Nucleus Research finds that increased productivity, improved employee morale, and enhanced management of FMLA-related cases contribute to ROI
CHELMSFORD, Mass., July 10, 2007 — Non-compliance with the Family Medical Leave Act (FMLA) is increasingly a source of litigation in U.S. workplaces. Best practice organizations are adopting innovative absence management solutions to help comply with FMLA regulations and are reaping significant ROI. A recent study conducted by Nucleus Research found that Shooting Star Casino achieved a 250 percent ROI on its implementation of an absence management solution available in Kronos for Gaming from Kronos® Incorporated. Kronos for Gaming is helping Shooting Star Casino comply with FMLA regulations while increasing the productivity and morale of its 1,100-employee workforce.
Kronos for Gaming is a comprehensive offering of software and services designed to improve customer service, reduce labor costs, improve employee satisfaction, and ensure compliance. This integrated suite addresses the challenges of managing the workforce in the gaming industry with solutions for time and attendance, scheduling, absence management, hiring and selection, and biometric data collection. The solution is supported by a dedicated team of experts who deliver deep domain knowledge and industry best practices.
"Managing employee leave and absences was a costly productivity drain on our organization. We needed to streamline the process so our HR department could focus its efforts on our people — not paperwork," said Larry D. Kindseth, chief financial officer at Shooting Star Casino. "Having experienced positive results from a previous implementation, we knew Kronos had the expertise to help us better monitor employee leave and absenteeism. The absence management offering in Kronos for Gaming has proven to be cost effective, and it has improved employee productivity and morale at Shooting Star Casino."
Reduced overtime and staffing costs
According to Circadian Technologies, the direct cost of unscheduled absenteeism approaches $3,600 per hourly employee per year and $2,650 per salaried employee per year. Excess staffing and overtime are the source of these expenses. With Kronos for Gaming, Shooting Star Casino is able to maintain accurate records and reports, ensuring that only appropriate employees receive overtime. As a result, the organization's overtime percentage has decreased from 2.2 percent of total payroll to 1.3 percent.
Improved productivity and management of FMLA
Also contributing to Shooting Star Casino's ROI was improved productivity. The organization's prior manual system relied on supervisors diligently tracking absences as they occurred, which often did not get recorded, resulting in inaccurate records. Kronos for Gaming eliminated the need for manual record keeping, enabling supervisors, payroll clerks, and financial executives to focus on important activities, which resulted in significant time savings and increased productivity throughout the organization. Additionally, with an accurate view into employee leave, supervisors are now able to identify eligible FMLA cases, virtually eliminating ineligible employees mistakenly being granted leave.
"The recent increase in FMLA litigations is a wake-up call for organizations to immediately implement processes to comply with this regulation. Unfortunately, most organizations don't realize they are non-compliant until it's too late," said Charles DeWitt, vice president of vertical marketing at Kronos. "Shooting Star Casino is an excellent example of how implementing an absence management solution is a cost effective tool to help manage FMLA compliance and improve productivity. They have successfully paved the road for others to follow."
About Kronos Incorporated
Kronos Incorporated empowers organizations around the world to effectively manage their workforce. At Kronos, we are experts who are solely focused on delivering software and services that enable organizations to reduce costs, increase productivity, improve employee satisfaction, and ultimately enhance the level of service they provide. Kronos serves customers in more than 50 countries through its network of offices, subsidiaries, and distributors. Widely recognized as a market and thought leader in managing the workforce, Kronos has unrivaled reach with more than 30 million people using a Kronos solution every day. Learn more about Kronos at www.kronos.com.
About Nucleus Research
Nucleus Research is a global provider of IT advisory and research services that provides CFOs, CIOs, and their staffs with the real-world information they need to maximize the business returns from their technology investments. For more information, visit www.NucleusResearch.com.
© 2007 Kronos Incorporated. Kronos and the Kronos logo are registered trademarks of Kronos Incorporated or a related company. All other product and company names mentioned are used for identification purposes only and may be trademarks of their respective owners.
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