Time and Attendance Solutions Still in Demand

A recent survey conducted by Wise Consulting Associates, of Hunt Valley, MD, found that Workforce Management (Time & Attendance) is still a critical issue for many organizations. The survey was conducted prior to the American Payroll Associationís 24th annual Congress, which was held this May in Orlando, FL. Responses were received from organizations ranging in size from several hundred employees to over 10,000 employees, with 80% having over 1,000 employees.

Nearly 25% of organizations surveyed do not have a Time & Attendance solution, and an additional 9% are using custom developed (in-house) or spreadsheet based systems. Heide Dolan, Practice Manager for Time & Labor Management at Wise Consulting says that many HR and Payroll leaders are facing internal pressures to more effectively manage labor costs and drive efficiencies in their organizations. ìOf the organizations we work with, we find some of the most critical issues are Sarbanes Oxley compliance and controls as well as the desire to automate routine, non-value added processes,î says Dolan. In addition to those issues, the survey found that 36% of respondents state that their organization is increasing in size or becoming more complex, demanding a more sophisticated method for managing time and labor. The complexity can be a result of merger/acquisition activity, organic growth or labor union influences. Of those respondents that have unionized employees, 38% are looking for a new time and labor system.

Dolan further noted that attendees at the APA Congress found out how the vendor market has responded to this situation; there were over 40 different vendors offering solutions to this complex issue in the Congress exposition hall. ìFinding the ëbest fití solution from this diverse and complex marketplace is a daunting task, for both large and small organizations. Implementing and deploying those solutions is likewise complex,î added Dolan.

Do your homework
Making sense of the potential time and labor management solutions requires careful attention to detail. Dolan recommends a thorough analysis of requirements prior to contacting any vendors. ìThe due diligence process of defining detailed requirements up front can save a lot of time during the vendor selection process. Establishing a short list of vendors is infinitely easier when a company spends the time detailing time keeping processes, overtime requirements and calculations, shift differentials, break periods and union obligations, etc.î

Defining the organizationís future needs is also critical to the selection process. While mergers and acquisitions may not be predictable, the selection team should focus on the organizationís mission, vision and business plans to identify potential growth or change that could impact the needs from the new time and labor management solution.

ìItís clear from the survey results, and from meeting people at the APA Congress, that time and labor management systems are top of mind for many organizations,î notes Dolan, ìbut the market has many complex solutions.î

Whether upgrading, replacing or just starting out with a time and labor management solution, meticulous system selection and implementation processes will ensure that companies achieve the planned business objectives.

International focus
Over 40% of survey respondents have operations outside the United States, and of those, 70% are preparing for a purchase or have already purchased or upgraded their Time & Attendance solutions in the last two years. ìThe trend towards globalization is reaching new and exciting levels as we are seeing more small to medium-sized businesses with employees outside of the U.S.,î says Joseph Schmitt, Global Practice Manager for Wise Consulting. ìTime & Attendance is now on the list of software solutions that companies demand have a global focus yet local functionality.î Countries most represented by survey respondents included Canada, China, France, Germany, India, Mexico and the United Kingdom.

ìAs we spoke to APA attendees, we heard many stories of not being able to manage international employees. Dealing with the employment, cultural and legal impacts of having international operations consumes a lot of time from both HR and Payroll, but working without a system capable of assisting in these onerous areas makes it that much more difficult,î added Schmitt. ìAffordable solutions capable of international Human Capital Management are in demand in addition to Time & Attendance.î