Manpower agencies face significant challenges in managing their large, dynamic workforces. With the responsibility of handling thousands of contract workers across diverse services, these agencies must navigate a complex landscape of operational demands. The sheer scale and variety of services require meticulous coordination and precise management, making it imperative to have a robust, adaptable system in place. As HR technology continues to evolve at a rapid pace, 2024 presents the perfect opportunity for agencies to rethink, upgrade, and future-proof their HR systems. By staying ahead of the curve, agencies can ensure operational efficiency, compliance, and competitiveness in an ever-changing industry.

Unfortunately, some manpower agencies in the Philippines continue to violate labor laws, whether knowingly or unknowingly, putting both their businesses and the welfare of workers at risk. A recent example is the shutdown of Tranvia Travel Agency by the Department of Migrant Workers (DMW) for illegally recruiting Filipinos for non-existent jobs in Poland. The agency was found operating without the proper licenses and was charging exorbitant, non-refundable fees to job seekers. Such incidents highlight the urgent need for manpower agencies to adopt systems that not only streamline HR processes but also ensure full compliance with all regulatory requirements. Keep reading to discover actionable strategies for overcoming these challenges and streamlining your HR processes.

Manpower agencies encounter operational challenges that are uniquely complex and distinct from those faced by typical companies. These agencies manage a large, often transient workforce, with employees spread across various locations and engaged in different services, such as temporary staffing, permanent placement, outsourcing, and HR consulting. This diverse workforce landscape creates a set of challenges that require specialized solutions to ensure efficiency and compliance.

1. Managing High Volumes of Employees

One of the primary challenges manpower agencies face is handling the onboarding, management, and offboarding of thousands of contract workers, often on tight timelines. Unlike standard companies with relatively stable employee counts, these agencies experience constant fluctuations in workforce size, driven by client demands and project timelines. This variability requires a system that can adapt quickly and efficiently to changing needs.

2. Ensuring Compliance with Labor Laws

Compliance is a significant concern for manpower agencies, particularly because they operate across multiple industries and jurisdictions, each with its own set of labor laws, regulations, and standards. These laws can cover everything from minimum wage requirements to working hours, benefits, safety regulations, and contract terms. Navigating this legal landscape requires a system that not only tracks compliance but also provides alerts and updates as regulations change.

3. Tracking Employee Performance

With a workforce that is often dispersed and working on different projects for various clients, tracking employee performance can be particularly challenging. Unlike a typical company where employees may have a consistent role, manpower agencies must monitor the performance of workers across multiple assignments, sometimes under different supervisors. This requires a robust system that can capture and analyze performance data across various contexts.

4. Handling Payroll for Thousands of Employees

Payroll processing is another area where manpower agencies face significant challenges. With thousands of employees, each potentially having different pay rates, benefits, deductions, and working hours, payroll becomes a complex and time-consuming task. Traditional HR systems may not be equipped to handle this level of complexity, especially when it involves managing payroll across multiple locations and currencies. An advanced HRIS can simplify this process, ensuring timely and accurate payments.

Human Resources Information Systems (HRIS) are designed to alleviate various HR processes, addressing the unique challenges that manpower agencies face. Here are some key outcomes of HRIS solutions that manpower agencies can leverage to enhance their operations.

1. Streamlining Employee Onboarding

Modern HRIS can automate the onboarding process, from document submission to task assignment, significantly reducing the time spent on manual paperwork. This ensures that all necessary steps are completed accurately and on time. Additionally, the onboarding experience can be personalized according to the specific steps required for different roles or departments. This customization not only improves efficiency but also enhances new hire satisfaction—crucial for agencies that frequently bring in new contract workers.

2. Efficient Payroll Management

HRIS simplifies payroll management by automating complex calculations, including overtime, bonuses, and deductions. For manpower agencies, having a system that can accommodate multiple pay cycles, different pay rates, and compliance with local tax laws and regulations is essential. Moreover, integration with other financial systems such as accounting software, payroll systems, and tax management platforms ensures that all financial data related to employee compensation is accurate, up-to-date, and aligned across all systems. This automation significantly reduces the risk of errors, leading to smoother operations and fewer disputes.

3. Performance and Attendance Tracking

HRIS enhances the tracking of employee performance and attendance, providing real-time data and insights that are crucial for managing a large workforce effectively. Real-time attendance tracking can be integrated into the HRIS, allowing for more accurate record-keeping and easier management of leave requests, overtime, and shift changes. These features empower managers to make informed decisions about promotions, training needs, and workforce planning, ultimately leading to higher productivity and employee satisfaction.

While core HRIS features are essential, the ability to customize the system to meet the specific needs of each agency is what truly sets a great HRIS apart. Every manpower agency has its own unique operational requirements, such as managing specific client contracts, tracking the deployment of temporary staff, or complying with niche regulatory standards. An off-the-shelf HRIS solution might lack critical functionalities that would significantly benefit the agency. Therefore, customization is not just a bonus but a necessity.

For instance, Exist created a customized HRIS for a leading manpower agency in the Philippines specializing in facilities management services. Based on our discussions, we developed both core and tailored HRIS modules, including recruitment, employee records, time-keeping, e-services, and employee onboarding and offboarding. This bespoke approach allowed the agency to address its specific operational needs while ensuring scalability and compliance. [Click here] if you want to learn more about this success story.

In conclusion, when manpower agencies utilize a tailored HRIS solution, they can manage their dynamic workforce with greater efficiency and accuracy. No longer do they need to allocate excessive time, effort, or personnel to handle routine HR tasks; digital modules are easily accessible, even via mobile devices, streamlining operations significantly. One of the most transformative benefits of adopting new HR technologies is the power of automation, which reduces manual effort, minimizes errors, and enhances overall productivity.

To remain competitive in a rapidly evolving industry, manpower agencies must implement a system that aligns with their unique workflows and operational demands. With Exist’s Customizable HRIS Solution, you can experience seamless integration and optimization of all HR functions, providing a robust framework that not only supports but also accelerates your business’s growth and strategic objectives.

Book a demo now and see how our HRIS can simplify your HR tasks while catering to your agency’s specific needs.

When the pandemic hit, businesses across the Philippines faced significant challenges and had to respond swiftly. The sudden shift to remote work became imperative for all, requiring adaptation to new ways of operating. According to Great Place To Work, a global authority on workplace culture, interviews with 11 HR Leaders from major organizations revealed a consensus: 2022 necessitated a transformation in work practices. This transformation involved shifts in management, employee engagement strategies, and the retention of staff, despite the increased risk of mental health challenges stemming from the pandemic (Great Place To Work, 2022). These adaptations were facilitated by digital transformation, with a focus on process automation and hybrid work arrangements. Notably, every department, including Human Resources, underwent adjustments, recognizing that people are the cornerstone of business success.

Transitioning, it’s crucial to highlight the pivotal role of Human Resources Information Systems (HRIS) in modern Human Capital Development. HRIS digitizes HR functions and activities, ensuring seamless operation in a digital environment. Surprisingly, many small to mid-sized and even a few large-sized organizations in the Philippines still operate without an HRIS. While some may argue its necessity, the absence of an HRIS can pose challenges as businesses grow and require more sophisticated employee management practices. For instance, the Department of Labor and Employment (DOLE) conducts Technical Advisory Visits to aid small and micro-establishments in improving productivity and compliance with labor standards. During one such visit in Tagbilaran, Bohol, Ma. Luisa Saguirel, discovered payroll calculation errors, resulting in overpayment of the 13th-month pay. In such instances, this could have been avoided if they had an HRIS in place that can automate payroll processes accurately and efficiently, handling salary calculations, deductions, and direct deposits. Truly, efficient HR management is needed for business growth and this can be achieved through an HRIS.

These changes highlight the need for robust systems to streamline HR functions, especially during crises. As businesses in the Philippines adapt to new work environments, the importance of HRIS becomes clear. HRIS supports efficient HR management, ensures compliance, enhances engagement, and provides critical data for decisions. Despite its benefits, many smaller organizations still lack an HRIS, facing challenges as they grow. Understanding HRIS is crucial for thriving in a competitive and changing

As mentioned above, having an HRIS could improve HR processes and employee management and overall benefit your organization. Here are the reasons why an HRIS is important for businesses in the Philippines. 

1. Improved Efficiency and Productivity

HRIS improves efficiency and productivity by automating repetitive tasks and streamlining HR functions. Automation reduces the time spent on manual processes, such as payroll and attendance tracking, allowing HR professionals to focus on more strategic activities. Streamlined processes ensure that HR functions run smoothly and efficiently, enhancing overall organizational productivity.

2. Better Data Management and Accessibility

HRIS enhances data management and accessibility by centralizing employee information in one system. This centralization allows for easy access to up-to-date employee records, reducing the risk of data inconsistencies and errors. Additionally, real-time data access and reporting provide HR managers with accurate and timely information, facilitating informed decision-making and strategic planning.

3. Compliance and Risk Management

HRIS plays a crucial role in ensuring compliance with local labor laws and regulations. By automating compliance-related tasks and maintaining accurate records, HRIS helps businesses adhere to legal requirements and avoid penalties. Moreover, minimizing errors in HR processes reduces legal risks, protecting the organization from potential disputes and liabilities.

4. Enhanced Employee Experience

HRIS enhances the employee experience by providing self-service portals that empower employees to manage their own HR-related tasks. These portals improve communication and transparency, allowing employees to access information, submit requests, and receive updates in real-time. Improved communication fosters a positive work environment, increasing employee satisfaction and engagement.

5. Strategic Decision-Making

HRIS supports strategic decision-making by providing data-driven insights into HR operations. With access to comprehensive data and analytics, HR managers can better plan and execute HR strategies. Identifying trends and proactively addressing issues enables businesses to make informed decisions that align with organizational goals, driving long-term success.

To ensure your HRIS effectively serves your organization, it’s crucial to assess its alignment with your specific business needs and processes. While standard off-the-shelf HRIS solutions offer various functionalities, they may not fully accommodate the unique challenges or operational nuances of your organization. While it’s ideal for the off-the-shelf HRIS to adapt to your processes, what if the reverse occurs? What if you encounter challenges adjusting your processes to fit the off-the-shelf HRIS?This is where custom HRIS solutions play a vital role. Tailoring the system to meet your exact requirements allows you to maximize efficiency, improve data management, and enhance employee engagement. A custom HRIS ensures seamless integration and optimization of all HR functions, providing a robust framework that supports your business’s growth and strategic objectives.

In the case that the off-the-shelf HRIS solution might not work for your organization and its processes, let’s explore what sets customized HRIS development apart. Customized HRIS solutions are tailored software platforms designed to meet the specific needs and requirements of your organization. They are not premade but are built from the ground up or extensively modified to align with the unique workflows, processes, and objectives of a particular organization.

1. Customization for Specific Needs

Unlike off-the-shelf HRIS solutions, customizable ones allow you to dictate the features and workflow you want in your HRIS. By investing in a personalized HRIS for your organization, you no longer waste resources on premade features or wish for specific functionalities. For example, if you request a performance evaluation module to be added to your HRIS, you can include features such as defining performance goals and competencies, scheduling evaluation cycles, assigning reviewers, and tracking progress over time.

2. Scalability and Flexibility

Custom development also enables greater scalability and flexibility, allowing organizations to adapt and grow without being constrained by the limitations of pre-built modules. Custom solutions can be designed to accommodate increasing volumes of data, users, and processes as the organization expands. Additionally, custom-developed HRIS solutions are inherently flexible and adaptable to evolving business requirements. Organizations can easily modify or add new features as their needs change over time, without being constrained by pre-built modules that may not be easily customizable or extendable.

3. Integration with Existing Systems 

Tailor-fit development ensures seamless integration with existing systems and third-party applications, eliminating data silos. Custom HRIS solutions can be designed with specific integration points, data exchange processes, protocols, and formats to ensure compatibility and interoperability. This approach allows for accurate, consistent, and usable data exchange, eliminating discrepancies and errors. Additionally, custom development enables the creation of APIs and web services to facilitate communication and data synchronization between the HRIS and external systems, supporting various integration scenarios based on organizational needs.

4. Compliance and Security 

Custom development of HRIS solutions allows organizations to tailor compliance measures and data security features to meet specific regulatory requirements. This ensures adherence to industry standards and protection of sensitive HR information. With the ability to quickly adapt to regulatory changes, custom HRIS minimizes compliance risks and operational disruptions. Robust security features like encryption, access controls, and role-based permissions safeguard data, while secure integration with third-party systems maintains data integrity. Additionally, comprehensive training and support help users follow security protocols and compliance requirements, reducing the risk of breaches and violations.

Partnering with a software development company like Exist Software Labs ensures your customized HRIS solution meets your specific needs. We have a proven track record of developing bespoke HRIS solutions, such as one for a major manpower agency, by deeply understanding client requirements and leveraging our technical expertise. Our approach includes features like attendance tracking, government loan applications, and various mobile-accessible e-services. To learn more about how we created their customized HRIS, you can read our client’s success story here.

With our experience in crafting custom HRIS, we provide personalized solutions that boost efficiency, productivity, and growth. Our flexible and adaptable systems seamlessly integrate features and third-party applications to meet evolving needs. Ready to elevate your HR operations? Contact us for a consultation or to learn more about our services.