Kronos Incorporated

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Kronos Incorporated
Type Private
Founded October 31, 1977 (1977-10-31)
Founders Mark S. Ain
Headquarters Chelmsford, Massachusetts, United States
Employees 3,200 (2011)
Parent Hellman & Friedman
Website Kronos.com

Kronos Incorporated is a U.S.-based multi-national workforce management software and services company headquartered in Chelmsford, Massachusetts, United States, and employing 3,200 people.[1]

History[edit]

Kronos Incorporated corporate headquarters in Chelmsford, MA, USA.

Kronos was founded in 1977 by Massachusetts Institute of Technology (MIT) alumnus Mark S. Ain.[2] Under Ain's leadership, Kronos sustained one of the longest records of growth and profitability as a public company in the software industry.[3] Ain's brother, Aron Ain,[4] succeeded him as chief executive officer in 2005. Mark Ain continues as chairman of the Board of Directors.[citation needed]

Originally a manufacturer of timeclocks, the majority of Kronos revenue is now derived from software and services. The company provides applications for workforce management, as well as consulting, education, and support services to its customers, including cloud services.[citation needed]

In March 2007, Kronos was bought out for US$1.74 billion by the lead investor Hellman & Friedman and the secondary investor JMI Equity.[5]


  • Kronos was founded on October 31, 1977
  • Delivered the world's first microprocessor-based time clock in 1979
  • Kronos became a publicly traded company in 1992 (Nasdaq) and went private again in 2007[6]
  • Delivered its first PC-based time and attendance product in 1985
  • Under Mark Ain's leadership, Kronos sustained one of the longest records of growth and profitability as a public company in software industry history — second only to Microsoft[3][7][8]

Products and Services[edit]

Software

  1. Time and attendance[9]
  2. Scheduling[9]
  3. Absence Management[10][11]
  4. HR & Payroll
  5. Hiring[12]
  6. Labor Analytics

Hardware

  1. Kronos InTouch
  2. Kronos 4500
  3. Kronos 4500 Touch ID with biometric verification
  4. Kronos 4510 Touch ID designed specifically for gaming
  5. Workforce Teletime and TTE (telephone time entry solution) which provides employees with telephone time-tracking access to a workforce management system
  6. Handheld devices which give anytime, anywhere access to mobile employees

Services

  1. Cloud Services[13]
  2. Implementation Services
  3. Educational Services
  4. Support Services
  5. Optimization Services

Acquisitions[edit]

Kronos has conducted more than 60 acquisitions, some of the most notable including:

Litigation with EEOC[edit]

Highlighting the potential risk to employers of using employee selection tests to filter applicants, the Third Circuit Court of Appeals enforced an EEOC subpoena directed to test-maker Kronos, Inc., in a disability discrimination case. EEOC v. Kronos Incorporated, Civ. Act. No. 11-2834 (September 14, 2012, Third Circuit).[21] The involved employer, Kroger, acknowledged that the Customer Service Assessment test created and administered by Kronos had factored into the decision to deny employment to the applicant.[citation needed]

Kronos objected to the EEOC’s subpoena on the basis that the information requested was irrelevant, and production would require Kronos to disclose protected trade secret information. Rejecting those arguments, the court ruled that "evidence that would 'cast light on' either a claim for disparate treatment or disparate impact caused by the use of Kronos' assessments would be relevant", and stressed the ADA prohibition on the use of employment tests that "'screen out or tend to screen out' disabled people and the use of the test is not 'job-related for the position in question' and consistent with business necessity'". The Third Circuit found that the District Court had abused its discretion in limiting the scope of the subpoena to documents pertaining to the assessment tests purchased by the grocery store chain, or that the store relied upon in creating or implementing the disputed tests. The Third Circuit also rejected the District Court's narrowing the subpoena to disability-related information. It reasoned that information about Kronos’ testing methods would aid in determining whether such tests were discriminatory.[citation needed]

This Kronos assessment measures five personality attributes that collectively constitute the "five factor" model: conscientiousness; agreeableness; extroversion; openness; and neuroticism.[22] The Five Factor Model is a "dimensional" model of personality. A "dimension" refers to a continuum on which an individual can have various levels of a characteristic, in contrast to the dichotomous categorical approach in which an individual does or does not possess a characteristic. In the dimensional models of personality disorders, personality disorders are classified according to which characteristics are expressed at which levels. This stands in contrast to the traditional categorical models of classification, which are based on the Boolean presence or absence of symptoms and do not take into account levels of expression of a characteristic or its underlying dimension.[citation needed]

The Kronos decision highlights the risk that improperly validated or administered selection tests may trigger employer liability for employment discrimination. When using selection tests, or when contracting with others to administer such tests, employers need to make sure of three things in particular: First, the tests must have been properly validated for the specific positions and purposes to be used (meaning the test or other selection device must be job-related and its results appropriate for the employer's purpose). Second, the tests must be administered without regard to race, color, national origin, sex, religion, age, disability, or any other protected characteristic. Third, the tests must be routinely reviewed to be sure that they continue to be non-discriminatory as applied and from an adverse impact standpoint.[23]

References[edit]

  1. ^ Kronos company fact sheet
  2. ^ Kronos Corporate Governance: Executive Leadership Biographies
  3. ^ a b http://www.capehornstrategies.com/Kronos3.pdf
  4. ^ Kronos Corporate Governance: Executive Leadership Biography
  5. ^ Today In Business | Buyout Deal For Kronos
  6. ^ New York Times | Hellman & Friedman | Does Deal for Kronos
  7. ^ ICD | Analyze the Future
  8. ^ Business Software |Top 10 Human Capital Management Software Vendors
  9. ^ a b Mobile Enterprise | Mobile Technology Fills Open Shifts
  10. ^ UPI | Workers 'sick' of commuting
  11. ^ Business Systems News | Software and services reduce employee absence costs
  12. ^ Industry Week | Improving Performance and Maximizing Efficiency for Manufacturers' Hiring Processes
  13. ^ IDC Analyst Connection: Workforce Management Software and the IT Organization: Benefits of Services in Cloud
  14. ^ Kronos acquires AD OPT for $68,200,000
  15. ^ or http://www.kronos.com/pr/kronos-acquires-public-safety-scheduling-leader-pdsi-and-its-telestaff-product.aspx Venture Beat
  16. ^ Kronos Acquires Australian Workforce Solutions Business of Simplex International Pty. Ltd. in Completion of 2001 Transaction
  17. ^ Kronos Acquires Stromberg from Paychex…from Kronos
  18. ^ Boston Business Journal: Kronos acquires 3i systems
  19. ^ Market Watch: Kronos Acquires SMB Workforce Management Leader SaaShr.com
  20. ^ http://www.wcapgroup.com/LinkClick.aspx?fileticket=Fxpif_YOIX4%3D&tabid=77
  21. ^ http://www.ca3.uscourts.gov/opinarch/112834p.pdf
  22. ^ http://economics.mit.edu/files/599
  23. ^ http://www.employmentlawwatch.com/2012/10/articles/employment-us/third-circuit-enforces-eeoc-subpoena-seeking-testmakers-files-on-employee-selection-tests-used-by-employer/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+EmploymentLawWatch+%28Employment+Law+Watch%29#more-253251

External links[edit]