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Comprehensive presentation which provides an overview of workforce management, why organizations are choosing to automate and who should automate. The presentation concludes with a discussion of things to consider when selecting a vendor and with an actual case example.
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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!