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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1. What is Workforce Management (WFM)?

2. Examples of Manual Time Keeping

3. Why are Organizations Automating?

4. Current & Future Trends in Workforce Management

5. Who Needs to Automate?

6. How to Select a Vendor

7. Business Case Example

Agenda

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“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

What is Workforce Management?

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Workforce Management Wheel

• Pen and paper sign-in books

• Spreadsheet tracking

• Manual data entry to payroll

• Punch clocks

Examples of Manual Timekeeping

• Paper timecards

Images:http://www.vertex42.com/ExcelTemplates/excel-timesheet.htmlhttp://www.chacocanyon.com/pointlookout/070613.shtml

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• 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

Concerns about Manual Processes

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• 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

Benefits of Automation

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Where’s the Return on Investment

Hard Cost Savings

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)

Where’s the Return on Investment

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• Soft cost savings

• Reduce auditing time

• Save manager’s time

• Increase employee

productivity

• Improve employee retention

Where’s the Return on Investment

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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

Where’s the Return on Investment

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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 comprehensive

workforce management solutions

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• Mobile technology supporting the mobile workforce• Smart & optimized scheduling• More integrated solutions• Analytics and business intelligence

• Key Performance Indicators

Current & Future Trends

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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

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Should you Automate and with what Vendor?

Define the Problem

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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• 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

Vendor Evaluation

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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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• 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

Example Business Case

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

Key Benefit Areas

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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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• Additional considerations• Reduction in buddy punching• Reduction in overtime• Soft Savings not included

Area of Opportunity Type of Saving Estimated Savings

Payroll Error Hard $474,000

Improved Administrative Productivity

Hard $150,000

Reduction in paper and courier costs

Hard $4,500

Improved Manager Productivity

Soft 5.5 hours per week per manager or 28,600 total hours per year

Total Hard Savings Hard $628,500 annually

Highlights of the Results

Thank You!