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.

10 Strategies Service Providers Can Use to Avoid Security Threats

By Corey Clacher

With cyberattacks and phishing incidences rapidly increasing to disproportionate numbers, businesses and industries of all types are under serious threat of data breaches on a daily basis. That includes service providers, like yourselves, who regularly deal with private information such as payroll, direct deposit, and other important financial data. In fact, it is projected that businesses in the financial and payment services industry will be the largest targets of cyberattacks in the upcoming year.

How can you make sure that your private information stays secure with a record-breaking 325,000 new threats emerging every day? You can start by watching the recorded webinar “Service Bureau Security Threats: Learning from Others’ Mistakes” hosted by Darrell Switzer, Senior Director of BAE Systems Global Incident Response Services. In this webinar, he discusses the threat landscape and how you can learn from the mistakes of others.

The webinar also provides useful strategies to help keep your private data, and the data of your clients, safe from malware and other threats. Some of the top strategies include:

  1. Knowing your Enemy

It’s easy for attackers to find out about your organization and the people in charge of protecting your data through simple online searches.

  1. Using Anti-Virus only as the Last Line of Defense

Anti-virus alone will not keep your endpoint safe. Anti-virus can’t keep up with over 300,000 variants of malware daily as it is likely weeks behind in detection.

  1. Using Multi-Factor Authentication (MFA)

MFA is an added layer of security that is highly recommended. Most major banks now require this for that reason.

  1. Implementing Proactive Incident Response Training

How you and your employees deal with breaches, and how well you are prepared for those breaches, can make all the difference.

  1. Incorporating Behavioral Solutions

Although still in it premature stages, behavioral solutions look for suspicious files and activities and can be an added benefit to your organization’s defense.

  1. Finding Trusted Partners

No one can fight cyberattacks alone.

  1. Developing, buying, and Renting True Threat Intelligence

Threat intelligence provides a lot of visibility into the threat landscape so you can focus on spending the time and money on determining the appropriate defense tools for your company.

  1. Being Proactive – Hunt for Threats

Your team simply doesn’t know the environment well enough. Identify what a perfect machine looks like in your business and compare it to a faulty one.

  1. Knowing One Size Does Not Fit All

Every organization is different and there isn’t one solution designed for them all. Look for the right defenses tailored to your specific needs.

  1. Evaluating the Purchase of Cyber Insurance

The process before signing a cyber insurance policy can be drawn-out and arduous and doesn’t always pay out in the end.

To learn more about best practices for keeping your data safe from cyberattacks, please watch this recorded webinar.

About Corey Clacher:

Corey is a Sales & Marketing Specialist at Kronos SaaShr responsible for the  marketing programs and sales initiatives 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.

Helping Businesses Manage Overtime Costs in the Wake of FLSA Changes

By Colin Menchin

You’ve likely heard a lot in recent news about the Department of Labor’s (DOL) proposed regulations that are expected to affect the Fair Labor Standards Act (FLSA) regarding new white-collar exemptions in the near future.

With minimal revisions since the FLSA was enacted almost 80 years ago, significant adjustments regarding overtime pay and minimum wage requirements have been proposed by the DOL. The DOL has proposed these updated regulations to better align with the present-day workforce and economic climate.

To put things into perspective, the current FLSA requirement states that an employee that makes at least $455 per week ($23,660 per year) either hourly or salary and who meet a duties requirement test is considered “exempt”. These exempt employees do not qualify for overtime pay. If passed, the DOL’s new regulations would require that:

  • The minimum salary threshold to be $970 per week ($50,440 per year) in order to be considered exempt from receiving overtime pay.
  • The salary threshold be updated annually to stay level with rising inflation and wage costs.

These new regulations would undoubtedly have a significant impact on most US businesses within the coming months. It would require employers to reassess their entire workforce classification as exempt/non-exempt, increase minimum annual wages of exempt employees, and track all hours worked by non-exempt employees. As a service provider, it is critical that you help to guide these businesses during these potential changes. By providing your expertise in conjunction with a workforce management solution, you can help your clients keep in compliance with the new FLSA regulations and control overtime costs.

You can reduce a business’ compliance risk and overtime costs by offering them a workforce management solution, complete with Time and Attendance, that accurately tracks and documents all employee hours worked, delivers proactive alerts that notify employers of employees breaching overtime, and includes insightful reporting capabilities for both ongoing analysis and proof of compliance.

In this recorded webinar, held on August 20, 2015, by ChrysMarie Suby of the Labor Management Institute and titled “Overtime Best Practices”, you’ll learn 10 helpful strategies to bring to employers for minimizing their overtime costs.

  1. Define the department budget and address OT in hours & percent of Total Worked hours.
  2. Identify a pattern for the use of resources developed from workload demand data.
  3. Define and standardize terms & formulas with division of direct, indirect, education, orientation, and paid not worked benefit hours and FTE’s.
  4. Clearly identify pay incentives, premium pay, bonuses, on-call/call-back.
  5. Monitor OT for both “regular” and “EOS” or incidental occurrences & trend for use & abuse patterns.
  6. Publish schedules with at least 85% of work from “core” employees in the unit.
  7. Require managers to publish schedules with <5% “holes” where shifts didn’t meet target requirements.
  8. Monitor for the 6 underlying drivers for OT bi-weekly & compare to specific criteria.
  9. Identify a pattern for the use of resources developed from workload demand data.
  10. Monitor for the Labor Management Institute’s Target Thresholds to Total Worked Hours.

To get more information on the Labor Management Institute’s 10 overtime best practices, please watch this recorded webinar.

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.

Time and Attendance – What’s the ROI?

By Josh Davis

As we released the newest video in our Workforce Management Trends Series focused on time and attendance return on investment (ROI), I started thinking to myself “What is the ROI of time and attendance – Does everyone really know?”

With payroll typically taking up 50-60 percent of businesses’ operating expenses, companies want to ensure that payroll dollars aren’t being wasted and that the highest return possible is achieved from that investment. This is where automated time and attendance applications, also known as time and labor management applications, come into play… But how do companies quantify the ROI of their on-premise or SaaS-based software purchase?

That’s a great question – thanks for bringing that up!

There are three core areas in which time and attendance applications return much more than what is paid for them:

  1. Control and reduce labor costs

In order to achieve this, the first step is getting insight into exactly where payroll dollars are being invested. Companies need to see which employees are in and out of work – they need visibility into who’s coming or leaving early and late, or who’s absent entirely.

There are several areas of workforce management that can be improved in order to manage labor costs accordingly – here are a few big ones:

  • Absence According to Mercer, the direct and indirect costs of absence alone can make up 34.2 percent of payroll expenses. From planned absences like vacation to unplanned absences like sick time, managing absence in an automated fashion allows companies to track accrued time off accurately and make staffing adjustments to cover for absent employees.
  • Overtime – Unplanned overtime can be a huge, and often unforeseen, payroll cost. By keeping tabs on employees’ timesheets and getting alerts for employees who approach overtime, companies can easily reduce this cost by finding alternative coverage for the position.
  • Accuracy – There are tons of companies out there that simply pay employees for the time they’re scheduled to work. However, what if they’re continuously coming in late and/or leaving early? How about if they continuously take long lunches? They’re still being paid for that time they are not working, which is a cost that’s easily controlled. By simply automating the collection of time worked, companies can ensure employees are getting paid accurately for the time they actually work – no more, no less.
  • Demand – By having the ability to manage a workforce in real-time, companies gain the ability to make staffing adjustments based on the external factors of that business – either proactively or as they happen. For example, companies should be able to plan for historically slow or extremely busy shopping days in retail. And if the forecast calls for inclement weather, and shopping is typically reduced in these instances, schedules can be adjusted accordingly.
  1. Improve productivity

Another area companies can track where payroll dollars are being invested is what employees actually work on, and how much work they do. By tracking the departments, jobs, and tasks of employees, companies can get a great understanding of what’s actually being invested in with their payroll dollars. Perhaps they’ll gain insight that sales people are spending more time on administrative functions then they are on actual sales, and be able to address it accordingly from there.

Alternatively, in a manufacturing business, management should be able to track the piece work of each employee (i.e. how many widgets they can produce), which will give them insight into the most effective and productive employees they have. On the flipside, they’ll also see who the least effective employees are and can invest in training for these employees and/or open up new job requisitions to find better talent.

Time and attendance solutions also provide a great avenue to make management and administrators more productive, allowing them to spend less time on manual processes like creating schedules, approving time off, monitoring employee time, etc.

  1. Minimize risk of noncompliance

There are virtually endless pieces of legislation that companies must comply with from the FLSA to the FMLA to the ACA. And if there’s one thing that can be said about non-compliance, it’s that non-compliance costs big bucks! The Department of Labor (DOL) has people employed in the agency that are solely responsible for finding non-compliant companies. If accused of non-compliance for the FMLA, for instance, the cost for a company can range from $78,000 to $150,000, and that’s just to get to trial! And then let’s say that company loses the trial, additional fees can include:

  • Employee reimbursement for any monetary loss incurred
  • Equitable relief
  • Attorney’s fees
  • Expert witness fees
  • Court costs
  • Liquid damages

When you think about the cost for automated time and attendance, it seems pretty nominal when you start thinking about the potential ROI.

Looking for more details on this topic? Don’t just take my word for it – hear it from the experts in this video.

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.

The Necessity of Mobile Technology in Workforce Management

By Josh Davis

Do you remember the last time you left your cell phone at home? Did you go back home to get it or did you just deal with the feeling that something was missing in your life all day? Our mobile phones are a part of us and sometimes, or oftentimes, it may make sense to use your mobile device instead of your computer.

Today we released our newest video in the Workforce Management Trends Series, which covers the mobile workforce. We have some phenomenal service providers explaining the convergence of mobile technology, workforce management solutions, and the typical employee.

When Google turns around and changes it’s algorithm to favor mobile-friendly websites, you know mobile should be an area of focus for you and your clients.

In fact, SMB Group research indicates:

  • 67 percent of SMBs now view mobile solutions and services as “critical” to their businesses.

and

  • 83 percent have already deployed mobile apps to help improve employee productivity.

When we think about this in the context of workforce management, a few key features companies would typically look for in a mobile solution may include:

  • Viewing schedules
  • Clocking in / out
  • Changing cost centers
  • Seeing who’s in or out of the office
  • Approving timecards for payroll to be processed
  • Ability to view paystubs
  • Requesting / approving time off

These types of features make managing a workforce able to be done anywhere at any time. They provide managers with the insight they need to manage in the moment and react whether they’re in the office or on the go.

Whether you’re providing mobile solutions or not for your clients today, check out what these experts have to say about it, and ensure that mobile is a key part of your strategy moving forward.

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.

Security for Small to Medium-Sized Businesses is Dependent on Their Employees

By Adam R Cravedi

Compass IT security auditors are often asked if there is a single “most important” factor involved in safeguarding a business’s data assets.

To be sure, trade magazines and “tech-channels” are often promoting the latest IT security cure-all. But, while these solutions can go a long way toward hardening system networks, many require dedicated IT staff (and maybe even a few IT All-stars) just for configuration and maintenance.

So where does that leave small and medium-sized businesses that are subject to the same threats as Fortune 500 companies, but lack the resources to employ a 100-man strong IT army?

For these companies, defending against cyber-attack demands an optimal use of resources, and few solutions, technical or otherwise, is more cost-effective than a well-trained and prepared employee.

After all, research shows time and again that the weakest link in network systems is almost invariably their propensity for human error. This is especially so in a high-speed information-driven environment, where email and Internet traffic account for the majority of demands on IT infrastructure.

Indeed, most hackers today work to exploit these channels—by crafting realistic email messages or compromising a favorite website, they entice users to click on links that covertly install viruses, worms, back-door Trojans, key-loggers, and other malicious code. Why spend hours, days or even weeks attempting to bust a company’s perimeter defenses, when a simple email could yield the keys to the kingdom?

And once malware is on the inside, all bets are off.

Countering this kind of attack requires its targets—network users—are aware that threats are out there and that they have the knowledge to recognize (or at least suspect) when the enemy might be at the gate.

Thus, regular security awareness training about emerging threats and ploys is essential.

Of course, a robust IT security curriculum is only one component in any comprehensive information security program. And all organizations must deploy a range of perimeter defenses, including firewalls; current and updated antivirus/anti-malware software on all computer systems; appropriate user access controls; and up-to-date hardware and software systems, to name only a few.

In a world characterized by a proliferation of cyber threats, where a single breach can lead to proprietary information being sold to the highest bidder on the black market, and irreparable harm to your organization’s reputation, advance preparedness training may be the closest thing to a silver bullet our industry has.

To find out more about Compass IT Compliance and how they help prepare employees to become business’s first line of defense against threats to information, click here.

About Adam Cravedi, CISA, CISSP
Adam Cravedi is an original member of Compass IT Compliance, LLC. He brings over 21 years of experience in the Information Technology arena including Financial, Higher Education and Healthcare industries to the Compass team. He holds a Masters of Science in Management Operations and Information Technology and a Bachelors of Science in Electrical Engineering both from Worcester Polytechnic Institute. As well as achieving GIAC certification for Web App Penetration Testing & Ethical Hacking (GWAPT).

As a Senior IT Auditor for Lighthouse, he headed up the PCI ASV scanning and Internal/External Vulnerability and Penetration testing functions. He also contributed to PCI, IT and Information risk and security audits. His work includes the role of Information Security Officer where he developed an in-depth Information Security Program that included Information Security Awareness Training as a baseline for information security for the organization and their employees.