Streamlining Payroll Management: How Spencer's HR Transformed with Automation

Payroll Automation - How Spencer’s HR did it                                                 

As we approach 2023, the field of payroll management assumes fresh importance, owing to a dynamic interplay of obstacles and possibilities that has emerged. AI in payroll management is reaching new heights, but employee expectations are changing dramatically. 

Businesses are at a crossroads in an ever-changing payroll market, where agility becomes the key to keeping ahead in an increasingly competitive world. Here's an interesting case study about a company and its payroll management system revolution.

If you haven’t yet heard about Spencer’s Retail’s HR transformation, you should. With over 165 stores across the country, managing a massive workforce in a time when retail has come under tremendous pressure to constantly change its working models - Spencer’s Retail not just coped, but managed to come out in ship shape using HONO’s AI-backed HRMS.
We’d like to share with you one of the most critical aspects of that transformation - Payroll Management - a task, which demands a great deal out of HR departments, even at the best of times, in terms of resources, HR person-hours, and with zero tolerance to any compliance or regulatory misalignment.

How HONO helped them transform their Payroll Management?
The HONO Payroll Management System was implemented in the very first phase of the HRMS system execution for Spencer’s Retail and included the entire cycle of modules that support the payroll management system.
For instance, a great deal of the payroll processing delays as a result of the time HR had to spend manually cumulating attendance data from across the 170 stores. The HONO solution (as a part of the payroll management system) used by Spencer’s Retail was to create a mobile-based automated punch-in system, which could even be used by employees on the road, withall attendance data flowing into a single platform and providing real-time analytics and records that could be used for payroll.

This hugely simplified the payroll processing of Spencer’s Retail’s 4.5 K employees.

The modular nature of the Payroll Management System allowed it to be integrated with both the onboarding module and exit management system, ensuring that the payouts for new joiners and employees on their way out are not delayed.

Salaries and payouts are the most sacred of the many covenants between a business and its workforce, and it becomes one of HR’s most important duties to ensure it is secure and delivered upon, no matter how large the workforce, no matter how varied. But Spencer’s Retail was facing a challenge there.

“A whole lot of manual work was happening. We manage 165 stores and had about 35 to 40 cluster HR teams to handle the process. And they were doing a ‘he**’ of a lot of manual work, which was not really feasible because their work is to actually motivate the workforce and keep them engaged, to develop and retain them so that they contribute to the business - which was not happening.” says

Sutanu Chowdhury, CHRO, Spencer’s Retail

Legacy issues were challenges. The use of excel sheets, huge manual intervention, and scrutiny of errors took up most of the time of the HR. But after the employee data was moved to the HONO Payroll Management System, all the salary structures got well defined and got to be perfectly aligned with regulatory and compliance needs. Errors were reduced almost immediately and attendance data become extremely accurate.

In the legacy systems, employees leaving couldn’t get final settlements and payouts on time. But after implementing HONO’s payroll management system (and exit management), employees get their final settlement and payouts well in time.

“It's like a factory that you keep running and not really dependent on annual maintenance. Earlier, people would come and settle their bills in three months, four months - now in the system, you do it in seven days. So I think these are things which have helped us, you know, to streamline and make it much more productive,” says

Sutanu Chowdhury, CHRO, Spencer’s Retail.

We’re glad that HONO global payroll software, part of HONO's state-of-the-art HRMS, backed by AI, helped Spencer’s Retail make payroll processing and management an easy painless experience, improving the employee experience and contributing to better productivity.


The HONO Payroll Management System has been designed to automate and address the most stubborn pain points of businesses and HR departments when dealing with payroll processing – and it promises easy integration with legacy systems too.

Also Read: 8 Benefits of Integrating HR & Payroll Software

So, if you can identify with any of the following ‘pain’ signals, we’d be happy to make them go away:

• Payroll processing at scale
• Anomalies in pay distribution
• Compliance challenges
• Maintaining different payroll rules
• Limited data validation
• Preclusion of leaves & overtime
• Delays in pay distribution
• Manual salary records
• Manual dispersal of payslip
• Calculation errors in bonus, travel expenses, deductions
• Man-hour intensive year-end computation
• Overtime computation challenges

Modern Global payroll systems are quite successful at assisting businesses in mitigating compliance and security threats. Payroll systems enable compliance by obtaining necessary information and updates on tax and wage requirements in real time, preventing companies from incurring penalties and fines. Maintaining payroll data security is critical since it comprises financial and personally sensitive information. Therefore, choosing the right payroll software for your organization is critical.

Also Read: Discover the Key Features & Benefits of an Effective Payroll System

To know more about the Payroll Management System, do reach out to us. We’d be happy to help you move to a smarter, happier, and easier way of managing your ‘payroll process’.

Frequently Asked Questions

What are the advantages of using payroll automation

Payroll automation provides numerous advantages, including streamlined processing at scale, reduced errors, improved regulatory compliance, accurate salary structures, efficient data validation, automated leave and overtime management, timely pay distribution, digital salary records, automated payslip distribution, precise calculation of bonuses, travel expenses, and deductions, and simplified year-end computations.

What are the most common payroll management challenges? 

Some common payroll management challenges include using manual processes, working on Excel sheets, excessive manual intervention resulting in errors and delays, difficulty handling large volumes of data, complex payroll rules, compliance issues, managing multiple payroll structures, limited data validation, and time-consuming year-end computations.

Can companies overcome payroll management difficulties? 

Businesses may solve payroll management issues by implementing payroll automation tools such as the HONO Payroll Administration System. Businesses can eliminate manual interventions, ensure accurate data collection, establish well-defined salary structures that are aligned with regulatory requirements, integrate payroll with onboarding and exit management systems, enable timely settlements and payouts, simplify compliance, and achieve faster and more efficient payroll processing by automating processes. In addition, automation delivers real-time insights, simplifies operations, and boosts overall productivity.

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