Business Challenge
A manufacturing company with a large workforce was processing payroll and overtime based on manually maintained attendance registers and supervisor records. Management was concerned about increasing payroll costs, overtime expenses, and potential inaccuracies due to manual intervention.
Our Approach
Understand
Reviewed attendance recording process, shift management practices, overtime approval workflow, payroll processing cycle, statutory compliance procedures, and roles of HR, Production, and Payroll teams. Conducted walkthroughs across multiple departments and shifts.
Assess
Assessed the adequacy of attendance controls, overtime authorization process, segregation of duties, payroll validation mechanisms, supervisory approvals, and compliance with labour regulations. Evaluated dependence on manual records and spreadsheets.
Identify
Identified manual attendance manipulation risks, unauthorized overtime claims, inconsistent attendance records, delayed approval processes, duplicate entries, inadequate audit trail, weak supervisory controls, and absence of system-based validation checks.
Analyze
Performed attendance-to-payroll reconciliation, overtime trend analysis, shift-wise overtime review, employee-wise exception analysis, department-wise overtime benchmarking, payroll variance analysis, and root cause assessment of payroll cost escalations.
Recommend
Recommended biometric attendance integration, automated attendance-to-payroll interface, maker-checker controls, standardized overtime approval workflows, exception-based reporting, supervisory accountability mechanisms, and periodic payroll audits.
Implement
Assisted in designing attendance verification procedures, overtime approval matrix, payroll validation controls, exception reporting dashboards, SOPs, and implementation roadmap for HRMS/biometric integration.
Monitor
Established monthly payroll analytics, overtime monitoring reports, attendance exception reviews, payroll compliance checks, department-wise overtime dashboards, and periodic internal audits.
Outcome
Improved payroll accuracy, reduced risk of attendance and overtime manipulation, enhanced labour compliance, strengthened payroll governance, increased transparency in overtime approvals, and enabled management to control workforce costs more effectively.
