TRANSFORMATION: HUMAN RESOURCE MANAGEMENT ERP DEPLOYMENT FOR KRUGER VIETNAM VENTILATION INDUSTRY CO., LTD


In today’s competitive business environment, effective human resource management is a key factor in organizational success. Kruger, a leading heating, ventilation, and air conditioning services company, faced significant challenges with disjointed HR processes that hindered operational efficiency and employee satisfaction. 

To address these issues, Gopify developed an ERP system focused on comprehensive HR modules. 

GENERAL DIFFICULTIES AND CHALLENGES PROJECT OVERVIEW IMPLEMENTATION PROCESS  RESULTS AND BENEFITS  CONCLUSION  REFERENCES 

GENERAL

 Kruger Ventilation Group, a subsidiary of Soler & Palau Ventilation Group (headquartered in Spain), was established in Singapore in 1985. Currently, Kruger has established 60 business and service units globally. Kruger Vietnam, a subsidiary of Kruger Ventilation Group, was established in 2009. (thonggiovn.com, n.d.)

Kruger Vietnam information:
- Country: Vietnam
- Industry: Providing energy-saving ventilation solutions for residential, commercial and industrial buildings
- Number of employees: about 250 employees (vietnamworks.com, n.d.)

Human Resource Management (HRM) ERP implementation:
- Implementation period: 6 months (from October 2023 to April 2024)
- Category: Providing advanced HRM packages and in-depth business administration on the cloud platform.

DIFFICULTIES AND CHALLENGES

Before using the ERP, Kruger Vietnam (from now on referred to as “Kruger”) encountered some difficulties in HRM, such as:

Tracking time-off and overtime

Manual tracking leads to inconsistencies and confusion about time-off allocation or overtime wages. Furthermore, the approval of employees' time-off and overtime requests also depends on traditional paperwork, leading to omissions or incorrect approvals.

Payroll

Manually processing multiple pay structures, deductions, bonuses, and overtime hours is time-consuming and resource-intensive, increasing the risk of errors.

Notification

Except for the management department, which receives notifications via email, the company's notifications to workers are mainly in the form of printed and posted public notices. This can lead to missed notifications.

Timekeeping

HR departments spend a lot of time managing timekeeping records. However, manual tracking can lead to errors. Inaccurate timesheets can lead to disputes and employee dissatisfaction.

Social Insurance management

Manual management and calculation are time-consuming and error-prone, leading to overload when answering employee questions related to benefits.

PROJECT OVERVIEW

Gopify has deployed the “Labor Relations Management” solution package (gopy.io, n.d.) including the following modules and functions:

Discuss

  • Send company messages/notifications to all system users

Time-off

  • Time-off types management
  • Time-off allocation
  • Time-off requests management

Attendance

  • Attendance sheet by hour 
  • Send attendance sheet for employee confirmation via email

Documents

  • Set up documents and directories access rights for each user
  • Manage documents or files uploaded by separate storages and directories

Recruitment


  • Set up recruitment campaign

Employee

  • Employees information 
  • Department information
  • Job position/ job levels
  • Labour contract management 
  • Reward & Discipline  
  • Resignation 

Overtime

  • Overtime requests management
  • Summarize overtime hours by employee/department

Payrol

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  • Monthly allowances and expenses management
  • Configure social insurance – health insurance - unemployment insurance payment amount based on formula from Vietnam Labor Law
  • Create salary sheet/payslip by employee/department. 
  • Send payslip to confirm via email.


IMPLEMENTATION PROCESS 

Stage 1
Planning and Preparation
  • Initial Assessment: Conduct an analysis of Kruger’s HR processes to identify areas of concern and improvement.
  • Project scope and timeline: Define the scope of the project, set goals, and establish a realistic timeline for implementation.
  • Parties: Identify project parties based on scope of the project, for example Kruger’s HR department or their IT department.
Stage 2
Modules setup and system configuration
  • Module selection: Identify and select specific and necessary modules to solve Kruger’s problems, including “Employees”, “Time-off”, “Overtime”, “Attendance” and “Payroll”. Other modules such as “Discussion”, “Documents” and “Recruitment” are also available.
  • Server configuration: Configure the server for optimal performance and security, including library setup and database configuration.
Stage 3
Metadata setup and entry
  • Data collection and cleaning: Collect files and clean data from Kruger's old operating procedures, ensuring accuracy and completeness before entering it into the system.
  • Conversion plan: Plan and support Kruger in sequentially entering data into the system. Data entered includes employee login account information, department information, job position, job level, and employee detail information.
  • Additional information setup: Set up information related to system operations, such as mail server, company information, time-off type configuration and allocation, salary structure configuration, overtime rates, and types of expenses and allowances.
  • Re-check: Conduct a review to verify the accuracy and integrity of the entered data and resolve discrepancies between manual operations and system usage.
Stage 4
User training
  • System user guide: Organize comprehensive system training and operation instructions for HR staff and other relevant users to ensure Kruger employees are proficient in using the new system.
  • Documents/User manual: Create detailed user guides and other resources, such as videos and photos, to support training and education on system use. Also, provide users with FAQs for solutions to common problems (helpdeskportal.online, n.d.)
Stage 5
Go-live
  • Go-live planning: Plan the system's go-live, determining the timeline for full module and function implementation. 
  • Customization: Adjust selected modules to suit Kruger's specific requirements, including adjusting and adding features such as salary rounding and changing the survey request email template.
Stage 6
Post-Implementation support
  • Monitoring and optimization: Continuously monitor system performance and user feedback to identify areas for improvement.
  • Support: Provide support through communication channels such as Zalo and email, and allow users to submit support tickets and feedback on system-related issues. (helpdeskportal.online, n.d.)

RESULTS AND BENEFITS 

 By applying Gopify's "Labor Relations Management" solution package, Kruger has solved the following problems:

The implementation of the Time-off and Overtime modules has helped optimize the request and approval process, reducing omissions. Employees can easily submit requests through the system or the Gopy mobile application, and managers can approve them at any time without needing traditional paperwork. 

The modules ensure that time-off and overtime requests are processed efficiently, improving employee satisfaction and work management efficiency.

The Attendance module helps automatically aggregate, and process data entered from the timekeeping machine, reducing the possibility of errors and ensuring accurate timekeeping data. In addition, using the time-off and overtime modules to manage requests and approvals on the same platform integrates employee timekeeping data with time-off and overtime data.
The aggregated timekeeping sheet will be sent to employees for confirmation or correction of any errors. This reduces the HR staff's paperwork burden, allowing the HR department to focus on more strategic activities.

Based on employee-confirmed attendance sheet, the salary slip will be automatically calculated based on working day information, including allowances, chargeable fees, and bonuses. This automatic solution ensures accurate salary calculation, limiting errors and enhancing employee confidence.


In addition, the flexibility to set up coefficients for calculating personal income tax, social insurance, and health insurance contributions helps Kruger easily adapt to changes in labor laws, minimizing compliance and legal risks while ensuring employee rights.

The Discuss module, as its name suggests, is a place where managers and employees can communicate with each other on the same platform, helping to enhance internal communication. With the ability to create private chat groups and send notifications to all users, share files, and integrate notifications directly into the system, it creates a cohesive and effective communication environment.


By leveraging the Discuss module, Kruger has improved internal collaboration, effectively bridging the gap between employees and management.

CONCLUSION 

The implementation of the Gopify ERP system at Kruger Vietnam has marked a significant transformation in the company's human resource management. By addressing challenges associated with manual workflows, inconsistent data, and compliance risks, the new system has provided a streamlined and efficient solution.

Key HR functions such as attendance management, payroll processing, time-off and overtime tracking, and social insurance management have been automated, resulting in significant time savings and improved accuracy. The successful integration of the "Discussion" module has further enhanced internal communication and fostered collaboration.

The implementation process was planned and executed on schedule, with comprehensive training and ongoing support provided after implementation. The benefits Kruger Vietnam has achieved include increased work efficiency, improved employee satisfaction, and a reduced administrative burden for the HR department. The project "ERP Deployment for Human Resource Management for Kruger Vietnam Ventilation Industry Co., Ltd." is a testament to how a well-implemented ERP system can optimize HR operations and drive organizational success.


REFERENCES