Workforce Management KPIs That Ma)er

Transcription

1 Businesses Run Be)er on Kronos Workforce Ready Workforce Management KPIs That Ma)er Sponsored by 1

2 Kronos Workforce Ready Delivers Key Performance Indicator (KPI) Improvements to Customers Helping organisahons manage their most valuable and strategic asset the workforce Small and midsized organisa<ons have been among the chief beneficiaries of recent technological advances, led by cloud- based solu<ons that deliver sophis<cated and easy- to- use applica<ons at reasonable costs and with minimal IT involvement. One workforce management solu<on Kronos Workforce Ready capitalises on these and other technological advances. This comprehensive, integrated suite includes <me and anendance, HR, scheduling, self- services and many other capabili<es and is offered as an easy- to- use cloud- based service. Configured and priced to address the needs of organisa<ons with about 2,500 or fewer employees, Workforce Ready has been helping thousands of organisa<ons streamline processes, minimise compliance risks and increase workforce produc<vity. S<ll, thousands of organisa<ons con<nue to struggle with a disjointed collec<on of processes and systems to manage their employees. Many of these legacy solu<ons are outdated (and owen spreadsheet or paper- centric), making them highly inefficient and error prone. When organisa<ons deploy Workforce Ready, many see drama<c improvements across a range of key performance indicators (KPIs). Customers interviewed by SMB Group cited many KPI improvements such as a 70% 80% reduchon in payroll errors and Hme required to correct them, a 20% 85% reduchon in Hme required to manage and control overhme and a 3% 5% increase in company profitability. SMB Group interviewed a variety of Kronos Workforce Ready customers to determine what drove them to deploy this solu<on, how they are using it and what benefits they have realised. The customers ranged in size from about 170 to 2,500 employees, and some had extremely complex payroll, scheduling and other workforce requirements. As detailed in this paper, all reported that Kronos Workforce Ready has made managing their workforce much more efficient and cost- effec<ve. 2

3 Results for OrganisaHons Like Yours (1 of 3) Poten<al Savings from Implemen<ng Kronos Workforce Ready Net Impact on Company Profitability 3% - 5% Business Value Enable Company Growth with Same or Staff Resources 20% - 40% Overall Company Produc<vity 4% - 6% Time Required for Pay Calcula<ons 50% - 80% Labour Cost Metrics Rate of Pay Calcula<on Errors 70% - 80% Rate of Pay Input Errors (Missed Punches) 30% - 50% Correc<on Time Required for Pay Input Errors 25% - 35% 3

4 Results for OrganisaHons Like Yours (2 of 3) Poten<al Savings from Implemen<ng Kronos Workforce Ready Time Spent Crea<ng and Upda<ng Employee Schedules to Meet Service Levels 80% - 95% Time Required to Manage and Control Over<me 20% - 85% Timely and Accurate Time Sheet Submissions Online or via Mobile Devices 40% - 50% Labour Cost Metrics (conhnued) U<lisa<on of Staff Resources 40% - 60% Costs Associated with Paper Tracking 80% - 95% Time Required to Manage Unexpected Employee Absences 60% - 80% Rate of Payroll Errors and Time Required to Correct 60% - 80% 4

5 Results for OrganisaHons Like Yours (3 of 3) Poten<al Savings from Implemen<ng Kronos Workforce Ready Time Required to Compile Management Reports 50% - 80% Time Required to Track Employee Absences and Manage Time- Off Requests 2% - 4% Workforce ProducHvity Metrics Time Required for HR Administra<ve Tasks 25% - 35% Employee Sa<sfac<on and Engagement 30% - 50% Onboarding Produc<vity 30% - 60% IT Costs 20% - 30% IT Management and Resources Cost to Purchase and Maintain Servers 100% Business Con<nuity/Disaster Recovery Costs 50% - 75% 5

6 Addressing Workforce Management Challenges Aligning Your Organisa<on to Meet These Challenges Regardless of an organisa<on s size, industry sector or opera<onal model, it must hire, schedule, pay, review and otherwise manage an owen diverse set of employees. Most large corpora<ons, government agencies and educa<onal ins<tu<ons have used automated sowware solu<ons to manage their employees for some <me. For the most part, however, these solu<ons have been too expensive, too complex and too demanding of IT resources for all but the biggest organisa<ons and budgets. Most midsized and smaller organisa<ons have relied on spreadsheets, manual processes and a patchwork of disparate sowware packages to track employee <me, generate payroll, meet regulatory compliance demands and perform other HR- related tasks. These methods are error- prone, inefficient and inflexible. Furthermore, they divert resources away from managing core business ac<vi<es and can increase the risk of non- compliance with various labour regula<ons. As organisa<ons grow, such legacy solu<ons are unable to scale and their failings can have significant nega<ve impacts on an organisa<on s opera<ons. Manually intensive and non- integrated methods also lack the ability to give execu<ves and managers the real- <me workforce data they need to make informed decisions and to perform other cri<cal job func<ons. In recent years, the emergence of cloud- based subscrip<on services has helped organisa<ons access and afford more advanced sowware solu<ons. In fact, in its most recent list of Top 10 technology trends for small and midsized businesses, SMB Group s number one trend is Cloud is the new IT infrastructure for SMBs. The consultancy s research indicates that 92% of SMBs already use at least one cloud- based business solu<on. Another SMB Group Top 10 trend is SMBs opt for an incremental, integrated solu<ons approach. As noted by SMB Group, Although 63% of SMBs have par<ally integrated some applica<ons, 79% s<ll rely on manual Excel file uploads or custom code for integra<on, which underscores the severity of the integra<on problem. Kronos Workforce Ready is an example of the cloud and integrated solu<ons trends that enable smaller, growing organisa<ons to automate their HR and payroll processes. With Workforce Ready, Kronos a leading provider of enterprise- class HR and <mekeeping solu<ons for more than 35 years has created a comprehensive, integrated suite of workforce management modules offered as a cloud- based subscrip<on service. Although it delivers enterprise- grade capabili<es, Workforce Ready has been designed to be easy to use and is priced to meet the needs and budgets of organisa<ons with up to about 2,500 employees. The cloud delivery model means customers can deploy the solu<on more rapidly and with less expense than an on- premise applica<on; and then once they are up and running, they can rely on Kronos to manage and update the applica<on and the infrastructure on which it runs. At the same <me, the simple- to- use integrated suite makes it easy for customers to deploy whatever modules they need, to add new modules as necessary and to configure the solu<on to address specific repor<ng and business process requirements. 6

7 Business Visibility and Agility Business Value for Your Organisa<on s Cri<cal Business Issues net impact on company profitability 3% - 5% enablement of company growth with same or reduced staff resources 20% - 40% overall company produc<vity 4% - 6% Siloed applica<ons and data provide an incomplete view of the business and employees Errors due to lack of automa<on and/or integra<on between applica<ons Inability to quickly assess and adjust employee headcount and related aspects of a business in response to planning and company growth opportuni<es Difficul<es in geong reports in a <mely manner, owen days awer they are needed Lack of automated and integrated workforce management system impacts overall company produc<vity Significantly improved real- <me visibility into all aspects of the business, allowing faster strategic decision making and con<nuous year- over- year improvements Much greater visibility into employee informa<on with impact on company profitability Addi<onal visibility into workforce details Significantly improved ability to scale and support company growth without adding staff A significant improvement in overall company produc<vity with an automated, real- <me and integrated workforce management solu<on 7

8 Labour Cost Metrics (1 of 4) Employee Resources Monitoring and Management Value amount of <me required for pay calcula<ons 50% - 80% rate of pay calcula<on errors 70% - 80% amount of <me required to correct pay input errors 25% - 35% A significant amount of <me spent on processing manual paper and punch <me cards Time wasted making manual adjustments A lot of errors due to manual or spreadsheet based calcula<on of pay rates More than 20% of <me sheets are inaccurate Time- consuming manual adjustments must be made Manual processes lead to <me spent on iden<fica<on and correc<on of pay- related errors Inefficient, manually intensive Excel processes Employee <me is collected by <me clocks, so there are no errors in transcribing punches Payroll processing <me is reduced from 7 days to 1 2 days Automated workflows and configurable pay rate calcula<ons eliminate almost all errors Automated systems enable easy iden<fica<on of errors Managers now look at excep<on errors vs. rou<ne manual process errors 8

9 Labour Cost Metrics (2 of 4) Employee Resources Monitoring and Management Value rate of pay input errors (missed punches) 30% - 50% amount of <me spent crea<ng and upda<ng employee schedules to meet service levels 80% - 95% amount of <me required to manage and control over<me 20% - 85% Manual <me cards are error- prone Missed punches are difficult and costly to track No visibility into or ability to track employee schedules Lack of ability to track and correct anendance issues Manual processes provide no visibility into hours worked to control over<me Employee scheduling issues Time clocks collect accurate data and the automated system tracks real- <me informa<on for <me tracking and payroll Schedules and <me cards are in the same system Automated anendance, tardiness repor<ng and correc<ve ac<ons Scheduling the right employee at the right <me Real- <me visibility into hours worked; managers know who is approaching over<me via auto alerts Visibility into scheduling helps control over<me 9

10 Labour Cost Metrics (3 of 4) Employee Resources Monitoring and Management Value <mely and accurate <me sheet submissions online or via mobile devices 40% - 50% u<lisa<on of staff resources 40% - 60% Business manager must spend 3 to 4 hours every Monday morning tallying spreadsheets Paper forms based system; each form requires manual entry into the HR system, which is a very error- prone process No ability to accurately track and update employee records Ability to submit <me sheets via mobile devices, clock and web vs. the former on- paper process Automated system significantly reduces paper forms; enabled by providing mul<ple ways to submit forms into the HR system Now employees are responsible for their own informa<on in Kronos Workforce Ready costs associated with paper tracking 80% - 95% Most HR systems are paper- based Keeping track of paper forms is difficult and costly, in addi<on to the cost of the paper All forms are electronic, which makes keeping track of employee informa<on and updates very easy Paperless HR powered by Workforce Ready custom forms and e- signature capabili<es 10

11 Labour Cost Metrics (4 of 4) Employee Resources Monitoring and Management Value amount of <me required to manage unexpected employee absence 60% - 80% rate of payroll errors and <me required to correct errors 60% - 80% payroll and leave infla<on QualitaHve Manual process makes it difficult to monitor and manage employee absences, late arrivals/ early departures, etc. Without automa<on, some of this process is subject to human interpreta<on Significant <me and effort spent on iden<fying and correc<ng payroll errors Paper requests geong lost, managers not entering requests, paper requests not geong to payroll, payroll not entering the requests Manual self- repor<ng leads to errors and payroll infla<on (e.g., forgeong to enter a vaca<on day) Easy to monitor and manage employee absences and related scheduling issues and costs A significant reduc<on overall in absences and tardiness Real- <me capabili<es enable the monitoring of all data related to payroll Companies now see significantly fewer payroll errors and spend less <me correc<ng them Self- service capabili<es enable employees to enter and track leave schedules Businesses have much bener control over costs related to payroll, leave and infla<on 11

12 Workforce ProducHvity Metrics (1 of 2) Business Value from Workforce Tracking and Management amount of <me required to compile management reports 50% - 80% amount of <me required to track employee absences and manage <me- off requests 2% - 4% amount of <me required for HR administra<ve tasks 25% - 35% Report compiling is mostly manual, <me- consuming and error- prone Lack of real- <me data prevents <mely response to management and employees Paper requests owen are lost; managers are not entering requests or sending them to payroll to enter Manual processes owen lead to the high cost of unearned vaca<on ANendance viola<ons slip through the cracks Manual processes lead to a lot of inefficiencies and errors related to paper- based systems A lot of <me is wasted chasing employees to get the necessary forms, etc. Managers save valuable <me and effort with the elimina<on of manual processes and automated policy applica<on Effec<ve communica<on is enabled between HR and the frontline managers, as well as managers and their staff Employee self- service helps employees keep accurate tabula<on of earned vaca<on and year- over- year rollover vaca<on days Companies can bener manage accruals and costs related to <me off and vaca<ons Dashboard and self- service help reduce rou<ne administra<on <me and enable HR staff to focus on more strategic ini<a<ves 12

13 Workforce ProducHvity Metrics (2 of 2) Business Value from Workforce Tracking and Management employee sa<sfac<on and engagement 30% - 50% Manual and error- prone HR policies and procedures result in long processing <mes and varying results leading to employee dissa<sfac<on Increased employee sa<sfac<on via rapid processing of <me- off requests and other efficiencies Automated and improved self- service process, which makes employees feel more empowered onboarding produc<vity 30% - 60% employee performance management QualitaHve Hiring and on- boarding are <me- consuming manual processes Lack of automated front- end and back- end processes leads to more errors Helps streamline hiring and on- boarding process Automa<on helps reduce staff costs Paper and spreadsheet- based system is eliminated More effec<vely manage employee performance, providing detailed visibility into employee ac<vities and performance levels 13

14 IT Management and Resources Business Value for Organisa<onal Opera<ons IT costs 20% - 30% IT resources are needed to implement, maintain and update point solu<ons IT resources are needed to install and maintain server hardware and sowware Costs are related to separate point solu<ons Cloud- based solu<ons eliminate need for internal IT staff to support on- premises applica<ons and servers Faster to implement for produc<ve use cost to purchase and maintain servers 100% business con<nuity/ disaster recovery costs 50% - 75% Capital expenditure is required to acquire and maintain servers for on- premises applica<ons Ongoing management and maintenance costs IT resources and infrastructure are needed to support business con<nuity/disaster recovery Implementa<on is complex and costly IT capital expenses are eliminated because Kronos has a cloud- delivered solu<on Greatly reduced ongoing management and opera<onal costs Avoid upgrade costs Business con<nuity/disaster recovery are built- in benefits of the Kronos Workforce Ready SaaS solu<on Kronos has redundant data centers to support applica<on and data availability at no addi<onal cost to customers CV0570- AUv1 14