Absence Management Product Overview ROM Lawson User Group

Absence Management Product Overview ROM Lawson User Group, October 21, 2004 Cecile Alper-Leroux, Product Manager

Challenges with Absence Management • Retaining the best employees means having to offer a wide variety of flexible absence plans • Complex absence policies increase the administrative burden for HR departments • Statutory compliance to support FMLA and other leave of absence tracking

Lawson Solution – Absence Management • Accurately administer time-off programs to help ensure alignment with overall corporate objectives • Automate administration of time-off programs, freeing you to focus on strategic work • Reduce time required to administer leave plans and help ensure compliance with leave policies, including statutory leaves

Project Goals • Increase product flexibility • Provide more automation • Provide accurate and comprehensive tracking, reporting and analysis of critical dates • Provide optional integration to Lawson Payroll • Allow for added employee and manager efficiency through self-service

What We’ve Delivered • • • Flexible, rules-based plans and calculation methods Automated employee plan enrollment and terminations Critical absence trend analysis FMLA leave tracking capabilities Optional integration to Lawson Payroll and Financials

Graphic of Product/New Structure

Absence Plan Features • • Optional position-based criteria User-defined plan year Accruals or allotments Hours or earnings Length-of-service in hours or cycles Rounding rules Multiple employee groups per plan Multi-country/currency

Rule-Based Plans • Service Rule – Determines the date from which employee service begins • Accrual Rule – Determines the calculation for accruals and allotments • Eligibility Rule – Determines when accruals become available for use or payout • Limit Rule – Determines plan year and sets maximums for ongoing available balances, annual accruals and carryover amounts • Payroll Rule – Defines interface to Payroll • GL Rule – Defines interface to General Ledger and Activities Management

Date Options • Several different dates will be captured on the enrollments to better control the processing that occurs. – – Plan begin and end Accrual begin and end Service begin Other begin and last dates • A significantly expanded list of options for critical “from” dates – All Employee Dates from HR 11 – Dates already determined on the enrollment

Employee Enrollment • Automatic enrollment – Employee group criteria driven – New hires, terms, and employee group membership changes • User-controlled enrollment – Mass employee enrollment program – Individual enrollment by employee – Mass employee termination program

Employee Plan Transfers • Individual transfer – Transfer to a new plan or an existing plan – Transfer dates, balances, and other data – Override the transferred amounts and dates • Mass transfer – Two processing options – NEW: Transfer balances from ended enrollments – Transfer dates, balances, other data, and historical transaction detail • Transfers allowed during processing cycle

Employee Master Record • Created within a plan structure for an employee or a specific employee position • Holds key information for the employee or employee position which will determine processing outcomes – – – Master record effective dates Begin dates for accruals, allotments, eligibility, etc Last processing dates Calculated hours and earnings balances GL Accounts and Activities Overrides

Lawson Payroll Integration • Absence Management does not require Lawson Payroll – Separate ‘service’ file resides in Absence Management (equivalent to time record data) • Clients who also have Lawson Payroll will receive the following additional features: – Automatic updates to Absence Management ‘service’ file from Lawson Payroll time record programs – Time record edits against negative plan balances – Print absence plan balances on employee paychecks – Create time records for plan payouts

Lawson Financials Integration • New program creates transactions that interface with General Ledger and Activities Management • GL Rule provides posting information – Which plan balances should be posted – Calculation of amount to post – Posting method: auto-reversing amounts or incremental amounts • Calculation information, GL account and activities information can be overridden on Employee Master Record

Leave Tracking Employee “Leave of Absence” records • • • Intermittent or continuous absence Request, begin, expected return, and end dates Status of and Reason for leave 12 Month calendar look back Eligibility flags for FMLA, State/Province, or Company leave programs • Restricted duty, physician release, etc. • URL and comment attachments

Leave Management Options Option 1 • Track and report against leave of absence data using new Employee Leave record • Run leave of absence Eligibility report or use on-line inquiry screen to verify eligibility Option 2 • Define absence plan with 12 week allotment (or other entitlement) to capture available balance • Enroll eligible employees and process usage of leave via normal cycle to update available balance

Absence Tracking and Reporting • On-line inquiry – View service data by type and/or date range, with totals option – Calendar-type views of records flagged as an absence occurrence • Batch Reports – Leave Tracking Report: for viewing leave of absence history and/or determining eligibility for leave – Absence occurrence threshold report: for identifying absences in excess of designated threshold

What Our Users Requested…

Overrides Requirement: “Allow exceptions to plan qualifications, rules and calculations. ” Solution: Ability to override plan rules for employee exceptions on Employee Master Record – – – – Calculation factors Plan limits Beginning of plan year (MMDD) Key processing dates Employee plan eligibility General Ledger account information Activities Management information

Accrual End Date/Master End Date Requirement: “Continue to allow employees to use plan balances but no longer accrue. ” Solution: Accrual End Date - Controls accruals and other calculations Master End Date - Controls usage and manual adjustments

Eligibility of Positions Requirement: “Hours worked by employees within certain positions should not be included in accruals based on hours worked. ” Solution: Automatic tracking of qualified positions – Length-of-service – Accruals based on hours worked – Usage

Retroactive Accruals Requirement: “Accruals are based on hours worked in the pay period and employees have not entered all their time or have entered their time incorrectly; accruals may need to be adjusted. ” Solution: Optionally recalculate and adjust accruals for previous cycles – Time records entered for cycles already processed – Ability to process separately – Cycle limits are enforced

Plan Usage Requirement: “Employees have not recorded their time off or have recorded their time off incorrectly and the cycle has been closed with updates to plan balances, which now need to be corrected. ” Solution: Time records for plan usage will be processed as long as time record date is within effective dates of Employee Master Record

Allotments Requirement: “Employees must be awarded an amount annually based on their FTE. ” Solution: Allotments – Annual or one-time occurrence – Base on variety of employee or position factors including FTE and annual hours

Allotment Adjustments for Employee Factors Requirement: “Amounts awarded to employees annually based on their current FTE must be adjusted if their FTE changes during the year. ” Solution: Allotment Adjustment Calculation program – Adjust allotments for changes in employee and position factors during the year including FTE and annual hours – Allow for positive and/or negative adjustments

Allotment Adjustments for Accruals Requirement: “Amounts awarded to employees annually based on their current scheduled hours must be adjusted based on actual hours worked. ” Solution: Allotment Adjustment Calculation program – Adjusts allotments using comparisons to accruals that are based on hours worked – Allow for positive and/or negative adjustments – You decide when you want to adjust allotments (quarterly, annually, etc. )

Limit Types Requirement: “Allow plan limits to apply across multiple plans. ” Solution: Limit Type controls which plans and enrollments are included in limit checks. – – Plan Category Plan Employee Group Position

Annual Accrual Limit Requirement: “Limit the amount that employees may accrue within a given year, regardless of any usage that has occurred. ” Solution: Limit Rule includes a new annual accrual limit that looks at the total of accrual transactions, and not any point in time balance when applying the limit. Annual period of time is user-defined and is not limited by calendar year.

Carryover Limits Requirement: “Let us control the balance amount employees can carryover to the next year and the amount of time which employees can use the amount carried over – to reflect our absence policies. ” Solution: Limit Rule includes calculation criteria for: – Carryover Limit – Carryover Period Override Carryover Limit criteria on Employee Master Record

Reserve Balances Requirement: “Allow employees to set aside amounts that will not be lost when limits are checked. ” Solution: Amounts can be moved from Available to a Reserve balances. Amounts in reserve will not be included when ongoing balance limits are checked.

Negative Balances Requirement: “Do not allow time records to be entered if they hold usage amounts that will result in negative balances for an employee in a plan. ” Solution: Payroll Rule includes negative balance options: – Edit for negative balances and prevent time record – Allow time record but provide a warning message – No time record editing against negative balances

Processing Options Requirement: “Allow employees to use what is accrued within the same cycle. ” Solution: Control the type and timing of processing for a cycle – Allow accruals to update balances – Employees view updated balances – Employees use amounts from updated balances

Auditing Requirement: “We need the ability to audit who made a change to a record and when the change occurred. ” Solution: Absence Management files provide: – CREATE User ID, Date and Time stamps – LAST CHANGED User ID, Date and Time stamps ALL Absence Employee Master Record changes can be logged to HRHISTORY – New HR 10 topic for Absence Management

Coming in the near future… • Self-service feature including vacation and absence, requests and approvals • Linked absence plan balance depletion • HR Writer topics for absence plan master, emergency leave records and history

System Usability • Over 65, 000 active employees • Second largest employer in the Wisconsin • Over 100, 000 W-2’s produced annually • 13 distinct campus locations Customer Pain Points Lawson Value • Legacy System – 30 year old mainframe • The people – UWS connected with Lawson at all levels • Completed analysis of best practices and decided to buy a best –of-–breed solution • Only truly web-based solution at time of decision • Needed a system for the future • Flexible system that could respond to required change University of Wisconsin Systems Results • UWS can distinguish itself on the basis of academics – its true business • UWS has the tools needed to serve people, who make up 80% of their budget • Have a system that will help them prepare for the future

Beta Customer Comment I am not a sales guy and I don’t work for Lawson. Everything (Lawson) is telling you about Absence Management is true and is working for us. Scott Hamilton HRIS Analyst, University of Wisconsin Systems

Special Offer Limited-time Offer to Waive License-fee – “Living the Manifesto” - Customer Satisfaction Initiative – Only available to existing customers who have licensed Time Accrual Event Management (TA) a la carte or as part of an HR Suite and are currently on support – Offer begins June 1, 2004 and ends June 30, 2006 Maintenance/Support – All existing clients who take advantage of the offer will be billed for maintenance for Absence Management (LP) based on list price, as of product shipment date – You will receive TA maintenance free of charge as of LP shipment date QUESTIONS? ? cecile. alper-leroux@lawson. com