A prominent security services provider, managing a workforce exceeding 1 Lakh employees across all Indian states, with a footprint in over 130 locations and numerous social security and provident fund codes, and servicing more than 15,000 end client sites, encountered a significant hurdle. They needed to enhance efficiency and achieve cost savings within their HR processes while effectively managing this vast and dispersed workforce. The existing system presented several critical challenges:
- Limited technological integration.
- A highly intricate salary structure.
- Decentralized compensation and compliance management.
- Complex hourly and monthly attendance-based wage calculations.
- Manual and cumbersome allowances and overtime computations.
- Invoicing processes heavily reliant on detailed compliance documentation.
- An extensive, complex, and varied array of compliance requirements dictated by their status as a contractor for over 10,000 end clients.
These multifaceted issues necessitated a large, geographically distributed workforce engaged in various manual processes to meet both internal operational needs and stringent client demands.
Strategic Analysis and Transformation
It became evident that a holistic review of the entire operational landscape was crucial, leading to the implementation of a comprehensive solution designed to bolster control, boost efficiency, and deliver substantial cost-effectiveness for the client. MYND shifted the focus from a people-centric to a process-centric approach, leveraging best practices and tailored technology solutions. MYND’s proprietary payroll platform, MyPay, was meticulously configured to accommodate the diverse employee types, varied salary structures, and location-specific complexities inherent in the client’s operations. Furthermore, end-client-specific allowance calculations were automated directly within the system. This extensive undertaking involved dedicated technical and subject matter expert teams from MYND over a period of 4-5 months. Centralization of the entire payroll process was achieved by standardizing salary structures across different hubs and implementing central database integration for employee records and attendance data sourced directly from client systems into MyPay. This centralization alone led to a remarkable 40% reduction in the operational teams previously deployed across various locations.
The subsequent phase focused on automating all principal employer compliances, including Provident Fund (PF), Employees’ State Insurance (ESI), Labour Welfare Fund (LWF), and Professional Tax (P-Tax) across India. The complexity arose from managing multiple registrations and codes, coupled with the constant movement of employees between states. Automation ensured the accuracy and timeliness of compliance information, providing enhanced transparency into monthly statutory obligations.
With payroll operations streamlined, the immediate next step was to address the critical requirement for compliance documentation, essential for invoice submission and adherence to the Contract Labour (Regulation and Abolition) Act (CLRA). This involved the meticulous preparation and submission of numerous registers and documents for each of the 10,000+ clients monthly, in accordance with various state and central legislations. MYND deployed a team of highly experienced subject matter experts to capture and execute client-specific requirements at each location. Complementing this, MYND introduced its highly configurable platform, Active Compliance Tracking (ACT). ACT was specifically set up to generate CLRA-based documents for every location, currently managing an impressive array of over 1 lakh unique requirement combinations captured from clients for monthly processing. ACT is seamlessly integrated with the company’s payroll system, making all necessary documents readily available online to meet statutory obligations to end clients.
Invoice submission to clients also presented a formidable challenge, as HR records, proof of statutory deposits, and other documents specified by end clients needed to accompany approximately 14,000 invoices each month. ACT was further configured to automate the generation of these crucial invoicing documents.
These strategic interventions resulted in the establishment of robust process management spanning from expenses to revenue, delivering significant cost advantages. The company achieved demonstrable savings exceeding 35% in the first year compared to its previous operational costs. Notably, there was no requirement for upfront investment in software or IT infrastructure, as MYND provided a comprehensive SaaS solution through its advanced payroll and compliance platforms.
Today, MYND manages payroll for close to 3 lakh employees monthly, serving over 200 clients. Our integrated platforms for payroll and compliance management ensure strict adherence to all statutory laws, driving efficiency and transparency across these critical functions. Our dedicated teams possess deep technical and subject matter expertise, adept at navigating the diverse requirements of industries ranging from ITES and manufacturing to automotive and telecom, encompassing both domestic and international operations.
MYND also offers international payroll services, enabling clients to centralize operations across geographies and provide a unified employee experience through our multi-country, single-platform solution. Enhancing the employee experience further, our latest addition, the ‘Pocket HR’ mobile app, ensures that essential information is accessible at employees’ fingertips.
Tangible Business Impact:
- A 40% reduction in human intervention in payroll processing.
- Over 35% cost savings realized in the first year of implementation.
- Online accessibility of all compliance documents, facilitating the fulfillment of statutory obligations to end clients.
The integration of advanced technology with expert managed services is transforming how businesses approach payroll and compliance. For organizations grappling with complex regulatory landscapes and the need for operational agility, exploring scalable outsourcing solutions can unlock significant efficiencies and cost reductions. As the regulatory environment continues to evolve, staying ahead of compliance demands while optimizing HR operations is paramount for sustainable business growth.
