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University of San Diego Sees Average Annual Benefit of More Than $1.5 Million with Kronos
March 30th, 2011 at 1:33 pm
CHELMSFORD, Mass., Mar. 29, 2011 — A new independent ROI case study published by Nucleus Research titled “Kronos ROI case study – University of San Diego” states that the University of San Diego realized an average annual benefit of more than $1.5 million with workforce management solutions from Kronos Incorporated. In the ROI case study, Nucleus analysts found that by implementing Kronos®, the private university with 3,800 employees, many of which are students who work part-time, significantly decreased payroll overpayments, reduced overtime costs, and improved productivity.
According to the case study, prior to implementing Kronos, the university’s managers suspected there was a high payroll error rate as a result of a manual payroll process. Another problem area was overtime. Without a way to automate the application of overtime rules, the determination of when and how to apply overtime rates was left to the employees themselves.
Nucleus Research calculated the costs of software, consulting, personnel, training, hardware, and other investments over a three-year period to quantify the university’s investment in Kronos. Nucleus determined that the University of San Diego gained an average annual benefit of more than $1.5 million and achieved a ROI of 546 percent with payback in three months as a result of deploying Kronos. Additional key benefits include: improved payroll accuracy, a reduction in payroll error rate by 93 percent, and an elimination of $702,000 in annual overtime costs.
With Kronos, managers also reduced the amount of time they spent on the bi-weekly payroll process by 71 percent. The deployment improved the productivity of employees, who spend less time examining their paychecks for accuracy. Before, correcting an underpayment in a paycheck typically took an employee away from their job for an average of 20 minutes.
Finally, the University of San Diego was able to increase productivity in the payroll department with Kronos. According to the case study, “Productivity in the payroll department increased for two reasons. First automation of the bi-weekly payroll process in Kronos eliminated the need for administrators to manually collect and rekey data from 1,600 timesheets every pay period. Second, improved payroll accuracy and the availability of data in Kronos enabled administrators to spend less time correcting errors and fielding questions from employees and managers. With a reduction in the average number of manual checks per pay period from 30 to two, the time savings from improved accuracy was significant.”