Human Capital Management vs. Workforce Management: Similar terms with different meanings

By Corey Clacher, Kronos SaaShr Marketing Specialist

As a service provider, you’ve likely heard the term “Human Capital Management” (HCM) being used more frequently in the industry. With the continual advancement of technology and the evolution of the typical service organization into a one-stop-shop for all of their clients’ workforce needs, the term “Workforce Management” (WFM) is losing its foothold and becoming industry jargon of the past. If you’re still using the term “WFM” when referring to the solutions you offer your clients, you may want to consider transitioning your marketing to focus on HCM in order to better represent what you’re offering your clients.

You may be asking yourself if there’s really a difference in meaning between the two terms or if they can be used synonymously to mean the same thing. Fortunately, I’ve come with answers to your burning HCM questions. In short, yes the terms are different and no, you shouldn’t use them interchangeably when referring to your automated platform. I’ll tell you why below.

To put it simply, look at WFM as a subset of HCM. WFM solutions cover areas such as clients’ time and attendance, scheduling, and absence/ACA management needs but don’t necessarily incorporate other areas of workforce needs like HR and payroll. However, a proper HCM solution handles ALL of your clients’ needs, encompassing areas of HR management like benefits administration, recruitment/talent acquisition, and compensation management in addition to payroll management such as tax filing, check printing, and gross-to-net calculations. If you’re a full suite Kronos SaaShr licensee, hopefully you’re leveraging your technology offering as a complete, all-in-one HCM solution.

hcm

Of course, not all HCM solutions are created equal. And while some vendors claim to offer complete and integrated HCM solutions, under the surface they simply aren’t. At its core, integration between time management, scheduling, HR, and payroll modules are essential to be classified as a true HCM platform. Of course, the Kronos SaaShr HCM solution takes it a step further by offering one single unified platform for the entire workforce. That means a single employee record, a single source of truth, and a single user interface between all modules.

A unified platform means a single login to access all system capabilities and a common user interface, database, reporting engine, and security point. These capabilities allow users to view key data in real time and help to eliminate error-prone duplicate data entries and reduce reporting complexities that lead to noncompliance risks.

When offering one unified HCM platform to your clients, you should have a fully comprehensive solution that can address the needs of their entire workforce, empower their employees with self-service tools, and enforce their policies accurately and consistently. Providing your clients with an automated HCM solution to streamline their administrative tasks allows them to attract and retain top talent, successfully manage the employee lifecycle, engage their workforce, and most importantly, allows them more time to focus on people, not processes.

So the next time you’re demonstrating the features and benefits of your HCM offering to a prospect, don’t sell yourself short. If you’re a Kronos SaaShr licensee, you’re at the forefront of HCM technology. You no longer offer just a WFM tool, you provide your clients with a unified HCM solution backed by your expertise and support to handle all of your clients’ workforce challenges.

Do You Offer the Right HCM Solution for Your SMB Clients?

By Corey Clacher, Kronos SaaShr Marketing Specialist

With constant adjustments to complex labor law changes, a more diverse workforce, and an overall greater reliance on workplace technology, human capital management (HCM) automation is just as critical for small to mid-sized businesses (SMB’s) as it is for enterprise companies today. More and more SMB’s are transitioning from antiquated manual processes by trading their haphazard spreadsheets and endless stacks of paper timesheets for a more efficient and cost-effective alternative with HCM automation and outsourcing.

Service providers know that unnecessary manual processes cost businesses more than just time, they cost them extra money as well. Incorrect pay rates, missed punches, and meal breaks aren’t always captured correctly when they are entered at the time of work or when processing payroll. In fact, the American Payroll Association found that manual employee reporting issues cost a business $1085 on average per employee per year [1]. Times that by even 10 or 20 and these organizations could find themselves in a real deficit, which doesn’t even include fines associated with noncompliance to labor laws such as FLSA and FMLA.

As SMB’s are typically on a small business budget, hiring employees just for tasks associated with HR, payroll, and time and labor management just isn’t feasible. With no dedicated staff to handle these essential processes, SMB’s often rely on their employees to complete theForm Confusionse disjointed tasks themselves. Relying on regular staff to complete HCM processes creates a greater risk for human error, introducing issues such as duplicate data entry and accidental overpayments. It also consumes employees’ time that could be better spent on their actual job responsibilities and not back-office tasks.

For example, it takes employees 5 to 6 minutes to total and audit each manual time card with organizations experiencing anywhere from a 1% to 8% clerical error rate [2]. With the guidance of HCM solutions in combination with skilled service providers, SMB’s can focus on running a successful organization and reaching their bottom line.

With today’s game-changing cloud-based HCM technology, created specifically for the SMB market, smaller businesses can now reap the same benefits that larger enterprise businesses do with affordable HCM automation. With the right HCM solution and your expertise as a skilled service provider, you can help your SMB clients’ take charge of their back-office complexities with their ability to:

  • Data TrappingView real time visibility into employees’ hours
  • Receive auto alerts to notify managers of missed punches, absences, and late punches
  • Accurately and effectively collect employee time data through integrated flexible devices
  • Establish rounding rules for consistency in enforcing grace periods
  • Automatically send correct calculated hours to their payroll system
  • Manage exceptions and trends – early/late arrivals, absences, long or missed breaks, overtime, and missed punches
  • Receive accurate and precise employee paychecks
  • Obtain regional service and support from trained specialists

Interested in learning more about how you can service your SMB clients through a private-label solution designed with them in mind? Check out how Kronos SaaShr can help by providing you with the latest cutting-edge technology and dedicated support you need to stand out from the rest.

[1] The WFC Group, (2014) Buddy Punching: How Much Is It Costing Your Business?, Retrieved from: http://www.thewfcgroup.com/2014/01/06/buddy-punching-costs/

[2] The WFC Group

Benefits of HCM Technology: Employee Self-Service

By Corey Clacher, Kronos SaaShr Marketing Specialist

Looking for that perfect angle to close your next deal? If you offer a platform with “employee self-service” functionality, you’ve got a strong tool on your side that might just make the sale. Employee self-service refers to the ability for employees to access their personal records, and manage aspects of the application that relate specifically to them.

Examples of this range from basic tasks like viewing and submitting time off requests, to accessing historical pay statements and W-2s, all the way up to more complex ones like enrolling in benefit plans or making changes to direct deposit. These are things that, in the past, HR staff may have had to manage themselves, which took time away from being able to execute other tasks. It’s a feature that undoubtedly saves businesses time and money while providing their employees with greater control and a more efficient way to manage their own workforce management needs.Self-Service

Handling employee questions and concerns regarding withholdings, overtime, time off balances, benefits, and more can be a time consuming and costly undertaking for businesses without the proper human capital management (HCM) self-service technology in place. On average, over 50% of a human resources department’s time is spent processing employee information and answering questions[1]. Even simple tasks such as processing time off requests or swapping shifts can be a major headache for HR staff who have to take valuable time away from their other work to handle it.

In addition, updating important employee information is prone to errors and highly inefficient when completed by a third party. With employee self-service technology, the onus is on the employee to ensure they submit the correct information. And an employee managing their own tasks is far more likely to make errors, because they’re personally affected by any mistakes.

Without HCM self-service in place, businesses will pay an average of $19.67 for every payroll inquiry resolved[2]. Costs like these can add up quickly and create a significant strain on businesses, especially those in the SMB space. As a younger, more technology-focused workforce enters today’s workplace, streamlining and simplifying HCM tasks are not only encouraged but often required, even for SMB’s.

Not only that, but employees have shown that they like how self-service technology provides them extra visibility and control of their personal data and tasks in the workplace without relying on HR staff to do it. They feel empowered by the ability to get their info when they want it, and to be able to make necessary changes that happen almost immediately. By creating greater freedom through self-service, employee engagement can be increased making for an overall happier and more productive workforce.

Are the prospects you speak with empowering their employees by giving them the flexibility and access to manage their own information and at the same time, streamlining otherwise tedious processes?

Through Kronos SaaShr’s HCM solution, they can. With benefits including:

  • Expediting the response to HR and payroll inquiriesMobile
  • Providing employees access to update and view personal records such as schedules, timecards, accrued time-off balances, and pay statements at their convenience
  • Providing managers with the ability to approve time-worked and time-off requests
  • Offering self-service features online and on mobile devices such as reviewing, approving, annotating, and submitting timesheets
  • Allowing remote employees to complete common HCM-related tasks anywhere, anytime

With the self-service features mentioned above, organizations can typically count on a 20% to 25% savings in HR time, allowing them to focus their efforts on more important tasks[3]. Time and cost savings associated with HCM self-service clearly speak for themselves. On your next demo, discuss your platform’s employee self-service functionality with your prospects as one more valuable benefit to overall HCM technology.

To learn more about the Kronos SaaShr HCM solution and our partnership opportunities, visit us here.

[1] Lawler, E. & Noudreau, J., (2010) Center for Effective Organizations at the University of Southern California. Retrieved from: http://ceo.usc.edu/news/

[2] The Bureau of National Affairs, Inc., Payroll Benchmark Report, Payroll Benchmarks and Analysis 2011

[3] CedarCrestone, 2009-2010 HR Systems Survey: HR Technologies, Deployment Approaches, Value, and Metrics

Human Capital Management Solutions: A vital tool in today’s workplace

 

By Corey Clacher

As businesses continue to face obstacles and challenges in today’s industry, more and more employers are looking to make manual administrative tasks more precise, efficient, and seamless. Businesses considering automating processes such as payroll, human resources, and time and labor tasks are increasingly turning to Human Capital Management (HCM) solutions to get the job done. As the workplace continues to shift to a more technologically-driven environment, businesses are finding that managing their workforce needs on a single cloud-based platform is not only a suggested practice but essential to their success.

Even for small and mid-sized businesses, dated manual HCM processes are clumsy and inadequate. Specific challenges around changing labor laws, the rise of a workforce that increasingly expects to work with technology over paper, and the growing emphasis on employee engagement require businesses of all sizes to think beyond manual processes. Take a more in-depth look below and see how HCM solutions are addressing these common obstacles today’s businesses are facing.

Combatting Complex and Rigorous Labor Laws

With changes in labor laws such as the Affordable Care Act (ACA) and the Fair Labor Standards Act (FLSA) affecting all businesses in every industry, it becomes virtually impossible to properly manage a workforce without the help of HCM automation. Spreadsheets, homegrown reports, and manual calculations are no match for the complexities of new labor law changes.

With a single miscalculation potentially costing thousands of dollars in penalties and legal fees, businesses know that there’s no room for error as labor laws continue to become more stringent. FLSA and ACA changes demand HCM automation, allowing businesses to take a proactive approach in managing their labor law compliance strategies. Features such as robust reporting, management dashboards, and 24/7 access to real-time data allow businesses to maintain compliant and avoid potentially crippling consequences.

Accommodating a New-Age Workforce

It’s no secret that the faces of today’s workforce are noticeably changing. Millennials are entering the workplace in substantial numbers, already with a more advanced level of technological skill compared to their older counterparts. According to the Bureau of Labor Statistics, they are now currently the largest population in the workforce today.

Businesses with outdated practices are finding it increasingly difficult to stay competitive as they’re incapable of attracting and retaining younger hires who are expecting a certain level of technological advancement in the workplace. Traditional business culture is also changing. Employee work schedules are becoming more flexible and the amount of remote employees is growing. With cloud-based HCM solutions, businesses can satisfy both types of employees. Advanced technology allows millennials to access their real-time information wherever and whenever they want it and avoids disparate processes and stacks of unorganized documents. It allows employees to punch in and out anywhere, even on their mobile device, and it keeps a workforce in sync with scheduling changes, company updates, and more.

The Key to Employee Engagement

A business’s workforce is truly their greatest asset. Businesses today that lack a certain level of engagement with their workforce are suffering from a shortage of new employee talent and are remaining stagnant in their market. In fact, evidence shows that a more engaged workforce leads to happier individuals and overall greater success. According to Talent Culture, highly engaged employees are 38% more likely to have above-average productivity.

By simply automating HCM, businesses can stay competitive in their market, grow workforce productivity, and improve their overall bottom line. Features such as self-service functionality from onboarding to offboarding gives employees insight into HCM processes and allows them to take charge of their own information, giving them increased decision making abilities such as scheduling preferences, benefits administration, etc. Some HCM solutions even allow employees to keep track of their performance reviews and job training.

Don’t just take our word for it! Learn more about how HCM solutions can help businesses solve today’s workforce challenges by downloading Managing Your ACA Strategy: Maintaining Compliance Through Automation and Integration.

About Corey Clacher:

Corey is a Marketing Specialist at Kronos SaaShr, responsible for creating marketing and educational content around Human Capital Management technology along with other responsibilities within the department.

6 Reasons You Should Consider Offering Cloud-Based HR Solutions

By Corey Clacher

Are you thinking about offering cloud-based HR solutions to your clients? If you’ve had a chance to catch up on your industry news recently, you’ve likely noticed a massive shift within the small and midsize business (SMB) marketplace to automate their HR processes. In the past, smaller businesses may not have found cloud-based HR software feasible or even practical but now with continuous changes of labor laws, a steady increase in the cost of employee turnover, and an emphasis on employee engagement, businesses are starting to reevaluate HR in the cloud. SMB’s that aren’t capitalizing on cloud-based HR solutions to automate their daily processes feel the negative effects of repetitive manual procedures and oftentimes find themselves falling behind their counterparts.

Employers who invest money into automating their HR processes are the companies who understand the value of employee satisfaction, which often leads to an increase in work productivity, quality of customer service, sales revenue, and much more. It is up to you as an experienced service provider to demonstrate the true value of automating a business’s HR functions by explaining the features and benefits of adopting a cloud-based HR system.

If you’re still wondering whether offering HR outsourcing and software services is right for you, we’ve just made it a little easier. Below we’ve included the top 6 reasons why automating HR processes for SMB’s can save them time, money, and energy while improving your bottom line as their service provider.

  1. Increases Employee Engagement

With cloud-based HR software, companies are able to engage with their employees more effectively in real time and all in one place. Features like skills tracking, employee directories, documents and forms libraries, core values and goals tracking, assessments, and forums for company events and news help employees stay connected with each other and their employer.

  1. Enhances Insight

New advancements in HR software like data analytics and business intelligence help companies to stay well informed, make sound business decisions, and plan for the future. Cloud-based HR technology provides instantaneous access to essential information all in one place, allowing businesses to spend more time analyzing the data that is most important to them.

  1. Saves Time and Money

Manual HR processes such as retrieving and storing employee records, sorting through job applications one-by-one, and referencing numerous spreadsheets in different locations are unquestionably tedious and inefficient. Manual HR processes cost a lot of time, money, and energy for businesses, oftentimes requiring them to hire additional staff to perform these monotonous back-office tasks. Automation of processes such as recruitment, benefits administration, training, compensation, and more can save businesses time and money by reducing staffing needs and allowing other employees to focus their efforts on more important tasks.

  1. Heightens Security

Storing all confidential employee documents into a single, secure database backed by multi-factor authentication helps to make sure all private information remains contained in one central location. Businesses spanning multiple locations are able to relax knowing that all of their employees can stay connected with access to the same information in a single location. Security issues such as emailing private documents to the wrong people, losing important employee information, or allowing non-authorized employees to access sensitive materials are eliminated.

  1. Easy Integration

Cloud-based Payroll and Time and Attendance applications can be fully integrated with HR solutions to provide full circle automation across all processes. Third party integration is made easy with HR automation also. With a single click, businesses can access all of the services they need through the convenience of one platform. Services such as social security verification services, carrier connectivity, background checks, and applicant/candidate self-service can all be integrated with a business’s cloud-based HR system.

  1. Eliminates Human Error and Improves Accuracy

A cloud-based HR system takes the human error out of daily processes. Manually entering employee information on paper or calculating formulas in spreadsheets oftentimes leads to errors and inconsistencies, which could cost a company thousands of dollars in penalties. Constant changes to labor laws such as the Fair Labor Standards Act (FLSA) and the Affordable Care Act (ACA) can make it difficult for SMB’s to remain compliant without the proper resources. Fortunately, some cloud-based HR platforms offer resources such as an ACA manager and an HR compliance library to ensure businesses remain compliant.

There’s no doubt that today’s workforce is transforming and relying more heavily on technology to help get the job done. Offering additional services to your clients such as cloud-based HR solutions can provide you with the advantage and flexibility to help keep ahead of the competition.

To learn more about our cloud-based HR solution, click here to download an overview of our HR application features.

About Corey Clacher:

Corey is a Sales & Marketing Specialist at Kronos SaaShr responsible for the  marketing programs and content creation of the company along with other responsibilities within the department.

Getting Ready for a Refreshing New Look at Human Capital Management

By Josh Davis

The new user interface (UI) of tomorrow is coming to the industry’s leading human capital management platform that has a single database across all applications…

Are you one of the select service providers that will have access to this for your clients? If so, here are three ways you can prepare

And if not, maybe it’s time to take a look at our partnership opportunities.

  1. Update Your Websitenewdash

Chances are you have some visuals of the platform on your website. It’s time to replace those. Also, does the look of your website reflect the consumer-grade UI you’ll be gaining access to and providing moving forward? As businesses come to expect the same level of technology they experience in their personal lives as in their professional lives, does your existing website convey that? The last thing you want is to have the best solution a company could ask for, but they wouldn’t know it because they never reached out after landing on your website, which looked great in 1995. If needed, redesign and clean up your website – you’re providing web-based software!

Also, replace dated language throughout your website with fresh and detailed industry buzzwords – like “SaaS payroll” or “HCM SaaS”, that will increase search engine visibility. Leverage social media sites like Twitter, Facebook, and LinkedIn to actively promote your company’s updated website and the new UI to keep everyone “in the know”.

  1. Refresh All Your Tools And Materials

All of the marketing tools and materials – both digital and traditional – should be thoroughly reviewed and updated wherever necessary.

Be sure to remove all irrelevant or outdated digital resources in order to maintain consistency throughout your website. Revitalizing your content will help to ensure that everything is relevant to current human capital management trends and consistent with your renewed focus on user interface and user experience. The more up-to-date your downloadable offers are, the more effective they will be in converting traffic that visits your site. By updating your online materials, you will not only do a better job converting suspects into prospects, but will have the opportunity to provide these to existing clients if there are upsell opportunities. After updating all of your materials, it’s always a good idea to test ALL the links and clickable icons to make sure your entire site is working properly.

These materials obviously only shouldn’t be updated on your website, but you’ll want to update all of your printed materials as well – that you’re taking to tradeshows, prospect meetings, etc. And these spread the gamut – stuff like printed brochures, booth displays, direct mailers, or print ads to name a few.

  1. Prepare Your Constituents

Of all the ways to prepare for the new UI refresh, getting your constituents on board may be the most challenging, but it certainly doesn’t have to be. Planning ahead and taking a proactive approach to accommodate the needs of clients, prospects, and employees will help to make the transition a lot easier for everyone. Remember, the new interface has not removed or added core functionality of the existing software, but was rather created to simplify the interface, streamline navigation, and improve the overall experience for partners and end-users alike. It is important to give your employees sufficient time to use the new UI layout so that they are able to navigate the interface with ease and support clients effectively as soon as the change happens.

Keeping in communication with your client base is imperative before and during the UI refresh. Let your clients know of the upcoming improvements to the system through in-software updates, email, by phone, etc. Use your updated company website as a support tool by creating blog posts and forums aimed at engaging clients and answering their questions and concerns. As experienced service providers, you are the face of the software for your entire client base and should play a key role during this transition.

As the UI refresh approaches, we hope that you can apply some of these tips as we all embrace the improvements right around the corner. Use the new UI refresh as an opportunity to do some refreshing of your own to better service your clients and gain new business.

About Josh Davis:

Josh is the Channel Marketing Manager at Kronos SaaShr, and is responsible for driving the marketing strategy and plan aimed at increasing the growth of existing channel partners in addition to the recruitment of new channel partners.

4 Reasons Businesses Need to Be Outsourcing to a Local Service Provider

By Colin Menchin

As we roll out our final video in the Workforce Management Trends Series, we are focusing this week on the benefits of outsourcing a business’s workforce management needs. No matter the size, all businesses are required to manage their workforce in one way or another. Whether that’s through processing payroll, recording employee work hours, or even performing HR functions. It’s an ongoing process that has to be done promptly and more importantly, it has to be done right.

For small to midsized businesses, dealing with the everyday challenges of maintaining a successful operation can be stressful enough, let alone adding back office tasks to the mix. The one way for businesses to eliminate these often mundane and time-consuming tasks is to automate and outsource them to you, a trusted service provider. By offering your services and expertise in combination with an automated workforce management platform, businesses can finally get back to focusing on what they do best.

As you may know, the benefits of outsourcing workforce management functions are plentiful. However, we have included the top four reasons why outsourcing is beneficial (if not essential) to the success of small to midsized businesses.

  1. Lowers business expenses by reducing labor costs.

Automating and outsourcing workforce management processes results in fewer responsibilities for a business to have to worry about. This eliminates the need for unnecessary labor, such as bookkeeping or administration and allows the business to invest their money where it really counts.

  1. Helps businesses to minimize liabilities.

With constant changes in labor laws and regulations, and the intricacies of processes like tax filing, it becomes nearly impossible for smaller businesses to stay abreast of every detail involved. Noncompliance can become a huge problem for businesses, costing them thousands of dollars in penalties and legal fees. However, businesses who outsource these processes can breathe a sigh of relief knowing that their service providers stay well-informed with all current laws and regulations to help them remain in compliance.

  1. Increases overall workforce productivity.

Outsourcing workforce management processes enables staff to concentrate on the core of their business’s success by freeing up their time from unnecessary tasks. With increased flexibility, a business can worry less about making sure things like payroll are processed on time and focus more on strategic initiatives that can improve their bottom line.

  1. Allows businesses to take advantage of service providers’ expertise and knowledge.

There are no better experts in the workforce management field than skilled, regional service providers. Equipped with tools and other valuable resources, they serve as local specialists to their clients. Automated workforce management platforms provide a great solution for routine tasks but service providers offer an extra advantage by giving professional insight and tailoring solutions to the specific needs of a business.

It’s hard to imagine businesses not seeing the value of outsourcing and automating workforce management functions. It’s cost-effective, reliable and better yet, it’s stress-free. To get further insight from experts on the benefits of outsourcing, watch this video.

Are there any additional benefits to workforce management outsourcing that you offer? Comment below to share your insight.

About Colin Menchin:

Colin is a Marketing Specialist at Kronos SaaShr responsible for the inbound and outbound marketing programs of the company along with other responsibilities within the department.