1.0 How do I create a Wage Digitization Task Force?
i. Assign a Project Leader
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?
Role and Responsibilities of Project Leader
- Lead the digitization process with the support of the Digitization Task Force
- Gain support from workers and their representatives for digitization, including vulnerable workers, especially women
- Manage digitization activities, including account opening and worker training, with the payroll provider
- Manage and mitigate risks associated with digitization, by working closely with the digitization task force, payroll provider and worker representatives
- Work closely with HR, Finance, Production and Compliance departments to ensure their support in the digitization process
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
Finance
- Select Financial Service Provider
- Open a Corporate Account
- Send payroll sheet to the Financial Service Provider on time
- Ensure funds available in the Corporate Account
- Take corrective actions in case of missing payments
- Monitor changes in salary payment transaction limits, cash out transaction limits and legal documentation for opening digital accounts, with the Financial Service Provider
Production
Assist HR in:
- Training workers
- Opening worker accounts
- Payday management
HR & Compliance
- Engage and educate workers about digitization and its benefits
- Support account opening and worker training
- Monitor the digitization process
- Provide support and troubleshooting
Encourage all members of the Digitization Task Force to complete RISE Transform Financial Health Tech Learning Tool.
1.1 How do I select a Financial Service Provider?
i. Key considerations when selecting a Financial Service Provider
- 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?
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.
- 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?
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.
- 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?
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.
- 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?
Establish a positive working relationship with the Financial Service Provider to ensure commitment and support in case of issues.
- 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?
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 4/8
Support worker account opening and activation
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
Step 6/8
Ensure liquidity in the factory area, and the availability of direct support for workers and management, especially on payday
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
Step 8/8
Introduce savings and insurance products at the factory when available
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.
Consider inviting a manager from another factory who has already digitised to share his/her experience.