Staffing for early Independence – Avoiding Arthur causes labor management crisis

Unpredictable weather has always been a factor in the northeast US. More often than not, the winter months are when New England especially is susceptible to weather-related interruptions of plans, traffic, school and work cancellations, etc. So when an early July hurricane unexpectedly comes barreling up the east coast, it’s a big deal. When it is scheduled to arrive on July 4th in Boston, you get a July 3 & 4, 2009 Boston July Forth Fireworks Spectacular Images by Jay Connordifferent type of fireworks…

Yesterday the city of Boston decided not to postpone its annual Independence Day celebration, which includes the outdoor concert by the Boston Pops Orchestra and massive fireworks display. Instead, the city decided yesterday, July 2nd to move the festivities up to today, July 3rd. What a nightmare for scheduling all of the labor needed to support the change.

  • Public works, city workers and vendors setting up for the tens of thousands of visitors for the fireworks lose an entire day of work, likely requiring overtime and additional staff
  • The police and transportation workers that are needed not only to support and provide security for the event but the logistics of managing the traffic. Most businesses are open in the city today (whereas many are closed on the 4th). Many roads are planned to be closed at noon today, likely causing nightmare traffic scenarios
  • The retail, dining and hospitality businesses who must also make drastic last minute schedule changes for the tourists and visitors coming in today, vs. tomorrow.schedule1

Automated scheduling can be a huge time savings here. On the fly schedule adjustments, identifying employee availability & potential restrictions, managing pending overtime costs efficiently with projected hours features are all benefits of a workforce management system with advanced labor scheduling. Even sending an “all hands on deck” text message to employees that can help fill shifts via a mobile phone is now a reality with these systems.

4th-of-july-in-boston-4So while Arthur may bring some rain tomorrow, Boston will celebrate our independence as usual. The Pops will play at the esplanade and the fireworks will light up the sky over the Charles River, thanks to the many workers scheduled to work extra hard to make it happen.

Happy 4th of July!

Advertisements

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 do you Manage in the Moment?

No matter what industry you are in, the status quo in the workplace has changed. As organizations are running leaner, looking to maximize productivity and efficiency with their existing (or reduced) workforce, the demands on labor have sky rocketed. The combination of routine incidents like unplanned employee absences, combined with the real-time influences of online change orders, social media marketing campaigns, and even unusual weather have caused chaotic management challenges for labor managers.

How do you (or your managers) react to changing conditions in the workplace? How can you redirect labor resources instantly, when and where you need it, and still keep schedules, paycodes and labor levels accurate and up to date? How can manufacturing line managers track work-in-progress in real time, and make adjustments in mid shift to ensure maximum operational efficiency and completion of orders on time and at a high quality?

With virtually every workplace subjected to dynamic work conditions and unpredictable labor impact, the ability to manage in the moment is more important than ever; which is one reason why the iPad has infiltrated the workplace.

“Employee demand for iPad in the corporate environment remains strong, and CIOs continue to embrace iPad in an unprecedented rate. In just over a year since its debut, 75% of the Fortune 500 are testing or deploying iPad within their enterprises.” – Peter Oppenheimer; CFO, Apple April 2011

The iPad has evolved from a mobile device used to simply surf the Web, watch movies, and read ebooks into a professional, productivity-driving device used around the globe across many industries. Business managers who depend on enterprise software to do their jobs are now untethered from the confines of the back office with access to operational information wherever they are in the workplace. Businesses in turn have also realized that managers are much more productive when they can leave their office and work directly with employees and customers.

With a client-based, desktop computer application, managers are often faced with the challenge of addressing operational situations while being removed from the action – and often the reactionary changes can’t be made to the workforce management system until it’s too late to impact operations. To be most effective, managers need the ability to make informed decisions and take action on issues in real-time where and when the activity happens. Make adjustments to schedules on the fly when employees go home sick. Adjust staffing to cover visibly busy departments – or check to see if any other departments are overstaffed and can spare some coverage. View reports and drill down into information in the moment, to see how overtime is directly affecting your operations. Tablet-based analytics apps deliver on-demand visibility and insight into your workforce’s impact on business-critical metrics and trends like labor costs, sales per labor hour, overtime costs and more, allowing retail district or regional managers to make fact-based decisions from any location at any time.

Expect this trend to explode in 2013, as more and more enterprise software vendors extend their connectivity and visibility through the use of tablet applications.

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!