City of Houston Expects to Save $7.2 Million Annually with Kronos®
CHELMSFORD, Mass., Aug. 23, 2010 — The City of Houston, Texas, the fourth-largest city in the U.S., selected an end-to-end workforce management suite of solutions from Kronos® Incorporated to control labor costs, minimize compliance risk, and improve productivity. The city expects payback within 18 months of implementation and annual savings of $7.2 million through complete automation and increased accuracy of critical workforce business processes.
- The City of Houston selected Kronos' time and attendance, employee scheduling, workforce analytics, activities, and absence management solutions for 24,000 employees. The city-wide implementation of a standardized workforce management suiteis being led by Kronos and assisted by Precision Task Group and EPI-USE. The project is part of the City of Houston's larger operational transformation initiative, which includes consolidation and centralization of critical processes including payroll and procurement.
- Kronos was selected to replace a mix of automated and manual systems. After a thorough evaluation of other competing solutions, Kronos was chosen for its market leadership in workforce management. Officials from the City of Houston spoke with users at other cities and counties and received highly favorable reviews of Kronos.
- The projected cost savings is based on a variety of factors including precision in payroll calculations that will help the City of Houston save a minimum of 1.2 percent of hourly employees' payroll dollars. The city will also save through effective overtime management; accurate activity costing for projects and grants; optimized employee scheduling; and closed-loop absence management.
- Before Kronos, if employees did not fill out manual forms when they took leave or stopped working, they could continue to get paid by the city. Additionally, Kronos will enable increased efficiency by eliminating the need for authorization forms to be completed and approved manually by multiple individuals in various locations.
- The integration of Kronos with the city's SAP ERP payroll system will further extend the value of the city's investment in SAP through high-quality, real-time labor data entering the payroll system.
- The City of Houston also selected Kronos' managed services offering to help support the maintenance of its IT infrastructure. This will ensure that the applications are current and performing at optimal levels, allowing the city to focus on other functions.
- Kronos will be used by all hourly and salaried employees and leadership across all departments of the city including Administration and Regulatory Affairs, Airports, Convention and Entertainment Facilities, Finance, Fire, Police, Parks and Recreation, Public Works, and Solid Waste.
- Alfred Moran, director, department of administration & regulatory affairs, City of Houston
"Centralization of workforce business processes, where it makes sense, is a best practice of city governance. Without such an initiative, cities cannot gain complete control over labor costs and offer transparency. Through standardization and real-time visibility into labor data, Kronos will help provide accountability for hours worked, attendance, and leave. And the fast payback and multimillion dollar year over year savings will help us serve Houston's five million residents even better."
- Christine Carmichael, director of public sector marketing, Kronos
"Complete automation of workforce business processes is a common weak point in government infrastructures. Considering that labor costs represent one of the largest expenses for local governments, this is a good place to look for quick payback. The City of Houston is a great best practices example with its focus on driving efficiency and accuracy of processes that help reign in budgets and save taxpayer dollars."
About Kronos Incorporated
Kronos is the global leader in workforce management solutions that enable organizations to control labor costs, minimize compliance risk, and improve workforce productivity. Tens of thousands of organizations in 60 countries — including more than half of the Fortune 1000® — use Kronos time and attendance, scheduling, absence management, HR and payroll, hiring, and labor analytics applications. To learn how Kronos uniquely delivers complete automation and high-quality information in an easy-to-use solution, visit www.kronos.com.
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