New Aberdeen research reveals that 52 percent of organizations believe that United States health care reform and the Affordable Care Act (ACA) will have a major affect on their organization's workforce management strategy in the coming year. The Affordable Care Act and its enactment put complex compliance pressures on organizations to properly track and report on the time employees are working. However, it doesn’t have to be so hard, even as external forces continue to bring change for your organization (and to this new legislation); having the right fundamentals — strategy, data and technology — can help your organization stay ahead no matter how the story evolves. Learn how Best-in-Class companies are managing ACA requirements by continually monitoring and adapting their strategic approach to effectively meet the requirements of the law. And the critical role that automation and integration of workforce management processes has on their ability to remain compliant. You will learn how to: Align your workforce management strategy with your overall talent strategy. Adapt your workforce management strategy to help you cope with this complex law. Understand the role technology plays to properly manage compliance and facilitate greater efficiencies across the organization.

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Managing Your ACA Strategy:
Maintaining Compliance Through
Automation and Integration

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Speaker: Michael Moon
Research Director
The Aberdeen Group
Managing Your ACA Strategy:
Maintaining Compliance Through
Automation and Integration

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8. MANAGING YOUR ACA
STRATEGY: MAINTAINING
COMPLIANCE THROUGH
AUTOMATION AND INTEGRATION
April, 2015
Ms. Michael M. Moon, Research Director, HCM
Aberdeen Group
Sponsored by:

9. 9
MICHAEL M.
MOON
Research
Director, HCM
Aberdeen
Group
Over 15 years experience in human
resources as an analyst, practitioner
and academic.
Industry Experience:
• Senior HCM Research Analyst, i4cp
• 15+ years in various HR roles at Thomson Reuters, Vistaprint, Raytheon,
Fleet Bank, John Hancock, and Getronics
Education and Certifications:
• PhD Candidate, Human Capital Management, Bellevue University
• Bachelor of Science, Theatre from Eckerd College
• Master of Music, Musical Theatre from the Boston Conservatory
• Master of Science, Human Resources from Suffolk University
• PHR (HRCI)
• Member of NEHRA and IHRIM
TODAY’S SPEAKER

10. 10
OBJECTIVES
You will learn how to:
• Align your workforce management strategy with
your overall talent strategy
• Adapt your workforce management strategy to
help you cope with this complex law
• Understand the role technology plays to
properly manage compliance and facilitate
greater efficiencies across the organization

11. 11
TODAY’S AGENDA:
1. Topic – Aberdeen Research Methodology
2. Topic - Human Capital Trends (2015)
3. Topic – Best-in-Class Workforce Management Strategies
4. Topic – ACA Compliance
5. Topic – ACA Staffing Strategies
6. Topic - Investments in Technology
7. Topic – Benefits of Automation

12. 12
ABERDEEN’S RESEARCH METHODOLOGY
PACE: END-USER INVESTIGATION
PRESSURES ACTIONS CAPABILITIES ENABLERS
External and internal
forces that impact an
organization’s market
position,
competitiveness, or
business operations.
The strategic
approaches that an
organization takes in
response to industry
pressures.
The business capabilities
(organizational, process,
knowledge management
etc.) required to execute
corporate strategy.
The key technology
solutions required to
support the
organization’s business
practices.
What is causing
organizations to think
differently?
What strategies are
they using to respond
to pressures?
Why are they achieving
greater success?
What technologies and
services are enabling
them to succeed?
!

13. 13
ABERDEEN MATURITY CLASS FRAMEWORK
DEFINING THE BEST-IN-CLASS
Selected Performance
Criteria (KPI)*
Organizational Goals
Employee Performance
Bench Strength
Total
Respondents
- Top 20%
- Middle 50%
- Bottom 30%
Respondents are scored
individually across KPI
Best-in-Class
Industry
Average
Laggard
*example KPIs

14. 14
UNDERSTANDING WHAT IT TAKES TO ACHIEVE
SUCCESS
What you need to do to become
Best-in-Class:
§ What processes you should have
in place
§ What do you need to measure
§ Organizational changes you might
want to make
§ Data / Knowledge management
considerations
§ Technologies you should evaluate
Best-in-Class
Industry
Average
Laggard
P A C E

15. HUMAN CAPITAL TRENDS - 2015

16. 16
DEFINING BEST-IN-CLASS HCM
DEFINITION MEAN CLASS PERFORMANCE
Best-in-Class:
Top 20% of
aggregate
performance
scorers
• 9.9% decrease in voluntary employee turnover
• 86.9% of employees rated as “highly” engaged
• 30.3% increase in customer satisfaction rates
Industry
Average:
Middle 50% of
aggregate
performance
scorers
• .6% decrease in voluntary employee turnover
• 58.6% of employees rated as “highly” engaged
• 5.9% increase in customer satisfaction rates
Laggard:
Bottom 30%
of aggregate
performance
scorers
• 4.4% increase in voluntary employee turnover
• 30.4% of employees rated as “highly” engaged
• 2.0% decrease in customer satisfaction rates

17. 17
PRESSURES
What are the top three PRESSURES driving your
organization's HCM efforts in 2015?

18. 18
PRESSURES ARE A’ CHANGING
A scarcity of critical talent available
in the marketplace
Controlling labor costs through better
workforce management
The cost and complexity of delivering effective
learning and leadership development
The desire to provide better organizational
visibility into HCM data
1st
2nd
3rd
4th
1st
2nd
3rd
4th
62%
38%
47%
43%
37%
68%
57%
42%
2015 2014
n=246
Source: Aberdeen Group, March 2015

19. 19
STRATEGIC ACTIONS
In order to execute on your organizational strategy in the coming year,
what are the top three STRATEGIC ACTIONS pertaining to HCM that
your organization is pursuing?

20. 20
STRATEGIC ACTIONS – TOP THREE
1. 64.3% - Ensure that human capital management talent
strategy is continually adapted to align with changing business
strategies
2. 46.7% - Place a greater focus on developing leadership skills
3. 46.2% - Identify gaps between current workforce skills
(supply) and anticipated future business requirements
(demand)
– 83% - critical for HR leader of the future

21. 21
BEST-IN-CLASS DIFFERENCE

22. 22
CAPABILITIES

23. 23
MOBILE ACCESS TO WFM

24. CORE HR/WFM STUDY – MAY 2014

25. 25
CLEARLY DEFINED WFM POLICIES ARE
KEY
Workforce capacity
utilization
Payroll error rates
Unplanned/unbudgeted
overtime

26. 26
BEST-IN-CLASS CAPABILITIES
Processes/Procedures
• Scheduling policies are defined and communicated to
managers and employees
• Process in place to properly escalate HR inquiries
• Regular audits of HR data and processes
Access to data
• Managers have access to real-time reporting on time and
attendance data
• Workforce data required by the business is clearly
defined
Integration
• Core HR functions are integrated with talent
management systems (e.g., recruiting, onboarding, etc.)
• Time and attendance system is integrated with
scheduling system
Capabilities

27. ACA

28. 28
ACA – MAJOR IMPACT
52%...
…believe that US healthcare reform and the
Affordable Care Act (ACA) will have a major impact
on their organization's workforce management
strategy in the coming year.

29. 29
CHALLENGES

30. 30
ACA PRESSURES: 2013-2015

31. 31
POLL QUESTION: Which most closely describes
your current plan/strategy for dealing with the ACA?
1. Eliminate group benefits and push all employees to the
individual market via the public exchange
2. Continue with current staffing model and offer coverage to
additional employees as required
3. Continue with current staffing model and pay the fees /
penalties as required
4. Increase use of contingent / temporary staff to mitigate risk
associated with costs of full-time employees
5. Move to an outsourced benefits administration model
6. Reduce overall number of employees but increase hours to get
the most productivity out of covered individuals

32. 32
RESPONDING TO ACA: STAFFING
STRATEGIES

33. 33
CONTINGENT LABOR FILLS GAPS

34. 34
CONTINGENT LABOR
36% of all respondents (n=146) plan to increase the size
of your temporary workforce in the next 12-24 months.
58% believe utilizing a temporary/contract workforce is
imperative to the successful operation of their organization

35. TECHNOLOGY

36. 36
IMPACT ON INVESTMENTS
IN WFM TECHNOLOGY
35%

37. 37
ACA AND TECHNOLOGY
44% -
Move to an
integrated
workforce
management
suite
25% -
Move to a cloud-
based solution
provider

38. 38
BENEFITS OF WORKFORCE
MANAGEMENT AUTOMATION
• Reduce the time spent on workforce management
by HR
• Improve the accuracy of employee data (e.g.
reduction in payroll errors)
• Reduce the time spent on workforce management
by the business
• Reduce labor costs (less administration and
unplanned/unbudgeted OT)
• Reduced penalties and fees (from lack of
compliance)
• Better workforce visibility

39. 39
IMPACT OF AUTOMATED TIME AND
ATTENDANCE*
*Core HR/WFM study - 2014

40. 40
REDUCED LABOR COSTS*
*Core HR/WFM study - 2014

41. THANK YOU
QUESTIONS?
If you’d like to receive
Aberdeen research to your inbox,
please join our community
by visiting:
www.aberdeen.com

42. 42
ABOUT KRONOS
With tens of thousands of customers around the globe, Kronos is the
leader in workforce management solutions. We deliver industry-focused
time and attendance, scheduling, absence management, HR and
payroll, hiring, and labor analytics solutions and services — in our cloud
and on the go. Kronos: Workforce Innovation That Works™.
For more information contact your Kronos
representative, call (800) 225-1561 or visit
www.kronos.com.

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