Kronos Compliance Court Now in Session at SHRM 2014

Guest blog post by Kristen Wylie, Product Marketing Manager at Kronos, Inc.

More than 14,000 HR professionals are gathered in Orlando this week for the annual SHRM Conference and Expo. As wage and hour lawsuits skyrocket, it’s no surprise that this year’s conference agenda includes more than 25 sessions focused exclusively on compliance. Here at the Kronos booth, we’re educating attendees on how workforce management solutions can help reduce compliance risk.

SHRM1Organizations of every size across every industry can be susceptible to wage and hour and other compliance violations. No company wants to be charged with criminal or legal suits. But labor laws are complex and frustratingly fluid, making it increasingly difficult to manage compliance. Consider this:

SHRM2No matter what the compliance issue, when an employee files a claim or an auditor shows up, you need to respond with confidence and speed. In our booth at the SHRM conference, we staged a “compliance court,” helping attendees to evaluate how prepared they would be for an audit or investigation:

  • Are you compliant with I-9 regulations?
  • How would you respond to an audit from the EEOC?
  • Can you ensure time cards are in accurate and complete reflection of actual hours worked?
  • What documentation do you have for your defense against wage and hour claims?
  • How will you address the variety of regulations presented by the affordable care act?
  • How do you gather enough detailed information to determine if an absence qualifies for FMLA?

Kronos Workforce Ready customer Pioneer Metal Finishing showed SHRM attendees how to successfully navigate our compliance court by being prepared with accurate workforce data. Disconnected software applications and manual processes for managing employee data – one system in HR, another in payroll, and another for time and attendance – mean your data may be out of sync and out of date. Pioneer explained that with Workforce Ready, organizations are better able to identify, monitor, and resolve compliance risk before issues have a chance to spark wildfires and result in fines or lawsuits.

What’s Your Mobile Strategy?

Guest blog post by Kristen Wylie, Product Marketing Manager at Kronos

Recently Kronos celebrated a corporate milestone: achieving $1 billion in revenue. CEO Aron Ain hosted a town hall employee meeting that reviewed, among other things, our product direction. Aron covered social collaboration, gamification and other recent and future product enhancements that will help us achieve the next billion dollars in revenue.

FitbitWhat’s driving our product vision? Our internal development efforts focus on product innovation, but we often explore the latest technology developments around us, and then adapt that technology for our own industry. Aron pointed to the FitBit (a wearable fitness device) on his wrist and explained that he and other Kronos executives were personally evaluating wearable devices to better understand their practical uses. He shared his belief that wearable devices hold great promise for workforce management utilization in the future.

By leveraging the latest technology, including consumer technology, we can more efficiently help our customers evolve the way their workforce interacts and connects with their organizations. According to Aaron, this forward-looking approach enables us to offer customers new capabilities before they even know they want it or need it!

A great example of this approach is our mobile apps. As HR industry analyst Josh Bersin noted in a Forbes contributed article a few months ago:

“It’s amazing how mobile computing snuck up on us. In the six years since the first iPhone was introduced the computing landscape radically changed. There are now four times as many mobile devices as PCs in the world, and more mobile phones than people in the US. … Why is this disruptive? Because HR buyers want software their employees will use. Mobile is becoming a critical buying criteria.”

tabletscreenMobile didn’t “sneak up” on Kronos because we were already aware of the market trend. Whether enterprises will actively roll out a mobile app or are preparing to meet the inevitable demand from employees for a mobile solution, Kronos is ready with a proven solution today. The Kronos Workforce Ready mobile application provides managers and employees with immediate, instant avenues to their workforce management solution, wherever they may be. This app, available for iPhone or Android devices, is a natural for companies whose people are frequently on the move, want to address common tasks quickly and easily on their mobile device of choice, and need to maintain productivity and functionality across the entire workforce management spectrum – from time and labor management to human resources, and payroll.

mobile graphAccording to the 2013 SMB Mobile Solutions study, a review of mobile usage by organizations with 50-1,000 employees from analysts at the SMB Group, 84% of small and mid-sized organizations already use mobile collaboration apps such as email, calendars and contacts. Many are also starting to use mobile apps for business-specific functions. In fact, 68% indicate that mobile solutions are “critical” to their organizations.

Mobile workforce solutions enable remote workers (sales, field service workers, home health aides, etc.) to enter timekeeping information and view schedule changes from anywhere, at any time via mobile devices. Employees working onsite but away from their desks at an office, factory, store or hospital can use mobile apps to process overtime requests, make time-off requests, adjust staffing, and perform other tasks in real time. Likewise, managers can manage scheduling and payroll when it’s most convenient.

What is your mobile strategy? In a recent webinar with Kronos covering the top technology game changers for workforce management, the SMB Group provided the following guidance for organizations as they prepare a mobile workforce management strategy:

  • Assess your current mobile readiness
  • Determine highest value mobile use cases for your business
  • Identify the types of employees and managers that need to use mobile apps
  • Select mobile apps that integrate seamlessly with your workforce management solution
  • Use partners as needed for mobile guidance, implementation, management and support

Seeing Through the Clouds

Guest blog post by Kristen Wylie, Product Marketing Manager at Kronos

Nobody will deny that the adoption of cloud computing is continuing to grow rapidly for organizations both large and small. In a recent webinar reviewing technology game changers for workforce management, consultants at market research firm the SMB Group noted that cloud computing is quickly becoming “the new normal.” In fact, the SMB Group suggests that 31 percent of small- and mid-size organizations already use cloud business solutions, and that this percentage is expected to increase to 43 percent over the next year.

Based on the buzz and hype surrounding anything cloud-related, we can all likely identify the cloud as a business application model that frees organizations from the burden of deploying and managing systems locally. But consider this: 15 years after the launch of Salesforce.com (the poster child for cloud applications), sales force automation applications are still only around 40% penetrated by the cloud. ERP is less than 10% in the cloud.

This suggests that some SMB organizations still might not understand how the cloud works, where it’s applicable or how they can benefit. For these newbies, one of the best definitions of cloud computing – albeit a very high-level definition – was delivered thanks to this guy:

edisonSo how in the world is Thomas Edison related to cloud computing? The evolution of the electric power plant is surprisingly similar to the transition to cloud computing. Here’s how…

Edison had developed a superior light bulb, but he faced a major problem: generating electricity. At that time, every individual business had its own on-premise power plant to power all its machines, and steam-powered electricity generators weren’t exactly easy to install or manage. Many companies employed a “chief electricity officer” focused on how to generate their own electricity on their own private infrastructure. (Sounds kind of like an on-premise software deployment, doesn’t it?)

So in an effort to promote his light bulbs and other appliances (because Edison was just as good at promoting as he was at inventing), Edison set out to develop an electric grid to supply homes and businesses with electricity. In 1882, he opened the first central power plant to distribute electricity. Pearl Street Station in New York City offered people the opportunity to pay directly for electricity delivered to them via uncomplicated, low-maintenance wires, completely eliminating the smoke-blowing generators, along with the coal and workers required to run them.

A year later, the Pearl Street Station was serving 513 customers with 10,164 electric lamps. Edison had even invented a meter to allow customers to be billed for energy proportional to consumption. Within a few years, an efficient way to transmit electricity over long distance was implemented. [This resulted from the George Westinghouse/Thomas Edison “Battle of the Currents,” but alas, that’s a history lesson for another day.]  Electricity could now be efficiently produced centrally at a low cost and then distributed all over the country.

A single power plant can support many customers who can use the power in any way they like. The power plant charges each customer separately based on their usage. There’s a much higher level of service than an on-premise power plant could ever provide – all at a lower cost. (Now THAT sounds like cloud computing!)

On-premise data centers will soon become just as unnecessary as an on-premise power plant. With a cloud delivery model, customers can license the software and support they want to use without installing or maintaining any software or hardware. The application can be subscribed to and accessed over the Internet so that customers don’t need to install and manage the physical product on their own, which simplifies maintenance and support. There are no upfront capital expenses, no on-premise hardware, and no burden of managing the database or applications. So working in the cloud allows your company to be nimble, efficient and cost-effective.

video

To learn more about cloud computing and the benefits of this application delivery model, check out this short video developed by the Creative team at Kronos. And if you want the full story on how we can link Edison to cloud computing, read The Big Switch by Nicholas Carr.

ACA Readiness – Can your existing systems get you started?

According to today’s Bloomberg article on the March US Job report: “Some companies are struggling to make do with fewer workers…  Employers boosted hours to meet demand. The average work week for all employees increased to 34.6 hours.” Per the Affordable Care Act (ACA), as of January 1, 2014 these workers are all considered ‘Full-time equivalent employees’ and will be eligible for healthcare coverage.

By now the ACA has likely caused concern amongst your HR and Finance teams. At best, you have been proactive and spent time and resources learning about the new regulations and preparing for the imminent changes. Or, like many organizations, you may still feel completely in the dark and unsure of how to begin taking steps in the right direction. One thing to realize is that complying with ACA involves more than providing affordable healthcare coverage, and will have an impact beyond just your HR department.

Fortunately, for those companies that have automated time and attendance, HR, payroll or scheduling solutions in place, there are things you can do today to begin your compliance efforts in preparation for January 1, 2014.

Look-back period…

Do your current systems give you the necessary visibility to determine which employees are full-time or part time? One of the first things you must determine is which employees are eligible for coverage using the “look-back” period (a 3-12 month timeframe to determine which part-time employees should be reclassified as full-time). Organizations must then provide coverage for those eligible employees.

Monitoring Workforce Schedules

Can you proactively manage labor hours to influence benefits eligibility and control costs? See current hours and projected schedules to arm managers with the information they need to control hours, and enable them to make scheduling changes easily.

Strategies for addressing ACA will vary from company to company. For employees that are over 30 hours per week and currently not covered by your current plan do you a) Make them FT and add them to existing plan; b) offer them an alternative, lower cost plan; c) adjust scheduling practices to find an the right mix of full-time and part-time workers based on your labor budgets; d) pay the penalties as they are incurred?

Regardless of your strategy, your workforce management system can be a major asset to your ACA compliance and labor cost control efforts.

How the labor waste stole profits

‘Tis the season of giving. And nothing pleases a company more than receiving gifts of gold in the form of wasted payroll being identified that can go directly to the bottom line. Or, when operations managers can show higher profit margins through accurate job costing. With bonuses and earnings results on the line, opportunities to reduce labor waste and improve cost allocations become the gift that keeps on giving all fiscal year! For many companies, these hot gifts of 2012 are the result of detailed labor activity tracking being added to their workforce management strategy.

Presents for payroll & operations – labor cost details

What is an activity? While most organizations use scheduling systems to put staff onto shifts and time & attendance systems to convert worked hours to payroll, many lack visibility into what each employee actually does on the job. In other words, what is the data between the punch-in and the punch-out?

tws9-600-reindeerAn activity is a work order, grants, task, project, job number or part number that is assigned to labor and has a measurable output. The results of a completed activity can include measurements of quantity, scrap, waste, or quality. Even greater detail can be tied to a labor activity, such as equipment used, location or campaign. Measuring “productive time” provides the foundation for labor expense tied to a job. Tracking activities within the workday tells how much direct time (and expense) is spent on work orders, by labor and equipment. You can tell how productive your workforce is, and if that productive output costs more than you expected – and if it’s impacting profit margin. However, what is often lost is the wasted pay for non-productive paid time.

There are some types of activities that cannot be tied to measurable output. And, whether it’s planned or unplanned, these indirect charges and labor variance (often lumped into “overhead”) can have a dramatic and costly impact on profits. Activity such as meetings, set-up time, training, downtime, clean-up, maintenance, and administration/paperwork can skew labor standards and forecasts, potentially impacting job bids, quotes or service quality. Organizations must ask – how is this time and labor cost allocated? Is it tracked at all?

Reconciliation, WIP Visibility, Validation,

The addition of automated labor activity tracking to your workforce management strategy enables organizations to reconcile every minute of every shift, and allocate all labor costs appropriately and accurately – direct and indirect, planned and unplanned, regular and OT. Real-time visibility into current activities and WIP, including labor, equipment and output, allows organizations to make data driven adjustments based on status and progress towards delivery times, output or utilization rates. And provide accurate, confident commitments to external stakeholders and customers. Activity tracking can also provide labor with real time validation on expected output, task duration or sequence of events, ensuring quality and timeliness.

Electronic data capture tracks labor activity

Workforce efficiency and labor cost control start with data collection:  You need information about the work, who’s doing the work, and the outcome of that effort.  Of course, collection of this information can’t be cumbersome- inefficient data-capture defeats the purpose of improving productivity.  Leading labor management providers offer a variety of data collection options as part of a workforce management solution. Timekeeping terminals that can capture activity information with a simple badge swipe, barcode read, RFID, or even a fingerprint ID. More advanced organizations are leveraging mobile technology – on-board computers, handheld scanners, smartphones and tablets, to provide even greater data capture flexibility.

Increase profits, reduce labor waste, and reconcile expenses

Successful organizations not only plan in advance, they execute in the moment with agility to react to real-time situations. Using accurate labor forecasts and budgeting based on detailed labor activity to plan ahead, but then leverage their workforce as needed based on changing conditions (increase in patients, higher store traffic, a slow manufacturing line, employee absence, power outages, etc.) Today’s workforce management systems provide new levels of visibility into the activity status, resources and staff on hand to identify areas that need to be addressed – allowing managers to optimize their workforce and drive higher profitability.

Workforce Management Maturity Evolution Part 4 – Innovate

This is the final installment in a four-part series on workforce management maturity. With advancements in cloud-based technology, mobile applications and simplified enterprise applications, organizations are able to transform their workforce from a cost of doing business into a competitive advantage. Part 4 discusses the final phase of workforce management maturity – innovate.

In Jim Collins’ bestselling book Good to Great, those few companies that distanced themselves from the competition all had common traits among them. The concepts of “Level 5 leadership”, having the right workforce “on the bus”, and transformations that were the result of focus and continuous improvement over sustained periods of time eventually led to achieving greatness.

There are many organizations that have evolved through the first three phases of the workforce management maturity curve, getting the value of their workforce to one of a Flexible asset, and perception of their workforce into an “Agile Workforce.”  However, the best-in-class organizations that have moved into the Innovate phase now view their workforce as a vital workforce and a competitive advantage. For them, their employees are their most critical asset who, when provided with the right tools, training and support enable these organizations to achieve great results that their customers value and their peers and competitors envy.

Big Data and the Workforce

Throughout this series, the application of technology and process change has enabled organizations in each phase of workforce management maturity. Most organizations in the Innovate phase are embracing Big Data initiatives to identify triggers that influence growth, profitability, brand reputation, and operational excellence, as well as organizational transparency and accountability. In the Innovate phase, organizations incorporate labor metrics into their big data strategies, to transform their workforce into a network of individuals all working together to achieve a desired result. (Consider Southwest Airlines, where every interaction with their workforce is one that is focused on delivering a high level of customer service).

The correlation of labor data with operational measurements of inputs & outcomes can yield powerful insight into the impact of your workforce on business growth, brand perception and ultimately shareholder value. However, basic data mining does not equate to a big data strategy that will enable business innovation and continuous improvement. Lack of understanding of how to use analytics to improve the business is the biggest obstacle in achieving success with big data. Organizations must transition the analysis from an IT function to a business operations function – combining measurements, analytics and business intelligence tools with visibility and controls for business leaders to understand and act on.

Workforce Analytics drives Innovation

When workforce analytics is combined successfully with operational data, actionable information will lead to operational comparisons and adjustments. Initial tracking of labor metrics like absenteeism, turnover and overtime can evolve into industry-specific trends and analysis. Retail stores can see the impact in increased operating margins, profit per employee and a stronger brand reputation. Healthcare providers can correlate treatment procedures, provider education/training, and technology with patient diagnosis and outcomes. Manufacturing firms can achieve operational excellence through lean labor principles.

When your workforce evolves from a cost of doing business into a competitive advantage, your organization can make that leap from good to great!

Workforce Management Maturity Evolution Part 3 – Execute

This is the third in a four-part series on workforce management maturity. With advancements in cloud-based technology, mobile applications and simplified enterprise applications, organizations are able to transform their workforce from a cost of doing business into a competitive advantage. Part 3 discusses the next phase of workforce management maturity – execute.

Throughout this series we’ve discussed how automation and planning can help organizations streamline the common processes of scheduling and paying your workforce accurately and efficiently to keep costs down while improving service levels.

The third phase of workforce management maturity is the execute phase. This phase is about getting the most out of your people every day. It involves leveraging individuals who can adapt to changing conditions quickly to maintain a high level of productivity. Organizations that have evolved to the execute phase will view their workforce as a flexible asset – a group of skilled workers with the tools they need to consistently produce for you and can adapt to different tasks or roles. At this stage, the workforce understands and executes key tactics that have a direct impact on key operational measurements: revenue, service, quality, responsiveness, throughput, productivity.

A simple example is a grocery employee who can stock shelves when traffic is slow, slice cold cuts when the line at the deli is long, or run a cash register when there are crowds ready to check out. That employee is highly valued because of his/her flexibility and high level of productivity.

Manage in the Moment

We’ve all heard the phrase “The best-laid plans of mice and men often go awry.” In EVERY industry, labor plans are impacted every day. Weather, illness, unplanned absence, mechanical issues, material problems, accidents, funding issues, large orders, even a successful campaign or promotion can impact plans for better or worse. How a manager in the trenches reacts to these constantly changing conditions can directly impact your business.

Workforce management solutions have evolved to enable managers to manage in the moment, with technology that works in real time. Staffing management allow managers to see who is on staff at any given moment and which areas may be understaffed or overstaffed. Real-time adjustments can be made to address the areas that need help, while back-office adjustments to labor tracking, job costing and payroll systems happen automatically, without delays or errors. Labor activity tracking provides line managers with real-time visibility into Work-in-Progress, quality and labor utilization to maximize output and productivity goals. And, mobile access to systems through smart phones and tablet devices empower managers to execute more informed decision making right when and where issues arise.

Are your employees and mangers capable of being agile on the job? Can they react to changing conditions and maintain high levels of productivity?

With cloud-based workforce management on demand, even small to medium sized organizations can leverage and benefit from enterprise-class technology at a fraction of the cost and resource requirements.

In part four we will review the final phase of workforce management maturity – Innovate.