the journey to world-class time and attendance best practices presented to: lawson software, inc. /...

The Journey to World-Class

Time and Attendance Best Practices

Presented to: Lawson Software, Inc. / City of Columbus, Ohio

William Bacote

Manager

The Hackett Group

April 2, 2008

Document Name – Click on top-level Slide Master to change© 2008 The Hackett Group. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.

Statement of Confidentiality and Usage Restrictions

This document contains trade secrets and other information that is company sensitive, proprietary, and confidential, the disclosure of which would provide a competitive advantage to others. As a result, the reproduction, copying, or redistribution of this document or the contents contained herein, in whole or in part, for any purpose is strictly prohibited without the prior written consent of The Hackett Group.

Copyright © 2007 The Hackett Group, World-Class Defined. All rights reserved.


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Objectives and Expectations

Examine current process efficiency, effectiveness, and structure Understand current gaps to best practices, and service delivery model considerations

through examination of Hackett Best Practices Begin the development of a best practices scorecard


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Aligns with strategy Reduces costs Improves productivity Promotes timely execution Enables better decision making Leverages existing and exploits emerging

technologies Ensures acceptable levels of control and

risk management Optimizes skills/capabilities of the

organization Promotes collaboration across the extended

enterprise

Hackett’s Best Practices are certified when there is a correlation with world-Hackett’s Best Practices are certified when there is a correlation with world-class performance metricsclass performance metrics

Best Practices Defined:A Hackett-Certified Practice is a proven technique that delivers measurable value


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Best Practice Current PracticeUsage

Now | Future

End-State Vision

Applicability | Coverage Comments

A description of each Hackett best practice for this process

A description of current utilization of this best practice

CoverageHigh Widespread impact on the enterprise and/or significant value-addMedium Impacts multiple areas, value-add is significant but less relative to

processes ranked as HighLow Impacts a single area of has limited span of adoption throughout the

enterprise

CoverageHigh Widespread impact on the enterprise and/or significant value-addMedium Impacts multiple areas, value-add is significant but less relative to

processes ranked as HighLow Impacts a single area of has limited span of adoption throughout the

enterprise

ApplicableYes Adoption of the best practice is in line with current/future business needsNo Best practice does not fit the current business needs

ApplicableYes Adoption of the best practice is in line with current/future business needsNo Best practice does not fit the current business needs

CommentsStatements pertaining to the technology enablement, policy enactment and other challenges and/or prerequisites associated with improving the utilization of the Best Practice

CommentsStatements pertaining to the technology enablement, policy enactment and other challenges and/or prerequisites associated with improving the utilization of the Best Practice

No Usage Strong Usage

Best Practice Scorecard


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Best Practice Session


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Process Definition –

The process of collecting employee data related to time worked, attendance, leave, and schedules and utilizing it to more effectively manage the employee workforce, administer policies and provide real-timelabor reporting to external systems

Major Activities– Staff and Schedule

New Hire/Status Changes Workforce Planning

– Scheduling– Billing (contractors, temps)

– Time to Gross Time Collection Approval and Pay Prior Period Adjustment Process Labor Tracking and Reporting

– Absence Management Continuous and Intermittent Leave Attendance Tracking Time Off Request Process

Time & Labor Management – Process Overview


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Time and AttendanceBest Practice Review – Summary Results

Item Count % of Total Comments

Best Practices Reviewed 37 N/A

Best Practices Deemed “Applicable”

35 95%

Best Practices Fully or Mostly In Use at City of Columbus

3 9% or

Best Practices Partially in Use at City of Columbus

11 31% or

Best Practices Seldom or Not In Use at City of Columbus

21 60%


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Time and Labor – Best Practice Assessment


Now | Future

End-State Vision

Applicability Coverage Yes–No H – M – L

Comments

One enterprise-wide Time and Attendance application used for all labor scheduling, time reporting and leave accruals/usage HRTA013

4 electronic time systems for 20% of ees. 80% on paper system. Electronic systems do not utilize scheduling, reporting or accrual processing.

Yes H Implement full featured time collection system to capture data. Most ERPs have limited capabilities and are only suitable for white collar organizations.

Automated time collection tools used to record time worked HRTA001

Time captured via clocks for 20% of ees but manually entered into payroll.

Yes H Need the ability to enter and edit employee time data via the web. Time data captured via wireless devices (such as a PDA or Cell Phone) and time clocks and Biometric readers.

No Usage Strong UsageNo Usage Strong Usage


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Now | Future

End-State Vision

Applicability Coverage Yes–No H – M – L

Comments

Positive pay based time collection - data collection strategy for hourly and non-exempt employees that captures actual start/stop times not elapsed self entry HRTA047

Part-Time ees are positive time reporters. Actual start/stop times only captured for those that report via a clock.

Yes H Eliminate self reporting lateness and overtime events by capturing actual start/stop times

System offers effective dating of mid pay-period employee master record changes including any data element that impacts the pay or accrual profile of the employee HRTA023

Mid pay-period changes use current rate and manual adjustment for 1st part of the period.

Yes H Managers must understand the effect in both pay and accruals when changes to employee master records happen in the middle of the payroll period.



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Now | Future

End-State Vision

Applicability Coverage Yes - No H – M – L

Comments

Manager and Employee self-service is utilized; employees have the capability to enter, edit and validate their own time HRTA024

City does not have self service capabilities in their current environment today.

Yes H Enable employee and manager self-service. Employees should be able to access and request time off through the time and attendance system

Hourly employees are on a pay lag HRTA006

Hourly employees are paid one week behind.

Yes L Continue with best practice.

The time and attendance application is integrated with the HCM system, which serves as the source for all core employee data. HRTA018

City does not currently have a Time and Attendance system that is integrated with their current HR system. The HR system does have all the employee records.

Yes H Training for courts needed to ensure new hires in system timely.Interface to time systems to eliminate manual set up.



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Now | Future

End-State Vision

Applicability Coverage Yes – No H – M – L

Comments

Pay rates are stored in the Time and Attendance application to perform all time-to-gross processing (HR is source of data) HRTA038

Pay Rates are stored in CHRIS.

Yes H Interface design for passing wage rate changes to the time and attendance application from source system (HR)

Prior period adjustments for at least two periods in arrears (assumes bi-weekly payroll) are performed by field, not central payroll HRTA035

Prior pay period adjustment are entered by central payroll, (hrs by code) and money are submitted. Manual paper process.

Yes H Technology with ability to capture prior period entries and can identify time which has already been processed versus time that is being entered for the same period



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Now | Future

End-State Vision


Comments

Time and Attendance system performs retroactive computations of hours and pay for prior period entries, and updates both Payroll and the G/L for the adjusted time/money transactions upon request HRTA022

Time and Attendance is mostly manual in today’s environment.

No System should automatically compute any retroactive entitlements when prior period entries are made taking into consideration employee wage rates during the retroactive period.

Streamlining payroll practices through 100% pay rule automation. HRTA020

Time and Attendance is mostly manual in today’s environment..

Yes H The Time and Attendance application should automatically calculate and apply the correct payment of hours due an employee based on the business rules defining how the organization pays



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Now | Future

End-State Vision


Comments

Field managers/supervisors are responsible for accuracy and completeness of the timecard HRTA027

Approval is immediate supervisor but in some cases it requires approval by chain of command. Director/appointee has final approval for all time.

Yes H Time and attendance practices and labor costs should be monitored by a senior member of the organization. Responsibility and accountability for employee time should be shifted from the payroll department to the to point of closest to the original source

Timecards are reviewed, corrected, and approved on a daily basis HRTA054

Timecards are reviewed on a bi-weekly basis.

Yes M Validation spread over the pay cycle



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Now | Future

End-State Vision


Comments

Time card approval process is automated and provides for reviewing timecards based on exception parameters HRTA034

Time cards are reviewed and approved manually.

Yes H City requires all time not just exceptions be approved.

Automated notifications are sent to managers with employees who have unapproved time HRTA056

Manual process today. Payroll calls or sends an e-mail to the managers with unapproved time.

Yes H Alerts for notifications

Central payroll has the ability to review the number of time cards that are not approved to send alert prior to closing of pay period HRTA040

Time is approved prior to entering in payroll (manual process) There are reports to identify active employees without time.

Yes L Time and attendance system that can create a report or online view by manager of unapproved timecards



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Now | Future

End-State Vision


Comments

Time management for non-employee (Temporary, Contractor, etc.) maintained through T&L application and hours worked are reconciled against hours billed HRTA039

Temporary employees are managed outside of City HR systems.

No Non-employees time should be collected in the Time and Attendace application so reports can be run for the billing department to reconcile against invoices. This is handled by the AP department and will remain with them in the future.

Non-Union work rules and pay rules are standardized across the organization HRTA019

Centralized work and pay rules are on intranet and on bulletin boards.

Yes H Senior management must have a clearly defined business requirement to standardized work/pay rules across the organization



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Now | Future

End-State Vision


Comments

Pay Time codes are standardized across the organization HRTA029

Pay time codes are standardized.

Yes L Simplify time reporting processes by reducing and standardizing the number of pay codes that can be used to report time across the organization

Documentation of pay and work rules in a single repository HRTA05

Documented in contracts and ordinances. City wide policies/rules are generally available via intranet.

Yes L Store documentation in a single repository.

Supervisor access (and backups) is limited to their own employee records – maintenance of this relationship falls with HRIS HRTA043

Supervisors do not have access today to employee records.

Yes H Requires manager/employee reporting relationships



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Now | Future

End-State Vision


Comments

Contingency plans in place in the event of a time and attendance system failure HRTA037

Contingency plans are not in place today but are in planning phase.

Yes H Forecasting the payroll or processing the same hours as the last payroll

Employees enter labor account and job transfers at the clock HRTA061

Employees do not enter labor account and job transfers

Yes M Employees must understand how to record the transfers

Utilize actual data from the Time & Labor system to more accurately calculate the monthly Payroll accrual for the General Ledger. HRTA036

City does not have an automated Time and Labor system. Only accrues at year end.

Yes H When calculating the monthly payroll accrual for the general ledger, utilize the hours from the Time and Attendance system, this will take into consideration absences, premium pay (via payroll).



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Now | Future

End-State Vision


Comments

Collect data using Biometric device to eliminate "buddy punching" and improve employee verification HRTA028

City does not collect time using biometric devices. Does have 1 device.

Yes M Employees use finger or hand-print readers, voice recognition, or another biometric tool to record start and stop times. City to investigate expanding use.

Employees have the ability to view leave balances online – eliminating need to submit inquiry HRTA050

City can view their leave balances on their pay stubs.

Yes H Track and display accruals and balances (to include forecasting) in time system with ee & mgr access



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Now | Future

End-State Vision


Comments

Ability to process end of year rules for leave entitlements (e.g. carryover/payout/elimination) HRTA033

Not within T&A Yes M An automated process that provides leave management capabilities to ensure accurate balances are paid out, eliminated, or carried over at year end

Elimination of pre-paid vacation payments HRTA17

Current practice is the best practice

Yes L Continue best practice



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Now | Future

End-State Vision


Comments

Exception-based time collection utilized for exempt employees when the organization does not have labor tracking distribution requirements HRTA005

T&A is exception based for full-time. All exceptions must be manually keyed into T&A.

Yes H Web based employee self service modules are available for employees to record exception time with routing of workflow (timecard approvals) to appropriate levels of authority and hours passed to payroll.

Employee absences ratings integrated directly with the performance appraisal process HRTA010

City has no absence ratings.

Yes H The assignment of ratings or points to various absences from should provide input to the empoyee appraisal process.



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Now | Future

End-State Vision


Comments

Time hours reported are utilized in determining FMLA eligibility criteria. HRTA025

Need to track if FMLA applies

Yes M System that reports running total of hours to test FMLA eligibility. Tracking will improve with the implementation of Lawson.

Employee schedules are utilized to facilitate exception reporting HRTA032

City does not currently utilize schedules with the exception of fire & police. May not be used for exception reporting.

Yes H Managers trained in creating, changing and editing employee schedules



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Now | Future

End-State Vision


Comments

After action reviews (forecast vs. actual comparisons) routinely performed by the business manpower manager HRTA041

Mostly done by finance & dept fiscal mgr to ensure budget compliance.

Yes H Standard process for viewing employees reported time to verify data is being properly passed

FMLA usages (both day-to-day usages and status changes) are tracked in time & attendance system where overall balance is maintained HRTA049

FMLA is tracked today but not in a Time and Attendance application.

Yes H Track in time and attendance

Overtime equalization policies exist HRTA044

Overtime equalization policies exist for some groups; required for AFSCME. Not a system function; may be tracked using spreadsheet. Safety may have a separate computerized program due to their complexity.

Yes M Policies, rules and provisions of contracts are configured in the time and attendance application



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Now | Future

End-State Vision


Comments

Overtime equalization is a function of the time and attendance system HRTA046

Time and Attendance is currently a manual process.

Yes H Rules must programmed in system

Utilize analytical tools and reports for up to the minute information for proactive decision making HRTA026

No analytical tools exist today.

Yes H Reports from application will reflect accurate, timely information. Disseminating this labor data throughout the enterprise gives frontline managers and decision makers a more complete picture of their operations


the journey to world-class time and attendance best practices presented to: lawson software, inc. /...

Documents

hackett group

best practices scorecard

attendance best practices

hackettcertified practice

toplevel slide master

measurable value slide

prior written consent

high lowimpacts