The Journey to World-Class

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Nov 29, 2013 (3 years and 11 months ago)

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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



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Statement of Confidentiality and Usage Restrictions


This document contains trade secrets and other information that is company sensitive, proprietary, and confidential, the disc
los
ure of which would
provide a competitive advantage to others. As a result, the reproduction, copying, or redistribution of this document or the
con
tents 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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3

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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4


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
-
class performance metrics

Best Practices Defined:

A Hackett
-
Certified Practice is a proven technique that delivers measurable value




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5

Best Practice

Current Practice

Usage

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

Coverage

High


Widespread impact on the enterprise and/or significant value
-
add

Medium

Impacts multiple areas, value
-
add is significant but less relative to
processes ranked as High

Low

Impacts a single area of has limited span of adoption throughout the
enterprise

Applicable

Yes

Adoption of the best practice is in line with current/future business
needs

No

Best practice does not fit the current business needs

Comments

Statements 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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6

Best Practice Session



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7

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
-
time

labor 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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8

Time and Attendance

Best 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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9

Time and Labor


Best Practice Assessment

Best Practice

Current Practice


Usage

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 Usage
No Usage
Strong Usage


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10

Time and Labor


Best Practice Assessment

Best Practice

Current Practice


Usage

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 1
st

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.

No Usage
Strong Usage
No Usage
Strong Usage


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11

Time and Labor


Best Practice Assessment

Best Practice

Current Practice

Usage

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.

No Usage
Strong Usage
No Usage
Strong Usage


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12

Time and Labor


Best Practice Assessment

Best Practice

Current Practice

Usage

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

No Usage
Strong Usage
No Usage
Strong Usage


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13

Time and Labor


Best Practice Assessment

Best Practice

Current Practice

Usage

Now | Future

End
-
State Vision

Applicability Coverage


Yes


No H


M


L

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

No Usage
Strong Usage
No Usage
Strong Usage


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14

Time and Labor


Best Practice Assessment

Best Practice

Current Practice

Usage

Now | Future

End
-
State Vision

Applicability Coverage


Yes


No H


M


L

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

No Usage
Strong Usage
No Usage
Strong Usage


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15

Time and Labor


Best Practice Assessment

Best Practice

Current Practice

Usage

Now | Future

End
-
State Vision

Applicability Coverage


Yes


No H


M


L

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

No Usage
Strong Usage
No Usage
Strong Usage


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16

Time and Labor


Best Practice Assessment

Best Practice

Current Practice

Usage

Now | Future

End
-
State Vision

Applicability Coverage


Yes


No H


M


L

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

No Usage
Strong Usage
No Usage
Strong Usage


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17

Time and Labor


Best Practice Assessment

Best Practice

Current Practice

Usage

Now | Future

End
-
State Vision

Applicability Coverage


Yes


No H


M


L

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


No Usage
Strong Usage
No Usage
Strong Usage


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18

Time and Labor


Best Practice Assessment

Best Practice

Current Practice

Usage

Now | Future

End
-
State Vision

Applicability Coverage


Yes


No H


M


L

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).

No Usage
Strong Usage
No Usage
Strong Usage


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19

Time and Labor


Best Practice Assessment

Best Practice

Current Practice

Usage

Now | Future

End
-
State Vision

Applicability Coverage


Yes


No H


M


L

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

No Usage
Strong Usage
No Usage
Strong Usage


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20

Time and Labor


Best Practice Assessment

Best Practice

Current Practice

Usage

Now | Future

End
-
State Vision

Applicability Coverage


Yes


No H


M


L

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

No Usage
Strong Usage
No Usage
Strong Usage


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21

Time and Labor


Best Practice Assessment

Best Practice

Current Practice

Usage

Now | Future

End
-
State Vision

Applicability Coverage


Yes


No H


M


L

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.

No Usage
Strong Usage
No Usage
Strong Usage


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22

Time and Labor


Best Practice Assessment

Best Practice

Current Practice

Usage

Now | Future

End
-
State Vision

Applicability Coverage


Yes


No H


M


L

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

No Usage
Strong Usage
No Usage
Strong Usage


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23

Time and Labor


Best Practice Assessment

Best Practice

Current Practice

Usage

Now | Future

End
-
State Vision

Applicability Coverage


Yes


No H


M


L

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

No Usage
Strong Usage
No Usage
Strong Usage


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24

Time and Labor


Best Practice Assessment

Best Practice

Current Practice

Usage

Now | Future

End
-
State Vision

Applicability Coverage


Yes


No H


M


L

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

No Usage
Strong Usage
No Usage
Strong Usage