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Factual Performance Management

dr. Földesi Levente

Faster payroll accounting, flexible reporting function, informed performance management, precisely forecastable wages – an interview with Dr. Levente Földesi, Executive and Purchasing Director of Sitform Furniture Factory

A portion of Zala Furniture’s site and buildings was bought by Sitform Furniture Factory in 1998, which then started production with 137 employees. Here in Zalaegerszeg, living room furniture is assembled for the export market.

In 2003 and in 2011 the operation was significantly expanded by the owner. The enlarged premises enabled technical innovation and optimization of production processes as well as expansion of production volumes. With its 400 employees and a revenue of over 4.9 billion forints, by 2012 the factory became the city’s largest employer.

The continual increase in the headcount was a major administrative burden. Prior to implementing NEXON’s software, attendance sheets were filled out and processed manually. The seasonal nature of furniture production also caused a lot of administrative work.

We were looking among multiple suppliers for a solution to resolve the above issues, and from these we finally chose NEXON. We also asked other companies who were using NEXON’s systems, and they responded by giving us very good references.

The NEXONtime time and attendance system is used not only for access control, but also for performance measurement across cost centers.

We were looking among multiple suppliers for a solution to resolve the above issues, and from these we finally chose NEXON. We also asked other companies who were using NEXON’s systems, and they responded by giving us very good references.

The recruitment/lay-off process is now much faster, while working hours and vacations are transparent. 80% of our employees receive performance based pay, while the salary of others varies according to their tasks. Now managers record the beginning and the end of each work activity using card readers, the data from which is forwarded to the NEXONber payroll system. No manual registrations, less error – pay is now calculated based upon factual numbers. We have also radically reduced the amount of printed papers.

With the help of the workforce management module our employees’ working schedules can now be planned 6 months in advance, and it is now much easier to monitor performance and to control overtime payments.

Before implementing NEXONbér we used an international payroll software package, but keeping track of legislation was pretty complicated – said Erzsébet Horváth and Erika Varga, payroll specialists.

Our payroll calculation process is very complex with a mix of fixed and performance based wages, plus allowances and compensation  – with our old system this left a lot of manual work to be done. I hardly dare to mention that the package did not provide for calculating the National Health Insurance payments, so these declarations also had to be done manually.

Now with NEXONbér everything has become easier: the reports are transparent and hardly any manual work remains. In practice we are able to finish the payroll calculation for 400 employees within a day. Through use of the flexible reporting function the required statistics are produced automatically.

The implementation of the NEXON systems ran smoothly.

We had a thorough training, but when we do have any questions we always get a quick answer form NEXON’s help desk.

To summarize the benefits of NEXON’s comprehensive solution: our payroll calculation process is much faster, employee attendance is easier to control and the data necessary as input related to performance and wages is automatically provided error free.

Levente Földesi summed up as follows; I can certainly recommend to any other company working in similar circumstances that they should implement an intelligent card reader system with workforce management software.

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