Transcription
Businesses Run Better onKronos Workforce ReadyWorkforce ManagementKPIs That MatterSponsored bySMB Group
Kronos Workforce Ready Delivers Key PerformanceImprovements to CustomersHelping organizations manage their most valuable and strategic asset—the workforceSmall and midsized organizations have been among the chief beneficiaries of recent technological advances, led by cloud-basedsolutions that deliver sophisticated and easy-to-use applications at reasonable costs and with minimal IT involvement. Oneworkforce management solution—Kronos Workforce Ready —capitalizes on these and other technological advances. Thiscomprehensive, integrated suite includes time and attendance, payroll, HR, scheduling and many other mix-and-match modules,and it is offered as an easy-to-use cloud-based service. Configured and priced to address the needs of organizations with about2,500 or fewer employees, Workforce Ready has been helping thousands of organizations streamline processes, minimizecompliance risks and increase workforce productivity since its debut in June 2012.Still, thousands of organizations continue to struggle with a disjointed collection of processes and systems to manage theiremployees. Many of these legacy solutions are outdated (and often spreadsheet- or paper-centric), making them highly inefficientand error prone. When organizations deploy Workforce Ready, many see dramatic improvements across a range of keyperformance indicators (KPIs). Customers interviewed by SMB Group cited many KPI improvements such as a 70%–80%reduction in payroll errors and time required to correct them, a 20%–85% reduction in time required to manage and controlovertime 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 solution,how they are using it and what benefits they have realized. The customers ranged in size from about 170 to 2,500 employees, andsome had extremely complex payroll, scheduling and other workforce requirements. As detailed in this paper, all reported thatKronos Workforce Ready has made managing their workforce much more efficient and cost-effective. SMB Group. All rights reserved.2
Improved Results for Organizations Like Yours (1 of 4)Potential Savings from Implementing Kronos Workforce ReadyBusinessValueLaborCostMetricsNet Impact on Company ProfitabilityImproved 3% - 5%Enable Company Growth with Same orReduced Staff ResourcesImproved 20% - 40%Overall Company ProductivityImproved 4% - 6%Time Required for Pay CalculationsReduced 50% - 80%Rate of Pay Calculation ErrorsReduced 70% - 80%Rate of Pay Input Errors (Missed Punches)Reduced 30% - 50%Correction Time Required for Pay Input ErrorsReduced 25% - 35%KPI improvements are estimates based on discussions with Kronos customers.0CSMB Group. All rights reserved. SMB Group. All rights reserved.3
Improved Results for Organizations Like Yours (2 of 4)Potential Savings from Implementing Kronos Workforce ReadyLabor CostMetrics(continued)Time Spent Creating and Updating Employee Schedules toMeet Service LevelsReduced 80% - 95%Time Required to Manage and Control OvertimeReduced 20% - 85%Timely and Accurate Time Sheet Submissions Online orvia Mobile DevicesImproved 40% - 50%Utilization of Staff ResourcesImproved 40% - 60%Costs Associated with Paper TrackingReduced 80% - 95%Time Required to Manage Unexpected EmployeeAbsencesReduced 60% - 80%Rate of Payroll Errors and Time Required to CorrectReduced 60% - 80%KPI improvements are estimates based on discussions with Kronos customers.CSMB Group. All rights reserved. SMB Group. All rights reserved.4
Improved Results for Organizations Like Yours (3 of 4)Potential Savings from Implementing Kronos Workforce ricsTime Required to Compile Management ReportsReduced 50% - 80%Time Required to Track Employee Absencesand Manage Time-Off RequestsReduced 2% - 4%Time Required for HR Administrative TasksReduced 25% - 35%Employee Satisfaction and EngagementImproved 30% - 50%Onboarding ProductivityImproved 30% - 60%Time to Track and Manage FMLA ComplianceReduced 40% - 60%Time Required to Manage FLSA ComplianceImproved 35% - 50%Time Required to Manage ACA ComplianceReduced 80% - 90%KPI improvements are estimates based on discussions with Kronos customers.CSMB Group. All rights reserved. SMB Group. All rights reserved.5
Improved Results for Organizations Like Yours (4 of 4)Potential Savings from Implementing Kronos Workforce ReadyITManagementand ResourcesIT CostsReduced 20% - 30%Cost to Purchase and Maintain ServersReduced 100%Business Continuity/Disaster Recovery CostsReduced 50% - 75%KPI improvements are estimates based on discussions with Kronos customers.CSMB Group. All rights reserved. SMB Group. All rights reserved.6
Addressing Workforce Management ChallengesAligning Your Organization to Meet These ChallengesRegardless of an organization’s size, industry sector or operational model, it musthire, schedule, pay, review and otherwise manage an often diverse set ofemployees. Most large corporations, government agencies and educationalinstitutions have used automated software solutions to manage their employeesfor some time. For the most part, however, these solutions have been tooexpensive, too complex and too demanding of IT resources for all but the biggestorganizations and budgets.The consultancy’s research indicates that 92% of SMBs already use at least onecloud-based business solution.Most midsized and smaller organizations have relied on spreadsheets, manualprocesses and a patchwork of disparate software packages to track employeetime, generate payroll, meet regulatory compliance demands and perform otherHR-related tasks. These methods are error-prone, inefficient and inflexible.Furthermore, they divert resources away from managing core business activitiesand can increase the risk of noncompliance with various labor regulations.Kronos Workforce Ready is an example of the cloud and integrated solutionstrends that enable smaller, growing organizations to automate their HR and payrollprocesses. With Workforce Ready, Kronos —a leading provider of enterprise-classHR, timekeeping and payroll solutions for more than 35 years—has created acomprehensive, integrated suite of workforce management modules offered as acloud-based subscription service. Although it delivers enterprise-gradecapabilities, Workforce Ready has been designed to be easy to use and is priced tomeet the needs and budgets of organizations with up to about 2,500 employees.As organizations grow, such legacy solutions are unable to scale, and their failingscan have significant negative impacts on an organization’s operations. Manuallyintensive and non-integrated methods also lack the ability to give executives andmanagers the real-time workforce data they need to make informed decisions andto perform other critical job functions.In recent years, the emergence of cloud-based subscription services has helpedorganizations access and afford more advanced software solutions. In fact, in itsmost 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.”Another SMB Group Top 10 trend is “SMBs opt for an incremental, integratedsolutions approach.” As noted by SMB Group, “Although 63% of SMBs havepartially integrated some applications, 79% still rely on manual Excel file uploadsor custom code for integration, which underscores the severity of the integrationproblem.”The cloud delivery model means customers can deploy the solution more rapidlyand with less expense than an on-premise application; and then once they are upand running, they can rely on Kronos to manage and update the application andthe infrastructure on which it runs. At the same time, the simple-to-use integratedsuite makes it easy for customers to deploy whatever modules they need, to addnew modules as necessary, and to configure the solution to address specificreporting and business process requirements.KPI improvements are estimates based on discussions with Kronos customers.CSMB Group. All rights reserved. SMB Group. All rights reserved.7
Business Visibility and AgilityBusiness Value for Your Organization’s Critical Business IssuesBefore KronosImproved Siloed applications and data provide anincomplete view of the business andemployees3% - 5% Errors due to lack of automation and/orintegration between applicationsImproved Inability to quickly assess and adjustemployee headcount and related aspectsof a business in response to planning andcompany growth opportunitiesnet impact oncompany profitabilityenablement of company growth withsame or reduced staff resources20% - 40%Improvedoverall company productivity4% - 6% Difficulties in getting reports in a timely manner,often days after they are needed Lack of automated and integrated workforcemanagement system impacts overall companyproductivityWith Kronos Significantly improved real-time visibility into allaspects of the business, allowing faster strategicdecision making and continuous year-over-yearimprovements Much greater visibility into employee informationwith impact on company profitability Additional visibility into workforce details Significantly improved ability to scale andsupport company growth without adding staff A significant improvement in overall companyproductivity with an automated, real-time andintegrated workforce management solutionKPI improvements are estimates based on discussions with Kronos customers. SMB Group. All rights reserved.8
Labor Cost Metrics (1 of 4)Employee Resources Monitoring and Management ValueBefore KronosReduced A significant amount of time spent onprocessing manual paper and punch timecards50% - 80% Time wasted making manualadjustmentsReduced A lot of errors due to manual or spreadsheet–based calculation of pay ratesamount of time required forpay calculationsrate of pay calculation errors70% - 80% More than 20% of time sheets are inaccurate Time-consuming manual adjustments must bemadeReduced Manual processes lead to time spent onidentification and correction of pay-relatederrors25% - 35% Inefficient, manually intensive Excelprocessesamount of time required to correctpay input errorsWith Kronos Employee time is collected by time clocks, sothere are no errors in transcribing punches Payroll processing time is reduced from7 days to 1–2 days Automated workflows and configurable payrate calculations eliminate almost all errors Automated systems enable easyidentification of errors Managers now look at exception errors vs.routine manual process errorsKPI improvements are estimates based on discussions with Kronos customers.CSMB Group. All rights reserved. SMB Group. All rights reserved.9
Labor Cost Metrics (2 of 4)Employee Resources Monitoring and Management ValueBefore KronosReducedrate of pay input errors(missed punches)30% - 50%Reducedamount of time spent creatingand updating employeeschedules to meet service levels80% - 95%Reducedamount of timerequired to manage andcontrol overtime20% - 85% Manual time cards are error-prone Missed punches are difficult and costly to track No visibility into or ability to track employeeschedules Lack of ability to track and correct attendanceissues Manual processes provide no visibility intohours worked to control overtime Employee scheduling issuesWith Kronos Time clocks collect accurate data, and theautomated system tracks real-time informationfor time tracking and payroll Schedules and time cards are in the samesystem Automated attendance, tardiness reportingand corrective actions Scheduling the right employee at the right time Real-time visibility into hours worked;managers know who is approachingovertime via auto alerts Visibility into scheduling helps controlovertimeKPI improvements are estimates based on discussions with Kronos customers.C SMB Group. All rights reserved. SMB Group. All rights reserved.10
Labor Cost Metrics (3 of 4)Employee Resources Monitoring and Management ValueBefore KronosImprovedWith Kronos Business manager must spend 3 to 4 hours everyMonday morning tallying spreadsheets Ability to submit time sheets via mobiledevices, clock and web vs. the former onpaper processImproved Paper forms–based system; each formrequires manual entry into the HR system,which is a very error-prone process Automated system significantly reducespaper forms; enabled by providing multipleways to submit forms into the HR system40% - 60% No ability to accurately track and updateemployee records Now employees are responsible for theirown information in Kronos Workforce Ready Most HR systems are paper-based All forms are electronic, which makeskeeping track of employee information andupdates very easytimely and accurate timesheet submissions online orvia mobile devices40% - 50%utilization of staffresourcesReducedcosts associated withpaper tracking80% - 95% Keeping track of paper forms is difficult andcostly, in addition to the cost of the paper Paperless HR powered by Workforce Readycustom forms and e-signature capabilitiesKPI improvements are estimates based on discussions with Kronos customers.C SMB Group. All rights reserved. SMB Group. All rights reserved.11
Labor Cost Metrics (4 of 4)Employee Resources Monitoring and Management ValueBefore KronosReducedamount of time required tomanage unexpectedemployee absence60% - 80%Reduced Manual process makes it difficult to monitorand manage employee absences, late arrivals/early departures, etc. Easy to monitor and manage employeeabsences and related scheduling issues andcosts Without automation, some of this process issubject to human interpretation A significant reduction overall in absencesand tardinessrate of payroll errors and timerequired to correct errors Significant time and effort spent onidentifying and correcting payroll errorsReduced Paper requests getting lost, managers notentering requests, paper requests not gettingto payroll, payroll not entering the requests60% - 80%payroll and leave inflationQualitativeWith Kronos Manual self-reporting leads to errors andpayroll inflation (e.g., forgetting to enter avacation day) Real-time capabilities enable the monitoringof all data related to payroll Companies now see significantly fewerpayroll errors and spend less time correctingthem Self-service capabilities enable employees toenter and track leave schedules Businesses have much better control overcosts related to payroll, leave and inflationKPI improvements are estimates based on discussions with Kronos customers.C SMB Group. All rights reserved. SMB Group. All rights reserved.12
Workforce Productivity Metrics (1 of 2)Business Value from Workforce Tracking and ManagementReducedamount of time required tocompile management reports50% - 80%Reducedamount of time required to trackemployee absences and managetime-off requests2% - 4%Reducedamount of time required forHR administrative tasks25% - 35%Before KronosWith Kronos Report compiling is mostly manual, timeconsuming and error-prone Managers save valuable time and effort withthe elimination of manual processes andautomated policy application Lack of real-time data prevents timelyresponse to management and employees Paper requests often are lost; managers are notentering requests or sending them to payroll toenter Manual processes often lead to the high costof unearned vacation Attendance violations slip through the cracks Manual processes lead to a lot of inefficienciesand errors related to paper-based systems A lot of time is wasted chasing employees toget the necessary forms, etc. Effective communication is enabled betweenHR and the frontline managers, as well asmanagers and their staff Employee self-service helps employees keepaccurate tabulation of earned vacation andyear-over-year rollover vacation days Companies can better manage accruals andcosts related to time off and vacations Dashboard and self-service help reduceroutine administration time and enable HRstaff to focus on more strategic initiativesKPI improvements are estimates based on discussions with Kronos customers.C SMB Group. All rights reserved. SMB Group. All rights reserved.13
Workforce Productivity Metrics (2 of 2)Business Value from Workforce Tracking and ManagementBefore KronosImprovedemployee satisfactionand engagement30% - 50%Improvedonboarding productivity30% - 60% Manual and error-prone HR policies andprocedures result in long processing timesand varying results leading to employeedissatisfaction Hiring and on-boarding are timeconsuming manual processesImprovedemployee performancemanagementQualitativeNg Lack of automated front-end and back-endprocesses leads to more errorsWith Kronos Increased employee satisfaction via rapidprocessing of time-off requests and otherefficiencies Automated and improved self-service process,which makes employees feel moreempowered Helps streamline hiring and on-boarding process Automation helps reduce staff costs Paper- and spreadsheet-based system iseliminated More effectively manage employeeperformance, providing detailed visibility intoemployee activities and performance levelsKPI improvements are estimates based on discussions with Kronos customers.C SMB Group. All rights reserved. SMB Group. All rights reserved.14
Compliance Risk MetricsBusiness Value from Compliance-Related Tracking and ManagementBefore KronosReducedamount of time to track andmanage FMLA compliance40% - 60%Reduced Lack of integrated solution and data leadto inefficiencies and FMLA or state leavepolicies being applied incorrectly Inconsistent and long response time toresolve employee issuesamount of time required tomanage FLSA compliance Paper-based or spreadsheet processesto track employee hours are time consumingand error-prone Lack of information leads to difficulties inenforcing company and compliance policiesReduced Lack of early visibility (or in most cases, novisibility) into employee hours leads tohigher healthcare coverage costs80% - 90% Difficulty in tracking part-time employeehours worked (especially if they work indifferent locations and job codes)35% - 50%amount of time required tomanage ACA complianceWith Kronos Dashboards now provide full visibility into allemployee-related metrics Ability to provide fast response to employeequestions and resolve issues Ensure each employee is being treated fairlyand equitably Reduction in data/reporting errors byestablishing a single system of record andcentralizing policy enforcement Support compliance with company policies,government regulations and union rules Full visibility into employee hours and bettercontrol of healthcare costs Advanced visibility into when part-timeemployees would be migrated to full-timestatus based on their hours workedKPI improvements are estimates based on discussions with Kronos customers.C SMB Group. All rights reserved. SMB Group. All rights reserved.15
IT Management and ResourcesBusiness Value for Organizational OperationsBefore Kronos IT resources are needed to implement,maintain and update point solutionsReduced 20% - 30%IT resources are needed to install andmaintain server hardware and software Costs are related to separate point solutionsReduced Capital expenditure is required to acquire andmaintain servers for on-premises applications Ongoing management and maintenancecostsIT costscost to purchase and maintainservers100%Reducedbusiness continuity/disaster recovery costs50% - 75% IT resources and infrastructure are neededto support business continuity/disasterrecoveryImplementation is complex and costlyWith Kronos Cloud-based solutions eliminate need forinternal IT staff to support on-premisesapplications and servers Faster to implement for productive use IT capital expenses are eliminated becauseKronos has a cloud-delivered solution Greatly red
KPI improvements are estimates based on discussions with Kronos customers. The consultancy’s research indicates that 92% of SMBs already use at least one cloud-based business solution. Another SMB Group Top 10 trend is “SMBs opt for an incremental, integrated solutions app
