managing your aca strategy: maintaining compliance through automation and integration

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Managing Your ACA Strategy: Maintaining Compliance Through

Automation and Integration

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Speaker: Michael Moon Research Director The Aberdeen Group

Managing Your ACA Strategy: Maintaining Compliance Through

Automation and Integration

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MANAGING YOUR ACA STRATEGY: MAINTAINING COMPLIANCE THROUGH AUTOMATION AND INTEGRATION April, 2015

Ms. Michael M. Moon, Research Director, HCM Aberdeen Group

Sponsored by:

9

MICHAEL M. MOON

Research Director, HCM Aberdeen Group

Over 15 years experience in human resources as an analyst, practitioner and academic. Industry Experience:

•  Senior HCM Research Analyst, i4cp •  15+ years in various HR roles at Thomson Reuters, Vistaprint, Raytheon,

Fleet Bank, John Hancock, and Getronics

Education and Certifications: •  PhD Candidate, Human Capital Management, Bellevue University •  Bachelor of Science, Theatre from Eckerd College •  Master of Music, Musical Theatre from the Boston Conservatory •  Master of Science, Human Resources from Suffolk University •  PHR (HRCI) •  Member of NEHRA and IHRIM

TODAY’S SPEAKER

10

OBJECTIVES

You will learn how to: •  Align your workforce management strategy with

your overall talent strategy •  Adapt your workforce management strategy to

help you cope with this complex law •  Understand the role technology plays to

properly manage compliance and facilitate greater efficiencies across the organization

11

TODAY’S AGENDA: 1.  Topic – Aberdeen Research Methodology

2.  Topic - Human Capital Trends (2015)

3.  Topic – Best-in-Class Workforce Management Strategies

4.  Topic – ACA Compliance

5.  Topic – ACA Staffing Strategies

6.  Topic - Investments in Technology

7.  Topic – Benefits of Automation

12

ABERDEEN’S RESEARCH METHODOLOGY PACE: END-USER INVESTIGATION

PRESSURES ACTIONS CAPABILITIES ENABLERS

External and internal forces that impact an organization’s market

position, competitiveness, or

business operations.

The strategic approaches that an

organization takes in response to industry

pressures.

The business capabilities (organizational, process, knowledge management etc.) required to execute

corporate strategy.

The key technology solutions required to

support the organization’s business

practices.

What is causing organizations to think

differently?

What strategies are they using to respond

to pressures?

Why are they achieving greater success?

What technologies and services are enabling

them to succeed?

!

13

ABERDEEN MATURITY CLASS FRAMEWORK DEFINING THE BEST-IN-CLASS

Selected Performance Criteria (KPI)*

Organizational Goals

Employee Performance

Bench Strength

Total Respondents

- Top 20%

- Middle 50%

- Bottom 30% Respondents are scored individually across KPI

Best-in-Class

Industry Average

Laggard

*example KPIs

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UNDERSTANDING WHAT IT TAKES TO ACHIEVE SUCCESS

What you need to do to become Best-in-Class: §  What processes you should have

in place

§  What do you need to measure

§  Organizational changes you might want to make

§  Data / Knowledge management considerations

§  Technologies you should evaluate

Best-in-Class

Industry Average

Laggard

P A C

E

HUMAN CAPITAL TRENDS - 2015

16

DEFINING BEST-IN-CLASS HCM DEFINITION MEAN CLASS PERFORMANCE

Best-in-Class: Top 20% of aggregate performance scorers

• 9.9% decrease in voluntary employee turnover

• 86.9% of employees rated as “highly” engaged

• 30.3% increase in customer satisfaction rates

Industry Average: Middle 50% of aggregate performance scorers

• .6% decrease in voluntary employee turnover

• 58.6% of employees rated as “highly” engaged

• 5.9% increase in customer satisfaction rates

Laggard: Bottom 30% of aggregate performance scorers

• 4.4% increase in voluntary employee turnover

• 30.4% of employees rated as “highly” engaged

• 2.0% decrease in customer satisfaction rates

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PRESSURES What are the top three PRESSURES driving your organization's HCM efforts in 2015?

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PRESSURES ARE A’ CHANGING

A scarcity of critical talent available in the marketplace

Controlling labor costs through better

workforce management

The cost and complexity of delivering effective learning and leadership development

The desire to provide better organizational

visibility into HCM data

1st

2nd

3rd

4th

1st

2nd

3rd

4th

62%

38%

47%

43%

37%

68%

57%

42%

2015 2014

n=246 Source: Aberdeen Group, March 2015

19

STRATEGIC ACTIONS In order to execute on your organizational strategy in the coming year, what are the top three STRATEGIC ACTIONS pertaining to HCM that your organization is pursuing?

20

STRATEGIC ACTIONS – TOP THREE 1.  64.3% - Ensure that human capital management talent

strategy is continually adapted to align with changing business

strategies

2.  46.7% - Place a greater focus on developing leadership skills

3.  46.2% - Identify gaps between current workforce skills

(supply) and anticipated future business requirements

(demand)

– 83% - critical for HR leader of the future

21

BEST-IN-CLASS DIFFERENCE

22

CAPABILITIES

23

MOBILE ACCESS TO WFM

CORE HR/WFM STUDY – MAY 2014

25

CLEARLY DEFINED WFM POLICIES ARE KEY

Workforce capacity utilization

Payroll error rates

Unplanned/unbudgeted

overtime

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BEST-IN-CLASS CAPABILITIES

Processes/Procedures

• Scheduling policies are defined and communicated to

managers and employees

• Process in place to properly escalate HR inquiries

• Regular audits of HR data and processes

Access to data

• Managers have access to real-time reporting on time and

attendance data

• Workforce data required by the business is clearly

defined

Integration

• Core HR functions are integrated with talent

management systems (e.g., recruiting, onboarding, etc.)

• Time and attendance system is integrated with

scheduling system

Capabilities

ACA

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ACA – MAJOR IMPACT

52%...

…believe that US healthcare reform and the Affordable Care Act (ACA) will have a major impact on their organization's workforce management strategy in the coming year.

29

CHALLENGES

30

ACA PRESSURES: 2013-2015

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POLL QUESTION: Which most closely describes your current plan/strategy for dealing with the ACA? 1.  Eliminate group benefits and push all employees to the

individual market via the public exchange

2.  Continue with current staffing model and offer coverage to additional employees as required

3.  Continue with current staffing model and pay the fees / penalties as required

4.  Increase use of contingent / temporary staff to mitigate risk associated with costs of full-time employees

5.  Move to an outsourced benefits administration model

6.  Reduce overall number of employees but increase hours to get the most productivity out of covered individuals

32

RESPONDING TO ACA: STAFFING STRATEGIES

33

CONTINGENT LABOR FILLS GAPS

34

CONTINGENT LABOR

36% of all respondents (n=146) plan to increase the size of your temporary workforce in the next 12-24 months.

58% believe utilizing a temporary/contract workforce is imperative to the successful operation of their organization

TECHNOLOGY

36

IMPACT ON INVESTMENTS IN WFM TECHNOLOGY

35%

37

ACA AND TECHNOLOGY

44% - Move to an integrated workforce management suite 25% - Move to a cloud-based solution provider

38

BENEFITS OF WORKFORCE MANAGEMENT AUTOMATION

•  Reduce the time spent on workforce management by HR

•  Improve the accuracy of employee data (e.g. reduction in payroll errors)

•  Reduce the time spent on workforce management by the business

•  Reduce labor costs (less administration and unplanned/unbudgeted OT)

•  Reduced penalties and fees (from lack of compliance)

•  Better workforce visibility

39

IMPACT OF AUTOMATED TIME AND ATTENDANCE*

*Core HR/WFM study - 2014

40

REDUCED LABOR COSTS*

*Core HR/WFM study - 2014

THANK YOU

QUESTIONS?

If you’d like to receive Aberdeen research to your inbox,

please join our community by visiting:

www.aberdeen.com

42

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.

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