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Aztec Shops Minimizes Compliance Risk and Improves Cost Efficiency with Unified Kronos Solution

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Aztec Shops, Ltd., considered a leader in the university services industry, oversees all of the retail operations for San Diego State University. The organization employs about 140 full-time staff and up to 900 part-time associates — most of whom are students — to operate the mall retail stores, campus bookstores, convenience stores, Starbucks, student and staff dining areas, and arena concessions.

CHALLENGES

  • Using a manual scheduling system, managers needed a week to schedule associates and weren’t always sure scheduling policies were consistently applied
  • Employees had limited access to their time and pay information, causing compliance concerns.
  • Paper-based management of employee leave cases created potential inconsistencies and compliance issues
  • Separate HR, payroll, and timekeeping systems created inaccuracies and inconsistencies in employee taxes, benefit deductions, and accruals that required significant staff time to correct

SOLUTION

  • An automated and unified HR, payroll, and time solution that centralizes employee information for accurate and consistent application of all scheduling, pay, and work rules

BENEFITS

  • Moving from paper to automated scheduling has reduced the process from one week to a few hours, and scheduling policies are consistently applied
  • Employee and manager self-service tools have given employees complete accountability for their regular and accrued time, reducing calls to HR for updates
  • Consistent leave management, application of labor-related policies, and proper compensation of employees have reduced compliance concerns
  • Accurate workforce data allows IT staff to shift time from data verification to more strategic revenue-generating activities
  • The unified HR, payroll, and time solution maximizes productivity, allowing a 30 percent reduction in part-time staff




Company Profile

Employees: 140 full-time, 600 – 900 part-time

Industries: Retail management services

Products: Workforce Timekeeper™, Workforce HR™, Workforce Payroll™, Workforce Absence Manager™, Workforce Scheduler™, Kronos 4500 Touch ID™biometric terminals

“We chose Kronos because it offers an integrated HR, payroll, and time solution and is on the cutting edge.” Michelle Miller, HR Manager, Aztec Shops, Ltd.


THE STORY – AZTEC SHOPS

Employing a dynamic workforce and operating in both retail and dining environments, Aztec Shops was concerned about its ability to stay compliant with labor laws — from overtime to California meals and breaks to FMLA. The organization knew it needed to replace its HR and payroll systems and automate its workforce management processes to mitigate compliance risks and improve cost efficiency.


Manual processes and siloed data create compliance issues, consume staff time

Aztec Shops’ compliance concerns stemmed from its siloed approach to HR and payroll. Without a unified HR, payroll, and time solution, employee information was not centralized, leading to inaccuracy and inconsistency around taxes, benefit deductions, and accruals. As a result, the organization faced compliance issues that staff spent considerable time rectifying.


Compliance issues mitigated, productivity increased, labor costs controlled

Appreciating its need to better manage compliance and improve processes, Aztec Shops sought an HR, payroll, and workforce management solution that could automate and connect all of its labor related processes, including timekeeping, HR and payroll, scheduling, and absence management.

“We chose Kronos because it offers an integrated HR, payroll, and time solution and is on the cutting edge,” says HR Manager Michelle Miller.

Following a smooth and rapid implementation, Aztec Shops has enjoyed campus-wide benefits. Improved compliance through more accurate employee information and detailed audit trails. Increased productivity with IT staff freed up for strategic projects. Scheduling time reduced from one week to a few hours.

And better control of labor costs with the elimination of “buddy punching” and a 30 percent reduction in part-time staff, which Aztec Shops attributes to productivity improvements created by its Kronos solution.

“Kronos HR and Payroll not only took care of discrepancies in taxes and benefits, but also reduced the administrative burden of IT,” explains Payroll Manager Leah Messenger. “And timekeeping and time clocks, which touch everyone, have increased employee accountability and data accessibility.”


Automated scheduling delivers time savings, reduces compliance risk

Scheduling used to create “paper and information overload,” says Messenger, with spreadsheets used to schedule associates. The book-buying and selling periods, when part-time employee numbers increase from 650 to 900, were especially challenging. A bookstore manager needed a week to schedule two weeks out and couldn’t be sure if scheduling policies were consistently applied.

“With Kronos, scheduling takes the store manager just two hours once she has all schedules entered, and she can schedule just a week in advance,” says Messenger. Aztec Shops plans to use employee self-scheduling to save additional time.

Now, all scheduling rules and policies are automatically applied consistently in Kronos. And the solution’s audit capabilities alert Aztec Shops to compliance issues, such as deleted overtime or meal breaks included but not taken. Messenger says the consistent application of labor-related policies and ensuring employees are properly compensated have minimized compliance concerns.


Self-service tools support compliance

Other prior compliance concerns included managers, but not employees, being able to view and approve timecards, she says. With Kronos, employees are now accountable for their time.

Employee information is easily accessed by employees, managers, and HR staff in a single system. Employees can request time off and view their accrued vacation and sick time, without calling HR.

“Self-service has empowered our employees,” adds Messenger. They can review their pay statements online, update personal information, make changes to direct deposits, and participate in benefits open enrollment. Self-service has allowed the HR and payroll department to do more with less, increasing cost efficiency, and has given managers quick access to performance reviews, dramatically cutting turnaround time to HR.


Consistent leave management removes compliance concerns

Before using its Kronos solution, Aztec Shops managed each employee leave case — vacation, sick time, FMLA — on a sheet of paper, a process open to inconsistencies and compliance issues. “Kronos has made it very easy to be in compliance with all the components of employee leave,” says Miller. The absence management module helps consistently apply leave policies across the organization.


Looking ahead and leading the way

Aztec Shops prides itself on staying ahead of the curve and recently upgraded to the latest Kronos solution. In addition, the organization is considering adding the hiring and compensation modules, as well as Workforce Mobile™. “We like being on the cutting edge of technology,” notes Miller, “and Kronos backs this up.”


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