Automated Timekeeping:Unclogging the Payroll Drain

Presented by:

Ty Hall, Director of Public SectorGovernment Software Solutions

Email Contact:thall@governmentsoftwaresolutions.comty.hall@novatime.comPhone: 435-645-0656

INTRODUCTION AND EXPERIENCE

1992 -1996 Motorola Wireless Data Division • Public Safety Wireless Communications

1996 – 2001 Sungard/H T E Public Sector Financial Management Systems, Community Development, Utility Billing,

Public Safety Dispatch and Records

2001 – 2005 Kronos Public Sector• Time and Attendance

2005 – 2010 GSS / Stromberg Public Sector• Time and Attendance: Sold to Kronos

2010 – Present GSS / NOVAtime Public Sector• Time and Attendance/Scheduling

SO MANY STORIES TO TELL

What Matters!

MEETING AGENDA

What is Workforce Management?

Payroll / Timekeeping Challenges

Business Benefits / ROI

Complete Workforce

Management

Data Collection

Exception Notification

Timesheet Editing and Approval

Employee Management and

Scheduling

Pay rule Automation and

Enforcement

Accurate and Real-time Reporting

Payroll Integration (Gross)

WHAT IS WORKFORCE MGMT?

SOURCES

KPMG / American Payroll Association

US Department of Labor – Bureau of Labor Statistics

Nucleus Research

Employment Policy Foundation

Circadian

CUSTOMER SURVEY (APA)

1Source: APA’s Seventh Annual Payroll Best Practices and Benchmarking Study, February 2006

CHALLENGES

Reduce Complexity – Managers need to track complex variables, such as hours worked, wage rates,

pay rules, and leave time, including sick days and vacation time– Standardize pay policy and associated support across entire organization

Payroll Inflation / Cost Control– Increased costs associated with manual check runs and adjustments– Employee fraud and errors (i.e., buddy punching, extra sick / leave days)– Proactive control and management of workforce attendance and absenteeism;

preemptive action against unauthorized overtime Productivity

– Manual timesheets, data re-keying into system by payroll clerks– Track employee productivity using job costing and real-time labor reporting

Compliance– Drivers include collective bargaining agreements and governmental regulations– Noncompliance = costly penalties

BUSINESS BENEFITS

Increase employee satisfaction and morale– Self-service tools provide employee access to common requests and

tasks (engage your workforce!)– Reduce time spent on ‘clerical’ work and allow workforce to focus on

critical / strategic tasks– Common enforcement of policies can increase employee morale– Reward employees for positive attendance patterns

Organization Vision / Strategy– Provide framework for integration of multiple application and reporting

tools (HRIS, Payroll, Finance, ERP, etc.)– Scalable solutions provide platform to expand deployment

Collaboration– Increased emphasis between management and teams to control costs– Shared reporting identifies areas of improvement in terms of

BUSINESS BENEFITS / ROI

APA/Bearing Point study (2007)– 0.7% to 56.3% of payroll department time spent on data entry– Large variance between world class and manual organizations

Independent Research Results– 75% of organizations found >250% ROI– Median ROI was 469%– Average payback was 5 months

Reduction in total payroll cost

Payroll Error Rate: 1.2%

Payroll Processing Time: 0.47%

Leave Time: 0.38%

Labor Reporting: 0.75%

Payroll Inflation: 0.72%

Total: 3.52%

RISK MITIGATION – RECENT NEWS

April 08, 2009

Employer Pays More than $2M to Settle OT AllegationsIFCO Systems North America has paid $1,602,267 in back wages to its employees after the Department of Labor's Wage and Hour Division accused the company of failing to pay 1,751 employees in 17 states properly for the overtime hours that they worked.

The Wage and Hour Division also fined the company $963,050 in civil money penalties.

Wage and Hour Division investigators alleged that IFCO Systems, which manufactures and repairs reusable plastic containers and wooden pallets, did not pay its employees time and one-half for hours worked over 40 in a workweek. They also alleged that the company did not maintain the records that they are required to keep under the law.

The investigations took place in the states of Colorado, Florida, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Ohio, Oklahoma, Oregon, Tennessee, Texas, and Utah.

http://hr.blr.com/news.aspx?id=79815&source=RSA&effort=4

How do we fill out this matrix?ROI – By Department

Savings Estimates

DescriptionFood &

Nutrition Services

Bus Aides

Bus Drivers Custodians Data

Processing SecretarialMaint.

Mechanics Delivery

Total Annual Savings

Total Monthly Savings

Total Department $

FMLA Compliance

FSLA Compliance

Payroll Error

Payroll Inflation

Buddy Punching

Attendance Mgmt

Annual Savings

Monthly Savings

DescriptionFood &

Nutrition Services

Bus Aides Bus Drivers Custodians Data

Processing SecretarialMaint.

Mechanics Delivery

Total Annual Savings

Total Monthly Savings

Total Department $51M $ 3,675,360 $ 1,227,600 $ 7,881,750 $10,899,200 $ 4,607,616 $13,894,400 $ 9,193,600

FMLA Compliance $ 3,675 $ 1,228 $ 7,882 $ 10,899 $ 4,608 $ 13,894 $ 9,194 $ 51,380 $ 4,282

FSLA Compliance $ 3,675 $ 1,228 $ 7,882 $ 10,899 $ 4,608 $ 13,894 $ 9,194 $ 51,380 $ 4,282

Payroll Error $ 22,052 $ 7,366 $ 47,291 $ 65,395 $ 27,646 $ 83,366 $ 55,162 $ 308,277 $ 25,690

Payroll Inflation $ 14,701 $ 4,910 $ 31,527 $ 43,597 $ 18,430 $ 55,578 $ 36,774 $ 205,518 $ 17,127

Buddy Punching $ 7,351 $ 2,455 $ 15,764 $ 21,798 $ 9,215 $ 27,789 $ 18,387 $ 102,759 $ 8,563

Attendance Mgmt $ 16,539 $ 5,524 $ 35,468 $ 49,046 $ 20,734 $ 62,525 $ 41,371 $ 231,208 $ 19,267

Annual Savings ~2% $ 67,994 $ 22,711 $ 145,812 $ 201,635 $ 85,241 $ 257,046 $ 170,082 $ 950,521

Monthly Savings $ 5,666 $ 1,893 $ 12,151 $ 16,803 $ 7,103 $ 21,421 $ 14,173 $ 79,210

Operations Support PersonnelAnnual & Monthly Savings Estimates - ROI

FLEXIBLE DATA COLLECTION OPTIONS

Real-time Data Collection Labor Costing Multiple O/T Policies Strong Pay Policy Setup Powerful Scheduling Engine Unlimited Shifts and Differentials Unlimited Pay Codes and Categories Flexible Group Levels (Organization Setup) Leave Management – Accruals, FMLA, FLSA Attendance Tracking - Point / Incentive System Employee Self-service Portal Internal Messaging and Alert System Custom Report Building Engine / Business Intelligence

STANDARD FUNCTIONALITY“OUT OF THE BOX” – TOTAL SOLUTION

QUESTIONS & ANSWERS

Thank you!