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Time Collection for Hourly Employees

Introduction

Within HR Shared Services, Payroll is almost always within scope, since the process is transaction intensive and rules based, where centralization of payroll experts and the leveraging of technology solutions across business units and locations can yield both lower cost and higher quality processes.  However, because the Payroll process impacts every employee in a significant way, it’s more than just cost and quality, with employee satisfaction being a major requirement for any payroll related process or technology.  Collection of time information is one part of the Payroll process that remains distributed, with various methods used to collect and record time and attendance information. While the impact on cost may not be as high, because the process directly touches every hourly employee, the impact on employee satisfaction is significant.

iPollingTM Results Review

Recently a Peeriosity iPollingTM question was created to provide insight to how this high-touch employee process is performed at member companies.  The results indicate that while 10% still use paper time sheets, and additional 15% use a standard punch time clock for hourly time reporting, 40% of member companies are using web time reporting, and 25% use a badge scan.  Here are the details:

Regarding the specific solution, 40% are using Kronos, 15% are using SAP, and 15% use an internally developed solution.  The balance of companies us a variety of solutions ranging from ADP to Workday.

Here are some of the comments from responding companies:

  • We primarily use Rhumbix for our hourly time.
  • We use Centricity for time reporting, scheduling, and productivity reporting.
  • We have an in-house system which integrates with Infor.
  • No standard mechanism or system used to capture and record time clocks. Varies by country and sometimes by business group within country. Harmonization has proven to be a challenge given the number of stakeholders and the cost of transitioning.
  • We are currently moving from paper time sheets to mobile, web, and badge scan.
  • In-House system integrated with SAP.

Closing Summary

By leveraging technology, better process design, and the transition to HR Shared Services, companies have made significant improvements in the Payroll process over the past decade.  While the impact on transaction cost may not be as significant, the impact on employee satisfaction and morale suggests that processes for time collection of hourly employees should continue to be an important consideration when reviewing the overall effectiveness of the Payroll process.  Comparing your approach with other leading companies is an excellent way to objectively evaluate this opportunity.

What process do you use to perform time reporting for hourly employees?   When was the process last reviewed, and what are you plans to make additional changes or improvements?

Who are your peers and how are you collaborating with them?

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Peeriosity members are invited to log into www.peeriosity.com to join the discussion and connect with Peers.   Membership is for practitioners only, with no consultants or vendors permitted.  To learn more about Peeriosity, click here.



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