Frankwen Forge Case Study

CLIENT

Frankwen Forge

INDUSTRY

Manufacturing

EMPLOYEES

107

PRODUCTS

Payslips, Communication, On-Demand Pay

Payroll System

SAGE VIP

R40k

Annual reduction in payslips cost

100%

Reduction in loan requests

100%

Employees registered with Jem

Project Overview: Frankwen Forge

Frankwen Forge (FF) South Africa's leading steel forging and ring rolling facility that services a multitude of industries, including mining, power, petrochemical, marine and general engineering. They pay their manufacturing staff on a weekly basis and thus, payroll is run every week.

The company was looking for a convenient and cost-effective way to send payslips to their frontline employees, communicate, and issue loans.

Challenges

Before Jem, FF used to print and disburse 107 payslips to their employees on a weekly basis, costing them R70,000 each year in paper and printing expenses. That is R13.6 per payslip, without taking into account the labour costs of folding and distributing them.
Their payroll team was spending 3 hours a week printing and preparing payslips. Paper payslips were often lost or didn’t reach their employees, resulting in FF receiving 5 payslip queries from employees a week.

To communicate with their staff, their stretched HR team of 3 people had to stick up poster announcements on notice boards throughout their 11-division premises. They were unable to ensure that their employees read these announcements.
When it came to employee loans, they would get approximately 5 requests from employees per week. They tried their best to meet their employees’ needs but could not administer requests under R2,000 because of how admin-intensive the advance process was.

Results

R40k

Annual reduction in payslips cost

100%

Reduction in loan requests

100%

Employees registered with Jem

Within 2 days of introducing Jem to their employees, 100% of their staff had registered with Jem.
Frankwen Forge now sends their employees announcements on disciplinary codes, new policies, and medical aid, instead of using their facility notice boards. They know exactly, when and who has viewed their latest WhatsApp announcement.
Charlene, Head of HR & Payroll at FF says Jem is 5x cheaper than printing payslips, as they save on labour and paper costs and has saved them R40,000 every year.

100% reduction in employee loans: FF has also opted to use Jem’s On-Demand Pay solution, giving employees early access to a portion of their salary before payday. It was easy to activate this feature, all FF had to do was send an email confirming they would like to turn on this service. Since implementing this for their employees, the company is yet to receive a loan request from an employee.

ON-DEMAND PAY