2.0 How do I develop a wage digitization action plan?
First Digital Payday
No more than 25% of the workforce
Technology literate. Already have a digital account
Second Digital Payday
50% of the workforce paid digitally
- Educated and fast learners
- Younger workers
Third Digital Payday
75% of the workforce paid digitally
Less educated workers. Need more time to get documents together.
Fourth Digital Payday
100% of the workforce paid digitally
- Take time to plan a phased digitization
- Encourage workers to start to gather the necessary documents to open accounts as soon as action plan is agreed
2.1 How do I engage middle managers and workers?
Inform and prepare middle management
It is essential to inform, prepare and create support from middle management, when digitizing the factory. They play a key role in guaranteeing a successful transition, reassuring workers during payday and helping workers understand how to use their accounts.
Sample agenda for middle management meeting
- Importance and benefits of digitization.
- Success stories from other factories.
- The new payment system, account features and charges, and timeline for digitization.
- Support provided during transition, and the need to train workers on how to usetheir new accounts.
Conduct townhall meetings
It is recommended to conduct two townhall meetings, with support from the Financial Service Provider:
- The first town-hall meeting should inform the workers about the new payroll system, and how to open accounts. It should be held near the start of the digitization process.
- The second townhall meeting should be held just before payday to help workers access and use the new payroll product.
Sample Agenda for townhall meeting 1:
Informing workers about digitization
- Digital payments and it’s benefits
- The timeline for digitization
- The process for account opening and documentation needed
- Introduction to the Financial Service Provider team and points of contact during digitization.
- Question and Answer
Sample Agenda for townhall meeting 2:
Preparing workers to use the new payroll product
- An explanation of how to use the account
- Accessing the account
- Checking balance
- Cashing in/out
- Transferring money
Organize successful townhall meetings
- Who: All workers should be invited to the first round of townhall meetings, with up to 100 workers per meeting. For the second round of townhall meetings, regarding payment preparation, invite only the workers who are about to be paid digitally for the first time.
- Where: Organize meetings away from the production floor.
- When: Avoid the times of days when workers can be tired or hungry.
- How: Use a public announcement/sound system so everyone can hear. Show videos if possible.
- How long: Allow an hour for each meeting. Ensure time after the session for workers, especially women, to ask additional questions.
- Use posters and other materials to raise awareness – ask the Financial Service Provider to share if available.
- Make announcements using public announcement system to share key messages on benefits, features of the new payroll system and fraud prevention, especially just before payday.
- Provide additional training for workers on the products and financial capability – such as BSR HERfinance Digital Wages training
- Use digital training provided in the workers section of this learning tool to engage workers and then reinforce knowledge
Consider the needs of female workers and provide support
|Challenge for women||Proposed solution|
|They are less likely to have used financial services.||Train a small group of women that are fast learners and have good communication skills, so they can then support their peers.|
|Some women may be hiding part of their cash wages for their own savings, before handing over their pay to their families. The increased transparency of digital wages is therefore concerning for them. In the most extreme cases, it could lead to harm if families discover that they have been hiding money.||Identify vulnerable workers and collaborate with taskforce and Financial Service Provider to provide additional support and develop product solutions if needed. Provide HERfinance training which includes module on talking about finances with your family (face to face and using the workers section of this learning tool). Identify resources to support and refer women that are at risk of violence.|
|Some women may need their husband or father’s permission to use financial services.||Prepare letters specifying that the factory requires employees to open a financial account to receive their pay. Having proof that their work requires them to use an account might bring down the opposition from their families.|
Connect with Worker Representatives
It is important to ensure that workers representatives are engaged. It is recommended to invite them at the launch meeting, and to have meetings to explain the benefits of digitization for workers and build trust.
2.2 What shall I consider when opening accounts for workers?
The project leader should work with Financial Service Provider, HR and middle management to support workers to obtain the right documents and have time to open the accounts.
Questions to consider
- What documents are required to open the new payroll account? If workers don’t already have them, where and how can they obtain them?
- How long does it take for the Financial Service Provider to process and activate payroll accounts?
- How will the Financial Service Provider support workers who are missing documents? Can they support by checking the documentation before it’s submitted, to reduce any delays with errors in form filling, inconsistent signatures or missing documents?
- Can the Financial Service Provider come to the factory to support workers to open accounts during working hours?
- Is the payroll being digitized through mobile money accounts? If yes, do workers have access to phones and do they have SIM cards registered in their names? If not, how can they be assisted?
2.3 How to prepare the payroll
Decide which workers will be part of the first batch
The Payroll Manager will coordinate with the Project Leader to decide how many workers, from which departments/sections/production lines would be digitized in which order.
Prepare a list with workers’ account numbers
Payroll manager will maintain a database including name, factory ID number, line, department, account number and account status information for each worker, updated monthly.
It is essential to keep workers account details and phone numbers in a secure, confidential file because in the wrong hands this information could be used for fraud calls. This file should never be emailed to the Financial Service Provider without being password protected.
- Attention to detail and deadlines is key for preparing payroll sheets
- Ensure that at least two individuals work together to insert and review account numbers in the worker list
- Ensure that Financial Service Provider receives the information about workers on time to avoid delays
Ensure that only workers with an active account are paid
- Payroll manager and Financial Service Provider should check for all accounts activation status.
- If using mobile payroll, Payroll Manager will check that all workers on the payroll list have functioning SIM cards.
To prevent fraud, keep reminding workers to never share their data, and to report any fraud calls they may receive. The Financial Service Provider should share awareness materials around fraud prevention as well.
Factory should keep workers account number, mobile number and salary amount confidential and only give access to people who are ultimately responsible to maintain confidentiality and security.
Send the payroll sheet and transfer funds
Payroll Manager will fill the template provided by the Financial Service Provider to instruct the salary payment and transfer funds to Financial Service Provider’s account.
Confirm the Payday
The Payroll Manager will coordinate with the Project Leader and the Financial Service Provider to confirm the time and date for the Payday.