Bridging payroll inefficiencies through digital transformation: A case study of JDG Electricity Ltd.

Payroll management remains an integral part of corporate governance, but many large organizations still use partially manual payroll systems, putting them at risk of operational, financial, and ethical problems. Using a real-world example of a payroll discrepancy at JDG Electricity Ltd, this research analyzes the issues caused by the company's use of a payroll cycle that was misaligned with its employee timekeeping system, which resulted in the company incorrectly overpaying a former employee for nearly two months due to a lack of real-time tracking of employees. This incident highlights the systemic issues arising from legacy payroll practices, including insufficient internal controls, delayed audits, and fragmented data management. A review of recent literature on Human Resource Information Systems (HRIS) and Digital Transformation found that manual payroll processes increase the risk of inaccurate and fraudulent payroll payments and decrease transparency within an organization. Research demonstrates that using automated payroll solutions, predictable audit trails, and integrated payroll systems can significantly increase both accuracy and accountability. The JDG Electricity case illustrates the importance of aligning payroll cycles with actual employee working periods and developing an effective internal audit structure. This study offers multidimensional solutions that incorporate payroll automation, policy alignment, periodic audits, and ethical communication practices to support transparent error resolution. Overall, this study indicates that implementing fully digital payroll solutions and developing proactive governanceprocedures are critical to reducing financial variances.