In the retail industry, managing a diverse frontline workforce across multiple locations is no small feat. From juggling employee schedules to ensuring compliance with labor laws, workforce management presents a myriad of challenges. Among these, one issue stands out for its complexity and potential for disruption: managing banked overtime (OT) for employees working multiple roles at varying pay rates.
Recently, we collaborated with a large retail organization transitioning to UKG HCM to modernize their workforce management systems. During this migration, a glaring gap was uncovered—the inability to accurately track and pay out banked overtime based on the original pay rate. This oversight not only impacted payroll accuracy but also undermined employee trust, leading to dissatisfaction and higher administrative burdens.
For decision-makers in retail, this problem is not just about numbers; it’s about building trust with a workforce that directly influences the customer experience.
The Problem: Banked Overtime with Variable Pay Rates
In retail, frontline employees often wear multiple hats, performing roles like cashier, stock associate, or shift supervisor—each with distinct pay rates. While overtime is banked for future use or payout, most workforce management systems, including UKG HCM in its standard configuration, fail to account for the complexity of variable pay rates. Here’s the crux of the issue:
- Multi-Role Employees: Retail staff often work multiple jobs with different pay rates (e.g., a cashier at $15/hour and a stock associate at $18/hour).
- Accrued Overtime: Overtime is calculated at 1.5x or 2x the hourly rate, depending on the job worked.
- Incorrect Payouts: When employees use their banked time or receive payouts, the system defaults to their current base rate instead of the rate tied to the specific job at the time of accrual.
This default calculation not only results in payroll inaccuracies but also creates friction between employees and management. Retail employees—already facing high workloads and long hours—feel undervalued when their hard-earned overtime isn’t paid out fairly.
Why This Problem Matters
1. Trust and Morale
Employees who believe they are being underpaid for overtime lose trust in the organization, leading to disengagement and turnover. In an industry where frontline staff are the face of the brand, this can significantly impact customer experience and satisfaction.
2. Compliance Risks
Inaccurate payouts can lead to non-compliance with labor laws, exposing retailers to potential lawsuits, penalties, and reputational damage.
3. Administrative Burden
Resolving payroll disputes manually consumes valuable HR resources, creating inefficiencies and increasing operational costs.
The Solution: CloudApper’s Tailored Approach to UKG HCM
At CloudApper, we specialize in extending the capabilities of workforce management systems like UKG HCM to solve industry-specific challenges. For the retailer, we developed a tailored solution to address their banked overtime dilemma, ensuring accuracy, compliance, and employee satisfaction.
1. Accurate Pay Rate Tracking
CloudApper implemented custom logic to track and retain the original pay rates tied to accrued overtime hours. When banked time is used or paid out, the system accurately reflects the rate associated with the job worked during the overtime period.
2. Seamless Integration with UKG HCM
Our solution integrates seamlessly with UKG HCM, eliminating the need for manual interventions or expensive system overhauls. This ensures smooth data synchronization and reliable payroll processing.
3. Scalable and Future-Ready
The solution is designed to grow with the retailer, aligning with future enhancements to UKG HCM while accommodating workforce expansions or policy changes.
The Impact: Restoring Trust and Efficiency
By addressing the issue of inaccurate banked overtime payouts, CloudApper delivered tangible benefits for the retailer:
1. Improved Employee Trust
Employees now receive accurate payouts, fostering trust and engagement. This directly reduces turnover and enhances workplace morale.
2. Operational Efficiency
Automated processes eliminated manual calculations, saving HR teams significant time and effort while reducing errors.
3. Compliance Assurance
Accurate tracking and payouts ensured adherence to labor laws, protecting the retailer from potential legal and financial risks.
4. Enhanced Employee Experience
A fair and transparent payroll process enhances employee satisfaction, which translates into better customer service and stronger brand loyalty.
Why Retailers Should Address This Issue Now
Retail is a fast-paced industry where workforce dynamics are constantly evolving. According to a report by McKinsey, frontline employees represent 70% of a retailer’s workforce and have the largest impact on customer experience. Yet, these employees are often the most disengaged, largely due to poor workforce management practices like inaccurate payroll.
Unresolved issues around banked overtime can lead to:
- Higher Turnover Rates: Dissatisfied employees are more likely to leave, leading to increased recruitment and training costs.
- Declining Customer Experience: A disengaged workforce directly impacts service quality and brand reputation.
- Escalating Compliance Risks: Regulatory scrutiny around fair pay is increasing, making accuracy in payroll a non-negotiable priority.
CloudApper: Your Partner in Solving Workforce Management Challenges
CloudApper’s AI-powered platform is uniquely positioned to address the nuanced challenges of workforce management in the retail sector. By bridging gaps in UKG HCM and other systems, we empower retailers to:
- Enhance Payroll Accuracy: Ensure every employee is paid fairly for their work.
- Streamline Processes: Automate complex tasks, freeing up HR teams for strategic initiatives.
- Build Employee Trust: Create a transparent and fair work environment that boosts engagement and retention.
Looking Ahead: Smarter Workforce Management for Retail
This case highlights the critical need for tailored solutions in workforce management. Retailers cannot rely solely on out-of-the-box systems to handle their unique challenges. By partnering with CloudApper, retailers can optimize their UKG HCM systems to address pain points like banked overtime, ensuring operational efficiency, compliance, and employee satisfaction.
Ready to Tackle Your Workforce Management Challenges?
CloudApper specializes in expanding the capabilities of UKG HCM to meet the unique needs of retail organizations. From resolving banked overtime complexities to addressing other workforce management gaps, our AI-driven solutions are designed to enhance efficiency, build trust, and improve the bottom line.
Contact us today to learn how CloudApper can help your organization achieve its workforce management goals.
Darren Trumbler is a versatile content writer specializing in B2B technology, marketing strategies, and wellness. With a knack for breaking down complex topics into engaging, easy-to-understand narratives, Darren helps businesses communicate effectively with their audiences.
Over the years, Darren has crafted high-impact content for diverse industries, from tech startups to established enterprises, focusing on thought leadership articles, blog posts, and marketing collateral that drive results. Beyond his professional expertise, he is passionate about wellness and enjoys writing about strategies for achieving balance in work and life.
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