What is Workforce Management and Who Needs to Automate?

What is Workforce Management and Who Needs to Automate?
Paolo Gilfillan, Director of Sales & Marketing
Synerion (formerly TimeTECH)
August 26th, 2011

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Agenda
What is Workforce Management (WFM)?
Examples of Manual Time Keeping
Why are Organizations Automating?
Current & Future Trends in Workforce Management
Who Needs to Automate?
How to Select a Vendor
Business Case Example

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What is Workforce Management?
“Workforce Management (WFM) encompasses all the activities, processes, and tools needed to manage a workforce. A comprehensive WFM system includes planning, forecasting, scheduling, and tracking workers to optimize the balance of customer, employee, labour laws and organizational needs.”
– Institute of Human Resources

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Workforce Management Wheel

Examples of Manual Timekeeping
Paper timecards
Pen and paper sign-in books
Spreadsheet tracking
Manual data entry to payroll
Punch clocks
Images:
http://www.vertex42.com/ExcelTemplates/excel-timesheet.html
http://www.chacocanyon.com/pointlookout/070613.shtml

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Concerns about Manual Processes
Incorrect payment
Error prone process
Buddy punching or theft of time
Labour intensive process to manage
Difficult to report on workforce
Time consuming for management to audit employees

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Benefits of Automation
Cost savings: 2-5% of payroll costs
Reduce “buddy punching”:
Employees punching in and out for each other in the event of absence, late arrival or early departure
Improve efficiency and productivity
Reduce administrative errors and time
Opportunity to standardize
Reduce overtime
Centralization
Accurate data available to make decisions

Hard Cost Savings
Where’s the Return on Investment
Soft Cost Savings
Additional Considerations
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Hard cost savings
Reduction in payment errors
Avoid overpayment
Minimize litigation
Comply with labour laws
Comply with union/employee agreements
Reduce workload or restructure labour
Reduce theft of time (with biometrics)
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Soft cost savings
Reduce auditing time
Save manager’s time
Increase employee productivity
Improve employee retention
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Additional Considerations
Understand your workforce
Make business decisions with accurate data
Improve customer experiences
Optimize the workforce
Absence Management
Point System
Identify poor performers
Reward good performers
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Change in labour availability and labour demand
Labour costs remain one of the largest organizational expenses
Compliance complexity
Industry-specific requirements for employee scheduling
Absence management plays a critical role in controlling and managing labour workload
Today’s Challenges

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Current & Future Trends
Improved employee and manager self service capabilities
Strategic workforce planning
Broader usage across the organization
Biometrics as a standard
Continued growth of comprehensiveworkforce management solutions

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Current & Future Trends
Mobile technology supporting the mobile workforce
Smart & optimized scheduling
More integrated solutions
Analytics and business intelligence
Key Performance Indicators

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Who Needs to Automate?
Any organization that needs to manage their workforce
Understand your opportunity for savings
Hourly and/or salaried environments
Not necessarily industry specific
Managing labour laws and/or union or employee agreements
Looking for accurate data
Seasonal workforce, part-time, hourly, 24/7
Additional levels of complexity:
Multiple sites, provinces, countries
Key scheduling requirements

Define the Problem
Should you Automate and with what Vendor?
Evaluate Vendors
Make a Decision
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Understand & define your business problem
Why does your business need to automate?
Understand the business case
Why will the business do this?
What are the estimated savings?
Create an estimatedpreliminary budget
Identify functional andbusiness requirements
Begin to research vendors
Define the Problem

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Vendor Evaluation
Discovery
Requirements response
Understand their standard implementation methodology
Local expertise
Overall WFM experience
Solutions presentation
Evaluate if technology meets the requirements
Evaluate service offering
Insist on a detailed Statement of Work
Understand the educational tools and strategy

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Can they accommodate the functional requirements?
Do they have the right implementation approach scoped?
Is the vendor supporting the business case?
Can this vendor support your business in the long term?
Will this be a partnership?
Make a decision
Making a Decision

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Example Business Case
Current state of ABC Company
3,000 employees located in 4 Canadian provinces
2,000 hourly and 1,000 salaried workers
Roughly 24 sites
Manual time keeping across the enterprise
4 payroll operators and 1 payroll manager
Roughly 100 managers/supervisors

Key Benefit Areas
Improved productivity
Reduction in payroll errors
Reduced payroll inflation
Lower overtime costs
Elimination of paper & courier costs
Reduction and/or reassigning of resources

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Analyzed the time collection and payroll processes
Collected manual cheque data
Analyzed the timesheet data
Assessed error rates at supervisor/manager level
Understood time to audit
Defined workload for administrative resources
Collected data on paper and courier cost
Assessed annual overtime costs
Assumed theft of time
The Process Highlights

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Highlights of the Results
Additional considerations
Reduction in buddy punching
Reduction in overtime
Soft Savings not included

Thank You!

What is Workforce Management and Who Needs to Automate?

by Synerion North America Inc.

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What is Workforce Management and Who Needs to Automate? Presentation Transcript