Workforce Management Leveraging Your Workforce for 21 st

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Workforce Management Leveraging Your Workforce for 21 st Century Deployment Presented by: Eric Hoffmann

Workforce Management Leveraging Your Workforce for 21 st Century Deployment Presented by: Eric Hoffmann © Ceridian Corporation. All rights reserved. April 25, 2012

Agenda “ 20% – 70% of all costs typically in a company are labor

Agenda “ 20% – 70% of all costs typically in a company are labor costs. Workforce management solutions allow companies not only to better control and manage those costs, but also allow companies to better optimize the deployment of staff to meet business goals. ” – Jim Holincheck, Research Vice President, Gartner What we will cover today … • What is expected of today’s workforce? • How today’s new technologies can help. • Workforce management (WFM) success stories. 2 © Ceridian Corporation. All rights reserved.

What’s expected of today’s workforce? Companies increase net profit margins and overall company valuation

What’s expected of today’s workforce? Companies increase net profit margins and overall company valuation by doing more with less. Year over year growth Fewer or no additional human resources positive growth / fewer workers = increased productivity, profitability, value 3 © Ceridian Corporation. All rights reserved.

Reduce labor costs and improve service levels While labor costs decrease and productivity climbs,

Reduce labor costs and improve service levels While labor costs decrease and productivity climbs, service levels must also improve. Improve service levels Reduce labor costs improve service levels / reduce labor costs = increased value 4 © Ceridian Corporation. All rights reserved.

Reduce workforce management complexity Reduce the time spent on administrative tasks Provide performance-driven visibility

Reduce workforce management complexity Reduce the time spent on administrative tasks Provide performance-driven visibility so managers see the flow-through effects of their decisions and understand how business is impacted Use technology with an intuitive, easy-to-use interface and graphical reporting capabilities 5 © Ceridian Corporation. All rights reserved.

Manage labor more effectively, with accountability s e to s o t L t

Manage labor more effectively, with accountability s e to s o t L t du fi or cos g o r P ab fin 35 l af ive erst s s v o ce Ex 30 Optimized Labor Spend 15 LABOR COST 20 s s o L o uee due t n ve vic ing Re. Poor sedr erstaff un 10 5 0 80% of companies struggle with this balance 6 © Ceridian Corporation. All rights reserved. LABOR 25

Increase return on HCM and improve operations g, n i l edu n, h

Increase return on HCM and improve operations g, n i l edu n, h c e s idatio M v o l r Imp nch va ey WF pu ther k s o tie and activi 7 e c u Red eeism nt e s Ab © Ceridian Corporation. All rights reserved. ard c e tim es e c u ci d a r e R cu c a in

Replace legacy technology with new solutions Upgrades Implementation Consider the total cost of Saa.

Replace legacy technology with new solutions Upgrades Implementation Consider the total cost of Saa. S ownership vs. traditional licensed software. Associated Costs By replacing legacy technology with new, faster, easier-to-use solutions that can also save companies money. Support Fees Maintenance Hardware (Servers) Upfront License Traditional Licensed Software 8 © Ceridian Corporation. All rights reserved. A single, predictable fee that includes: ü License ü Hardware (hosted on secure servers) ü Support ü Upgrades ü Maintenance resources as required Faster, Less Costly Implementation Subscription Fee Saa. S

The solution: state-of-the-art workforce management Scheduling Forecasting & Budgeting Time & Attendance WFM systems

The solution: state-of-the-art workforce management Scheduling Forecasting & Budgeting Time & Attendance WFM systems get the right people, with the right skills, in the right place, at the Overtime right time, for the Mgmt right cost. * Data Metrics Capture Absence Mgmt 9 * Info-Tech Research Group © Ceridian Corporation. All rights reserved. Leave Mgmt & Accruals Tracking

What state-of-the-art workforce management should deliver Enhance Your Financial Performance Focus on Your Core

What state-of-the-art workforce management should deliver Enhance Your Financial Performance Focus on Your Core Business • Maximizes productivity of your workforce with performance-driven planning and scheduling • Reduces time spent on administrative tasks, allowing management and staff to focus on revenuegenerating activities • Alerts managers to overstaffing, overtime and premium scenarios ahead of time so scheduling adjustments can be made • Provides performance-driven visibility so managers see the flow-through effects of their decisions and understand how business is impacted • Ensures hard cost reductions and a fast ROI • Reduces technical support and training costs through superior ease of use for all skill levels r e m o t s Manage Your Risk Cu • Utilizes an intuitive interface so users can take advantage of robust capabilities to improve workforce performance and customer service • Delivers live, interactive KPIs to help managers make the right staffing decisions • Guides managers interactively to avoid labor law violations, ensuring regulatory and union compliance • Improves employees’ work-life balance and reduces turnover • Displays time and attendance data in real time with adjustable detail and helps edit and prevent punching errors © Ceridian Corporation. All rights reserved. Optimize Deployment of Your Workforce • Facilitates more informed workforce planning using traffic data to increase sales conversion • Populates schedules automatically or incrementally, with interactive indicators to easily see and correct overstaffing and understaffing • Ensures the correct number of employees with the right mix of skills are working at any given time

An example of your return on investment How workforce management saves you money Reduced

An example of your return on investment How workforce management saves you money Reduced overpayment from timecard inaccuracies • APA estimates 1%-3% margin of error • Reduced overpayment of employees caused by timecard inaccuracies Punch validation an Forms M ag Turn over Cost s led u ed h c s er Ov urs Ho er T im e y rac d car e m Ti cu Ac Reduction in absenteeism • APA estimates 2. 5 minutes of employee time theft per day – late arrivals, early leaving, long lunches, etc. Pun ch Ab • Unscheduled paid time averted by validating punches against schedules • 2 minutes per employee per day • Reduced absenteeism through absence management, visibility and reporting • 10% reduction with IWFM Val ida tion sen tee ism Improved schedules • Forecast demand schedule to coverage requirements reduces overscheduling by 4%-8% Availability management Proportions may vary based on employee pay type • Respecting employee availability reduces turnover and associated expenses • Up to 15% reduction in turnover depending on employee type Reduced manager time • Fast intuitive user interface reduces manager time in application by 50%-75% Automation and integration • Manual administrative tasks related to HR, Payroll and Workforce Management 11 © Ceridian Corporation. All rights reserved.

Case Study – legacy systems, integration, standardization “We were looking for a solution that

Case Study – legacy systems, integration, standardization “We were looking for a solution that was not only easy to install and use, but also provided us with the ability to better manage our workforce and gave us the kind of significant ROI other(s) have experienced. ” – VP, Human Resources Action • Grew through acquisitions • Disparate legacy systems from different vendors • Lack of standardization • Heavy reliance on manual payroll processes Challenge • After a thorough review, Hoffmaster selected an integrated HR/Workforce Management solution and eliminated the numerous disparate systems • One system of record that integrates WFM and Payroll • Best practices implemented across the company • Consistency • Ability to manage by data Results © Ceridian Corporation. All rights reserved.

Case Study – improved compliance, time & attendance “One of the things (the provider)

Case Study – improved compliance, time & attendance “One of the things (the provider) really helped us with was training, which was especially important for our rollout since we were making some cultural changes…was critical for our implementation’s success. " – SVP of Finance and Controller • Lack of standardization among 26 locations • Over reliance on manual processes • No built-in regulatory compliance system • Too much time spent on tracking/ assigning fund/grant sources to hours worked Action • YMCA chose an automated Workforce Management solution and implemented the built-in legal and regulatory monitoring systems. • Reduced overall labor by over 4, 000 hours in one month. • Reduced payroll support by 2 FTEs. • Ensured YMCA if fully compliant with complex California labor laws and regulations. Results Challenge © Ceridian Corporation. All rights reserved.

Case Study – rapid implementation, improved compliance “We have been especially pleased with the

Case Study – rapid implementation, improved compliance “We have been especially pleased with the ease of using (the solution). The graphical user interface is not only intuitive, but it also simplifies our training efforts. " – HR Director • Following an acquisition, this manufacturer needed to address the different scheduling, organizational and compliance requirements across six facilities. Challenge Action • Nipro chose an integrated Saa. S WFM so solution over the client-server application the parent company had used in the past. • Enabled implementation of a comprehensive payroll and workforce management solution in the cloud. • Eliminated the need to invest in servers and other technologies. • Implemented in record time, saving money. Results © Ceridian Corporation. All rights reserved.

Case Study – integrated WFMS, intuitive interface, improved service “I love (the solution)…it’s important

Case Study – integrated WFMS, intuitive interface, improved service “I love (the solution)…it’s important that it’s visually appealing and that it’s understandable and easy to use. ” – Payroll Manager • Guaranty’s legacy timekeeping solution didn’t integrate well with their payroll platform, draining team productivity and creating employee dissatisfaction. Action • Guaranty selected an automated Saa. S Workforce Management for the integration with payroll and intuitive interface. Challenge • A quick, stress-free implementation across 160 banking locations. • Saved the payroll department at least an hour each pay period. • Automated time clock punches and is intuitive to use. • Addressed security and compliance requirements. Results © Ceridian Corporation. All rights reserved.

WFM Best Practices for Time and Attendance To achieve Best-in-Class in time and attendance,

WFM Best Practices for Time and Attendance To achieve Best-in-Class in time and attendance, companies must* Gain senior executive buy-in for pursuing WFM change Allow employee self-service access to timesheets Automate time and attendance systems to streamline processes Train the managers in the use of workforce management systems Define escalation process for payroll disputes due to time-tracking issues Allow HR to review/approve time data before processing * Aberdeen Group, Time and Attendance Strategies (2011). 16 © Ceridian Corporation. All rights reserved.

WFM Best Practices for Time and Attendance To achieve Best-in-Class in scheduling, companies must*:

WFM Best Practices for Time and Attendance To achieve Best-in-Class in scheduling, companies must*: Involve operational managers to define KPI for deployment and during evaluation Use time and attendance data to make scheduling decisions Allow employees access to schedules and bidding for shifts Define metrics to determine the effectiveness of scheduling strategies Define escalation process for scheduling issues (such as unfairness) beyond supervisors Automate and integrate scheduling (and time) data into business data * Aberdeen Group, Workforce Scheduling 2011 (2011). 17 © Ceridian Corporation. All rights reserved.

Results What does it mean to be the Best-in-Class in Workforce Management? ü 90%

Results What does it mean to be the Best-in-Class in Workforce Management? ü 90% scheduling accuracy ü 0. 5% payroll error ü 0. 5% error in time tracking ü 0. 6% in paid-time accruals ü 9% improvement in compliance scores ü 11% year-over-year improvement in customer satisfaction ü 4% of total overtime costs are unplanned Time and Attendance Scheduling * Aberdeen Group, Workforce Scheduling 2011 and Time and Attendance Strategies (2011). 18 © Ceridian Corporation. All rights reserved.

Conclusion “A recent examination of ROI case studies found the average company gets back

Conclusion “A recent examination of ROI case studies found the average company gets back $7. 88 for every dollar invested in workforce management (WFM) applications. With such high returns to be earned on these technologies, management teams should consider WFM to be one of the most attractive investment opportunities available to the CFO. ” – Nucleus Research, December 2011 What we covered today … • What is expected of today’s workforce? • How today’s new technologies can help. • Workforce management (WFM) success stories. 19 © Ceridian Corporation. All rights reserved.

Eric Hoffmann, Director Ceridian Dayforce Workforce Management eric. hoffmann@ceridian. com

Eric Hoffmann, Director Ceridian Dayforce Workforce Management eric. hoffmann@ceridian. com