Kronos Incorporated

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Kronos Incorporated
Private
Founded October 31, 1977 (1977-10-31)
Founder Mark S. Ain
Headquarters Chelmsford, Massachusetts, United States
Number of employees
5,000 (2016)
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 more than 5,000 people worldwide.[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 Mark Ain's leadership, Kronos sustained one of the longest records of growth and profitability as a public company in software industry history.[3] Ain's brother, Aron Ain,[4] succeeded him as chief executive officer in 2005 with Mark Ain becoming executive chairman of the Board of Directors.[5]

Originally a manufacturer of time clocks, the majority of Kronos revenue is now derived from software and services. The company provides cloud applications[6] for workforce management and human capital management, as well as consulting, education, and support services to its customers.

In March 2007, Kronos was bought out for US$1.74 billion by the lead investor Hellman & Friedman and the secondary investor JMI Equity.[7] In 2014, private equity firms Blackstone and GIC invested in Kronos alongside Hellman & Friedman and JMI Equity. In the transaction, Kronos was valued at $4.5 billion.[*]

  • 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[7]
  • 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][5][7]
  • Kronos hit major milestone and achieved $1 billion in annual revenue in 2014.*

Acquisitions[edit]

Kronos has conducted 71 acquisitions,[8] some of the most notable including:

  • Ad Opt Technologies[9]
  • Principal Decision Systems International (PDSI)[10]
  • SimplexGrinnell[11]
  • Stromberg[12]
  • 3i Systems[13]
  • SaaShr.com[14]
  • Unicru, Inc.[15]
  • SMART Computer Holdings and its Spanish affiliate SMART Human Logistics[16]
  • Time Link International Corporation (TimeLink)[17]
  • Empower Software Solutions[18]

Litigation with EEOC[edit]

The Third Circuit Court of Appeals enforced a subpoena seeking production of documents by Kronos, Inc., in an administrative charge before the EEOC alleging disability discrimination. The charge was brought by an individual job applicant against Kroger Food Co., who did not hire the job applicant and used a Kronos assessment as part of its hiring process. EEOC v. Kronos Incorporated, Civ. Act. No. 11-2834 (September 14, 2012, Third Circuit).[19]

Kronos, which was not a party to the litigation, 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. While the District Court sustained nearly all of these objections, the Third Circuit found that the District Court had abused its discretion in limiting the scope of the subpoena to documents pertaining to certain of the assessment tests.

This Kronos assessment, among other things, measures five personality attributes that collectively constitute the "five factor" model: conscientiousness; agreeableness; extroversion; openness; and neuroticism.[20] 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]

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.[21] Kronos contends that its assessments are compliant with all applicable requirements.

References[edit]

  1. ^ Kronos Employees Say Culture, Vision, and Innovation Drive Outstanding Engagement
  2. ^ Kronos Corporate Governance: Executive Leadership Biographies
  3. ^ a b http://www.capehornstrategies.com/Kronos3.pdf
  4. ^ "Aron Ain of Kronos: The Incalculable Value of a Good Boss". The New York Times. 
  5. ^ a b "Kronos(R) Announces Executive Succession Plan; Mark Ain to Become Executive Chairman; Aron Ain to Become Chief Executive Officer; Paul Lacy to Become President". Business Wire. 14 September 2005. 
  6. ^ https://www.appsruntheworld.com/cloud-top-500-applications-vendors/kronos-inc/
  7. ^ a b c Today In Business | Buyout Deal For Kronos
  8. ^ Ray-Ghosal, Indrani. "Kronos Acquires Financial Management Solutions Inc. to Deepen Financial Services Industry Expertise". Kronos. CHELMSFORD, Mass. Retrieved 01/05/2017.  Check date values in: |access-date= (help)
  9. ^ Kronos acquires AD OPT for $68,200,000
  10. ^ or http://www.kronos.com/pr/kronos-acquires-public-safety-scheduling-leader-pdsi-and-its-telestaff-product.aspx Venture Beat
  11. ^ Kronos Acquires Australian Workforce Solutions Business of Simplex International Pty. Ltd. in Completion of 2001 Transaction
  12. ^ Kronos Acquires Stromberg from Paychex…from Kronos
  13. ^ Boston Business Journal: Kronos acquires 3i systems
  14. ^ Market Watch: Kronos Acquires SMB Workforce Management Leader SaaShr.com
  15. ^ http://www.businesswire.com/news/home/20060713005320/en/Kronos-Announces-Agreement-Acquire-Unicru-Combination-Workforce
  16. ^ "Kronos expands global reach with SMART acquisition". Healthcare Finance News. Retrieved 2016-03-24. 
  17. ^ "Kronos Extends Workforce Management Market Leadership With Acquisition of TimeLink". 2013-08-20. 
  18. ^ "Kronos Acquires Empower Software Solutions". Yahoo Finance. Retrieved 2016-03-24. 
  19. ^ http://www.ca3.uscourts.gov/opinarch/112834p.pdf
  20. ^ http://economics.mit.edu/files/599
  21. ^ 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]