20 October, 2021: RazorpayX Payroll, the business banking platform of Razorpay, has derived some interesting observations from the payroll data of over 25,000 employees across 360 startups in India from 15+ sectors who currently use RazorpayX Payroll. The report analyses in detail the various aspects of payroll in the startup ecosystem in the last six months, i.e., from April to September 2021.
As per the report, the total salary spends increased by 43% during the period. The pandemic caused many start-ups to freeze performance appraisals and increments. However, the scenario has reversed this year, indicating a gradual movement towards a business recovery. EdTech, FinTech, and Electronics (online and offline) are some of the sectors that have witnessed a significant increase in their salary spends during the last six months. Moreover, some startups even increased the median salary of their employees by 7% this year.
There’s also been a 52% increase in organisations that disbursed bonuses. The amount paid out on bonuses increased by 23% during the past year as opposed to pay cuts and deferred bonuses last year. Real Estate, Hospitality, and AgriTech are some of the sectors that weren’t able to give out bonuses yet since they are gradually stabilising.
Employee headcount increased by 30% in the last six months. At an individual organisational level, 57% of the organisations saw an increase in hiring, and 28% saw a decrease in headcount, in the last six months. The E-commerce sector contributed to this growth in a major way, given that a lot of businesses and consumers started to embrace digital.
During the last six months, employee headcount in entry-level roles grew by 14%. The data revealed that mid-level roles grew by 31% while mid-senior level roles saw a growth of 38%. Senior-level roles saw the highest growth of 43% in headcount across startup organisations. This could possibly indicate a need to onboard C-level leaders to rethink business strategies.
Shashank Kumar, CTO and Co-Founder, Razorpay said, “Businesses across industries are on the road to recovery and these insights reiterate this in many ways. The fact that the majority of our startups using RazorpayX Payroll have increased their salary spends alongside a steadily growing headcount is a clear sign of revival. ”
RazorpayX Payroll has seen a significant increase in the adoption of payroll solutions among startups, which grew by 147% during the last 6 months.