The problem of ghost workers is one of the major challenges that comes with managing human resources both in private and government organisations.
This mainly is due to lack of management system to track enrolment and payment of the workers.
This challis however bound to be put to rest following an innovation CasualPay by leading innovator FaidiHR.
FaidiHR Founder Peter Muchemi said the Fintech product aims at transforming the way businesses manage and pay casual laborers in the country.
“Kenya, like many other African countries, has a significant informal sector with a substantial number of casual workers including but not limited to plumbers, office cleaners, electricians, construction workers, farmers, domestic workers among others, “said Mr Muchemi.
Data by the Kenya National Bureau of Statistics (KNBS) Labor Force Survey Report for 2020 indicates that the informal sector in Kenya employed approximately 15.9 million people, which accounted for about 83.6 percent of the total employment in the country.
Despite increased adoption of digital technology in the country, the majority of business owners are still managing casual workers’ attendance using paper work that is filled on a daily basis to track how many days the worker is present at work.
Not only is this a tedious process but it is significantly prone to manipulation and errors. Reconciling this data at the end of the week is also time-consuming since it must be transferred to spreadsheets before the final dues are calculated.
This introduces loopholes for fraud as this data can be manipulated to allow ghost workers into the system as well as providing room for exaggerated and erroneous payments.
This is where CasualPay comes in, creating the ability for businesses to manage casuals in a cloud database, allowing attendance to be booked in the system on a real-time basis and the reconciliation of working days which automatically computes the total amount owed to the casuals.
Additionally, the admins/business owners are able to initiate payments which once approved ensure that all the casual laborers receive their money via M-Pesa automatically with the click of a button.
The Fintech product has been developed as a result of feedback from the firm’s payroll and HR platform customers who apart from managing their full-time employees felt the need to automate casual attendance management and payments.
Prior to the official launch the platform had already attracted more than 1,000 casual workers being managed on the digital system while more are expected to be onboarded.
The platform is free to access with the only fees charged being transaction fees capped at Sh50 per transaction.