Using Workforce Management WFM Software Systems to Improve

Using Workforce Management (WFM) Software Systems to Improve Employee Morale Hosted by

Presenters • Mike Ely • Product Manager • Dr. Kevin Smith, SPHR • Vice President, HR Services

Who is Qqest? • Time. Force • Time and Attendance Software and Time Clocks • Payroll Services • Full Service, Guaranteed, Accurate, Payroll Services • People Services • Human Resources and Benefits Administration • Manager Plus • Asset Maintenance and Management Software

Engagement Defined “A psychological state in which employees feel vested interest in the company’s success and are both willing and motivated to perform to levels that exceed the stated job requirements - it reflects how employees feel about the overall work experience…” Mercer “Who’s Working Survey”, 2011

Four Workforce Generations Agree 1. 2. 3. 4. 5. Traditionalists (After 1945) Baby Boomers (1946 -1964) Generation X (1965 -1976) Millennials (1977 -1997) Generation 2020 (After 1997)

Top 10 Desired Employer Characteristics 10. Has employees I could be friends with 9. Will pay for my continuing education 8. Will allow me to work from any location 7. Has a reputation for corporate social responsibility 6. Offers a clear career path

Top 10 Desired Employer Characteristics 5. Is a good employer brand 4. Offers the ability to blend work and life 3. Offers flexible benefits and rewards 2. Will develop my skills for the future 1. Has strong values Source: “The Generations @ Work” survey, Future Workplace

What We’ll Cover Today • Characteristics of a Disengaged Workforce • Causes • Consequences • Solutions

The Disengaged Workforce • 32 percent of employees are seriously considering leaving current employer • 21 percent of employees will stay (but will also have rock bottom scores on key measures of engagement) Mercer’s “What Working Survey”, 2011

The Engaged Workforce • • More profitable More customer-focused Safer More likely to withstand temptations to leave Gallup, Inc. , 2011

Need More? • Gallup, Inc. estimates there are 22 million actively disengaged employees, costing the American economy more than 300 billion dollars in lost productivity Gallup, Inc. , 2011

What Does Disengagement Mean to Us? Decreased Productivity Customer Satisfaction Your Bottom Line Increased Absenteeism Turnover

Absence Makes the Heart Grow Fonder (But it Kills the Bottom Line) • Companies with poor to fair morale had absenteeism costs 1. 5 percent higher than those with good morale… • 250 EE * $20/hour fully loaded = $10. 4 annual payroll • 1. 5 percent = $156, 000 Mercer Human Resources Survey of Employers’ Time-Off and Disability Programs, 2004

Survey Says! Increased OT Overstaffing Decreased productivity - Customer satisfaction Poor morale Name the top 5 costs to your organization caused by unscheduled absenteeism?

Reasons for Unscheduled Absences 19% 20% 17% 18% 16% 17% 15% 14% 12% 10% 11% Poor/Fair 8% Good/Very Good 6% 4% 2% 0% Stress Entitlement Mentality Personal Needs 2007 CCH Unscheduled Absence Survey

Online Survey How Much Does it Costs to Replace an Entry Level Hourly Employee? • $500 • $1500 • $3500 • $5000

So What if They Leave? Employee Turnover is Expensive • $3500 to replace an $8/hr employee* (SHRM) – 50 percent of the annual salary to replace mid-level workers • Declines in productivity are equivalent to 1 to 2. 5 percent of an employee’s salary** *SHRM **The Saratoga Institute

Many Causes / Many Solutions • Workers become disengaged due to a variety of reasons – Economic downturn – Downsizing – Lower wages – Poor management – Personal issues

Old Approach…

Our Focus Today • Policy Administration – Inconsistent (or lax) enforcement of attendance policies is often a source of poor morale • “Why should I struggle to get here on time when Sara is late every day? ” • Alternative Work Schedules – Limited flexibility • Scheduling • Shifts • Personal time

You May Already Have the Tools… • Technology and new practices can be utilized to help • Many WFM software systems have capabilities to help you to reengage your workforce

Food for Thought • 50 percent of employed adults believe their work performance is negatively impacted when attendance policies are not fairly enforced* * Harris Interactive

A Little Time and Attendance Math Each week Johnny comes in late, leaves early or takes a long break for a combined total of 15 minutes each week. How much unworked time did Johnny get paid for after one year? Johnny got paid for 13 hours he did not work.

Mom Always Liked You the Best! • Favoritism – Honor- and Manual Time Systems • Cases in Point (Errors of Bias) – One supervisor… » lets his buddy “slide” on some rules (favoritism) » is lax on enforcement (leniency) » is ridged on enforcement (severity)

Benefits of WFM Software Systems • Consistent Policy Administration – Employees appreciate that Johnny can no longer get paid for time not worked

Benefits of WFM Software Systems continued… • Flexibility • More companies today are offering workplace flexibility programs • • Compressed work weeks Flexible scheduling Telecommuting Part-time • Benefits • Allows EEs to specify preferences and availability • Automates shift swapping & bidding • Self-scheduling

Benefits of WFM Software Systems continued… • Scheduling – Employee preference & availability • Entered by employees • Software warns or restricts if schedule outside of preference / availability • Benefits – Employees have input into their work arrangements – Improves morale by satisfying employee preferences

Benefits of WFM Software Systems continued… • Scheduling continued… – Overtime (OT) • Some may complain of too much OT while others want more • WFM software monitors OT and reports if thresholds exceeded • OT equalization – Advanced WFM systems have OT equalization function that ensures OT is offered equitably to all employees according to company (or union) policies • Benefits – Reduces favoritism – Spreads pain and/or financial rewards evenly

Benefits of WFM Software Systems continued… • Scheduling continued… – Shift Swap • Employee can post a shift they can’t / don’t want to work • Employees with proper qualifications can “bid” for it • Typically requires supervisor approval • Benefits – Provides employee increased flexibility – Simplifies swapping shifts; easier on supervisors

Benefits of WFM Software Systems continued… • Scheduling continued… – Shift Bidding • Employees who want more hours – Go online and see what’s available • Bid for shifts that match EEs’ availability and qualifications • Need supervisor OK • Benefits – Fill shifts without supervisor involvement – Employee has greater control over hours worked

Benefits of Automated Time and Attendance continued… • Attendance Tracking • Interviews with more than 1 million managers and employees showed that recognition matters* – Attendance Tracking Systems can generate Perfect Attendance Reports => Bonus • Benefits – Provides recognition – Lowers payroll costs due to unplanned absenteeism *Gallup, Inc.

Benefits of Automated Time and Attendance continued… • Employee Self Service Portals – Provides 24/7 access to Payroll, HR, and Time Data – Employees can check accrual balances, submit PTO requests, and check statuses of pending requests • Benefit – Provides more information and a little more power into the hand of employees.

Benefits of Automated Time and Attendance continued… • Managerial Decision Making • Hard data for difficult situations • Attendance data • Point systems • Enforces policies • Benefits • Reduction in complaints (Why is Bill always leaving early…? ) • Workforce planning • Who can fill this shift? • Where is this OT coming from?

Summary of Benefits of Using WFM Software Systems • Policy Administration – Consistent Enforcement • • Flexibility Positive Reinforcement Employee Access Managerial Decision Making

Any Questions?

Thank You Mike Ely: MEly@Qqest. com Kevin Smith: KSmith@Qqest. com

A Workplace for All Seasons • Traditionalists • Timeline • Born before 1946 (46 million) • Hallmarks • Loyal, Dependability and Sacrifice, Respect for authority • Defining Invention • Fax machines • Influences • WWII, Korean War, Cold War, Suburbs

A Workplace for All Seasons • Baby Boomers • Timeline • Born between 1946 and 1964 (78 million) • Hallmarks • Competitive, hard work, long hours • Defining Inventions • Television, Personal Computers • Influences • Watergate, Women’s rights, JFK assassination, Vietnam War

A Workplace for All Seasons • Generation X • Timeline • Born between 1965 and 1976 (50 million) • Hallmarks • Self-Reliance, Work/Life Balance, Independence, Free Agents • Defining Invention • Mobile Phone • Influences • MTV, AIDS, Gulf War, Fall of Berlin Wall

A Workplace for All Seasons • Millennials (Generation Y, Google Generation) • Timeline • Born between 1977 and 1997 (88 million) • Hallmarks • Immediacy, hyperconnected, cyber literate, community service oriented, inclusive (accept/seek diversity) • Defining Inventions • Google and Facebook • Influences • Google, Facebook, 9/11 attach, election of Barrack Obama

A Workplace for All Seasons • Generation 2020 • Timeline • Born after 1997 (41 million) • Hallmarks • Hyperconnectedness, mobility, media savvy, life online starting in preschool, ereaders • Defining Inventions • iphone Apps, • Influences • Social Games, Iraq War, Great Recession