A leading security services company employing more than 1 Lakh employees deployed across every state in India, having presence in more than 130 locations with multiple codes and sub codes for social security and Provident fund management, working with more than 15000 end client locations, was faced with a unique challenge of bringing efficiency and economy to the HR processes while still ensuring the effective management of such a large work force.
The challenges being faced were many:
– Limited technology interface
– A highly complex salary structure
– Decentralized management of compensation & compliances
– Hourly and monthly attendance based wages
– Manual & complex allowances and OT calculations
– Invoicing linked to compliance documentation
– A very large, complex and varied compliance requirements to be fulfilled as a contractor for more than 10k end clients.
All of the above resulted in a very large workforce carrying out different processes in different locations in order to meet the internal needs and the client requirements.
Critical Analysis and Support
There was clearly a need to look afresh at the entire process in totality and provide a comprehensive solution which resulted in increased control, efficiency and substantial cost effectiveness for the client.
Mynd introduced an approach to transform from a person based approach to a process based approach with the help of best practices and bespoke technology interventions. MyPay which is the Mynd proprietary payrolling platform, was configured to meet the varied needs of each type of employee, varied salary structures and location specific complexities where the employee was based. Further the allowances calculations which were end client specific were also automated in the system itself. This was a huge 4-5 months effort by technical and SME teams from Mynd. Centralization of the entire payroll process was achieved by aligning salary structures in different hubs and carrying out central database level integration for employee records and attendance from the client system to the MyPay. Once achieved, this alone resulted in 40% reduction in the teams that were deployed to manage this process across locations.
The next step was to ensure automation of all compliances as a principal employer for PF / ESI /LWF and Ptax across India. The challenge was the multiple registrations and codes being managed along with constant employee movement across states. The automation ensured accuracy and timeliness of information and a transparency to the level of monthly compliances.
Once the payroll was streamlined there was an immediate need to address the requirements of compliance documentation both for invoice submission and also as per CLRA. Records has to be prepared and provided to each of the clients that the company was working with. This required many registers and documents to be prepared for each of the 10 thousand clients each month under the various state and central legislations. Mynd introduced a team of highly experienced subject matter experts to capture and execute the client requirements at each location level. Further Mynd introduced its highly configurable platform called Active Compliance Tracking (ACT) which was set up to meet the needs of CLRA based documents for each location. It today manages a mind boggling 1 lakh combinations of various requirements captured from the client for processing each month. ACT is also integrated with the payroll system for the company. The documents are made available online through the platform to meet its statutory obligations to the end clients.
Invoice submission to clients was also a herculean effort where HR records needed to accompany the 14000 invoices each month including proof of statutory deposits and other register and documents as specified by the end client. ACT was configured to meet the needs to generate these documents as well.
The above steps resulted in creating a robust process management right from expenses to revenue for the business and also bringing a substantial cost advantage to the company wherein there was a demonstrable saving of more than 35% in the year 1 cost when compared to existing costs. There was no investment required in software and IT infra as Mynd provided a SAAS solution through its robust platforms of payroll and compliances.
Mynd today manages close to 3 lakhs employee payrolls each month covering approx. 200 + clients. Our platforms for payroll and compliance management ensures adherence to all statutory laws and brings efficiency and transparency in these processes. Our teams have technical and subject matter expertise in dealing with multiple industry requirements from ITES to manufacturing, from Automotive to telecom, from domestic to international.
Mynd also provides international payroll to many clients where our multi-country single platform experience allows customers to centralize across geographies and provide a unified user experience to all employees. Our latest addition to the suite is our new mobile App called “Pocket HR” enhancing the employee experience and ensuring that they have information on their fingertips.
40% reduction of human intervention in payroll processing
Saving of more than 35% in the first year of implementation
Online availability of documents to meet its statutory obligations to the end client.
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