How did an investment of 4.5 lakhs save more than 42 lakhs rupees for Arrivae?

Introduction

Arrivae is a service-oriented company that provides end-to-end interior solutions to its clients. The company has a workforce of around 540 employees, and it hires a fourth (25%) of its people via agencies. To ensure business continuity and reduced consumer complaints, it is essential for Arrivae to have a stable and satisfied workforce.

Objectives:

The primary objective of deploying Mool was to provide employees with a tool that could help them save taxes and ensure their financial well-being. The tool also aimed to create a culture of happiness and employee satisfaction that could lead to reduced attrition rates and lower hiring and training costs.

Methodology:

Mool took a sample of 135 employees of Arrivae on a no-name basis and ran their CTC & declarations through its proprietary salary optimization engine. Along with optimization, Mool also provided employees with the power of flexi-structuring their remuneration, based on their personal profile. This allowed employees to have different salary structures tailored to their profiles and save significant tax.

Results:

1. Increased in-hand salary: 

With only a preliminary level of optimization, on an average, employees were able to save 6% overall on taxes, resulting in collective annual savings of Rs. 13.11 Lakhs in taxes for these 134 employees, which means an average of Rs. 10,000 approx. more in hand per employee in the year. As good as getting a month's groceries free. 
 

2. Increased Employee Satisfaction & Reduced Attrition: 

Empowering employees to amplify their money led to a culture of happiness and employee satisfaction, leading to lower attrition rates and reduced hiring and training costs. Through this, Mool helped Arrivae ensure improved business continuity and reduced consumer complaints as employee continuity aided consistent consumer support and interface.

3. Reduction in hiring costs: 

By deploying Mool, Arrivae was able to achieve significant cost savings. In FY22, Arrivae’s employee costs, excluding directors' remuneration, were Rs. 20.50 Crores. Assuming that a fourth (25%) of the employees are hired via agencies, the agency cost at 8.33% would be annualised at Rs. 42.70 lakhs approx. A significant sum of this cost was saved by deploying Mool. With Mool, it costs barely 10% of the above.

4. Reduction in need for hikes: 

We have consistently demonstrated that most employees are able to save 10% or more in taxes with Mool on a consistent basis. This would also mean a significant reduction in hikes in subsequent years as employees end up with more cash in hand in the first year of implementation. 

Conclusion:

In conclusion, deploying Mool has proven to be a wise investment for Arrivae. An investment of Rs. 4.5 Lakh annually led to several tangible and intangible cost benefits, as elucidated above saving them and their employees upwards of Rs. 42.70 Lakhs. With Mool, Arrivae was able to achieve significant tax savings, ensure employee satisfaction and happiness, and reduce attrition rates, resulting in lower hiring and training costs.