Taming the HCM Beast: 3 Key Factors to Petco’s Success
By John Orr, Senior Vice President of Retail at Ceridian
Whether through the Petco Foundation or across its various brands, Petco shares our love for the companionship with our pets. My daughter is an animal lover, and I thank her for introducing me to pets and in doing so sharing precious time together while making trips to the “Unleashed” stores by Petco.
Petco has been quite successful helping consumers care for their pets, but when it came to managing their workforce of over 27,000 full and part-time associates, it was a different story. With approximately 1,300 stores in the U.S. and Mexico, plus distribution centers (DC), warehouses and the corporate office, Petco has a large and diverse population to manage. “Employee retention and satisfaction are key goals of our internal brand message, and that parlays into a customer experience differentiator for us,” said Michael McCaffrey, Petco’s director of operations and planning.
As Petco grew, not only were they risking employee retention and satisfaction, but they faced compliance and efficiency challenges too. By 2010, Petco was maintaining three separate systems to collect time punches and calculate hours worked. Since 2000 was the last time they had rolled out a time and attendance system, Petco required the maintenance of more than 1,300 software licenses and a distributed support model in a failing attempt to keep up with the company’s new business processes.
“We wanted to increase our flexibility to define future business rules and processes, but we faced a considerable challenge in the limited availability of timekeeping hardware that would work with our older systems,” McCaffrey explained. “Adding new stores and replacing broken devices were presenting a considerable challenge.”
Petco set out to find a scalable and consistent enterprise human capital management (HCM) solution that could manage a diversely-skilled employee population that provides a multitude of products and services. With the help of analyst firm Gartner, they outlined their business requirements and began researching. Their requirement list topped more than 100 items, with the following priorities:
- A centrally-based, enterprise solution for time and attendance
- Support of rotation-based scheduling for the DCs
- Demand-based scheduling for stores
- Support of the company’s attendance point policy
- Time-off entitlements
- Support of accurate pay rules across all 50 states
- Support of the company’s electronic approval workflow
In addition, Petco wanted a simple and scalable IT footprint. After careful analysis, they determined that Dayforce HCM checked off all of the boxes for their requirements with the added benefit of a Software as a Service (SaaS) model. This meant no IT footprint – Petco would receive a continuous and seamless stream of software updates and new functionality as quickly as it was developed.
3 Keys to Petco’s Success
- Partnering to evaluate and review business requirements. Working with Gartner to initially conduct vendor research and then with Ceridian retail experts, Petco was able to find a solution that fit its unique business model. This meant accurate and timely paychecks for store employees, including its commission-driven Pet Services (grooming and dog training) staff. Dayforce HCM helps the company appropriately address not only variable customer traffic demand, but also enforce animal care maintenance standards that align with their brands.
- Recognizing the value of a single, central SaaS solution. Instead of maintaining multiple systems among the various divisions, Petco can service the entire organization with one solution. This ensures enterprise-wide data visibility for more robust tracking and increased organizational effectiveness. With software that’s continually updated for changing state and federal pay rules, Petco is also able to minimize compliance risks.
- Understanding the importance of the employee experience. Change, even when it’s much needed, can be difficult. By selecting a solution that was easy to rollout, to learn, and to use, Petco made the transition seamlessly. In fact, Petco saw a steady decrease in the routine support calls to its HR team and an increase in positive feedback from its associates. By raising awareness and visibility of the time sheet and pay calculations, as well as better managing time-off requests, Petco continues to realize high employee satisfaction.
As Petco enters the 2015 holiday shopping season and completes its first year using Dayforce HCM, they’ll continue to experience happy, engaged associates who delight their customers (including our furry, feathered, and scaled friends!)
Visit our website for more Dayforce HCM retail customer success stories.
Resource: “Inside Petco’s HCM Overhaul,” Innovative Retail Technologies, December 14, 2014
John Orr is the SVP of Retail at Ceridian. Follow him on Twitter at @John_Orr.