The Times They Are A-Changin'! Simplifying Compliance and ... · The Times They Are A-Changin’ Key Take Aways • Automated time clocks help you avoid leaks in your payroll •

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The Times They Are A-Changin'! Simplifying Compliance and Lowering

Costs With Modern Technologies for Time and Attendance

Tuesday, September 10, 2013 2:00 p.m. to 3:00 p.m. Eastern 1:00 p.m. to 2:00 p.m. Central

12:00 p.m. to 1:00 p.m. Mountain 11:00 a.m. to 12:00 p.m. Pacific

Presented by:

Scott Barker Kronos Incorporated

This program has been approved for 1.00 credit hours toward PHR and SPHR recertification through the Human Resource Certification Institute (HRCI).The Program ID number will be emailed to the registered participant at the completion of the conference. For more information about certification or recertification, please visit the HRCI website at www.hrci.org.

Presented by: Sponsored by:

Scott BarkerProduct MarketingKronos Incorporated

The Times They Are A-Changin'! Simplifying Compliance and Lowering

Costs With Modern Technologies for Time and Attendance

2

Agenda

• The Good Old Days

• Automated Time Clocks– Biometrics– Self-Service

• So What’s Next? The Modern Time Clock

• Financial Savings and Benefits of a Modern Time Clock

• Mobile Technology

3

The Old Days

Compliance Risk

Enables Abuse

Payroll Errors

Imprecise Totals

Honor System

4

Your Payroll Data is Too Valuable

Would you trust your money in a bank that used a manual system?

?

You can’t manage what you don’t measure

5 5

Your Payroll May Be Leaking With Unnecessary Costs

!

Employees alert payroll to underpayments

Large overpayments are easily identified and corrected

Payroll Error is Normally Distributed

Underpayment Overpayment

Stop the Payroll DripThe biggest threat to an efficient payroll are the frequent and small overpayments caused by poor data capture methods

Intentional Error/ Theft

Transcription Error Interpretation Error/ Complex Rules

Manual Processes

6

Introduction: Why automated data collection?

Business Needs:• Accuracy

• Less unplanned payroll inflation

• Less legwork

• Employees can focus on their jobs

• Easier to enforce rules

• Less (lost) paperwork

Employee Needs:• Empowers employees -

Ownership

• Ensures accurate paycheck

• Audit trail = quick error fixes

• Faster servicing of requests

• Employee satisfaction

7

Introduction: Why automated data collection?

Business Needs:• Accuracy

• Less unplanned payroll inflation

• Less legwork

• Employees can focus on their jobs

• Easier to enforce rules

• Less (lost) paperwork

Employee Needs:• Empowers employees -

Ownership

• Ensures accurate paycheck

• Audit trail = quick error fixes

• Faster servicing of requests

• Employee satisfaction

Labor CostLabor CostProductivityProductivityComplianceCompliance

8

Automated Time Clocks in Review

• Swipe n’ go transactions for fast and accurate data entry

• Optional biometrics to eliminate employee time fraud

• Real-time transactions using web-based employee self-service

• Ease of ownership and reliability for today’s sophisticated networks

The Basics and the Benefits

Must-Have FeaturesIntegrated Badge Readers

Audio/Visual Feedback

Flexible Power Options

Reliable Communications

Biometric Capabilities

Employee Transactions

Manager Transactions

Modular Components and Options

Languages

9

Biometrics

10

Biometrics to Eliminate Fraud

• Prevent unauthorized transactions– Time theft– Accidents– Unwanted payroll inflation

• No more employee/manager disputes

• Ensure employee fairness

• Finger scan NOT fingerprint biometrics

Finger scan biometrics validates employee presence without compromising privacy

11

Protects Employees’ Privacy

• Common technologies do not store actual fingerprint– Mathematical representation– Not compatible with law enforcement database– No reverse-engineering

Alleviate Employees’ Concerns with Finger-Scanning Technology

Step 1: Employees’ fingerprints are scanned —not stored — before biometric data is converted

101101001101011101000001011010010110100011

Step 2: The image is converted to an encrypted mathematical representation, which can’t be used to recreate the actual fingerprint

12

Self-Service

13

Everyone Benefits From Self Service

• How do companies benefit?– Free workers to focus on the real work– Reduce labor cost– Avoid missing, lost or incomplete

paperwork– Enforce rules and procedures more

easily

• How does the employee benefit?– Empowered = Engaged– Gives ownership to employees– Streamlines communications– Employee satisfaction

14

Strategic Value of Employee Self-Service

-20

-10

0

10

20

30

40

50

60

Employee self-service toview timesheets real timeMobile self-service to viewtimesheets real timeNo automation

Percent of employees that rated themselves

as "engaged" / "highly engaged"

Percent of respondents that

improved customer satisfaction

Change in number of manual transactions related to time and

labor per month

51% 54% 42% 35% 44% 31% -3% -8% 1%

Ave

rage

repo

rt in

KP

I, n=

261

Source: Aberdeen Group, May 2011

• More productive• Accurate data• Happier employees• Fewer absences• Reduced turnover

Employee Self-Service Benefits

15

Hourly Employees

The Unconnected, Overlooked Workforce

• Organizations recognize that hourly employees need to be physically and emotionally engaged with their work to improve satisfaction and productivity. – Most organizations implementing employee self-service for

their professional workforce– Fail to realize that the same benefits can apply to hourly

employees.

• Challenges most customers face today when considering self-service options for hourly workers: – Out of reach – Employees don’t have access to PCs or the comfort level

needed to work with them.

16

Why Self Service at a Time Clock?

• Engage employees

• Frequently used, easily accessible device for hourly workers

• Single source for all their labor information and processes

• Lower total cost of ownership– Self contained network device– No Microsoft patches, viruses, etc…– No employees surfin’ the web

• Familiar interface – No training required

Becomes more than a clock

17

So what’s next?The Modern Time Clock

18

Technology Has RevolutionizedHow We Live and Work

• Unprecedented functionality through simple, intuitive user interfaces

• Instantaneous and secure access to all info

• Single-function devices have evolved to serve multiple purposes

19

The Shift in Workforce Management Solutions

• Consumer-centric UX– Browser-based graphical

dashboards– Cloud-compatible– Mobile options

• Many employees cannot access computers or mobile devices at work– Continue to use time clocks

to record their important work data

– Time clocks virtually unchanged for the last 10 years

20

Modern Time Clocks

• Automated time capture offers many benefits:– Easy to use– Engaging and inviting– Accessible– Customizable– Flexible and capable– Promotes sharing of information– Removes hassles– Works like their personal devices– Speaks their language

21

Benefits

• Minimal training

• Reduced change management

• Increased adoption of self-service

• Expand beyond time and attendance-related activities

• Becomes a multi-purpose resourceLike a shared PC, but with none of the headaches

22

Some Features Offered By Modern Time Clocks

• Rugged touch screens

• Graphic user interfaces

• Advanced biometrics

• Screen savers

• VoIP capabilities

• Remote desktop (VNC)

• Video playback

• App capabilities

• New employee ID technologies

Made possible by the latest technology

23

Modern Technology

• Works in the Cloud

• Simplified monitoring and administration tools

• Support of the latest in networking protocols– DHCP– IPV6– DNS

24

The Modern Time Clock Must Be Easy to Own

• Easy installation

• Simple configuration

• Centralized managementand administration

• Built-in flash memory

• Standard communication protocols

• Security– Biometrics and SSL

encryptionIT can relax … a little bit.

25

Financial Savings and Benefits of a Modern Time ClockBased on a Kronos-commissioned study conducted by IDC

26

Simplifying and Lowering Costs with Modern Time Clocks

In a recent study conducted by IDC the modern time clock delivered a three-year ROI of 537%, with a

payback period of 4.2 months

Financial benefit highlights:– Optimized employee/manager productivity, from self-

service for time-off requests, checking accrual balances, self-scheduling, approving time

– Enhanced time tracking productivity, from streamlining time-tracking activities

– Reduced cost of overpayments, from over counting, buddy punching, and other tracking errors

– Operations cost reductions, by replacing antiquated and less functional "systems

27

The Biggest Benefit…

$178,218

$59,406

Three Year Total (per 100 users) $237,624

EmployeeProductivityEnhancementOperational CostsReduction

Employee productivity is by far the biggest benefit – driven by intuitive technology and easy to use interfaces

IDC Research, "Kronos InTouch: Simplifying and Lowering the Costs of Workforce Management," (March 2013),

28

A Big Time Savings Comes From Managers

$9,103

$22,963

$2,613

$1,226

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

Total $35,905

Average Annual Productivity SavingsBy Employee Type

HR time savings

Payroll time savings

Manager time savings

Employee time savings

29

Additional Benefits Reduced Cost of Operations

• Overpayments – Organizations enjoyed a variety of benefits by automating and

improving the accuracy of time capture, tracking, and management operations, which reduced overpayments, saving each company $14,619 per 100 users annually.

• Optimized systems– By replacing antiquated and less functional "systems,"

InTouch helped reduce costs associated with time capture and tracking. Savings totaled $8,725 per 100 users annually.

30

Mobile Technology

31

The Growth of Mobility – Smart-phone

Smart-phone shipments in are estimated atover 500 million and will grow to nearly a billion by

2015 growing 4x faster than overallmobile phone market

Source: IDC Worldwide Quarterly Mobile Data Tracker

32

We are Witnessing a Mobile Technology Revolution

• 2011 trend continued for first full year ever• Persisted through 2012

• This despite a 15% growth rate in PC sales• PC number includes tablets!• What does this say about how we gather, review and interact with

information? Smartphone Market Expected to Soar in 2011By Nick Bilton | New York Times Bits Blog, March 29, 2011, 1:48 pm

33

Workforce Management MobilityImproving Productivity With Smartphones

• Leverage the devices your employees already have in their pockets

• Quick and easy common tasks– Where you need it,

when you want it

• Native applications– Supporting your standards,

and your users choices

34

Tablets• Tablets have evolved

• Professional, productivity -driving device

• iPad and the Human Element in technology– Expect the same from

business applications

More than one-in-five companies said they will buy tablets for workers this year, with 84 percent of those purchases to be iPads.

- ChangeWave Research poll

35

The Power of the TabletEmpower on-the-go workers

• Untethered access to workforce management

• Sleek and easy to use

• Vibrant graphics

• Take full advantage of multi-touch– One-tap timecard edits– Re-size a view with a pinch– Drag ‘n’ drop scheduling and

staffing– Real-time updates to backend

36

Smartphone/Tablet Uses

Who

What

Smartphone Tablet• Employee• Supervisors

• Executives• Managers: regional/field

• Employee self-service• Daily exception management

• Daily business decisions

Why• Employee engagement • Approval efficiency• Personal devices

• Manager effectiveness• Business efficiency• Company devices

vs.

Based on 76 Customer Interviews

37

Defining Your Mobile PoliciesRemember These

• Provided or personal devices?

• Shared or individual?

• Device data plans if not a Wi-Fi connection?

• Pay employees for usage during non-working hours?

• What employee and manager roles will require mobile capabilities?

• How will mobile employees and managers be supported?

38

There’s a solution out there …

My workplace and employees are too demanding for fragile consumer technology!

39

• Variety of commercially available cases

• Polycarbonate frames, cushioned bumpers, o-ring seals and silicone plugs

• Protection against:– Full submersion in water for hours– 10 foot drops on hard concrete– 2 tons of crushing force– Melting snow, sleet and rain– Dust and debris ingress– Scratches and damage to glass screen

• Some cases even allow for underwater operation

There’s Something for Your Environment

40

The Times They Are A-Changin’Key Take Aways

• Automated time clocks help you avoid leaks in your payroll

• Today’s modern time clocks provide exceptional ROI and many business benefits

• Mobile technology helps to extend the accessibility and ultimately, the benefits of workforce management systems

41

Q&AQ&AThank you for joining us!

42

Thank you!

Kronos is the global leader in delivering workforce management solutions in the cloud. Tens of thousands of organizations in more than 100 countries — including more than half of the Fortune 1000® — use Kronos to control labor costs, minimize compliance risk, and improve workforce productivity. Learn more about Kronos industry-specific time and attendance, scheduling, absence management, HR and payroll, hiring, and labor analytics applications at www.kronos.com.

Kronos: Workforce Innovation That Works™.

For more information contact your Kronos representative, call (800) 225-1561 or visit www.kronos.com.

Disclaimers

*This webinar is designed to provide accurate and authoritative information about the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional services. *This webinar provides general information only and does not constitute legal advice. No attorney-client relationship has been created. If legal advice or other expert assistance is required, the services of a competent professional should be sought. We recommend that you consult with qualified local counsel familiar with your specific situation before taking any action.

Scott Barker is the product marketing manager at Kronos Incorporated. Scott has been with Kronos for over 5 years. In his time with the company, he has helped to launch the some of the company’s most exciting new products such as the award-winning Workforce Mobile product, The Kronos InTouch – the first time clock built for the modern workforce, and the brand new Workforce Tablet iPad app for managers on-the-go. Scott graduated from the Syracuse University Whiteman School of Management. Kronos is the global leader in workforce management solutions that enable organizations to control labor costs, minimize compliance risk, and improve workforce productivity. Tens of thousands of organizations in 100 countries—including more than half of the Fortune 1000®—use Kronos time and attendance, scheduling, absence management, HR and payroll, hiring, and labor analytics applications.

Scott Barker

Speaker Biography

Kronos Incorporated