Fossilized Procedures: A Hidden Barrier to HRIS and Payroll Automation Success in the Philippines
- Manny Sia
- 23 hours ago
- 3 min read
Many companies in the Philippines invest in a modern HRIS (Human Resource Information System) or payroll automation system to improve efficiency, accuracy, and compliance. However, one of the most overlooked barriers to successful HR automation is not technology—it is outdated procedures.
At EDS Innoventions, during our implementation of HRIS and payroll systems in the Philippines, we sometimes encounter organizations that insist on preserving legacy practices, even when these practices are inefficient, error-prone, or inconsistent with modern standards.
These deeply rooted processes, which we call “fossilized procedures,” can prevent organizations from fully benefiting from their investment in HR technology.
The “Nakasanayan” Mindset and Resistance to Change
In Filipino culture, there is a term called nakasanayan, meaning “what we are used to.” In HR operations, this mindset often manifests as resistance to improving workflows—even when better systems and methods are available.
Organizations may request that their new attendance monitoring system or payroll system replicate manual or outdated processes simply because those procedures have been followed for many years.
While understandable, this approach limits the effectiveness of HRIS automation and prevents companies from achieving true operational efficiency.
Common Examples of Outdated HR and Payroll Practices
Through our experience providing HRIS solutions in the Philippines, we have observed several legacy practices that negatively impact payroll accuracy and efficiency:
1. Cascading Payroll Deductions Based on Previous Attendance
Some companies calculate payroll deductions based on the previous month’s attendance instead of the current payroll period. This outdated method creates:
* Payroll delays
* Complex reconciliation issues
* Employee confusion and disputes
* Reduced transparency
Modern payroll automation systems in the Philippines are designed to calculate payroll based on actual attendance within the current payroll period, ensuring accuracy and timeliness.
2. Incorrect or Legacy Government Contribution Calculations
Government contributions such as SSS, PhilHealth, and Pag-IBIG must follow updated official tables and rules. However, some organizations continue using outdated calculation methods and request system customization to replicate these incorrect formulas.
A properly configured HRIS and payroll system ensures compliance with Philippine government regulations and reduces compliance risks.
3. Digitizing Inefficiency Instead of Eliminating It
One of the biggest misconceptions about HR automation is treating it as a tool to simply digitize existing processes.
A modern HRIS Philippines solution is not meant to preserve inefficiencies—it is meant to eliminate them.
The True Purpose of HRIS and Payroll Automation
A modern HR system in the Philippines provides more than automation. It enables organizations to:
* Automate attendance monitoring and payroll computation
* Reduce payroll errors and manual corrections
* Ensure compliance with labor laws and government contribution requirements
* Improve payroll processing speed
* Increase transparency and employee trust
* Provide real-time HR analytics and reporting
Companies that modernize their workflows alongside their HRIS implementation achieve significantly greater efficiency and return on investment.
HR Digital Transformation Requires Modern Thinking
Successful **HR digital transformation in the Philippines** involves both technology and process improvement. Implementing a new **attendance and payroll system** is an opportunity to evaluate and enhance existing procedures.
Organizations that embrace modern HRIS best practices benefit from:
* Faster payroll cycles
* Improved operational efficiency
* Reduced administrative workload
* Better compliance and audit readiness
* Enhanced employee satisfaction
EDS Innoventions: Your Partner in HRIS and Payroll Automation in the Philippines
At EDS Innoventions, we do more than provide software. As a trusted provider of **HRIS, attendance monitoring systems, and payroll automation solutions in the Philippines**, we help organizations modernize their HR processes and adopt industry best practices.
Our goal is to ensure that your **HRIS implementation** delivers maximum value—not by preserving outdated procedures, but by enabling smarter, more efficient workflows.
Modern technology provides the tools. Forward-thinking organizations provide the mindset.
Together, they enable true progress.
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