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How Workforce Management Solutions and Services Can Build ...

  1. 1. How Workforce Management Solutions and Services Can Build Strategic Performance, Reduce Costs and Manage Risk © Copyright 2005 The CedarCrestone Group, Inc.
  2. 2. How Workforce Management Solutions and Services Can Build Strategic Performance, Reduce Costs and Manage Risk Table of Contents Introduction ................................................................................3 How Workforce Management Solutions and Services Can Build Strategic Performance, Reduce Costs and Manage Risk .........4 Reduce Labor Costs ...................................................................4 Measurable Savings .................................................................4 The Strategic Value..................................................................5 Control Benefits Costs ................................................................6 Measurable Savings .................................................................6 The Strategic Value..................................................................7 Improve Employee Retention .......................................................7 Measurable Savings .................................................................8 The Strategic Value................................................................11 Improve Tax and Regulatory Compliance ....................................11 Measurable Savings ...............................................................11 The Strategic Value................................................................12 Return on Investment ...............................................................12 Summary ..................................................................................13 © Copyright 2005 The CedarCrestone Group, Inc.
  3. 3. ADP’s Workforce Management Solutions Introduction • Reduce labor costs: Labor expense is usually the single largest expense category for an organization, Regardless of size, industry, mission statement or strat- regardless of size, structure or industry. Through egy, organizations today face the need to: automation and real-time reporting, companies can • Control costs minimize productivity loss and reduce unnecessary overtime by managing employees’ schedules more • Manage fixed and financial assets effectively. • Respond to their market and the expectations of their customers, employees and owners • Control benefit costs: Over the past 20 years, employer healthcare costs have doubled relative to If these challenges are not effectively addressed, profit- the average wage—from 5.5 percent in 1984 to 11.6 ability—as well as the organization’s ultimate survival— percent in 2004 (see Figure 1). is at risk. With the right solutions and a strategic focus, your Personnel function can contribute more to the Employer-provided benefits, which include leave, organization than its traditional information processing overtime pay, insurance and retirement, account for and record-keeping responsibilities. about 20 percent of employee compensation. Le- gally required benefits (Social Security, Unemployment In many situations, it will be advantageous to engage a Insurance and Worker’s Compensation) make up an partner who is experienced in providing workforce man- additional 8.1 percent (Employment Policy Foundation). agement solutions. One such provider, ADP, is the focus of this white paper. • Improve employee retention: In the twelve months ending January 2005, research by the Employment By moving the Personnel function to a Workforce Management Policy Foundation reported an average voluntary turn- and Services function, you equip it to positively partici- over rate of 24 percent nationwide. Turnover costs pate in achieving the overall objectives of your business: average 25 percent of an employee’s annual Figure 1 salary. The average private sector turnover Employer Health Premiums Have Doubled as a Percent cost is $13,669; however, across industries, of Annual Employee Earnings different average salary levels cause turn- All Industries over costs to vary from a high of $18,615 12% for the information industry to a low of 10% $6,495 for the leisure and hospitality indus- 8% try. How much does employee turnover cost your organization? How much could be saved 6% Year Earnings Premium Percent by reducing turnover on an ongoing basis? 4% 1984 $24,007 $1,328 5.5% 2% 2004 $53,173 $6,189 11.6% • Ensure tax and regulatory compliance: 0% Across all facets of business, regulatory 1984 1989 1994 1999 2004 and industry-specific requirements are Source: EPF tabulations of March 1985–2003 Current Population Survey data based on Kaiser Health Report and Employer Costs for Employee Compensation Data from BLS. growing, both in numbers and complexity. 2 © Copyright 2005 The CedarCrestone Group, Inc.
  4. 4. ADP’s Workforce Management Solutions Intentional or unintentional failure to comply with wage- Reduce Labor Costs related tax reporting and payment requirements can Every CFO is intensely aware that direct labor expense result in significant and unnecessary fines that, nation- is often the single largest expense category for an orga- wide, added up to $3 billion last year (Sage Interna- nization. Tools and services are available to reduce un- tional, Inc. 2005). necessary labor expense in a number of ways that can impact both the short-term and long-term bottom line. Managing all of the above challenges requires the right technology and resources, and while each can be ad- Measurable Savings dressed independently, the most effective solution is Labor cost—the time required to support a particular a holistic one in which a coherent blend of technology process or activity, and the dollars you pay for that and services seamlessly integrate to support efficient time—is one of the first areas examined when an orga- administrative services and effective workforce manage- nization is considering a new way of doing things. Some ment. Individual point solutions can contribute significant of these savings are relatively easy to quantify: benefits in their own right; however, integrated solutions that enable a multi-pronged approach will result not Reduce Direct Labor Expenses only in short-term cost savings, but also will allow your • Reduce time loss company to take a step beyond day-to-day dollars into • Reduce avoidable overtime long-term planning and strategy. The result is reduced • Reduce overpayments • Administer pay policies accurately overall costs, improved employee retention, increased and consistently productivity and more time to focus on tasks that improve your bottom line. That could be the difference Improve Project/Product Cost Knowledge between the organization that survives and the organiza- • Monitor and manage labor costs against tion that excels. jobs/projects • Improve labor planning and scheduling How Workforce Management • Analyze costs based on shift, department, Solutions and Services Can Build location, etc. Strategic Performance, Reduce Reduce Indirect Expenses Costs and Manage Risk • Streamline and automate processes • Reduce administrative time related to payroll In the midst of the day-to-day activities and the pres- and benefits sures of running a business, it’s easy to discount the • Reduce materials and distribution costs related administrative function of the company. It probably to administrative activities seems like there is not much to be gained by review- ing the workforce services strategy of your Personnel Increase Employee Productivity function. In reality, however, revisiting this function and • Reduce managers’ time spent administering implementing a workforce management solution will employee-related activities likely identify significant money to be saved, both hard • Enable employees with 24x7 access to dollars and indirect soft dollars, and long-term bottom- information such as payroll and benefits line value to be created. © Copyright 2005 The CedarCrestone Group, Inc. 3
  5. 5. ADP’s Workforce Management Solutions For example: 4. Reduce administrative tasks and costs: Some of 1. Reduce time loss: An accurate time tracking sys- the most visible labor savings occur when a solution tem improves visibility into production. It also reduc- reduces the time it takes administrative/clerical/pro- es time loss from both time-recording errors and time cessing staff to manage basic activities that can be card approvals. automated, including the following: • Tracking and reporting of absences That extra five minutes at lunch that doesn’t get re- • Processing time cards, paychecks, benefit enroll- ported on the time card or an unauthorized 15-minute ment forms break, or leaving a few minutes early to beat the traf- • Input of HR transactions such as family status fic: How much time is lost? How much product could changes you turn out if those lost minutes were eliminated? • Reconciliation of bank accounts How much lost profit does that represent? • Auditing of expense reports • Researching relevant tax and regulatory changes 2. Reduce avoidable overtime: The most effective • Answering employee inquiries related to time off, time and attendance tools provide real-time, up-to-the- benefits coverage and payroll minute labor reports that allow managers and super- • Entering data in duplicate systems visors to identify employees who are approaching their maximum hours and then adjust scheduling and The Strategic Value staff coverage to avoid overtime. In addition to the hard-dollar savings of reduced labor costs, the same solutions that minimize day-to-day op- erational expenses can also bring tremendous strategic Time Loss Value Equation value to the organization. The right solutions and services of Over-Reported Time add strategic value because they contribute to better 5 minutes per employee per day planning of labor expense, which leads to the following: (260 days per year) = 21.7 hours per year • Better financial forecasting through an improved ability x 100 employees = 2,166 hours lost per year to compare labor budgets to actual labor expense With an average employee hourly rate of $18.80 per • Better pricing through improved knowledge of the labor hour (including benefits) = $40,721 components of product costing • Better relationships with clients and customers from better management of expense assignments 3. Reduce vacation liability: Manual tracking of vaca- • More competitive project bidding through better track- tion time—accrued and taken—leaves a company ing of labor costs open to errors and the accrual of excess time. In many states, when an employee leaves, the employer must pay out that vacation accrual whether or not it is correct. Even small businesses can take advantage of solutions where rules-based software prevents excess accrual of vacation time. 4 © Copyright 2005 The CedarCrestone Group, Inc.
  6. 6. ADP’s Workforce Management Solutions Control Benefits Costs Measurable Savings Health insurance was the largest employer-related 1. Reduce overpayment of premiums: One of the benefit in 2004, accounting for almost one-third of all most quantifiable peripheral costs is the payment of benefits. premiums for employees improperly enrolled in any of the various types of insurance or benefits typi- How can benefits costs be controlled when statistics cally offered. In a May 1, 2004 study of healthcare indicate their rise is inevitable? There are solutions that benefits enrollment accuracy conducted by Benefits can prevent certain peripheral costs associated with News, it was reported that unrecoverable errors benefit administration from rising while ensuring that you contained as much as a five percent overenrollment achieve the maximum value of your benefits investment: in healthcare benefits. Avoid Unnecessary Premium Payments Benefits Overenrollment Value Equation • Reduce risk of benefits rules being applied incorrectly A 3% overenrollment in healthcare benefits alone or inconsistently for a year for a 100-employee firm can cost as • Maintain and apply eligibility rules accurately much as $27,000 in unrecoverable premiums paid. • Improve accuracy of data entry through self-service • Improve reconciliation accuracy through detailed reporting Paid leave (including vacation, holiday, and sick leave), traditionally the most expensive employee Reduce the Cost of Benefits Administration benefit, was the second most costly (Employment • Streamline and automate processes Policy Foundation, March 2005). Today’s information • Eliminate duplicate data entry into various systems management solutions include rules-based software • Reduce staff time required during Open Enrollment to ensure that employees can enroll in only those • Reduce paper costs associated with communications programs for which they are actually eligible. There • Automate set-up processes, such as deduction and are critical extensions of this functionality: premium tables a. When an employee leaves your company, you Minimize Employees’ Time Spent on Benefits no longer pay premiums on his or her insurance • Streamline and automate the annual enrollment process coverage; the average cost to employers in the • Enable employees to review and manage benefits online private sector who paid all or some of an employ- • Provide clear, consistent information on benefits policies ee’s health premium was $1,328 (nominal dollars) in 1984. In 2004, employers paid an average of Ensure Maximum Value of Benefit Dollars $6,189 for a full-time employee’s health premium. • Drive increased participation in tax-saving programs b. When an employee’s dependent becomes ineli- such as FSA and 401(k) gible, either through age or change in student • Provide accurate census data to shop for the most status, you no longer pay those costly premiums. cost-effective benefits programs c. When employment status for an employee is • Enable employees to choose the most cost-effective changed in the payroll system, changes are benefits package to meet their specific needs reflected in both HR’s and the insurance providers’ systems, so that reconciliation is minimized. © Copyright 2005 The CedarCrestone Group, Inc. 5
  7. 7. ADP’s Workforce Management Solutions d. When life event changes occur, eligibility is validat- The Strategic Value ed automatically, and errors at the line-item detail The same systems and services that reduce the cash level are eliminated, meaning less time required for outflow related to inefficiency and inaccuracy in benefits audit and correction. administration also provide the information required for accurate tracking, and accurate tracking contributes to 2. Reduce reconciliation errors: Manual audits and better forecasting; better forecasting, of course, contrib- reconciliations are inefficient, prone to human error, utes to better planning and overall management effective- and—as a result—are known to be unnecessarily ness. Whether an organization is dealing with a benefits costly. Solutions are available to replace the manual budget of fifty thousand or a million dollars, the same process with one in which reporting is both detailed principles apply: Assets must be controlled and properly and accurate. This can save your company three to directed if the organization is to profit and survive. eight percent of your healthcare benefits expense every year. Improve Employee Retention 3. Increase employee participation in tax-saving Every organization wants to find—and keep—the best programs: Primary examples of this are Flexible possible employees for its workforce. Every organization Spending Accounts, Commuter Benefits and 401(k) needs to ensure that it identifies candidates who meet Plans. As a rule, employees are enthusiastic about the needs of the business, makes effective use of those these benefits once they understand their full value. employees and their valuable skills, and manages basic Tools that help you communicate these programs workforce administration activities in a way that makes it to your employees, and educate them about how to easy for those employees to stay on board. best take advantage of them, drive increased partici- pation. The savings to your company? Because these At the very beginning of the employee acquisition pro- are all pre-tax benefits, the employer saves 7.65 per- cess, your business faces the challenge of attracting cent in FICA for every dollar the employee contributes. and then selecting quality candidates. How can systems and services help you do this? 4. Increase the effectiveness of your benefits broker: There are savings to be realized when your • Recruiting Process: An efficient recruiting process benefits broker has up-to-date, accurate information makes a good first impression. Qualified candidates necessary to effectively “shop” for programs and can easily become disinterested by cumbersome and providers. With manual processes, or when informa- time-consuming recruitment practices, so it’s impor- tion about employees is on one system and informa- tant that the interview process flow smoothly and tion about their benefits is on another, important data expeditiously. With the right solutions in place, you can takes time to collect and all too often the resulting avoid losing both resumes and candidates in the paper report is out of date and/or just plain incorrect. A shuffle. broker with complete, correct information is in a much better position to negotiate the best benefits • Recruiting Expense: When recruitment efforts are package. not monitored and managed, they become unneces- 6 © Copyright 2005 The CedarCrestone Group, Inc.
  8. 8. ADP’s Workforce Management Solutions sarily expensive. The right solutions provide extremely Although it’s difficult to measure, unwanted and avoid- useful cost-per-hire analysis, help you track the results able turnover comes at a high cost to an organization in of recruiting efforts and help you build a database of terms of lost productivity and poor morale. The cost in qualified candidates for future reference. terms of hiring and training replacements is more visible and more easily measured; however, there are more fac- • Reference Checking: Reference and background tors than most people readily recognize: checking is both more complicated and more impor- tant than just a few years ago. Good prescreening Separation Processing avoids potential hiring dangers and focuses your • Exit interviewer’s time limited hiring resources on those candidates with • Departing employee’s time credible work histories and credentials. The solutions • Administrative functions relating to the departure that help you more effectively assess and screen job • Separation pay (e.g., departing employee’s vacation candidates save you both money and time. balance) • Increased unemployment tax related to the departure Reference Checking to Reduce Cost of Turnover Replacement Hiring Society for Human Resource Management 2005 • Cost of attracting applicants Reference Checking Survey: 73 percent of employers • Preemployment administrative expenses (e.g., sorting believe that reference checking is effective in identi- through resumes) fying poor performers and liabilities to the organization. • Cost of entrance interviews (recruiter’s time, ADP’s 2004 Hiring Index: 52 percent of reference manager’s time) checks revealed a difference of information between • Cost of aptitude, skill, drug and other testing what the applicant provided and what the source reported. • Post-hire information gathering (setting up records, data entry time, etc.) • Cost of signing bonus Measurable Savings Employee turnover is another one of those inevitable New Hire Training facts of life in the business world. In the twelve months • Cost of brochures about the company, policy manuals, etc. ending January 2005, research by the Employment • General orientation (time spent) Policy Foundation reported an average voluntary turn- • On-the-job orientation (i.e., new employee less over rate of 24 percent nationwide. productive during first weeks/months) Cost of Turnover Value Equation Lost Productivity, Lost Business 24 percent of 110 employees = 26.4 turned over • Cost of overtime to cover the vacancy positions per year. With a cost of turnover of $13,669 • Cost of additional temporary help per event, the total cost to an average mid-sized em- • If departing employee is in sales, missed opportunities ployer is $360,861. Efforts to reduce this turnover by and reduced revenue 10 percent per year can yield significant profit impact. Source: 2004 Kaiser Health Report and Employer Costs for Employee Compensation Data © Copyright 2005 The CedarCrestone Group, Inc. 7
  9. 9. ADP’s Workforce Management Solutions The specific costs applicable to a particular organiza- 2. Employee Satisfaction: Employees who don’t know tion will vary, but it is important to understand that these the rules, those who are repeatedly required to work sometimes hidden costs are just as real as those that overtime because production schedules are misman- are more obvious. In short, the cost of turnover is gen- aged, those who do not have competitive benefit erally much greater than you have estimated. programs or those whose expense reimbursements are consistently late and/or wrong… these employ- How do you reduce the rate of turnover and its ees will leave when they get the chance. That costs costs? How do you improve employee retention? you money. But there are solutions and services that There are three major elements that every organization will help avoid these problems: should keep in mind: a. Communication: Clear communication and con- 1. Performance Management Systems: These are sistent application of company policies—whether systems that promote and facilitate timely and ef- in regard to “big” issues like discrimination and fective performance reviews. Whether you call them harassment or “little” things like expense reim- assessments, evaluations, reviews or appraisals, the bursement rules—is simple today through system process by which an employee receives feedback on portals. his/her performance should be completed on time and in a way that is perceived as fair and objective. b. Work Schedule: A good scheduling tool allows This process is the perfect vehicle through which the management to track and forecast employee supervisor communicates (a) how the employee’s absences and staffing needs. This minimizes work performance impacts the department, the divi- unplanned and unwanted overtime work. What sion and the company as a whole; (b) what goals the does this have to do with employee satisfaction? employee should strive for in the coming period; and Most employees like to earn a little extra through (c) how the employee’s rate of pay and any potential overtime, but all employees have a life outside the bonus is related to that work performance. If the workplace, with plans and commitments; when review is late, incomplete, handled inconsistently they are frequently, repeatedly and unexpectedly or perceived as entirely subjective, then employees called upon to work a second shift—or even just quickly become dissatisfied with both the supervisor a few extra hours—they can become dissatisfied. and the organization and are more likely to move And if that overtime is obviously a result of poor elsewhere. planning by management, the dissatisfaction level climbs significantly. Satisfaction Affects Turnover Industry studies indicate that for every 2 percent im- c. Pre-Tax Benefit Programs: Benefit programs provement in employee satisfaction, you can expect that reduce the taxable portion of the employee’s a 1 percent reduction in employee turnover. income, such as Flexible Spending Accounts and Source: Organizational Diagnostics, a research group specializing in 401(k) Plans, are extremely popular: for the em- employee satisfaction surveys. This statistic comes from an interview with Jerry Talley, President of Organizational Diagnostics in Mountain ployee, it’s like getting a raise—and it doesn’t cost View, California. the company anything but a few administrative 8 © Copyright 2005 The CedarCrestone Group, Inc.
  10. 10. ADP’s Workforce Management Solutions enter the information to a spread- Figure 2 sheet or some system and perhaps Flexible Spending Accounts Percent of those with employer-sponsored health insurance who say their employer offers/they manually generate a check request participate in a flexible spending account (FSA) or write the check itself. The process Don’t know if can take weeks, and meanwhile the employer offers FSA employee has had to pay the original 9% bills and is waiting for reimburse- Participate Employer does not ment, hoping it will arrive before the 14% offer FSA 42% rent is due. It may seem like a small employer 49% thing, but small annoyances build offers FSA 28% up, eating away at employee satis- Don’t Participate faction. There are tools available to streamline and automate this entire Source: Kaiser Family Foundation Health Insurance Survey, 2003 (conducted April 30 – July 20, process. Expense report filing and 2003 among 2,507 adults ages 18 – 64) processing can actually be paperless and the reimbursement can be in the dollars. Yet a surprising number of smaller busi- employee’s hands within just a few days. nesses do not offer these programs (see Figure 2): According to the 2003 Employer Benefits 3. Organizational Communication: Communicating Survey conducted by the Kaiser Foundation, only more completely and effectively can help an organiza- 42 percent of all firms offer a Flexible Spending tion retain employees at relatively little cost. Online Account which helps to offset the cost of health- communication capabilities facilitate access to com- care. And beyond this, as cited in the 2004 Study pany and personal information: of Employee Benefit Trends conducted by MetLife, only 40 percent of employees understand which a. Company Information: Communication to benefit options meet their needs. In all, employers employees as well as managers—company news can achieve cost savings for their own company (press releases, sales results, progress toward and their employees while achieving higher levels goals), human resources information (explanation of employee satisfaction by taking advantage of of benefit programs, deadlines for Open Enroll- these tax-saving opportunities. ment) and policy statements (non-discrimination, grievance procedures)—contributes to those d. Expense Reimbursements: Every modern employees feeling more connected to the busi- organization has to deal with the administrative ness, and employees who feel connected to their headache of expense reports. In manually-based employer are more likely to stay. According to expense reimbursement systems, the employee a recent study on employee communications by has to fill out the form and attach the receipts; the MetLife, only 40 percent of employees understood manager has to review and approve; someone in their benefits, and only 31 percent felt they were Personnel or Accounting has to add up the num- effective for them. As an outcome, from the same bers, verify that all the expenses are allowable, © Copyright 2005 The CedarCrestone Group, Inc. 9
  11. 11. ADP’s Workforce Management Solutions study, three times more employees were satisfied Every one of these solutions can contribute to a reduc- with their jobs when they understood their ben- tion in employee turnover—and reduction in turnover is efits. Today’s portal solutions are extraordinarily money in your company’s pocket. useful tools in the campaign to communicate. The Strategic Value One of the reasons that portal technology has Employees who are more experienced in your business become so widespread in the past few years are generally more productive and more valuable to is that an increasingly sophisticated employee achieving the company’s goals. Research indicates that population has come to expect the same easy this can actually translate to better profitability, at least access to information at work that they experience in part because of improved relationships with custom- at home—i.e., via the Internet. Employees in all ers. At least one study demonstrated that a 5 percent geographic areas, in all age groups, at all levels of increase in retention can grow profits by as much as 60 work experience and responsibility are familiar and percent in the fifth year.1 comfortable with “surfing the Web,” and increas- ingly they expect to see that same capability at work. Improve Tax and Regulatory Compliance b. Employee Information: Managers who have The need to comply with tax and regulatory require- easy access to information about their employees ments has never been so much on the minds of senior can communicate more effectively with those em- managers as it is today. ployees. Information that is available online—such as salary history, performance history, training Measurable Savings history—is more likely to actually be used than in- If taxes are inevitable, so too is every organization’s formation that is buried in a paper file in a drawer need to minimize tax liability and maximize tax savings. (especially if that drawer is in the Personnel office By applying the right systems or services, an organiza- rather than the manager’s). tion can effect the following: c. Paychecks: One of the most important com- Minimize Tax Liability and Maximize Tax Savings munications to employees is their paycheck or • Minimize inaccuracies and tardiness of tax payments statement. Employees like to see their current to state, federal and local agencies, avoiding fines and information, as well their history, to do compari- penalties sons across pay periods. Making this information • Avoid over- and under-payment of state unemployment available online through secure access is very taxes popular and is a useful tool in demonstrating to • Maximize tax-saving opportunities available through pro- employees that the company wants to make their grams such as FSA, 401(k), Commuter Benefit Credits, lives less complicated. Section 125 Premium-Only Plans and Federal & State Job Tax Credits (continued on next page) 1Rucci, Anthony J; Kirm, Steven P.; Quinn, Richard T. “The Employee- Customer Profit Chain at Sears.” Harvard Business Review. Jan–Feb 1998 10 © Copyright 2005 The CedarCrestone Group, Inc.
  12. 12. ADP’s Workforce Management Solutions Decrease Business and Professional Risk is a linchpin of fairness, which is of increasing value in • Enhance compliance success levels with all payroll, today’s litigious society: Employees who believe they are benefits, and HR-related regulations treated fairly are less likely to complain in court or to a • Provide internal structure and controls to support government regulatory body. Sarbanes-Oxley requirements Tax Filing Penalty Value Beyond tax-related issues, of course, is the need to mini- In 2004, $3 billion was spent on unnecessary, mize other business and professional risk related to the intentional or unintentional, payroll-related tax following: compliance fines. • Inaccuracy and tardiness of compliance liabilities Source: Sage International related to benefits, payroll and human resources, such as COBRA administration, wage garnishment process- ing and new hire reporting The Strategic Value Reducing both tax and non-tax related compliance risk • Compliance with Sarbanes-Oxley regulations has measurable dollar value to your business in the avoid- • Administration and management of industry-specific ance of fines and other legal actions. The strategic value certifications such as ISO9000/9001, professional is measured by the elevation of your company’s reputa- licenses, training and renewals where lack of such tion and the long-term survival of your business. certifications—or the ability to document them—can lead to fines, loss of government contracts, and even closure Return on Investment • Administration and management of data related to other regulatory requirements such as EEO guidelines, Many consultants offer definitions and formulas, but in HIPAA, VETS 100, FMLA and Worker’s Compensation its essence, ROI is simply a matter of “did the money I tracking and reporting spent on Investment X come back to me within a reason- able period of time.” • Disaster recovery (How much time and money would it take to reconstruct core HR and payroll data for your CedarCrestone has developed a methodology and tool company?) set to reasonably estimate the potential hard-dollar savings that can be realized through use of advanced Tools and services are available to ease the burden in workforce management solutions. This value analysis each of these areas by automating a great deal of the tool takes into account the specifics of your organiza- data collection and reporting activities they require—and tion, such as number of employees, average salaries for greatly reducing the likelihood of errors that can cause various administrative and clerical staff, and volume or painful and expensive complications. frequency of transactions related to your specific work- force services activities (processing expense reports, Keep in mind, too, that systems or services that lead to tracking time worked, benefits enrollment and mainte- more consistent application of pay and employment poli- nance, manual time card activities, etc.), then calculates cies minimize risk by the simple fact that consistency the savings that would be generated by automated © Copyright 2005 The CedarCrestone Group, Inc. 11
  13. 13. ADP’s Workforce Management Solutions and/or outsourced workforce solutions. This value analysis changes to the tax code? What processes do you have factors in the hard dollars your company would need to in place to ensure compliance with the Family and Medi- invest in specific ADP solutions and then determines the cal Leave Act? With HIPAA? Have you ever lost a labor hard-dollar and indirect (soft) dollar benefits of optimized negotiation or grievance because you didn’t have the workforce management approaches. The difference workforce information that you needed? between the savings and expense determines your ROI. There are literally hundreds of questions and issues that While this hard-nosed value analysis focuses on the mea- need to be addressed regarding workforce manage- surable, hard-dollar or real savings available from using ment. ADP can address those questions and provide state-of-the-art workforce management solutions, as this options to consider as you seek to effectively and ef- paper has pointed out, there are long-term values to ficiently address those issues with a solid investment for these solutions as well: the value of better information, tomorrow as well as today. Your ADP representative can the value of better management of your workforce, the arrange for an ROI analysis using the CedarCrestone- value of better management of risk. developed Value Analysis techniques to demonstrate the value of ADP solutions to your business. Summary Visit ADP’s website at No single solution will address all the major workforce management needs of a business. CedarCrestone’s as- for detailed information about sessment of the ADP workforce management approach ADP solutions and services. suggests that there are a variety of synergistic solutions that, when combined, offer significant hard-dollar sav- About CedarCrestone ings opportunities as well as strategic benefits for your CedarCrestone provides consulting, hosting and managed organization. The solutions that will give your business service for the deployment, management and optimiza- tion of Human Capital Management (HCM), Financial the greatest value depend on the degree to which your Management (FMS), Campus Solutions (CS) and Strategy business is faced by the challenges discussed. & Analytics. Perhaps you feel you have your labor costs well under About ADP control—but how are you managing Sarbanes-Oxley ADP has more than 50 years of experience providing employers with business solutions such as Payroll, HR compliance? How do you currently distribute personnel, and Benefits Administration. ADP solutions focus on payroll, and company information to employees, and do making businesses more productive by reducing costs, you think that communication is received consistently increasing productivity and, most importantly, standing and efficiently by all of your employees? How do you ready to grow with your business. With the widest range manage labor costs as they pertain to project profitabil- of powerful, cost-effective solutions, only ADP can offer your business the flexibility it demands to grow and ity? How long does it take you to reconcile your payroll, prosper—whether you have one employee or hundreds and does that reconciliation ever delay any other vital of thousands. And you can count on ADP for unparalleled business activities? Is your payroll data backed up every compliance support and the most qualified and acces- day, and are those backups secure at another location? sible customer service in our industry. Are you confident that your payroll staff is up-to-date on 12 © Copyright 2005 The CedarCrestone Group, Inc.