Taytay Sa Kauswagan (TSKI) is a non-stock, non-government organization providing microfinance programs and services as a tool for poverty alleviation. It operates 92 branches with a total of 1,900 employees serving 250,000 clients all over the Philippines. As well as attending to client needs for loans and business development advice, TSKI faced the internal challenge of providing timely and effective HR services to its geographically dispersed staff. In January 2008, TSKI partnered with dB Wizards to deploy Microsoft® SQL Server® 2005 and HR*Wizard, a web-based Human Resources Information System (HRIS), that helps organizations manage their work force. Now, with an efficient and accurate payment system and reporting services built on Microsoft® technology, TSKI is able to achieve improved payroll management, reduce operational costs, and efficiently deliver key HR reports.
Taytay Sa Kauswagan, Inc. (TSKI) is non-government organization (NGO) established in 1986 with an aim to alleviate poverty through the development of income-generating and job-creating small and micro-enterprises. TSKI provides financial assistance as an additional capital to increase productivity, income, and create opportunities for employment for the unemployed and the underemployed through the expansion of business enterprises.
||With SQL Server 2005 and HR*Wizard, we are able to pay employees’ salaries on time with very little manpower overhead.
||Angel De Leon Executive Director
Taytay Sa Kauswagan
TSKI has grown into one of the largest microfinancing institutions in the Philippines, registering 250,000 clients all over the Visayas Islands, Southern Tagalog and Western Mindanao. To service its growing roster of clients, TSKI has established 92 branches nationwide, which employ approximately 1,900 staff.
As its workforce began to grow exponentially in the various regions in which it operates, TSKI faced challenges in managing HR-related functional areas that included administrative tasks such as payroll, employee data management and reporting, as well as HR consultative functions such as recruitment and selection, training and development and performance management.
Previously, TSKI performed its HR-related functions manually. For example, the organization needed to hire additional manpower to perform the payroll process of distributing salaries to all its 1,900 employees, which proved to be time-consuming and not cost-effective. TSKI needed an early cut-off date for the submission of attendance slips to the HR Department and a four-day processing period to be ensure the payment date for staff was met. Bookkeepers also had to work overtime to beat the payroll deadline. TSKI hired assistant bookkeepers to augment its existing resources, which increased operating costs.
Human error in the payroll computations was a significant issue within the organization. Incorrect deductions for loans, tardiness, and absences, and inaccurate withholding tax computations were among the typical complaints caused by the manual payroll processing.
“Our chief priority is to continue expanding our operations in terms of client outreach,” says Angel De Leon, Executive Director, TSKI. “To do this, our company needed an improved and faster system to process internal operations first before we could effectively service our clients. That’s why we were looking for a solution that would meet our needs, and at the same time, reduce our operational costs”.
As such, the organization needed to invest in a reliable IT solution that could provide the functionalities needed to manage the HR functions of the organization effectively. TSKI initially focused on addressing administrative tasks that included payroll, employee data management and reporting for its employees nationwide.
TSKI sought the help of dB Wizards, a Microsoft® Gold Certified Partner, to find the right solution to meet the organization’s needs.
To help address the organization’s HR-related challenges, dB Wizards proposed the implementation of HR*Wizard, an end-to-end Web-based Human Resource Information System (HRIS) built on top of Microsoft® SQL Server® 2005. The first phase of implementation will cover payroll, employee data management and reporting.
HR*Wizard enables organizations to manage employee information. It addresses Staffing and Recruitment, Administration, Benefits, Attendance, Payroll, Career, Performance and Learning-Management. The application has a fully customizable feature that can handle unlimited types of earning and deductions, as well as flexible tax deductions and computations.
HR*Wizard is powered by SQL Server 2005, a relational database management system that supports different data types and makes server statistics available as virtual tables and views. SQL Server 2005 capabilities include database mirroring, failover clustering, database snapshots, snapshot isolation, peer-to-peer replication, log shipping and online operations, which help minimize downtime and keep critical enterprise systems available.
Currently, TSKI processes the HR administrative functional areas of its 92 branches and employees through SQL Server 2005. “SQL Server 2005 enabled our company to obtain a powerful database that will effectively track all HR administrative activities happening in all our operating branches on a day-to-day basis,” De Leon explains.
In January 2008, TSKI and dB Wizards deployed HR*Wizard running on SQL Server 2005 in TSKI’s head office in Iloilo. The new system was well-received by staff, and employees quickly became familiar after user-training strategies were executed.
TSKI took advantage of HR*Wizard’s Attendance Management feature, which can fully integrate with Leave Administration and Benefits Management tracking. This tracking feature is integrated with digital time capture devices such as biometrics, barcodes or proximity.
Attendance Management allows flexible scheduling including daily changes of shift. It includes a transaction-based policy for overtime schedule including encoding on a daily basis. This HR*Wizard feature enables TSKI to keep track of its employees’ attendance and absences. “The automated system helped us further reduce the time our bookkeepers spent in tracking the work hours of our employees. It also informs the employees of their attendance, so it makes them aware of their standing,” De Leon says.
As well as Payroll and Attendance Management, Benefits Management is another prominent feature in HR*Wizard. It automates employee Leave and provides administration and tracking of insurance benefits.
“In the past we hire several people to conduct pay roll, using Excel to track and record salaries of our staff. Now, due to SQL Server 2005 and HR*Wizard, we have reduced our manpower requirement to one person who will be in-charge of collating all the attendance slips for processing salaries. With HR*Wizard, we are able to pay employees’ salaries on time with very little manpower overhead,” says De Leon.
Due to SQL Server 2005 and HR*Wizard, TSKI has improved its efficiency and productivity in managing HR-related processes. The implementation has reduced manpower requirements in processing payroll. “We now have smoother and more efficient HR operations. Technology truly helps to enhance our productivity. The benefit here is instantly recognized. For example, HR*Wizard benefits our staff in that they get a very clear picture of their compensation,” De Leon comments.
Improved Payroll Management
Using the Payroll Management Module in HR*Wizard, bookkeepers preparing payroll are more confident in the accuracy of employee salaries. Human error is dramatically reduced. In addition, HR is assured of timely payment of salaries. “Our employees no longer have to stay late in the office just to beat the deadline of distributing salaries on time,” shares De Leon.
Reduced Operational Costs
Prior to deploying HR*Wizard and SQL Server 2005, TSKI’s book keepers worked overtime, which meant extending operations beyond normal work hours. This practice often resulted in increased operational costs. “After deploying SQL Server 2005 and HR*Wizard, our payment system became faster. Our staff that used to work overtime to finish the balance sheets can now get off before 5:00 PM. You can just imagine the time and energy saved by both employee and company as opposed to working until the late hours,” says De Leon.
Availability of Key HR Reports
The system provides TSKI management with relevant reports on attendance, employee profile, compensation, on a per branch or department basis that will support business decision making. The accuracy and completeness of these reports are vital in evaluating employee performance and making important decisions for the company.