The Affordable Care Act: Compliance is Just the BeginningACA Compliance, Reporting and Strategy: Are you Ready? Mollie Lombardi ... • A centralized and automated workforce management

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Wednesday, April 9, 2014

2:00 p.m. to 3:00 p.m. Eastern 1:00 p.m. to 2:00 p.m. Central

12:00 p.m. to 1:00 p.m. Mountain 11:00 a.m. to 12:00 p.m. Pacific

Presented by: Scott Barker

Kronos Incorporated

Mollie Lombardi Aberdeen Group

This program has been approved for 1.00 credit hours toward PHR and SPHR recertification through the Human Resource Certification Institute (HRCI).The Program ID number will be emailed to the registered participant at the completion of the conference. For more information about certification or recertification, please visit the HRCI website at www.hrci.org.

The Affordable Care Act: Compliance is Just the Beginning

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The Affordable Care Act: Compliance is Just the

Beginning

Sponsored by

2© KRONOS INCORPORATED April 1, 2014

Today’s Guest Presenter

Mollie LombardiVice President, Principal Analyst, Human Capital Management Aberdeen Group

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Agenda

• Now What? Setting Your Strategy

• Workforce Management Implications

• A Culture of Compliance

• Understanding the Role Technology Plays

© AberdeenGroup 2014

ACA Compliance, Reporting and

Strategy: Are you Ready?

Mollie LombardiVP and Principal Analyst

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© AberdeenGroup 2014 5

Drawn from our World Class Research

Studying hundreds of organizations and their strategiesCovering a wide variety of industries and geographies


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Now What? Setting Your Strategy

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Agility and Responsiveness are Driving Workforce Management

Source: Aberdeen Group, Workforce Management 2013, July 2013


Speed, Quality and Cost

Pick Two

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The ACA Curveball


Strategies for Dealing with the ACA

Other* = 1. Increase use of contingent staff to mitigate risk associated with costs of FTE; 2. Move to a largely part-time staffing model to reduce the number of employees eligible for coverage;3. Move to an outsourced benefits administration model; 4. Reduce overall number of employees but increase hours to get the most productivity out of covered individuals;5. Explore co-employment solutions to mitigate risk associated with costs of full-time employees

Source: Aberdeen Group, Workforce Management, July 2013

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Workforce Management Implications


56%of organizations say that the Affordable Care Act will have

significant impact on their workforce management strategy


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Workforce Management Strategies



Benefits of Workforce Management Automation

Reduce the time spent on workforce management by HRImprove the accuracy of employee dataReduce the time spent on workforce management by the businessReduced labor costs


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Automation Supports Analysis and Insight



Investments Associated with Adhering to the ACA


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Laying a Proper Foundation


It’s About More Than Reporting

Time & AttendanceTracking and reporting

what happened

SchedulingPlanning to properly implement strategy

AbsenceAvoiding long-term

problems

Talent AcquisitionFinding the staff to fulfill

strategy

DevelopmentThe right number of people with the right

skills

Retention & Engagement

Keeping staff and customers

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Impact of Automated Time & Attendance



Pressures Driving Automation of Absence Management

Source: Aberdeen Group, Absence Management, December 2012

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72%of employees in organizations with

automated time and attendance solutions rated themselves as highly

engaged compared to 64% of employees in organizations without

automated time and attendance.Source: Aberdeen Group, Workforce Management 2013, July 2013


A Culture of Compliance

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Biggest Challenges Presented by the ACA



Automation Underpins Compliance


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Compliance and Administration

Policy + Culture + Intent


Managers Make the Difference

VisibilityTransparencyAccountability

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Skills of the HR Business Partner

Source: Aberdeen Group, HCM Trends 2012, January 2012


Ongoing Measurement

Healthcare costsLabor costsProductivityRetention and engagementHiringCustomer satisfaction and retention

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ACA Checklist

What is our strategy?Do we have the right tools in place?Are we monitoring the impact?Have we created a culture of compliance?

32© KRONOS INCORPORATED April 1, 2014© KRONOS INCORPORATED April 1, 2014

Understanding the Role Technology Plays to Properly Manage ACA Compliance

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Culture of Compliance

Attorney Paul DeCamp, former administrator of the U.S. Department of Labor’s Wage and Hour Division and now a shareholder in the Washington, D.C., region office of Jackson Lewis P.C.

“There may be pressure to alter jobs in a variety of ways to avoid coverage under the ACA, including the potential for some supervisors to encourage off-the-clock work. Now is the time for employers to conduct workplace law compliance reviews, including checks of their wage and hour policies and practices, before a government compliance officer arrives on the premises.”


ACA Positioning

Pay or play?

Current FT/PT Mix?

Must be measured and monitored

Don’t wait

Be proactive –use delay to

implement strategy

12 month look back starts Jan 1

Timekeeping

Payroll

HR

Reporting

Current Strategy? Act now Closed-loop process

1 2 3

When it comes to ACA administration, spreadsheets, home-grown reports, and manual calculations will do little to simplify a highly complex process with potentially significant financial consequences

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Cutting Corners Could Put You in a Tight Corner Financially

• Spreadsheets, homegrown reports and relying on manual processes further complicate an already complicated situation

• A centralized and automated workforce management system is the keystone of an ACA solution

Lock your compliance strategy into place


You Have Choices

Look Back12 months

3 months

Stability Monitoring

Basic Monitoring Proactive Management

Jan. 2015

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Reporting to Better Manage Your Look Back

Look Back12 months

3 months

Stability MonitoringJan. 2015

Static Reports. You define look back period


Basic Monitoring: On-demand Eligibility

• Concept– Simple, on-demand look back capability

• Approach– Use a report to review eligibility

• Required systems– Basic timekeeping and reporting

• Benefits– On demand visibility– Accurate information & auditing

• Challenges– No system guidance or enforcement– Not proactive– Requires manual interpretation– Difficult to adjust until too late– Relies heavily on culture of compliance

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Proactive Management: Execute on Your ACA Strategy

• Concept– Proactive management of FT/PT plan

• Approach– Continuously monitor what has happened

and what will happen. Provide alerts and guidance.

• Required Systems– Timekeeping, automated scheduling

engine, analytics, alerts, HR

• Benefits– Execute your strategy– Minimize culture of compliance issues– Guided decision– Complete automation

• Challenges– Must define your FT/PT strategy– Must have integrated systems!


The Proactive Management Checklist• Part-Time rules and policies for easier distinction of employee status

• Accurate hours worked information for eligibility status

• Scheduling rules for simple and consistent application of strategy

• Visible on-schedule violations so adjustments can be made

• Guided and automated shift-filling tools for compliance in a pinch

• Alerts for cat-like reaction to impending eligibility changes

• Analytics for big-picture trend monitoring & examination

• Self-service applications for immediate benefits enrollment

Part Time Rules with custom ranges

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Timecard Totals with Audit










Automated RulesAnd Violation Policies

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• Self-service applications for immediate benefits enrollment1 pos available at from 11 PM –7:30 AM, on Fri

Jan 8. Reply 360 to accept.

Shift Fill RulesAnd Text Notification

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Proactive AlertsVia Text, Voice, Email










AnalyticsWith Drill Down Reporting

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• Self-service options for immediate benefits enrollment

48© KRONOS INCORPORATED April 1, 2014© KRONOS INCORPORATED April 1, 2014

Next Steps

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Affordable Care Act Preparedness: The Time is Now

Look Back:• Gain visibility into current FT/PT state

– How big of a problem is ACA?

• Determine optimal FT/PT mix– How can I plan for the future?

• Understand the potential impact of ACA– How much will this cost my business?

Execute on your ACA strategy:• Choose between basic monitoring and proactive management

Look Back

12 months

3 months

Jan. 2015 6 – 12 months

Stability Monitoring


Questions?

Aberdeen GroupMollie LombardiVice President and Principal Analyst, HCM617‐854‐[email protected]

Kronos IncorporatedScott BarkerProduct Marketing, Manager978‐947‐[email protected]

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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.

Disclaimers *This webinar is designed to provide accurate and authoritative information about the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional services. *This webinar provides general information only and does not constitute legal advice. No attorney-client relationship has been created. If legal advice or other expert assistance is required, the services of a competent professional should be sought. We recommend that you consult with qualified local counsel familiar with your specific situation before taking any action.

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The Affordable Care Act: Compliance is Just the BeginningACA Compliance, Reporting and Strategy: Are you Ready? Mollie Lombardi ... • A centralized and automated workforce management