BUYING AND IMPLEMENTING AN AUTOMATED TIME & ATTENDANCE SOLUTION A Guide for Agencies
FROM A LEADER IN WORKFORCE MANAGEMENT SOLUTIONS
www.mitcsoftware.com
BUYING AND IMPLEMENTING AN AUTOMATED TIME AND ATTENDANCE SOLUTION
INTRODUCTION This guide is designed to help eliminate some of the difficulties and confusion agencies face when choosing and implementing an automated workforce management solution. It will help your agency select the most cost effective solution, delivering maximum return on your investment. The information in this guide comes directly from the experiences of MITC agency customers who converted manual or ineffective workforce management processes into fully automated systems. While every agency is different with a variety of programs, this guide covers the main criteria for successfully selecting and implementing an automated time and attendance solution. With over 1,000 implementations, we have seen how and why agencies research, select, and buy time and attendance solutions. Whether your agency needs a simple solution or a complete agency management solution for multiple programs, MITC can help you select and implement the most costeffective solution. At MITC we recognize that not every agency is looking for the same solution. However, all agencies are looking for similar
“Whether your agency needs a simple solution or a complete agency management solution for multiple programs, MITC can help you select and implement the most costeffective solution.”
results — better control over payroll and overtime, streamlined processing of timekeeping, billing, documentation, and PTO requests and improved workforce productivity with more effective scheduling. MITC can help your Agency achieve these results efficiently and effectively.
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BUYING AND IMPLEMENTING AN AUTOMATED TIME AND ATTENDANCE SOLUTION
GETTING STARTED ESTABLISH A COMMITTEE Most agencies regardless of their size are under pressure to operate within operational budgets. Resources wasted in unnecessary overtime or time-consuming manual processes
The task force can quickly organize information about the needs of various departments and the difficulties with the current process. The members also promote understanding within and cooperation from each department, which is vital to successfully convert to an automated system or replace an outdated system.
agencies also need to balance limited cash resources and
WHO’S ON THE TEAM AND WHAT DO THEY DO?
IT costs. This leaves little margin for error in identifying
A typical agency task force is made up of three or four people.
limit the agency’s ability to service its Clients. However,
a solution.
Appoint a chairperson to coordinate the committee’s activity
In interviews with MITC, most agencies cite the need to
and act as the primary liaison with MITC. They will need to
control payroll costs and streamline timekeeping as their most
involve representatives from all agency programs who might
critical issues. This process will vary by agency and program.
be affected, any in-house IT staff and payroll staff. If your
It is important to gain cross-departmental participation and
agency outsources IT support, ask MITC to provide information
support before changing the current system regardless of the
and pricing on any related hardware, network and installation
agency’s need to move ahead.
services.
MITC customers recommend establishing a cross-functional
FORMULATE A PLAN
task force as the first step in selecting your new automated time and attendance system. This allows decision makers to share information and feel involved in the selection process
Your task force should formulate a project plan, with dates and definitions of responsibilities.
from the beginning.
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SAMPLE TIME AND ATTENDANCE AUTOMATION PROJECT PLAN TASK
PERSON RESPONSIBLE
DATE DUE
Conduct a situation analysis to ensure that everyone on the committee understands the current manual processes and also the current payroll and PTO policies at the agency. Establish specific goals for the new automated system. For instance: 5 5 5 5 5 5 5 5 5
Reduce overtime by 50% Reduce overall costs by 1-3% Eliminate timesheets Eliminate paper PTO forms Automate all manual calculations Eliminate payroll data entry Integrate with current payroll and/or replace current payroll system Capture billing, eliminate billing data entry Capture documentation
Use the MITC Return-On-Investment Questionnaire and Return-On-Investment spreadsheet to calculate potential cost savings. Remember the savings and benefits will vary by program. For instance, a Supported Living Program with 10% overtime should be able to achieve substantial reductions in overtime. A Day Program with low levels of overtime may benefit more from time savings through eliminating paper forms. Go/no-go decision: If there is no substantial potential Return-On-Investment, contact MITC. Let MITC know if the project does not seem worthwhile. If there are substantial potential savings, obtain an initial quotation from MITC. Review financing options such as lease/purchase or MITC Cloud depending upon your budget situation. Define detailed hardware/software requirements. Work with MITC to determine the cost of each solution and the potential return. Only buy what you need to achieve your goals. There is an old maxim in computer purchases that 80% of the benefits accrue from 50% of the system. MITC is very flexible. Other options can be added at a later date. Organize a detailed presentation over the Internet or on site with MITC. This is a free service. Use it to make sure you purchase the most cost-effective solution. Talk to other agencies using MITC. Other agencies have already been down this road. Ask MITC to provide details of similar agencies that you can talk to. Request a final proposal from MITC with all your options included and a Total Implementation Cost (TIC) including additional hardware, phone lines, implementation services and support services. Finalize financing options using your own sources or through MITC or MITC Cloud. Develop an implementation plan (MITC provides one). Manage implementation. Take the plan live! Ensure your financial and other goals are being achieved. MyCEO from MITC allows agencies to monitor the progress in achieving key financial goals such as reductions in overtime. 12 months later, request a System Audit from MITC to ensure that the system is being fully utilized and the maximum return-on-investment is achieved.
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BUYING AND IMPLEMENTING AN AUTOMATED TIME AND ATTENDANCE SOLUTION
CONDUCTING A SITUATION ANALYSIS The first step for your task force is to conduct a thorough review of your current time and attendance processes. There are three basic goals:
1. Discover how the existing system works 2. Identify problem areas that automation potentially can correct 3. Identify opportunities for cost-and-time saving benefits Look for: Time to collect time and attendance Opportunities for timesheet fraud Implications of not collecting attendance in real-time
“The first step for your task force is to conduct a thorough review of your current time and attendance processes.”
Time for manual data entry Overtime % of Payroll
SETTING YOUR GOALS
Scheduling problems
At this point, your task force has defined your manual time
Billing issues
and attendance process, problems and opportunities and is
Documentation issues
working to understand how your payroll and PTO rules can be
Time for manual calculations
Client attendance records Employee dissatisfaction
automated and consistently enforced. You may have uncovered some obvious areas for potential cost savings.
Manager dissatisfaction
The next step is to define your agency’s goals. These can be:
Number of reprocessed payroll checks
FINANCIAL GOALS
Overall administrative costs Time consuming reports Manual data entry into spreadsheets Manual PTO calculations Be sure to capture the entire picture. Most agencies with Supported Living or Supported Employment programs have many remote locations. Client attendance may need to be collected as well staff.
Decrease overall payroll costs Ensure consistent application of payroll rules Comply with government regulations Reduce administrative overhead by eliminating time spent on manual timesheet processes Eliminate inefficiencies in scheduling Increase billing, decrease unauthorized services
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ORGANIZATIONAL GOALS Shift responsibility for managing labor costs from payroll to department managers
GOAL #1
GOAL #2
Provide universal access for Employees and Managers through self-service
IDENTIFY THE POTENTIAL SAVINGS Evaluate the project financially and prioritize against other
“Evaluate the project financially and prioritize against other projects your agency is contemplating.�
projects your agency is contemplating. The task force must determine the savings. Most agencies find that automating time and attendance brings a very fast return. But it is important to identify the potential savings and manage the implementation to ensure these goals are achieved. Most agencies focus on: Direct savings
TECHNOLOGY GOALS Maximize the use of your existing IT infrastructure or go to Cloud Integrate with Payroll, Billing, and perhaps HR Retain time and attendance data in an easily accessible and secure form for audits Generate timely management reports Simple to install and maintain
PAYROLL, BILLING, AND DOCUMENTATION GOALS
Eliminating unplanned overtime Eliminating scheduled overtime Eliminating low level payroll fraud and timesheet falsification Reducing payroll and billing processing time Minimizing payroll errors Improving payroll and billing reporting Indirect Savings Agencies often achieve additional savings by automating time and attendance. Data entry is automated therefore; agencies are able to reassign
Reduce time spent on overall process
staff in payroll and management roles to more value-added tasks.
Eliminate redundant data entry
When managers have real-time access to information about
Apply rules consistently and accurately across
employees and locations, they are better able to control and
all programs Automatically support multiple pay rates, shift and job differentials, holiday pays and overtime calculations
manage workforce attendance, absenteeism, schedules and productivity. This leads to more efficient operations and higher quality delivery of client service.
Cost overtime to the appropriate cost center/program
Use the MITC Return-On-Investment Questionnaire and
Provide managers with timely access to meaningful
Return-On-Investment spreadsheet to document and calculate
information
potential cost savings.
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BUYING AND IMPLEMENTING AN AUTOMATED TIME AND ATTENDANCE SOLUTION
SELECTING HARDWARE AND SOFTWARE OPTIONS MITC Agency Time and Attendance is flexible. Take the time to understand all the options to ensure you select the most cost efficient solution. Agencies use different data collection devices for different programs or locations based on the number of employees and the cost. Data collections options include: The automated process begins with data collection. Work with MITC to determine which of the above will be the most cost-effective solution for your agency. By automating the process of data collection, you can eliminate low-level payroll fraud, reduce the time spent processing timesheets and preparing payroll and billing data.
Data Collection Option (5 Main Choices)
Where Most Commonly Used
Telephone
How to Use Ideal for small locations or individual clients
Independent living
Robust, inexpensive, easy-to-use
Respite care
Voice messaging and alerts
Remote job coaches
No-show alerts Self service
Web Clock
Biometric/Facial Recognition
All
Use any internet-enabled device
Day programs
Used for larger locations (5+ staff)
Administration Supported employment Group Homes
Proximity
Extra Option Job/Cost Center transfers Used for larger locations where badges
Day programs Administration Supported employment
are agency policy Sometimes used by clients
Extra Option Job/Cost Center transfers
Tablet Day programs Supported employment Vocational
Used to track client attendance and capture client payroll
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Ease of use is a critical feature of time and attendance. Employees need to be able to clock-in and out quickly, reliably and accurately while recording vital costing and service information. The internal complexities should be as invisible to the employees as possible. For instance, if employee pay rates change due to a shift differential or program, as far as possible that should be handled within the system.
WORKFORCE MANAGEMENT OPTIONS MITC Agency Workforce Management is flexible. Take the time to understand all the software options to ensure your agency selects the most cost efficient solution. No agency has ever purchased everything. Most options are determined by the size of your agency, mix of programs, agency managers and priorities.
Software Options
Where Most Commonly Used
Comments Often a vital component in the battle to reduce overtime. Helps quickly fill open positions.
Staff & Client Scheduling
All
Telephone Activity Documentation
Independent Living
Individual Service Documentation
Independent Living
Group Service Documentation
Day Programs, Group Homes
Advanced Payroll Parameters
All
Automates the calculation of overtime, differentials, holiday pays, multiple pay rates etc.
Labor Management
All
Budget variance, audit, billing and history reporting.
Billing Preparation
Independent Living
Group Billing
Day Programs, Residential
MyCEO
All
Graphical “at a glance” management tools to track key agency measurements such as overtime % of payroll.
All
Generate email alerts to managers based on database queries – employee needs training, licensed expired, job over budget.
Employee Awards
All
Attendance violation, variance, absenteeism, reporting.
Personnel Manager
All
Use if current HR system is manual or ineffective.
Payroll Integration
All
Synchronizes employee databases and exports approved timecards to payroll.
eNotify
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BUYING AND IMPLEMENTING AN AUTOMATED TIME AND ATTENDANCE SOLUTION MITC Payroll with General Ledger integration
All agencies if not using above
Use if current payroll system ineffective or to eliminate service bureau fees.
Billing Integration
Agencies where time and attendance is used for billing
Tracking hours of service by client or tracking client attendance is important at some agencies.
MyMITC For The Web (choose one only)
All
Used by employees to submit requests to change time and attendance or take PTO to managers. Used by managers to approve payroll and PTO requests.
Piece and Production
Vocational
Client payroll
Project Scheduler
All
Use to track inspections, service procedures for locations, vehicles and equipment.
Crystal, Access, Excel integration
Larger agencies
300+ agency reports included.
WHAT TO BUY Many agencies have limited resources, so prioritize items that will deliver the most return-on-investment. Usually, eliminating paper timesheets in a Supported Living program brings the greatest benefit if choices have to be made by program type. Remember, MITC is designed for modular purchase and installation. Buy what you need, not what you would like to have. Other options can be added later in another budget year.
TOTAL IMPLEMENTATION COSTS Different mixes of solutions will require different expenditures. Ensure that you understand all the costs associated with your new automated time and attendance solution.
Billable Cost Item
Cost
Network infrastructure
$
This will vary from zero $ to include options such as a new server or telecommunications workstation to manage phone lines. Ask MITC to provide benchmark pricing even if you plan on using your own vendor.
$
Additional phone line installation, monthly service fees involved and any long distance or 800# call costs.
MITC Cloud or Agency Hosted
$
Many Agencies perform their own hardware/software installation with remote assistance from MITC. Alternatively use MITC Cloud.
MITC one-time purchase Hardware and Software or Rental
$
This will vary based on the choices made above.
Telephony solutions only
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Implementation services
$
Small, simpler solutions do not require onsite assistance. Larger, more complex solutions require 1–3 project services visits each 16 hours of Transition Services.
Payroll integration services
$
Provided remotely.
Data conversion services
$
Provided remotely.
$
MITC offers two main plans — Business Class Service that includes unlimited remote service, all software updates and extended warranty or Pay-As-You-Go service billed hourly.
Recurring costs
Non-Billable Costs Training time off
Training your trainers Employee orientation
Cost $
Your staff will need to be available for Business Transition Services if ordered, or to work with MITC remotely on integration or data conversion.
$
Most agencies train their employees themselves after Transition Services are complete.
$
As the system is rolled-out, employees will need to be trained on how to clock-in/out.
Financing options include: Purchase with or without financing from a local source (bank, grant) Full service rental (monthly fee) MITC Cloud (monthly fee) MITC extended payment terms Sometimes combined with phased delivery to spread cost over two budget years 60-month lease/purchase payments with $1.00 buy-out
“Remember, MITC is designed for modular purchase and installation. ”
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BUYING AND IMPLEMENTING AN AUTOMATED TIME AND ATTENDANCE SOLUTION
RETURN ON INVESTMENT Use the MITC Return-On-Investment questionnaire and ReturnOn-Investment spreadsheet to calculate potential savings. Automating manual time and attendance processes can result in immediate, measurable savings. The benchmark used by most consultants is that a successful automation of a manual
For instance a Supported Living Program that includes multiple remote locations will see the main benefits from eliminating low-level payroll fraud, overlapping shifts and unauthorized attendance and reductions in planned and unplanned overtime. In a Day Program, the elimination of paper timesheets for staff and attendance records for clients may be the main benefit.
system delivers on average a 3% reduction in payroll-associated
For the Payroll Department, elimination of manual data entry
costs. Actual savings can vary from 1-5% in any particular
and manual calculations are the big savers while reductions in
agency.
payroll errors can sometimes be surprisingly significant.
The source of these savings will vary by agency and the program
Improved timely reporting and scheduling will also provide
that is deploying the solution.
managers with the opportunity to optimize workforce usage to minimize overtime. Use the MITC Return-On-Investment spreadsheet to calculate
RETURN ON INVESTMENT SPREADSHEET
potential cost savings in these areas:
Areas of Improvement
Savings
Reduction in overtime
$
Elimination of overlapping shifts and unauthorized attendance
$
Elimination of low-level payroll fraud, intentional errors
$
Elimination of payroll data entry
$
Improved, more timely billing information
$
Reduction in the time managers, directors review paper timesheets, PTO
$
Reduction in unauthorized PTO time (taking leave with no balance)
$
Improved reporting
$
Improved scheduling
$
Automation of PTO accruals
$
Elimination of printing, distributing, storing and retrieving timecards
$
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Reallocation of payroll staff to more valued-added tasks
$
Consistent application of complex payroll rules
$
Elimination of service bureau fees if bringing payroll in-house
$
IMPLEMENTATION PLAN MITC has worked closely with hundreds of agencies throughout the USA. The MITC Implementation Plan is designed to minimize costs to the agency by implementing the new solution as cost-effectively as possible. For smaller agencies with less than 50 staff, there is usually no need for a complex implementation plan. However, for larger multi-program agencies it is not impossible, but difficult and time consuming to attempt a completely unassisted implementation. In our experience, most medium-sized agencies need to budget for at least one onsite Transition Service engagement of 2 days and extra billable services associated with Payroll Integration. For larger agencies, implementing a multi-program solution for staff and clients, two to three Transition Service engagements may be required. MITC will provide an implementation plan that includes Installation, Transition Services, Pilot Program, Integration Services, Application Training Services, Roll-Out Plan, Go Live assistance and an Annual Audit to ensure your agency stays on
“The MITC Implementation Plan is designed to minimize costs to the agency by implementing the new solution as cost-effectively as possible.� Your agency may have limited resources in certain areas. MITC
track and is receiving maximum value from its investment.
can provide additional services in these circumstances to assist
To expedite the implementation many agencies establish
Application Training, etc.
their own implementation team. This team will oversee the Installation, actively participate in the Transition Service planning, monitor the Pilot Program, assign one member to work with MITC on Payroll Integration and determine the rollout
with Installation, Data Conversion, Payroll Integration, and
The Implementation Team should meet regularly regarding the process, milestones and time frames to make sure the project stays on track, work is done properly and deadlines are met.
schedule. The team should meet at least annually to ensure agency objectives are being achieved after implementation.
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BUYING AND IMPLEMENTING AN AUTOMATED TIME AND ATTENDANCE SOLUTION
INSTALLATION SERVICES Performed by Agency IT or MITC. Install Telephone Intel Dialogic Voice Processor on workstation(s) Install MITC Software/Database and MyMITC (if purchased) Install other hardware (Time Data Terminals) and configure Install network user workstation(s) and configure Test phone lines Test installation using demonstration company Create customer database(s)
TRANSITION SERVICES Performed onsite with MITC due to number and variety of customer staff required — usually 2 days. Discovery process to confirm current timekeeping procedures and rules Determine new workflow and timekeeping/payroll rules Design detailed Implementation Plan and Timeline Review Payroll Integration Determine implementation priorities and assign responsibility Configuration of MITC database using rules determined above
“The Implementation Team should meet regularly regarding the process, milestones and time frames to make sure the project stays on track, work is done properly and deadlines are met.” Test payroll interfaces and procedures for 2-3 payrolls Modify workflow procedures if required
INTEGRATION SERVICES Uses MITC Integration Documentation. Performed offsite by
IMPLEMENTATION TEST/PILOT PROGRAM
MITC, often involves 3rd parties — usually 4/8 hours.
Performed by Agency with remote assistance from MITC.
Determine data/format to be imported to
Test procedures with a manageable number of typical employees, usually 5-10% Focus on key aspects of system which will drive ReturnOn-Investment Remove manual timesheets (no parallel test). Enter payroll from MITC reports Train Pilot group of Managers and Employees in using devices, reports and MyMITC
MITC Employees Determine data/format to be exported from MITC to Payroll or Billing Confirmation by customer IT / Payroll Department Customization of MITC Payroll or Billing Integration Software Delivery to customer for test/acceptance of Integration Software Import live employee data
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APPLICATION PROJECT SERVICES Covers non-core features (scheduling, accruals, no show alerts, voice mail etc.) Performed onsite or remotely for limited objectives. Review new workflow per Project Master document Test new workflow using MITC software/MITC data Test new workflow using MITC software/customer data
Train managers and supervisors (MyMITC, Voicemail, Self-Service, etc. General or further Group(s) employee training Remove manual systems by group or all Monitor results until all employees are live Audit results of implementation to ensure goals have been met
Train Operational/Payroll Staff in procedures
COMPLETE IMPLEMENTATION
Determine if changes need to be made to workflow
Implement additional features (Voicemail, No Show Alerts,
Note: Hours vary depending upon number of applications and complexity of customer timekeeping procedures and rules.
GO LIVE
Check Calls) once new system implemented
POST IMPLEMENTATION MITC is here to help every step of the way. Contact MITC with
Performed by customer with remote assistance from MITC unless on site required.
any issues or concerns using MITC service plans. Controlling payroll costs and streamlining timekeeping
Set up internal committee to establish goals and manage transition Modify new hire documentation and employee handbook Establish new internal procedures for Time and Attendance
will continue to be important even after the successful implementation of an MITC time and attendance system. Perform periodic evaluations to ensure goals are continuously met Train managers and supervisors (MyMITC, voicemail, etc.)
Decide what role managers and supervisors will have
Realign software/systems with any changes
Provide employees with new timekeeping rules
Audit systems for conformance (gap analysis)
(see MITC sample)
Train new staff
ABOUT MITC
Use MITC to help with evaluations and audits
MITC provides modular workforce management solutions and services to support all the needs of service organizations — time and attendance, advanced employee scheduling, payroll rules and reporting engine, workforce analytics, payroll and billing integration, and more. For 25 years, MITC has grown to serve over 1,500 organizations (with anywhere form 5 to 10,000 employees) in the USA, the UK , Africa, Australia, Canada, Ireland and New Zealand. They have selected MITC to help control costs, save time, improve productivity and ensure compliance.
Visit www.mitcsoftware.com to learn more.
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