There is no denying that the manual CTC calculation process is error-prone and costs the company a lot in terms of business hours lost.
Say, for instance, if an HR department calculates employee salaries manually based on different parameters such as designation experience, etc., there are chances of human errors to creep in, especially when the employees’ work profile varies from time to time.
Additionally, it is equally difficult to give back-end analysis of CTC values manually. This is when the CTC calculator comes into the picture.
In this blog, we will discuss the same.
- Here’s what we’ll cover:
- What is a CTC calculator?
- Who can use a CTC calculator?
- What are the benefits of using a CTC calculator?
- Why should companies leave behind manual CTC calculation methods?
- Parting Thoughts
Let’s dive in and start exploring.
What is a CTC Calculator?
CTC stands for the cost to the company. So, as the name suggests, a CTC calculator is a software tool that helps in calculating an employee’s CTC.
Today, we can find a number of online CTC calculators online, which help HR professionals across industries/sectors to calculate CTC accurately for the recruitment of freshers and experienced candidates.
With a bare minimum of human intervention, such calculators give accurate results to the user. All an employee has to do is provide the necessary information, the calculator takes care of the rest. In just a few seconds, it calculates the CTC of a person.
Need to mention, top HR software in India comes with inbuilt CTC calculators today. So, you can even invest in one of the best HR software India has. With such software, HR departments can be sorted once and for all.
Who can Use a CTC Calculator?
Anyone and everyone can use a CTC calculator. However, CTC calculators come in handy for HR departments and finance departments.
A CTC Calculator is useful for all those companies that want to decide on a candidate based on standardized and accurate CTC value. Such calculators can also be used by recruiters who wish to keep track of CTCs without going through lots of manual processes.
What are the Benefits of Using a CTC calculator?
There are many, but here are some of the top four benefits of using CTC calculators:
- Saves Time and Money
Since all calculations are done automatically and hassle-free, HR managers do not need to be assigned to do any manual calculation. This in turn saves a large chunk of time and cuts down the cost of hiring additional manpower for the sole purpose of calculating CTC.
- Accurate Results
The results generated by a CTC calculator are highly accurate as they make use of data such as seniority, designation level, years of experience, etc, which further helps in arriving at an estimated salary package.
- Timely Delivery of Results
CTC calculators ensure faster delivery of reports. The time taken for completing computation is lesser than that if done manually or through traditional methods.
- Increased Productivity
With employees and HR managers spending less time doing computations, they will be able to concentrate on other vital activities, increasing their overall departmental productivity.
Why Should Companies Leave Behind Manual CTC Calculation Methods?
On average, companies spend around 3-4 hours calculating CTC per role while making hiring decisions.
With a CTC calculator, companies can calculate and pull reports in just 5 seconds. Without any doubt, CTC calculators are way faster than any manual calculation method.
We hope this blog helped you to understand everything about CTC calculators.
The data generated by a CTC calculator can be used for various purposes, such as creating HR reports and presentations related to the salary structure of an organization.
It is a great way to reduce costs and manpower requirements for any manual computation, which can further help it generate maximum revenue through increased productivity and efficiency of its workforce, leading to a better bottom line.