Workforce Institute Board of Advisors Meeting May 28, 2008

1. Workforce Institute Board of Advisors MeetingMay 28, 2008

2. Agenda • Welcome and introductions • Kronos Executive Overview: Aron Ain, CEO • Board members: report on recent activities that are relevant to the WFI goals • Break • Recap of our December meeting • Review current state: Mission, Web site, Metrics, Exec Summit, Book, Primary Research • Review of Kronos R&D projects for Board feedback • Lunch • Review Board of Advisor model and roles • Brainstorm sustainable business model for WFI • Expand the Editorial Calendar for the next 12 months • Wrap Up

3. Agenda • Welcome and introductions • Kronos Executive Overview: Aron Ain, CEO • Board members: report on recent activities that are relevant to the WFI goals • Break • Recap of our December meeting • Review current state: Mission, Web site, Metrics, Exec Summit, Book, Primary Research • Review of Kronos R&D projects for Board feedback • Lunch • Review Board of Advisor model and roles • Brainstorm sustainable business model for WFI • Expand the Editorial Calendar for the next 12 months • Wrap Up

4. Recap of Our December 2007 Meeting • Panel discussion on employee retention: we agreed to write the book on the retention of hourly employees • Reviewed our progress to date, metrics • Picked a primary research project for 2008. • Expanded the editorial calendar to include the chapters of the book

5. Revisit Our Goals The mission of the Kronos Workforce Institute is to identify important human capital management issues that affect productivity and organizational performance, and to empower organizations to more effectively address these issues through education and research.

6. Publish case studies, white papers, benchmarking standards, meeting proceedings and articles that express unique points of view Create a dialogue with interested parties Continue publishing directed research similar to our work with Harris Interactive Publish primary research conducted by Kronos Scientists What We Must Do to Build Our Reputation

7. How You Can Help Us Expand the Dialogue On the Blog: • Set up your RSS feed or email notification • Do a guest blog • Submit a comment Public Relations/Networking: • Promote the WFI and the website to your network • Engage with other HCM bloggers and influencers Content: • Keep the research and content ideas coming! • Keep your content submission commitments

8. Keep in Touch at “Members Only” Page Check out the content The password is “ginger”

9. Face Lift for the Web Site • Home page is now the blog page • Wider format allows more content above the fold • More visibility to comments • Introduced audio and video

10. Metrics Related to the Goals • Are we producing content? • Are we getting comments and feedback? • Are we getting traffic, visits, links to the website? • Are we raising our profile? • Does the press approach us as thought leaders? • What are our ratings with search engines?

11. Nine articles posted Oct 07 – Dec 07.Twelve articles posted Dec 07 – May 23, 2008 • Increasing Hourly Workforce Productivity – Different Kinds of Work, Different Kinds of Workers – Hunt • The Role of Frontline Managers in Retaining Hourly Workers – Creelman and Hunt • Building a Retention Strategy for Hourly Workers - Giovannelli • Strategies to Wage the Wars For Talent - Hunt • OLE: The Business Case For Labor Productivity - Kronos • Overall Labor Effectiveness: Achieving a Highly Effective Workforce - Kronos • People, Productivity, and Profit - Caruso • Are Hourly Workers Professionals? - Creelman • Finding Job Candidates With the Right Fit - Hunt • Increasing Hourly Workforce Productivity - Hunt • Book Excerpt: Hiring Success - Hunt • Corporate Philanthropy: Breakthrough or Buzzwords? - Bramson

12. Research Posted Four new surveys added

13. History of Blogs October 07 to December 07 15 Blogs; 3 Guest • Retaining hourly workers • Are books and readers a thing of the past? • When Black Friday comes • GUEST – Giovannelli: Veterans at work • Not everything that happens in Vegas should stay in Vegas (KronosWorks) • GUEST- Ain: Competing for talent at Kronos • Balancing work and family – What makes the Best Places different? • Scouting for leaders • The Red Sox and the meaning of work life) • Perspective and Randy Pausch • Scenes from an Italian restaurant • GUEST – Bernstein: Is the job market healthy or sick? • Infotriever is a fickle friend • Old home week at HR Tech • Welcome – October 2, 2007 16 comments posted in response to the blogs

14. History of Blogs December 07 to May 2225 Blogs; 2 Guest • 5/19: The New Industrial Revolution • 5/12: One Size Does Not Fit All • 5/5: National Teacher Day • 5/1: Five Ways to Leave Your Job Well • 4/24: Do We Still Need “Take Your Child to Work” Day (19 comments!) • 4/15: Guest: Mel Kleiman: Frontline Employees Are Expendable • 4/8: Arming the Frontline Manager in the War for Talent (includes pod cast) ( “The Role of Frontline Managers in Retaining Hourly Workers“ Creelman and Hunt • 3/23: Back to the Future • 3/16: Thinking Green on St. Patrick’s Day • 3/7: Brother, Can You Spare a Dime? • 3/3: When Does Your Paycheck Start in 2008? • 2/28: Snow Crazed • 2/21: Dealing with Extreme Weather: An Inconvenient Truce (Links to survey and includes video) • 2/13: How Can Corporations Share the Love? (Philanthropy article by Bramson) • 2/7: Launching Hourly Worker Retention Series (Chapter One by Giovannellli) • 2/4: The Sun Also Rises • 2/1: Super Bowl Sick Days (links to survey) • 1/31: Doing the Talent Acquisition Limbo (link to Hunt article on talent acquisition) • 1/25: What Could You Do with $150 Billion? • 1/21: Punching in at the Ritz Carlton (link to Creelman article) • 1/14: Guest : Jared Bernstein - Recession Obsession • ¼: Performance Management Tips for Britney Spears • 12/28: My Top Ten Career Management Tips for 2008 • 12/19: Hiring by Design - Finding Job Candidates with the Right Fit (link to Hunt article of that name) • 12/13: Where is Everybody? (Home for the Holidays) (link to survey) • 12/6: Measure Twice, Cut Once - Thoughts on Candidate Assessment (link to Hunt’s book chapter on assessment) • 12/2: I Scan, Therefore I Am … The Cashier 58 comments posted in response to the blogs

15. Web Metrics (inception to May 18, 2008) Career advice Retaining hourly ees Extreme weather • 10,800 visits. About 650 people have visited five or more times. • 24,000 page views – Over 1,000 people viewed five or more pages during their visit. • 72% of traffic comes from referring sites like kronos.com and stumbleupon.com; 12% from search engines like Google; 15% is direct traffic. Note: this doesn’t count visits from inside the Kronos VPN

16. PR Metrics to December 2007 • 5 press releases (4 surveys, 1 announcement) • 5 briefings (Workforce Management, HR World, Boston Globe, The Manufacturer, Human Resource Executive) • 1 bylined article (Jan 2008, Workspan) • 16 mentions in the press

17. Double the Briefings and Fantastic Growth in Press Coverage as of April 24, 2007 • 6 press releases – 3 surveys, 3 announcements/research • 12 briefings – Boston Business Journal, Wall Street Journal Radio (3), Associated Press, Human Resource Executive, New York Post, HRWire, Ignites, Baltimore Sun, Workforce Management magazine, Forbes.com • 1 byline – HR.com, (2 in the works: Workspan and Talent Management – Sept.) • 93 mentions in the press • What’s working to generate press for WFI?

18. Upcoming PR Plan (June – Dec 2008) • Press releases, podcasts and promotion for the six remaining papers/chapters • Surveys: summertime crunch (June), Labor Day (August), likely others: Board feedback is critical! • Summertime Crunch • Do you have other survey ideas for upcoming research? • SHRM – Meetings for Joyce at show • Bylines – Workspan, Talent Management and others • KronosWorks – promotion of WFI Executive Summit event; Meetings for Joyce at show • Connecting with other bloggers

19. Executive Summit: 10/21/08 • Announcement campaign in the works to reach executives – both Kronos and non-Kronos customers, both domestic and international • What you can do to promote the FREE event • Provide potential attendee names to Kronos • Invite people to event via web site (www.workforceinstitute.org/event) • C level execs, companies with over 1000 employees • Agenda and speakers are solid: • Robert Reich: Economist, Author, and Former Secretary of Labor • Rich Karlgaard: Columnist and Publisher of Forbes, and Author of "Life 2.0" • Panel Discussion led by Dr. Robert Yerex: Chief Scientist, Kronos Talent Management • Aron J. Ain: Chief Executive Officer, Kronos Incorporated

20. Writing the Book on Hourly Retention • First four chapters of the book are done • Giovannelli: intro and overview • Creelman and Hunt: The role of the frontline manager • Hunt: Different types of work, different types of workers • Kleiman: Finding and hiring the best hourly workers (not posted yet) • Next few chapters on deck • Klosk - hiring for retention • Bernstein – dealing with issues you can’t control • More aggressive promotion of the book on the site, line up vanity press to size the project, get costs and timetable

21. Agenda • Welcome and introductions • Kronos Executive Overview • Board members: report on recent activities that are relevant to the WFI goals • Break • Recap of our December meeting • Review current state: Mission, Web site, Metrics, Exec Summit, Book, Primary Research • Review of Kronos R&D projects for Board feedback • Lunch • Review Board of Advisor model and roles • Brainstorm sustainable business model for WFI • Expand the Editorial Calendar for the next 12 months • Wrap Up

22. Research Project Background • Research Question • What on-boarding practices influence the engagement and retention of new hires in the hourly workforce? • Research Objectives • Gain insight into what practices are being used by organizations to on-board hourly workers • Determine how long the on-boarding process typically lasts for hourly workers • Identify practices within the on-boarding process that foster new hire engagement and mitigate early attrition • Context • Global war for talent • Shrinking and younger pool of skilled talent • Greater importance on retaining and developing talent • Effective on-boarding process is becoming a must

23. Hourly Context • Hourly workforces across industries are prone to extremely high rates of employee turnover • It is not unusual for 50% of a company’s frontline employees to leave within 120 days of their hire date An effective on-boarding process should improve these results The first weeks and months of the job are critical to speed up productivity and foster retention

24. Goals of the On-Boarding Process • On-boarding consists of orienting new employees to their specific job tasks and associated work expectations as well as socializing them into the company’s norms, culture, and team dynamics Tasks Better understanding of the responsibilities and tasks for he/she was hired Team Development of effective work relationships Organization Better understanding of the company structure, goals, history, and culture Expectancies Better alignment with tasks, compensation, team, and training expectations

25. Phases of the Research Project • Phase 1 • Conduct new hire frontline and supervisor interviews • Collect qualitative information about perceptions of and experiences with the on-boarding process • Finalize the new hire survey for phase 2 • Phase 2 • Administer the new hire survey to individuals after being employed for X days • Number of days to be determined by Phase 1 results • Analyze the quantitative relationships between on-boarding practices, employee engagement, and subsequent new hire retention • If possible, analyze any differences in the results based on industry

26. Project Steps to Date • Phase 1 • Literature review and presentation attendance • Employee engagement • On-boarding • On-boarding survey review • Kronos • Aberdeen • Client-facing collateral • Interviewer script • Interviewee informed consent • Supervisor interview guide • New hire interview guide • Phase 2 • Draft new hire survey for review by Phase 1 participants

27. Client Participation in Phase 1

28. Aberdeen Group Study • 70% of all organizations are using on-boarding as a strategy to improve new employee retention • Those organizations that achieved best-in-class designation in on-boarding saw the following results: • 100% improved retention rates of new hires • 60% reduced time to productivity for new hires • 57% increased completion rate of on-boarding activities

29. Agenda • Welcome and introductions • Kronos Executive Overview • Board members: report on recent activities that are relevant to the WFI goals • Break • Recap of our December meeting • Review current state: Mission, Web site, Metrics, Exec Summit, Book, Primary Research • Review of Kronos R&D projects for Board feedback (Lee Ingram) • Lunch • Review Board of Advisor model and roles • Brainstorm sustainable business model for WFI • Expand the Editorial Calendar for the next 12 months • Wrap Up

30. Ask the Experts • Objective – Explore the ramifications of the use of technology in the WFM space • What are the ramifications? • What arguments pro & con? • Nota bene – Kronos doesn’t apply this technology today but is isn’t too far away …

31. Location Tracking Place it in a vehicle, tool chest, or a company issued phone or laptop Use location to verify timecard or to automatically allocate time to specific accounts Cellular phone integration with GPS Call its phone number and you can locate the device within 4 meters anywhere on the surface of the Earth

32. Deep Data Analysis • Analyze worker related data: attendance, productivity, project contribution, cost, tenure, performance ratings, union membership, web site viewing history, telephone records, demographics, credit scores, drug test results, etc. • Classify and rank employees • “Life Boat” exercise • “More of these, less of those”

33. Voice Response/Stress Analysis • Call employees to “take the pulse” of the organization • Use voice recognition combined with stress analysis software to monitor responses to key questions • “Does your manager value your work?” • “Do you feel like you know what to do?” • Stressful responses may indicate difference between provided answer and true “opinion”

34. Simulation & Decision Making • We must make decisions with insufficient information • Simulation is an accepted means to support decisions made in the face of uncertainty • Simulations can help answer important questions • “How much resource (manpower, machines, space) is needed to maintain profitable operation?” • Different choices are simulated, their effectiveness measured, and “winning choice” selected • Imagine simulating various WFM scenarios • What would happen if there is a flu epidemic in our workforce? • Which 10% of labor will affect this quarter’s profits least if we proceed with the layoff? • Will productivity increase if we purchase new machines?

35. Agenda • Welcome and introductions • Kronos Executive Overview • Board members: report on recent activities that are relevant to the WFI goals • Break • Recap of our December meeting • Review current state: Mission, Web site, Metrics, Exec Summit, Book, Primary Research • Review of Kronos R&D projects for Board feedback • Lunch • Review Board of Advisor model and roles • Brainstorm sustainable business model for WFI • Expand the Editorial Calendar for the next 12 months • Wrap Up

36. Current BoA Model and Roles • Are Board members and Kronos deriving anticipated mutual benefits? • Where are the gaps in the Board that we should recruit to fill? • Review options for broader membership options (i.e., extended panel of experts who may have a lesser role, is there a role for past members)

37. Business Model • What is a sustainable business model? • How can we expand the value to Board members, readers, and Kronos? • What can we do to increase visitor engagement?

38. Editorial Calendar (also on the site)

39. Wrap-up and What’s Next • Continue to expand our website content via blog and submitted articles • Incorporate publication of book into Kronos ’09 budget • Recruit a few more participants for onboarding primary research project • Continue employee oriented Harris surveys – with employer oriented advice coming from all of you • Hold Executive Summit at KronosWorks – 10/21/08 (Invite your friends!) • Other? • Next meeting date?