Tackling Ghost Workers in HR Software: How Can We Spot the Fakes and Stop Salary Fraud?

Identifying Nonexistent Workers in HR Software

We have HR software installed in a garment industry. Workers are using proximity cards for attendance. The software is collecting attendance based on data from the attendance device. Salaries are also generated based on that attendance. However, my client has informed me that there are workers who do not actually exist in the company. A group of individuals is creating these fake workers and receiving money from the company as salaries.

I would like to know how I can identify these nonexistent workers using the software. Please provide some advice.

Standard Procedure for Salary Disbursement via Software

Regarding your query about salary disbursement through software, there are indeed standard procedures that many organizations follow. Typically, companies use payroll software to automate the process of paying employees. This software calculates salaries based on various factors such as attendance records, deductions, and bonuses, ensuring accurate and efficient salary disbursement.

Companies often set up specific protocols within the software to maintain confidentiality and security when processing payroll information. If you are looking to implement a salary disbursement system using software, it would be advisable to explore different software options available in the market and choose one that best fits your organization's needs.

Addressing Malpractices in Employee Management

This is a very strange issue. It is not easy to pass through Time Office, HR, Finance, and Audit without coordinated support. Somehow, information can reach Management. Management itself was not interested in company affairs!

Steps for Investor/Management to Clean Up

1. Call all shop floor managers and department heads with the current list of employees and those who resigned in the last 6 months.

2. Call all registered contractors with the list of current contract employees for the last 6 months.

3. Call the HR/Finance department that prepares the salary register and ask for the last 6 months' salary register.

4. Call the Time Office/Security personnel to produce the Attendance Muster for the last 6 months.

5. The parties mentioned in 1/2/3/4 shall be there in a meeting with the CEO, together.

In this meeting, with the help of the Auditor/HR Manager, the company can identify any malpractices. If there were malpractices, find out the causes and all possible steps to stop repeating the same.

Implementing Solutions

One of the steps to stop such malpractices could be implementing a stable software system in place to automate Employee Info, Leave & Attendance, and Payroll.

Use Biometric Attendance Device Instead of Proximity Cards or Swipe Cards

An employee can mark the attendance of other employees using their proximity cards or swipe cards, marking them present when they are actually absent. With a Biometric Attendance Device (fingerprint or eye scanner), it is not possible to mark fake attendance by a proxy person. An Attendance Device with an Eye Scanner is the most secure.

As suggested by kss_sku, you can opt for a biometric attendance machine. A retina eye scanner machine will be more costly to implement and is a somewhat time-consuming process. Fingerprint-based access systems are also good and cost-effective.

For each employee, you can register 2-3 fingers and thumbs from both hands on the access system. This way, if anything happens to one finger or one hand, a person is still able to use the other hand's finger/thumb for punching.

For both systems, you can use a fingerprint-based system for enhanced security. For entry, you can use fingerprint scanning, and for exit, you can use the card system.

Implementing Biometric Attendance for Employee Verification

New hires may be asked to provide all documents for account opening. Disburse salaries into employee accounts, in addition to introducing biometric attendance in your office. Automated attendance MIS should be checked before the disbursement of salaries. This system would also track employee lateness and short leaves. This process would help in cross-checking employee existence.

Regards

Installing a biometric attendance recording system is foolproof. If any employee does not report to duty, their attendance is not captured, so no salary should be paid.