Catching the pulse with automated Contract Labour Management

The industry for contract labourers has been on the increase in the Indian market in the past few years. The proportion of contract labourers increased from 12% in 1985 to a substantial 39% in 2013. While the concept of hiring labourers on an hourly basis or for the accomplishment of a certain project is convenient and helps reduce the cost for manufacturers, keeping track of aspects such as the number of hours contributed, the in-time and out-time, and wages per labourer tends to become a very time-consuming and difficult task. A lot of times, promises made by the contractor are not lived up to. Workers turn up at odd hours as opposed to the promised time, and contractors tend to send in the wrong number of workers due to miscommunication and so on. 

However, with the advancement of technology, keeping track of these important aspects is no more be an issue. The time and attendance tracking systems are designed keeping in mind these problems faced by manufacturers. All that the manufacturers need to do is implement these systems at work and tracking can then be made super easy. These are the different areas which the system takes care of:

  1. Requirement v/s Actual : While hiring the contract labours, the supervisors at the manufacturing unit have a clear requirement of the number of people they want and the required skills. However, at times, because of unavailability of workers, contractors send less number of people and that hampers the overall productivity of the manufacturing unit as the work does not get completed. At some other times, the contractors end up sending extra people, so that the work gets done easily and the contractor can be billed for a higher number of labourers. However, with the use of devices like biometric which are integrated with time and attendance systems, the details of the requirement can be programmed beforehand and the numbers can be tallied when the workers come in. Access to extra workers can be denied.
  2. Time Tracking : Time and attendance management systems help in tracking the exact in-time and out-time of every labourer. For example- a worker who turned up at 10 am instead of 8 am cannot come back later and claim a false in-time. On the other hand, when the workers work for extra hours, that is also automatically calculated and documented by the system and appropriate compensation can be provided to them. Through an already implemented workflow, the supervisor can review the time-tracking report before forwarded it to the HR and billing department. This now only makes the overall process of billing easier but also avoids incorrect billing.
  3. Compliance Management : The compliance requirements at manufacturing units are quite stringent. Each and every contract labour must be registered within the system along with the required verification documents. One of the ways this is ensured is that the contractors share the details about all the labours beforehand with the HR departments of the units. The HR team then enters all the labour details in the system. This can be very time consuming and costly for the companies. Instead, the modern time and attendance management systems provide access to the contractors themselves so that they can enter all such details in the system beforehand. The labourers can then get instant access to the unit.
  4. Contractor Analysis : Records of services provided by different contractors can be noted down using the system. This can be useful for tracking the accuracy of criteria such as punctuality, behaviour, efficiency, and overall performance of different contractors. The contractor-wise comparison can be done at a later stage to pick the one with the best services for future projects.
  5. Automated Communucation : Through automated notifications and communications, the time and attendance management systems help in streamlining the communication flow and also save a lot of time for the involved stakeholders. For example, when the supervisor does the schedule planning, an automatic email notification is sent to the contractor. Once the contractor adds information about the new labourers to the system, HR is automatically notified. Approval notifications are sent directly to the billing and HR departments. Weekly attendance charts can be maintained within the system which helps in keeping track of the days the labourers have worked for and are visible to the contractor as well.
  6. Billing Process : The validation process for billing purposes can be eliminated since all the authentic data is already present in the system. This makes the billing process much faster and smoother - saving time for the contractors as well as the company stakeholders.

    Appropriate use and execution of technology in the manufacturing industry can help create a vast difference and definitely help it function in a more organised and smooth fashion. Right from accurate time tracking, smooth billing workflow, flawless communication across departments, compliance management, and in turn, huge time and cost saving – everything falls in place with the right use of technology. Of course, with the proliferation of Cloud-based solutions, you don’t really need to invest heavily in technology infrastructure.

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