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About Bryan

Resume Pic of Bryan deSilvaMusician & Yin Style Bagua practitioner. Over twenty years of software implementations and upgrades, project management, systems and applications development experience with a current focus on ADP eTime & Kronos Timekeeper/HR systems implementation. 

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Kronos Timekeeper - I take Exception to a little Rounding

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Rounding / Exceptions are always an interesting topic. Everyone thinks they understand how to best implement/change the the practices, but seldom does anyone understand the full social impact (the technical side being quite simple.) These configurations in Kronos/eTime determine how people get paid and how attendance is tracked. Some basic terms need to be understood.

Exceptions are flags that alert Supervisors when employees work outside of their assigned shifts. Exceptions serve no other function and they only work with accurate schedules in the system. They appear in the Timecard Editor, outlined in red. and also on reports. They indicate missed punches, absences, late punches, and so on.

Rounding rules ensure that pay rules are applied consistently to a group of employees. (Some think that rounding also makes payroll processing more efficient because rounded punches are easier to interpret than real-time punches. Others believe in not using rounding and pay minute to minute.) Rounding is defined using a round and a grace. The round divides an hour into equal increments of time. The grace is the increment after which the punch is rounded forward to the next round increment. You can use interval rounding or punch rounding. Interval rounding rounds the time between an in-punch and an out-punch. Punch rounding rounds the in-punch and the out-punch. 

I find it facinating that 15/7 is still the norm. Think about how paper works and it becomes obvious that it used to be needed for Payroll folk to not go crazy. But now that it's automated why not round 5/0 or perhaps pay minute to minute and not round at all. I'm here, pay me. Payroll doesn't have to ADD anymore! We can now easily separate Pay from Attendance. Use exceptions to handle attendance rules which allow for early/late punches in the way HR policy states.

Anyway, back on topic, 'Interval' rounding was put into the system to handle how some companies had always done it. For them, it was easier to understand. I think most companies that try switching to interval rounding do so with the best of intentions, and then they switch back. The lesson here is never to switch from one entrenched form of rounding to another without serious study of the consequences, cautious rollout and a LOT of communication with the employees from early in the process though the end.

As KimW noted in Kronos-Fans a while back, "Interval Rounding does not work as typically intended if emplyees punch for lunch-- that creates two segments for the day and each is rounded separately. Typically, interval rounding is indended to round the enitre day to the nearest quarter hour. Kind of only works well for Project View, and even then, if any sort of entry creates another segment in the day, there become two segments rounded separately." I agree that this is not a popular option in the real world.

So here's a thought. Why not have minute to minute during the shift, and using rounding on the outside of the shift? These numbers of course could be any numbers:

------------------------

5 min grace for early in / late out. All else minute to minute. Note, if no schedule, all punches would be minute to minute.

Employee scheduled start = 9am, sched out 5pm
Punch in 8:55 - round up to 9am.
Punch in 8:54 or before - no rounding
Punch in at 9:01 - no rounding

Punch out at 5:05 - round back to 5p
Punch out at 4:59 or before - no rounding

--------------------------

Anyone else have any interesting ways to look at this?

Comments

So why change something that is working for the most part? To change rounding rules, employee manuals will need to be changed, training documents will need changing, policies will need to be changed, a whole lot of communication to the employees and managers to make them understand the change will have to be done. Analysis on the impact of the changes will need to be done...whew too much effort...what will be the gains...is it worth it?
Posted @ Wednesday, June 24, 2009 10:04 AM by Steve Wilsher
Why change? A couple of reasons. 
 
1) It can save companies millions. 
2) It might not be what the company policy states/stated before implementing automation. 
 
Is it worth it? I don't know. Depends on the situation. I mostly put the idea out there to let people know they CAN do it.
Posted @ Thursday, June 25, 2009 8:30 PM by Bryan deSilva
Is it worth it to evaluate rounding rules? Let's do some math: 
15/7 rounding rule 
Some of your employees will choose to punch in 7 minutes every day and out 7 minutes early, resulting in 14 minutes lost daily. 200 days/yr = 46.6 H per year per employee-- call it abut about 1 week per employee per year. If 10% of your 1,000 employees do this, you will lose 100 weeks of paid time yearly, approximately. Play with the numbers-- round them, do whatever, but it can add up to an amount worth evaluating as "worth it." 
I always advocate something like Bryan suggests: Minute to minute for scheduled work hours, with Eary IN and Late Out rounded to 6/5 or 15/14. In in addition to being realistic, it gives employees little room for cheating and is likely to be fine with DOL.
Posted @ Monday, June 29, 2009 5:38 PM by Kim Wennerberg
Companies have also lost millions. As a manager every time a time management system was implemented at any of my companies, all my good non salaried employees stopped giving that little extra 30 minutes early or late. Calculate that one.  
 
For every bad employee (which a manager should be able to manage), there are good employees that look at time clocks as a trust issue. From that point on they will wait in their car until time to clock in, instead of doing a little extra work. 
Posted @ Wednesday, July 29, 2009 11:56 AM by Management Thought
Good point djklsa! There is usually some benefit and some loss/pain with the implementation of any new system. What matters to most companies is that the overall balance shifts to the better financially and/or in morale. 
 
My experience is that if the system is properly chosen AND implemented (including change management collaboration throughout the organization) that the scales can tip strongly to the positive.
Posted @ Wednesday, July 29, 2009 11:40 PM by Bryan deSilva
The posting from Management Thought is dead on accurate. Before Kronos at my company, many, many good hourly employees gave 30-45 a day in extra work(off the clock) Now that is all gone. The trust issue is a big factor. Before, there may have been a few bad apples...there always are. But now, there are hundreds of punch in at 6am/punch out at 6pm clock watchers which is very counter productive.
Posted @ Saturday, February 20, 2010 5:39 AM by Great Hourly Employee
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