Chesapeake Energy Uses Automated Kronos Solution to Improve Productivity and Compliance as Workforce Doubles
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As the second largest producer of natural gas and the most active driller of new wells in the U.S., Chesapeake Energy Corporation prides itself on its culture of success and innovation. In 20 years, the Oklahoma City-based company has grown from 10 to nearly 11,000 employees in 17 states, nearly half of that growth occurring in the past few years.
CHALLENGES
• A paper-based time and attendance system led to delayed transfer of timekeeping information, resulting in numerous paycheck adjustments
• A slow, manual time-off request process created delays of up to two or three pay cycles before payroll received approved requests, causing paycheck adjustments
• All leave documentation was tracked on paper, and payments were entered manually into the payroll system
• Plans to significantly increase employee growth over a short period would further magnify these challenges, especially with the organization’s accrual and leave plans
SOLUTION
• The Kronos Workforce Central® automated workforce management solution would accurately track time and attendance and manage leave, allowing Chesapeake to improve productivity and mitigate compliance issues
BENEFITS
• Quick and accurate processing of all employee time — despite the doubling of employee numbers — has significantly reduced payroll processing time and eliminated the need for ongoing paycheck adjustments
• Use of self-service tools by employees and managers to request and approve time off saved Chesapeake an estimated 6,250 hours in time-off payment processing time in the first 18 months of using its Kronos solution
• Consistent application and documentation of leave practices, as well as accurate accrual and leave balances, have reduced risk from manual manipulation
• With 150 varying work schedules now easily managed with the automated workforce management solution, managers and the corporate office have greater visibility into scheduling
• Detailed tracking of employee time by job site has created a faster, more accurate billing process for maintenance of wells in shared ownership
Manual system caused delays, corrections, and lack of visibility
Chesapeake had been using a large percentage of paper-based timesheets and forms to collect employee time and attendance information, experiencing lost and delayed data that required paycheck adjustments. A paper-based time-off request process created processing delays and more adjustments. The company’s seven-day-a-week workforce had nearly 150 work schedules.
Kronos ‘best solution’ to handle workforce complexities and growth
Anticipating rapid growth, Chesapeake needed a more efficient workforce management solution. “Because of the complexities we could encounter as we grew, especially around our accrual and leave plans, we wanted to be sure the solution could accommodate them,” says Williams Espino, senior director of HR Technology. “Whatever our need, we like to get the best of breed, and we felt Kronos was the best solution for this.”
Implementing the Kronos timekeeping and leave management solution has improved workforce productivity and reduced compliance issues. Automated timekeeping and transfer of data to the payroll solution have saved countless hours. There is no chasing down missing information to correct paychecks. Use of employee self-service tools for time-off requests has helped automate leave payment processing. And the scheduling capabilities of Workforce Timekeeper accurately track employees’ varying schedules.
Productivity jumps with shift from manual to automated solution
Now, with Kronos 4500 badge terminals, timekeeping for the 7,500 hourly and salaried employees who use Kronos is streamlined and accurate — up to the minute. Employees use the solution’s self-service tools to approve their time and request time off, which managers then easily approve.
“Going from many different and unique processes to one or two has saved us lots of time and reduced confusion for employees and managers,” notes Espino.
Chesapeake has saved considerable time as a result of utilizing the Kronos solution. Before, time-off payments had to be entered manually into the payroll system. In the 18 months since the Kronos solution went live, Espino says the company has processed more than 375,000 time-off requests. He estimates that if it took just one minute to manually process each request, they have saved more than 6,250 hours.
More accurate leave tracking improves visibility and compliance
One driver for moving to an automated solution was accurately tracking leave, such as time off associated with the Family and Medical Leave Act. Chesapeake previously had a convoluted custom-built process to manage leave in its ERP solution.
FMLA compliance has improved, with no more paper checklists to track leave documentation. “From a leave-tracking perspective, Kronos has allowed us to ensure that we are consistent in the way we handle each case,” explains Espino.
Detailed labor tracking ensures correct billing
Chesapeake shares maintenance of a number of wells with multiple owners, making it critical for employees to accurately track their time spent working on each well. Using Kronos, employees can easily select from more than 85,000 property codes to indicate the site they are working on and enter their time. The information is automatically fed to the accounting department.
“With Kronos tracking this information, getting data to accounting is faster, so they can quickly disseminate bills,” says Espino.
Optimization analysis: more efficient workforce management practices
After using its Kronos solution for more than a year, Chesapeake had Kronos Services perform an optimization analysis. Kronos interviewed key personnel and end users and performed technical reviews of Chesapeake’s systems and data to see if there were areas that could be improved. Kronos confirmed the company was using its solution well but made a few recommendations to help improve processes.
Chesapeake plans to soon add the Workforce Attendance™ module when it upgrades its Kronos solution. This will allow the company to add its attendance policies to the system and create triggers that alert managers to employees with absenteeism issues.
With a focus on optimizing use of its automated solutions to more effectively manage its workforce, Chesapeake is positioned to continue its culture of success and innovation.
Chesapeake Energy Profile
Employees: 11,000
Industry: Natural gas and oil production
Products: Workforce Timekeeper™, Workforce Connect™, Workforce Absence Manager™, Workforce Record Manager™, and Kronos 4500™ badge terminals
“Whatever our need, we like to get the best of breed, and we felt Kronos was the best solution for this.” Williams Espino, Senior Director, HR Technology
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