Automated Timekeeping: Unclogging the Payroll Drain Presented by: Ty Hall, Director of Public Sector Government Software Solutions Email Contact: [email protected] [email protected] Phone: 435-645-0656 INTRODUCTION AND EXPERIENCE 1992 -1996 • Public Safety Wireless Communications 1996 – 2001 GSS / Stromberg Public Sector Time and Attendance: Sold to Kronos 2010 – Present • Kronos Public Sector Time and Attendance 2005 – 2010 • Sungard/H T E Public Sector Financial Management Systems, Community Development, Utility Billing, Public Safety Dispatch and Records 2001 – 2005 • Motorola Wireless Data Division GSS / NOVAtime Public Sector Time and Attendance/Scheduling SO MANY STORIES TO TELL What Matters! MEETING AGENDA What is Workforce Management? Payroll / Timekeeping Challenges Business Benefits / ROI WHAT IS WORKFORCE MGMT? Data Collection Payroll Integration (Gross) Exception Notification Complete Workforce Management Accurate and Real-time Reporting Pay rule Automation and Enforcement Timesheet Editing and Approval Employee Management and Scheduling SOURCES KPMG / American Payroll Association US Department of Labor – Bureau of Labor Statistics Nucleus Research Employment Policy Foundation Circadian CUSTOMER SURVEY (APA) 1Source: APA’s Seventh Annual Payroll Best Practices and Benchmarking Study, February 2006 CHALLENGES Reduce Complexity – Managers need to track complex variables, such as hours worked, wage rates, pay rules, and leave time, including sick days and vacation time – Standardize pay policy and associated support across entire organization Payroll Inflation / Cost Control – Increased costs associated with manual check runs and adjustments – Employee fraud and errors (i.e., buddy punching, extra sick / leave days) – Proactive control and management of workforce attendance and absenteeism; preemptive action against unauthorized overtime Productivity – Manual timesheets, data re-keying into system by payroll clerks – Track employee productivity using job costing and real-time labor reporting Compliance – Drivers include collective bargaining agreements and governmental regulations – Noncompliance = costly penalties BUSINESS BENEFITS Increase employee satisfaction and morale – Self-service tools provide employee access to common requests and tasks (engage your workforce!) – Reduce time spent on ‘clerical’ work and allow workforce to focus on critical / strategic tasks – Common enforcement of policies can increase employee morale – Reward employees for positive attendance patterns Organization Vision / Strategy – Provide framework for integration of multiple application and reporting tools (HRIS, Payroll, Finance, ERP, etc.) – Scalable solutions provide platform to expand deployment Collaboration – Increased emphasis between management and teams to control costs – Shared reporting identifies areas of improvement in terms of BUSINESS BENEFITS / ROI APA/Bearing Point study (2007) – 0.7% to 56.3% of payroll department time spent on data entry – Large variance between world class and manual organizations Independent Research Results – 75% of organizations found >250% ROI – Median ROI was 469% – Average payback was 5 months Reduction in total payroll cost Payroll Error Rate: 1.2% Payroll Processing Time: 0.47% Leave Time: 0.38% Labor Reporting: 0.75% Payroll Inflation: 0.72% Total: 3.52% RISK MITIGATION – RECENT NEWS April 08, 2009 Employer Pays More than $2M to Settle OT Allegations IFCO Systems North America has paid $1,602,267 in back wages to its employees after the Department of Labor's Wage and Hour Division accused the company of failing to pay 1,751 employees in 17 states properly for the overtime hours that they worked. The Wage and Hour Division also fined the company $963,050 in civil money penalties. Wage and Hour Division investigators alleged that IFCO Systems, which manufactures and repairs reusable plastic containers and wooden pallets, did not pay its employees time and one-half for hours worked over 40 in a workweek. They also alleged that the company did not maintain the records that they are required to keep under the law. The investigations took place in the states of Colorado, Florida, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Ohio, Oklahoma, Oregon, Tennessee, Texas, and Utah. http://hr.blr.com/news.aspx?id=79815&source=RSA&effort=4 How do we fill out this matrix? ROI – By Department Savings Estimates Description Total Department $ FMLA Compliance FSLA Compliance Payroll Error Payroll Inflation Buddy Punching Attendance Mgmt Annual Savings Monthly Savings Food & Nutrition Services Bus Aides Maint. Total Total Bus Data Custodians Secretarial Mechanics Annual Monthly Drivers Processing Delivery Savings Savings Operations Support Personnel Annual & Monthly Savings Estimates - ROI Food & Nutrition Services Description Bus Aides Bus Drivers Custodians Data Processing Secretarial Maint. Mechanics Delivery Total Annual Savings Total Monthly Savings Total Department $51M $ 3,675,360 $ 1,227,600 $ 7,881,750 $10,899,200 $ 4,607,616 $13,894,400 $ 9,193,600 FMLA Compliance $ 3,675 $ 1,228 $ 7,882 $ 10,899 $ 4,608 $ 13,894 $ 9,194 $ 51,380 $ 4,282 FSLA Compliance $ 3,675 $ 1,228 $ 7,882 $ 10,899 $ 4,608 $ 13,894 $ 9,194 $ 51,380 $ 4,282 Payroll Error $ 22,052 $ 7,366 $ 47,291 $ 65,395 $ 27,646 $ 83,366 $ 55,162 $ 308,277 $ 25,690 Payroll Inflation $ 14,701 $ 4,910 $ 31,527 $ 43,597 $ 18,430 $ 55,578 $ 36,774 $ 205,518 $ 17,127 Buddy Punching $ 7,351 $ 2,455 $ 15,764 $ 21,798 $ 9,215 $ 27,789 $ 18,387 $ 102,759 $ Attendance Mgmt $ 16,539 $ 5,524 $ 35,468 $ 49,046 $ 20,734 $ 62,525 $ 41,371 $ 231,208 $ 19,267 Annual Savings ~2% $ 67,994 $ 22,711 $ 145,812 $ 201,635 $ 85,241 $ 257,046 $ 170,082 $ 950,521 Monthly Savings $ 5,666 $ 1,893 $ 12,151 $ 16,803 $ 7,103 $ 21,421 $ 14,173 8,563 $ 79,210 FLEXIBLE DATA COLLECTION OPTIONS STANDARD FUNCTIONALITY “OUT OF THE BOX” – TOTAL SOLUTION Real-time Data Collection Labor Costing Multiple O/T Policies Strong Pay Policy Setup Powerful Scheduling Engine Unlimited Shifts and Differentials Unlimited Pay Codes and Categories Flexible Group Levels (Organization Setup) Leave Management – Accruals, FMLA, FLSA Attendance Tracking - Point / Incentive System Employee Self-service Portal Internal Messaging and Alert System Custom Report Building Engine / Business Intelligence QUESTIONS & ANSWERS Thank you!