions in environments where emotional intelligence is significant. A cautious
approach is necessary when using AI for crafting job descriptions, emphasising
validation against organisational language. While AI evolves within the organisational
ecosystem, achieving maturity to replicate unique organisational language remains an
ongoing process.

33
Gen AI allows HR to shift focus towards

strategic initiatives
Pay and its evolution
Offering stock options (shadow stocks) remains an appealing compensation strategy,
leading to larger payouts and increased financial rewards for employees. Additionally,
retention bonuses serve as extra financial incentives to recognise and retain talent
Naganagouda S J
during critical business phases, product launches, and other significant events.
CPO
Moreover, companies offer flexible benefits across various areas, including work
Tally Solutions
operations (covering remote work expenses, transportation reimbursements,
complimentary office meals), health and wellness (gym memberships, attractive health
insurance coverage), and retirement/savings plans.
Fair pay initiatives

We regularly conduct external benchmarking exercises for salaries and benefits to
ensure fairness and alignment with current market trends. This also allows us to stay
informed about evolving trends in the total rewards space within relevant industries.
Our internal compensation practices are guided by the principle of providing

appropriate pay for potential and performance. Decision-makers, including business
heads, are actively involved in processes such as offer rollouts, increment/promotion
cycles, or any scenario requiring compensation changes. They have a transparent
overview of their respective teams' compensation and are empowered to recommend
salary adjustments to ensure fairness.
When salary changes occur, employees are formally notified via email, receiving a
password-protected sheet containing all relevant information and contacts for
clarification, if needed. Our Rewards and Recognition process emphasises inclusivity
and transparency, involving nominations and justifications from employees before
undergoing panel review. Additionally, the company shares profits based on overall
performance, ensuring transparent and uniform bonus payouts for all employees across
different levels.
Ethical considerations and compensation strategies

Gen AI is poised to offer HR leaders valuable insights through predictive analytics and
bias mitigation, facilitating the automation of repetitive tasks in recruitment,
onboarding, and query management. This automation allows HR to shift focus towards
strategic initiatives. Given HR's management of extensive people data, HR leaders
bear responsibility for ensuring employee data security.
Collaborative efforts among organisations are essential to uphold ethical standards in

AI adoption across HR and payroll functions. It’s crucial to prevent innovation and AI
from undermining genuine human interactions and potentially reinforcing unconscious
biases. With AI-driven solutions requiring significant personal data, HR must reassess
data handling practices to enhance privacy protection.

34
AI analytics can leverage vast datasets to offer meaningful salary insights and
personalise total rewards packages based on individual employee preferences. This
could lead to the implementation of a more consistent and real-time rewards system.
Additionally, AI has the capability to monitor market trends, aiding organisations in
maintaining competitiveness within the evolving compensation landscape.
Optimising employee benefits and pay-for-performance strategies

Every employee possesses individual needs and aspirations, with increasing
expectations that benefits provide financial support and value to their families.
Organisations must comprehensively grasp benefit utilisation and solicit feedback on
employees’ perceptions of benefits. Leveraging technology tools is essential for
aligning the value of offered benefits with each employee’s distinct needs and
objectives. Pay-for-performance initiatives are advantageous in encouraging
employees to excel, improve performance, and stay motivated. A compelling
pay-for-performance strategy aids organisations in attracting, integrating, nurturing,
and retaining top talent.

35
Boost engagement and impact via a diverse

blend of financial and non-financial incentives
A year in review
Traditional one-size-fits-all compensation structures are fading. Instead, the future
lies in customised packages that cater to individual employee needs. This means
offering a variety of options beyond the standard benefits, like tax-related choices,
Arvind Kumar
well being perks, and health insurance plans. This flexibility allows employees to
Head- Total Rewards &
choose what matters most to them, recognising that different generations have
Global Compensation
different priorities. This shift is driven by the multi-generational workforce, where
Thermo Fisher
individual preferences and values vary greatly.
Key strategies for today’s business landscape

Crafting the ideal employee benefits package isn’t a one-size-fits-all solution. Instead,
it’s about understanding your organisation’s pulse through direct conversations with
those on the ground – line managers, business partners, and employees themselves.
The traditional static benefits like fixed health insurance plans are evolving.
Organisations are shifting towards flexible benefit baskets that offer options like
dental care, physiotherapy, or gym memberships. This caters to the changing needs of
a diverse workforce, especially younger generations who may not utilise traditional
options and prefer more personalised choices. By offering flexibility, organisations can
attract and retain talent by aligning benefits with employee priorities. Additionally, a
flexi-basket approach can potentially reduce costs for the company. When employees
utilise benefits they truly value, claim ratios for traditional options like group health
insurance might decrease.
Rethinking compensation strategies

Traditional compensation models focused solely on business factors and group
performance often fail to motivate individual employees. To truly drive engagement
and impact, we need a multi-faceted approach that blends financial and non-financial
incentives. Individualised performance metrics should be the cornerstone of any
reward system. This ensures employees are recognised for their unique contributions,
not just lost in a group average. Additionally, incorporating team-based rewards
fosters collaboration and encourages shared success. However, rewards shouldn’t be
limited to annual bonuses or one-time celebrations. Continuous feedback and
recognition are crucial for sustained motivation. Recognising achievements in
real-time, whether it’s a project delivered on schedule or a colleague going above and
beyond, shows employees their efforts are valued and appreciated. While financial
rewards remain important, non-monetary incentives can hold equal weight. Offering
flexible work arrangements, additional training opportunities, or public recognition can
all be powerful motivators. Ultimately, the goal is to create a culture of appreciation
where individual performance, team spirit, and continuous effort are valued and
rewarded.

36
Potential of gen AI
I envision a future where AI plays a crucial role in transforming compensation and
making it truly impactful. Some key areas where I see AI making a difference:
Market insights: AI streamlines market research, providing real-time data for

competitive compensation decisions.
Retention forecasting: AI predicts flight risks, enabling proactive measures like

training or personalised incentives.
Tailored packages: AI customises compensation to individual needs, offering

flexible benefits and career opportunities.
Cost efficiency: AI identifies cost-saving opportunities while optimising

resources to maintain employee satisfaction.
Adaptive adjustments: AI monitors trends and performance, recommending

dynamic compensation changes for competitiveness.

37
Transparent decision-making through fair pay

benchmarking is the key
Shifts, gaps and opportunities
In the contemporary world, characterised by dynamic shifts in workplace norms, the
primary challenge we face is attracting and retaining the right talent.
Lata Chemudupati
There is a universal pursuit for individuals possessing specific skill sets aligned with
Head-People & Culture
the evolving technological advancements such as data analytics, SAP, cloud
Netconnect
computing, and cybersecurity. The demand for specialists in these fields is widespread
across industries, as these skills are deemed essential for future progression. However,
as organisations compete for the same pool of talent, it becomes imperative to
strategise effectively in talent acquisition. Factors such as competitive pay structures
and flexibility within legal constraints play a significant role in attracting talent.
It's worth noting that despite the desire for flexibility, India's regulatory framework,
governed by labour laws aimed at safeguarding employees, imposes certain limitations.
Navigating these regulations while simultaneously meeting the diverse needs and
ensuring the satisfaction of employees presents a formidable challenge in talent
management. Therefore, finding a balance between legal compliance and meeting the
expectations of the workforce remains a critical endeavour in contemporary human
resource management.
Data protection in a dynamic regulatory landscape

Over five years ago the GDPR act was introduced in Europe, initially focusing on
organisational data protection practices. Since then, its scope has extended to cover
personal data at the employee level.
In India, personal information collection from new hires includes documents like the
Aadhaar card, crucial for various financial and governmental aspects. Securing such
data is vital, involving physical and technical measures, decisions on retention periods,
and access rights determination within organisations.
It's essential to assess the necessity of collected data to prevent redundancy. Failure
to plan and document these measures can pose future challenges, potentially
threatening an organisation's existence.
Compliance with data protection regulations demands a comprehensive approach,

including awareness campaigns, training, procedural documentation, personnel
designation, and continuous monitoring. Establishing protocols for managing security
incidents is crucial, involving decisions on law enforcement involvement, employee
notification, and internal handling. Employees must adapt to evolving data protection
measures, prioritising personal data integrity amidst changing regulations.

38
Transforming pay strategies

Traditionally, our pay structure has been based on predefined bands. However, we
recognised the need to accommodate newer, specialised skills that may not fit neatly
into these existing bands. To address this, we developed an internal matrix structure
categorising skills into regular, niche, and emerging categories, along with their
respective industry prevalence. This structure enables us to provide guidance on pay
grades tailored to our employees' skills and the diverse needs of our clients. Given the
competitive job market, where candidates often have multiple job offers, offering
competitive salaries and benefits is crucial.
Beyond pay, we consider various benefits and incentives, as well as initiatives

promoting employee wellness— encompassing mental and physical well being. Our
approach involves ongoing adjustments to ensure fair pay and alignment with
employee aspirations. This includes routine fair pay benchmarking and sharing rate
cards with management and business stakeholders for transparent decision-making in
talent acquisition and compensation. Clear communication and transparency regarding
our strategies are essential to engage stakeholders and enhance talent attraction.
Enhancing payroll security

Processing payroll is a pivotal function within HR, involving access to sensitive
information ranging from personal and financial details to tax-saving schemes and
addresses of employees. To safeguard this data, implementing an identity and access
management system is fundamental, ensuring that only authorised individuals have
access to specific data sets.
For example, within our payroll system, certain team members responsible for
processing payroll are restricted from viewing the salaries of their colleagues, thus
mitigating potential biases or unnecessary discussions. Moreover, employing a
two-step authentication process for payroll processing adds an extra layer of security,
complemented by rigorous checks and measures to ensure accuracy in payroll
calculations. Given the significance of this data, regular backups are securely
maintained to safeguard information crucial for tasks like tax filing (e.g. Form 16) and
other income-related documentation. Additionally, external parties conduct
compliance audits to validate the accuracy and security of our payroll processes. Any
updates or changes in procedures, tools, or personnel are communicated promptly to
ensure transparency and awareness among relevant stakeholders, thereby enhancing
the overall security and efficiency of our payroll operations.

Conclusion and
recommendations
40
Report summary
While 37% of business leaders believe in the importance of maintaining equal
pay, fairness and transparency, a similar percentage acknowledge inhibitors such
as inflexible compensation policies and unconscious bias. Despite proactive
measures, disparities still exist. There is a clear, ongoing need for direct
initiatives that address discrepancies and promote equity in compensation.
Pay is essential in attracting, retaining, and developing essential talent for

driving business outcomes. Variable pay, equity, and ESOPs are no longer
exclusive to C-suite, sales, and startup positions – they’re now integral parts of
pay structures across various job levels, notably mid-senior roles. The data
reveals that 32% of organisations employ performance-based compensation
models and over two-third respondents believe their organisation's performance
evaluation system effectively recognises and rewards skill growth alongside task
accomplishment.
Industry leaders require precision, efficiency, and streamlined payroll processes,

and they’re increasingly optimistic about leveraging AI for its management. The
data indicates one-third of respondents are already using or plan to implement
AI-driven tools for payroll processes within six months. However, the majority are
still evaluating these technologies. Despite concerns about bias and data privacy,
a significant portion of organisations (57%) are willing to invest in AI-powered
payroll systems.
The Future of Pay in India report 2023 revealed that pay and payroll strategies
now extend beyond compensating employees to promoting financial well being
and wealth creation – a sentiment echoed by C-suite leaders this year.
Additionally, there's a burgeoning focus on introducing social security benefits,
particularly retirement benefits. The survey data underscores this focus, with
62% of respondents prioritising financial well being as a top HR consideration
for 2024.
Leaders stress the significance of tailoring pay and rewards through alternative
payment methods like digital currencies, vacation vouchers, and prepaid cards.
The need for flexible payment options to suit employee preferences stands out.
Last year, we observed a rising trend with more than half of respondents
endorsing the introduction of various alternative non-traditional pay methods.
While this sentiment remains, only 22% of organisations feel adequately
equipped to explore and incorporate alternative payment methods beyond
conventional models. They’re just not quite ready for innovation in pay
structures.
Employee and employer perceptions and expectations in India are changing

rapidly as pay is increasingly recognised as a core foundation of financial
wellness. India's business leaders must build future pay models responding to
demands for compensation structures that are transparent, equitable, flexible,
personalised and support employee financial health and well-being.

About the study
This survey was carried out by the ETHRWorld team in association with ADP.
This comprehensive study was carried out in two parts: qualitative interviews
with 10 industry leaders and quantitative survey with 200 HR, Finance and
Payroll leaders from:
Indian companies with more than 500-2500 full time employees

Covering IT, ITES, Manufacturing, Pharma, Healthcare, Logistics and
fast-growing new age Hi-Tec verticals with headquarters in Mumbai, NCR,
Chennai, Bangalore, Pune or Hyderabad.
42
ETHRWorld is the flagship digital platform for the HR vertical of The Economic
Times, the second largest widely read business newspaper and digital media
platform in the world. It is an integrated media platform, now present across
geographies, which aims to unite the world of work community and enable their
learning through insights, news, interviews, trends, research, whitepapers,
curated events & conferences, masterclasses, and workshops.
ETHRWorld India: https://hr.economictimes.indiatimes.com/
ETHRWorld Southeast Asia: https://hrsea.economictimes.indiatimes.com/
ETHRWorld Middle East: https://hrme.economictimes.indiatimes.com/

43
Designing better ways to work through cutting-edge products, premium services

and exceptional experiences that enable people to reach their full potential. HR,
Talent, Time and Payroll, informed by data and designed for people.
Learn more at in.adp.com

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Future of Pay in

India report 2024

Data, compliance and payroll

The demand for ‘sensible’ AI

Setting the tone for the year ahead

39 Conclusion and recommendations

41 About the study

India’s growth story is testament to the nation’s resilience, innovation, and

Moreover, the report underscores a paradigm shift in the approach towards

Hope you enjoy reading it as much as we enjoyed creating it for you!

2024 top HR considerations

Assess the impact of compensation programs geared

59% Introduce Gen AI to manage HR processes

Introduce innovations to existing compensation structures

Assess the impact of and implement compliance requirements for

Assess the impact of India’s DPDP Act, 2023 and implement

Reconsider and realign employee beneﬁt offerings based on value in the

Prioritise equity and inclusion in hiring, development, pay, and retention

Evaluate remote working policies and their impact on multi-jurisdictional

Introduce new technologies to track and manage employee work locations to

27% Address compensation policies based on new work locations

Assess current workforce management solution and impact on our

Future of Pay in India Report 2024

2024 top payroll considerations

56% Compliance expertise

56% Accuracy of payroll

55% Employee experience

Technology integration (integration/input

49% Simpliﬁcation of processes

40% Self-service capabilities

39% Upgrading or modernising technology

35% Employee queries

35% Cost savings

26% Reporting capabilities

16% Quality measurement

10% Consolidation of vendors

Future of Pay in India Report 2024

Pay frequency, ﬂexibility and alternative methods

Continue with direct deposit to employee salary bank accounts

To achieve ﬁnancial wellness of employees, provide faster/early

Introduce a mix of alternative non-traditional pay methods like

Offer more frequent pay cycles (weekly or semi-monthly) like

Offer ﬂexi options and let employees choose their pay

Future of Pay in India Report 2024

Data, compliance and payroll

Assessing impact and response

51% Digital transformation

35% Gen AI integration into HR processes

33% Payroll transformation

12% Finance transformation

Future of Pay in India Report 2024

Business resilience in action

Considering the increase of cyberattacks and critical systems outages,

35% We have developed a pan-India

We have considered building a plan, but

We have developed playbooks and

Future of Pay in India Report 2024

Analysing shifting preferences

Partially outsourced, with dedicated internal

Future of Pay in India Report 2024

The demand for ‘sensible’ AI

AI's impact on payroll operations

To what extent do you agree or disagree with the following statement?

We are likely to consider AI as a tool to benchmark and enhance the