How Issuing Itemised Payslips Helps Companies

How Issuing Itemised Payslips Helps Companies


Companies must comply with government regulatory requirements on payroll & HR, & for companies who have not done so …  

In this read, we highlight the importance of itemized payslips & reminding employees of key employment conditions within 14 days of hire.

The implication? Administrative Costs, amongst others.

SMEs & businesses were able to delay introduction of this new provision by conveniently citing the same excuses on “Cutting Costs”.

But MOM mandates that issuing itemized payslips & KETs would provide employees with the required protection, certainty about daily wage components & key job terms and benefits.

And you know how tedious payroll processing & management is. And this is where we come in.

With proven 15 years track record till current, our Cloud Payroll & HRMS Helps Your Company Comply With Mandatory Issuance of Itemised Payslips & KETs.

Our very own AGHRMS offers companies the flexibility & capability for customized Salary & incentive arrangements, & streamline HR processes.

At AGHRMS, we can help in 2 ways:

1. Managed Payroll Services

asian office worker

Outsourcing your company’s payroll management to us means that payroll preparation is done quickly, accurately & efficiently so you can pay your staff the right amount - & on time. 

Managed Payroll Services also ensures each employee’s payroll is automatically in-sync with updates to government laws, statutory requirements & banking regulations.

Our Payroll software module integrates fully with AG Leaves, Claims, Timesheet & Employee Attendance, taking away tedious computation, so you can focus on growing your business.

2.Talent Management Services On The HR Cloud

HR cloud

AGHRMS Personnel & Talent Management Services enables your HR to keep accurate records of your employees information i.e. personal particulars, bank details, family details, career & salary progression, & yes, KETs.

This also enables employees to access & view electronic copies of itemised payslips anytime, anywhere. 

Even before the issuance of itemised payslips & KETs became mandatory, AGHRMS already offers these capabilities as part of its comprehensive Outsourced HR Shared Services in Singapore.

3. Moving Forward

If you’re using our HRMS software, then achieving full 100% regulatory compliance is automatic & straightforward, & bears no impact on your administrative costs.

If you’re not using our HRMS software yet, you don’t know how useful it can be for your company. 

What’s more, our services are trusted by leading popular brands you know of, & our HR software is pre-approved for Government funding. Don’t miss out.

Looking for a HR software? Schedule a Free, Quick Non-Obligatory Demo with us, & you’ll have all the answers you need.

Or make HR more do-able by outsourcing your payroll or other HR functions to us. Reach us at (65) 68448712 or email to sales@aghrm.com to find out more about our Outsourced HR Shared Services today!

Article 3: [Part 2] Employee Lateness: How To Effectively Manage Remote Employee Attendance

By admin | April 9, 2021

[Part 2] Employee Lateness: How To Effectively Manage Remote Employee Attendance This article is a continuation from our previous article, where we dived into the details of how much it costs a company when employees are late for work. Quick Recap: For each day where an employee is late by 10 minutes, it can cost […]

Article 2: [Part 1] The Cost of Employee Lateness To Companies

By admin | April 9, 2021

[Part 1] The Cost of Employee Lateness to Companies “Being on time for work is a virtue.” Lateness at a personal level is largely between friends with little to no dire consequences. But in business * the corporate world, as an employee, punctuality takes on a totally new significance. Being late or behind schedule carries […]

[Part 2] Employee Lateness: How To Effectively Manage Remote Employee Attendance

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This article is a continuation from our previous article, where we dived into the details of how much it costs a company when employees are late for work.

Quick Recap: For each day where an employee is late by 10 minutes, it can cost up to $50,000 for a company with 100 employees, & over $1,000,000 for large MNCs with 1,000 employees. 

We’ve done the Math, & you can read all about it here.

 

***

Moving ahead, now that we understand the financial impact of such behaviour on companies, let’s take a look at the available options to help manage this situation.

When it comes to managing employee attendance & punctuality, there are 3 main types of Employee Attendance Management Solutions available:

 

 

1. Manual Punch Cards

punch card system

Invented by IBM in 1875, the punch cards were one of the earliest ways to monitor Employee Attendance. 

Punch card technology mainly consists of:

  • Manual Punch Card: A piece of cardboard paper used to captures the timing information.
  • Punch Card Reader: A card reader with a built-in hardware clock which “prints” employee clock-in/out timing 

Pros:

  • Punch card systems are easy to set up & use.
  • Requires minimal maintenance & service. 
  • One “click” capture of Employee Attendance per clock-in/out.
  • Relatively cheap to implement with straightforward setup.

Cons:

  • Incurs monthly ongoing costs of purchasing new Punch Cards for company employees.
  • Porting over of Employee Attendance is manual & cumbersome, with consolidating & porting of data.
  • Prone to mishandling e.g. loss of punch cards due to employee carelessness & misplacing.
  • Manual consolidation of data means no employee data security & preservation of data integrity.
  • Data recorded is in hardcopy & might run into processing problems e.g. punch may not be able to be read etc.

 

2. Magnetic Card

magnetic cards

Fast forward to the 1970s: With advances in Employee Attendance Management technology, manual punch cards evolved into Magnetic cards, which employees used to scan on an infrared device detector. 

This era saw widespread adoption of computers & increasing use of Magnetic cards by companies, small businesses & large MNCs around the world.

With each scan, Magnetic cards capture employee clock-in/out data, which can be recorded & transferred electronically, hence allowing direct processing of such data.

Pros:

  • Easy to setup, integrate & use for companies of all sizes. 
  • Data recorded is in electronic form & can be interfaced with Employee Attendance & Time Management Software
  • Allows for Automatic computation of Salary & payments due to employees & contractors.

Cons:

  • System recognizes only magnetic cards, not people. 
  • Thus employees can help colleagues clock attendance just by possessing their card(s).
  • The intended convenience may backfire & increase employee absenteeism instead - & without valid reasons
  • Require specific technological expertise to maintain & service.

 

3.Biometric Thumbprint Authentication

Fingerprint scanning

A highly popular way to track Employee Attendance Capture & Monitoring from the 90s to the millennium, Biometric Authentication refers to clocking attendance in/out with the use of employee fingerprints. 

Biometric Authentication recognises that each employee’s fingerprint is distinct & unique. This makes it impossible for another employee to clock in on behalf of others.

Since Biometric Authentication works on Fingerprint recognition, consolidating all employee fingerprints into a single database allows for easy, strict capture of each fingerprint click-in/out attempt. 

Using Infrared technology, biometric authentication systems will be able to accurately match & record clock-in/out data of each employee without error near impossible to fake a fingerprint record. 

Pros:

  • Fast & Convenient, Good user experience & accurate verification of each employee’s identity.
  • Near impossible to fake a fingerprint record & Impossible to duplicate or manipulate.
  • Data captured can be electronically transmitted & integrated for automatic payroll calculation.

Cons:

  • Incur significant investments costs for required technological expertise & data security.
  • Data integrity & security breaches - can still be prone to unauthorised access & hacking.
  • Possible marginal bias & systems error of ‘false captures’ resulting in accuracy.

 

4. Face-Temperature Recognition

Today with Social Distancing measures in place & minimising physical contact, Face-Temperature Recognition has gained immense popularity around the world, largely due to it’s contactless scanning features.

Upon close physical approach, Face Recognition devices scan each employee’s facial features in verifying the identity of each individual, allowing for zero physical contact when clock-in/out.

These devices largely come with built-in temperature scanners, allowing for instant capture of employees & preparing the workplace for safe work.

Coupled with Contact Tracing, Safe-Entry compatibility & the capability to integrate with HR software (Cloud & On-site), we see the use of such devices trending everywhere, from workplaces to shopping malls, clinics etc. 

For employees working from home or remotely, Face-Temperature devices usually offer the flexibility of clocking in / out from any place at any time via HR Software apps (also termed e-attendance).

Pros:

  • Fits companies of all sizes.
  • Instant capture of employees (mask-on / off) within a split second
  • Compatible with - OR comes with built-in Temperature Capture for abnormal temperature detection.
  • Usually integrates with in-house Cloud HR & payroll software for instant calculation & data extraction.
  • *Might be Eligible for government subsidy, allowing for higher affordability.

Cons:

  • May require hefty investments if a company is not eligible for government grants & subsidies.
  • Might require longer time to set things up because of systems complexity.
  • Set-up process might require more time across multiple business outlets.

Punch Cards, Magnetic Cards, Biometric Authentication, Face Recognition: What Say You?

As you can see, each way comes with their own pros & cons. 

Now that you understand how each of these technologies works …

And as the pandemic rages on, NOW is the time to decide, based on your company setup, business & Compliance & other requirements, while the Government grants & subsidies are still available.

Not sure which one to choose? 

If you need more information to see if our Employee Attendance & Cloud HR Payroll software is a Good Fit for you.

Punch cards, magnetic .... Biometric Authentication, Face-Temperature Recognition devices …

Need more information? Simply reach out to us at (65) 6844 8712 or sales@aghrm.com 

What say you?



Deciding in progress

[Part 1] The Cost of Employee Lateness to Companies “Being on time for work is a virtue.”

consequence of being late

Lateness at a personal level is largely between friends with little to no dire consequences. But in business * the corporate world, as an employee, punctuality takes on a totally new significance. Being late or behind schedule carries intangible costs & actual huge financial implications.

Breakdown of Lateness to No. of Workings Per Year:

When a worker is habitually late by just 10 minutes a day, it is equivalent to giving him/her 5 extra periods of leave.

No. of Minutes Late Per Day X No. Of Workings Days In A Year:

 

10 X 250

= 2500 minutes

(Assume 250 Working Days Per Year)

Next, Convert This Figure To Number Of Working Days In A Year :

No. of Minutes / 60 / 8 

= 2500 / 60 / 8

= 5.2 days

(Assume 8 Hours In 1 Working Day)

late for work

Convert the No. of Late Days In A Year To Dollar Value:

Now that you know the costs to the company, let’s take a step further & convert this to dollars and cents. 

Assume this employee is drawing $2,000 per month, with 20 working days per month.

Annual Cost of Lateness to Company 

= Monthly Salary / No. of working days per month X No. of days late

= $2,000 / 20 / 5.2

= $520

Impact to the Company

We have now established that the costs of one worker who is consistently late for a year would be $520 a year. 

But this may not be a significant amount for some companies. We get it, nothing wrong with that. 

However, let us scale up the values so the true impact can be felt:

In a company with 100 employees, if everyone is late by an average of 10 minutes per day, this costs the company $52,000.

In a company of 1,000 employees, if everyone is late by an average of 10 minutes per day employees, the cost is $520,000!

Your Thoughts?

Being late by just 10 minutes may appear to be a trivial matter. After all, there are many reasons for this - heavy traffic, late nights etc.

It’s only too easy to think lightly of it & ignore the situation. But when the company examines its’ operational costs  for a holistic viewpoint would the true cost of lateness to the company be revealed. 

Over to you: What is the cost of lateness for your company? 

In the next article (Part 2), we will be sharing on how to effectively capture & manage workplace attendance (including remotely) & the possible ways to reduce lateness, & teach of their pros & cons.

Stay Tuned.

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