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ADP overtime analysis boosts cost savings for retail chain

Overtime analysis is critical to a company such as Casey's General Stores.

The Midwest convenience store chain and Fortune 500 company, which employs 37,000, has reaped the benefits of workforce analytics in a big way. It uses AI-based analytics -- including sophisticated overtime analysis -- from its ADP Vantage HCM system and ADP DataCloud. The systems give managers at its 2,200-plus stores the workforce information they need to optimize staffing and reduce overtime costs.

In the past, the company's IT department would send out reports after each payroll.

"By the time it got to the store managers, we were almost in a whole different season in the convenience store, so we really couldn't do a whole lot about what their overtime was," said Janet Classon, director of HR systems at Casey's General Stores.

Now store managers and senior executives can access more timely workforce metrics in an ADP Vantage dashboard. Having the overtime analysis at each manager's fingertips, along with the company's ability to send out "mass communication" about pending overtime, make a powerful combination.

"[With] those two together, we're able to reduce overtime by millions," Classon said.

She explained how the company is using workforce analytics to tackle overtime and turnover in a video recorded at the 2019 HR Technology Conference & Expo in Las Vegas.

Turnover is next on the workforce analytics agenda at Casey's, which is based in Ankeny, Iowa, and is the fourth-largest convenience store operator and fifth-largest pizza chain in the U.S., according to press releases.

It's important to get a handle on employee turnover in part because hiring and offboarding are expensive, Classon said. Store managers' dashboards show turnover rates to help them spot trouble areas and offer remedies, such as training.

The AI in ADP Vantage is subtle, and most users probably won't realize it's there, Classon said. But the AI does keep users abreast of trends in the workforce analytics they should know about.

"It just kind of gives them little nudges," she said.

The company also exports the workforce analytics from ADP Vantage to a separate business intelligence (BI) tool.

"Our BI team's actually using it to help uncover some of the questions that we have," she said.

For example, it will combine hours worked and pay rates with sales at a given store to help managers decide whether to stay open 24 hours.

Educating store managers in the field has been the biggest challenge.

"Their main job is to run a store, so we need to provide clear and precise data for them to look at when they do have a couple minutes to sit at a desk," Classon said.

Workforce analytics -- whether used for overtime analysis, turnover analysis or something else -- requires change management.

"Tackle the easy stuff first," she said.

Be patient, she said. It's a lot for employees to take in. The tools are there to help managers, not to show what they're doing wrong.

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