Fixing a Broken Payroll System

Case Study: Transforming a Broken Hourly Payroll System into a Fair, Efficient Shift-Based Model

Hammad - CEO

6/30/20251 min read

Client:

A mid-sized company with over 50+ employees across operations and retail

Challenge:

The company was using an hourly-based wage system, which led to:

  • Disputes over time calculations

  • Payroll losses due to over- or under-reported hours

  • Heavy workload for the in-house HR team trying to reconcile shifts, breaks, and overtime

  • Low employee morale caused by pay confusion and mistrust in the system

The existing format created constant friction between employees and HR, resulted in inconsistent payouts, and opened the door to payroll manipulation.

SerWisely’s Solution: Shift-Based Daily Wage System

After auditing the current payroll operations, SerWisely identified that the hourly system wasn’t just flawed it was unfit for the company’s work culture and operations. We proposed and implemented a complete shift from hourly tracking to a shift-based daily wage model, customized to fit the business needs.

Here's what we did:

  1. Eliminated Hourly Tracking:

    • Removed the need for minute-by-minute tracking of work hours.

    • Ended the dependency on flawed biometric systems and manual logs.

  1. Introduced Shift-Based Daily Wages:

    • Standardized wages per full or half shift (e.g., Rs. X per full shift, Rs. Y for half).

    • Tied attendance to shift completion rather than hours clocked.

    • Built flexibility for night shifts, peak season variations, and role-based pay.

  1. Developed Clear Attendance Rules:

    • Created a transparent attendance + payroll structure where everyone knew exactly what they’d earn per shift.

    • Built-in punctuality and discipline clauses without micromanaging time logs.

  1. HR Load Reduction:

    • Streamlined salary calculations to take less than 1/3 of the original processing time.

    • Reduced manual intervention, payroll disputes, and time theft.

Results:

  • Reduced payroll errors to near zero

  • Cut down payroll processing time by over 60%

  • Improved employee trust and morale

  • Simplified HR operations, freeing up time for strategic work

  • Prevented financial leakage due to time manipulation

Key Takeaway:

Not all companies benefit from hourly wage models.
SerWisely’s shift-based approach gave this business a more accurate, fair, and scalable system that aligned with its operational reality proving that smart HR isn’t just about compliance, it’s about strategy.