Phase 1:

Setting up the factory for digital payroll

Phase 1 Illustration

1.0 How do I create a Wage Digitization Task Force?

i. Assign a Project Leader

Questions to consider when choosing a project leader

1. Are they a trusted worker?

Next Question

Questions to consider when choosing a project leader

2. Are they good at communicating with the workers?

Next Question

Questions to consider when choosing a project leader

3. Are they endorsed by the top management?

Next Question

Questions to consider when choosing a project leader

4. Are they skilled at planning and solving challenges?

Complete

Role and Responsibilities of Project Leader

Top Tip

To ensure a smooth payroll transition, it’s important that the Project Leader communicates with the task-force, department managers, middle-managers, worker representatives and workers, especially women, at least 2 months before starting digitization.


ii. Form the Digitization Task Force

Digitization Task Force Digitization Task Force Digitization Task Force

Finance

Production

Assist HR in:

HR & Compliance

Top Tip

Encourage all members of the Digitization Task Force to complete HERfinance Digital Wages Tech Learning Tool.

1.1 How do I select a Financial Service Provider?

i. Key considerations when selecting a Financial Service Provider

Cost
  • How much will workers be charged to withdraw their salaries from ATM's, agents or other sources? This will be a dis-incentive for workers, so how can this be reduced or mitigated? Can the factory cover these costs on behalf of workers?
  • Does this payroll product have any charges at factory level, and if so how much?
Top Tip

The fee plan offered by the Financial Service Provider must be affordable for both the worker and the factory. It is important to include all fees and costs in your business case analysis. It is also essential to find out the financial needs and preferences of workers, especially women. For example, if workers can save time and cost on sending money to their families, they will be more likely to sign up to the new digital payroll.

Availability of Cash
  • Does the Financial Service Provider have enough liquidity for workers to withdraw their wages on payday? Can they increase this by adding additional ATM’s or mobile ATM’s on payday? Are there enough agents available in the factory area and in the workers household areas? Are the agents informed about factory digitization and well equipped to handle the workers?
  • What are the other demands on nearby cash out points that your workers will use (i.e. are there other factories in the area who will also be using the cash out points on the same day)?
  • What is the process for reporting and fixing issues with ATM’s? If an ATM runs out of money on payday, how long does it take to get refilled?
Top Tip

Ask the Financial Service Provider to map out cash out points and demonstrate their capacity to meet cash out demand from workers on payday. Find out what the capacity would be for local ATM's and / or agents to meet this demand.

Accessibility
  • Where are the ATM's and agents located in the factory and worker communities – how will workers access them? Are there any safety concerns, especially for women?
  • What is the national coverage of ATM’s/agents? Will workers be able to access their digital wages when they return to their villages during holidays?
  • If considering a mobile payroll product, are both factory and worker’s residential areas are covered by their Mobile Network Operator?
Top Tip

Consider where workers will want to access cash out points – such as in their communities, or in their villages - and consider the needs of women, and how they will access these cash out points.

Support available
  • What support can the Financial Service Provider provide during digitization and on payday?
  • How will you work with the Financial Service Provider to identify and minimize any issues related to digitization (such as account opening or resetting pin numbers)?
  • How will the Financial Service Provider handle fraud issues if they happen?
Top Tip

Establish a positive working relationship with the Financial Service Provider to ensure commitment and support in case of issues.

Specific support for female workers
  • How many women work at the factory and how many have experience of financial services? What support is available to help them to learn how to use the new payroll product?
Top Tip

Identify vulnerable female workers (those with lower levels of education, or exposure to financial services) and work with the Financial Service Provider to provide additional support to help them access and use the new payroll system. This could include onsite support on payday.


ii. Responsibilities of the Financial Service Provider

Step 1/8

Train the digitization task force on the digital payroll and create capacity within HR to educate, train and support workers

Next Step

Step 2/8

Ensure the Finance team is clear on the process and deadlines for smooth wage payment on payday

Next Step

Step 3/8

Attend townhall meetings to inform and prepare workers for the new payroll

Next Step

Step 4/8

Support worker account opening and activation

Next Step

Step 5/8

Provide a map of all cash out opportunities in the factory area and worker communities. Including demand on those cash out points

Next Step

Step 6/8

Ensure liquidity in the factory area, and the availability of direct support for workers and management, especially on payday

Next Step

Step 7/8

Provide ongoing support to open accounts for new workers, and keep finance team updated on any changes to account features and regulation

Next Step

Step 8/8

Introduce savings and insurance
products at the factory when available

Complete

1.2 How do I organize a launch meeting?

It is essential to organize a launch meeting with senior management, department heads and worker representatives, to share digitization plans and gain their support. You should also invite the Financial Service Provider to share details of the payroll product, if possible.

Top Tip

Consider inviting a manager from another factory who has already digitised to share his/her experience.

For more information about HERfinance Digital Wages and questions about wage digitization, please e-mail getinvolved@herproject.org