Profit Pitfalls: Do you know how much your back office is really costing you?

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1 Profit Pitfalls: Do you know how much your back office is really costing you? Presented by: Judi Bell, COO People 2.O Rebecca Sokolowski, Vice President Affiliate Services People 2.O Moderator: Adrianne Nelson, Sr. Director, Global Membership Products, Staffing Industry Analysts Sponsored and presented by September 26, am PT/ 1 pm ET This webinar is broadcast through your computer speakers via the audio broadcasting icon on your screen. You may adjust the sound volume by using the slide bar on the audio broadcasting icon. If you cannot access the audio, you may dial into the call by dialing and using access code Need further assistance? Contact SIA customer service at Thought Leadership Series 2017 by Crain Communications Inc. All rights reserved. 1

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2 Listen through your computer by turning on your speakers after you log into the event. Sound will be coming through this icon: Logistics Do notclose this audio broadcast box. To increase the volume of sound coming through your computerspeakers adjust the sound bar on the audio broadcast box shown above. Q & A: To get assistance or ask questions use the question function on the webcast control panel Tech Support:If at any time you are experiencing problems with the webinar call global services at or our Webexassist through the Q&A. The webinar is broadcast through your computer speakers, if you are having trouble with the sound, please send a message to the webinar host using the Q&A function. Slides: Copies of the slides used will be distributed to all attendees within 48 hours following the webinar and a replay of the webinar will be available at for a limited time Thought Leadership Series 2017 by Crain Communications Inc. All rights reserved. 2

3 Welcome to the Staffing Industry Analysts Thought Leadership Series Suppliers Of Staffing Services Share Their Expertise The Staffing Industry Analysts Industry Thought Leadership Series provides the perspective of the suppliers of staffing services. The views expressed in this webinar are those of the sponsor and not necessarily that of Staffing Industry Analysts. This webinar is broadcast through your computer speakers via the audio broadcasting icon on your screen. You may adjust the sound volume by using the slide bar on the audio broadcasting icon. If you cannot access the audio, you may dial into the call by dialing and using access code Need further assistance? Contact SIA customer service at Thought Leadership Series 2017 by Crain Communications Inc. All rights reserved. 3

Today s Speakers Judi Bell, COO, People 2.

Director, Global Membership Products, Staffing

4 Today s Speakers Judi Bell, COO, People 2.0 Moderator: Rebecca Sokolowski, Vice President of Affiliate Services, People 2.0 Adrianne Nelson, Sr. Director, Global Membership Products, Staffing Industry Analysts Thought Leadership Series 2017 by Crain Communications Inc. All rights reserved. 4

5 Profit Pitfalls DO YOU KNOW HOW MUCH YOUR BACK OFFICE IS REALLY COSTING YOU?

6 KEY TAKEAWAYS Recognizing hidden costs in your back office Identifying those areas where you can make an impact Potential solutions you can implement today

7 MARGIN COMPRESSION

8 Compliance Human Capital Payroll Efficiency Technology AR Management

9 What is your staff spending time on? Measure It!

10 MEASUREMENT TOOLS

11 MEASUREMENT TOOLS

12 MEASUREMENT TOOLS

13 MEASUREMENT TOOLS

14 COST OF COMPLIANCE Data privacy Background checks 1099s Onboarding Ban the Box Wage & Hour Rules Contracts FMLA Garnishments & Medical Notices Sick Ordinances Pay Notices NLRB Co-Employment E-verify I-9 Legal Notices ACA FLSA Employment Practices Claims

15 REGULATED SICK ORDINANCE Minneapolis St. Paul Bloomfield East Orange Elizabeth Irvington Jersey City Montclair Montgomery County Morristown New Brunswick Newark Passaic Patterson Plainfield New York City Berkeley Emeryville Los Angeles Oakland San Diego San Francisco Santa Monica Chicago Cook County District of Columbia Philadelphia Montgomery County No mandate Entire state mandate City/County mandate

LEGISLATED SICK ORDINANCES Select a State Minimum Wage / Premium Pay PTO / Sick Rules E-Verify Tax Forms Terminations Arizona Paid Sick Leave effective date: 7/1/2017 Accrual start date: 7/1/2017 or

16 LEGISLATED SICK ORDINANCES Select a State Minimum Wage / Premium Pay PTO / Sick Rules E-Verify Tax Forms Terminations Arizona Paid Sick Leave effective date: 7/1/2017 Accrual start date: 7/1/2017 or upon hire Accrual rate: 1 hour of for every 30 hours worked Annual accrual cap: 40 hours Annual usage cap: 40 hours Carry over limit: 40 hours * Statutory Sick Time/PTO will not be paid out at the termination of employment. Usage start date: Employees hired before 7/1/2017 can use Paid Sick Leave as accrued. Employees hired after 7/1/2017 must wait until the 90 th day of employment. Usage reasons: For self or family, including domestic partner, and for purposes related to domestic violence, sexual assault, or stalking when the employee is a victim. Paid sick leave can also be used when the employee s place of business or child's provider or school is closed due to a public health emergency or for domestic violence purposes. Employee Notice: Employers should maintain a conspicuous poster. Employees should receive a written notice at the time of hire and accrual amounts on their regular paycheck. All States Summary for Payroll Legislation

17 SICK ORDINANCES IN THE P&L Pay regular hours Pay SPTO Hours Bill regular hours Pay regular rate Bill regular rate Billed amount Total payroll costs G.P. Amount G.P. % Employee no sick ordinance $15 $22.80 $ $ $ % Employee w/ 8 hrsick payout -not billed to client $15 $22.80 $ $ $ %

18 SOLUTIONS: SICK ORDINANCES Are you billing for statutory costs associated with Sick Ordinances? When pricing new business Are your systems able to accurately accrue and monitor these ordinances? How is the gross profit reviewed to know if legislation is causing more margin erosion? Avoid legal challenges with the Department of Labor Client agreement updated Margin calculators add SPTO Request SPTO accrual functionality or 3rd Party Gross profit by employee reporting Pay vouchers accurate: Use statutory text Handbooks: No payouts upon leaving 18

19 Connecticut Illinois STATE PAY NOTICES Iowa Louisiana Michigan New Hampshire New Jersey Pennsylvania Utah West Virginia California New York South Carolina Washington D.C.

20 SOLUTIONS: PAY NOTICES Determine if you are compliant Manual form completion option 1 Manual form completion option 2 Request functionality or 3rd party Consider fillable PDF options 20

21 COMPLIANCE & REGULATIONS Types of Garnishments Child Support Garnishment Creditor Garnishment Tax Levy (Federal, State and Local) (no court order law) National Medical Support Notice Administrative Wage Garnishments (no court order law) Example: 100 per week x 5 min/avg 8 hours per week Payment Processing multiple states 10 hours per week Processor cost $18.00/hr; staff costs $17k annually Result: Negative impact to staffing companies by increasing core staff costs to administer the responses 21

22 SOLUTIONS: GARNISHMENTS Determine workload of child support If processing multi state Determine medical notice volume Ensure process and health insurance E-IWO website:

23 PAYROLL EFFICIENCY Electronic vs. manual Redundant data entry Weak reporting Disconnected systems

24 TIME CAPTURE & APPROVAL How do we persuade all employees & clients to go to electronic? Make it easy Mobile first No password required for client approvers Employee e-completes printer friendly timesheet

25 SOLUTIONS: PAYROLL Time capture & approval VMS and other time systems Fraud, stop payments, lost checks Easy, mobile, integrated with payroll Integrations, uploads 100% electronic payroll 25

26 AR management Prompt Invoicing Electronic invoice delivery Cash application 26 Collections

27 SOLUTIONS: A/R MANAGEMENT Timely invoicing Is cash application efficient? Effective collections process Inefficient VMS cash application Electronic delivery of Invoices Lockbox Bank imports Statement notifications Apply discount fee on invoice. Invoice by employee. Billing earlier Payments online Integration with VMS system.

28 TIMELY REPORTING AR dashboards Gross profit by employee % of electronic payroll

29 SUMMARY

30 SUMMARY

31 SUMMARY HUMAN CAPITAL TECHNOLOGY

32 KEY TAKEAWAYS Recognizing hidden costs in your back office Identifying those areas where you can make an impact Potential solutions you can implement today

33 Q & A Rebecca Sokolowski Vice President, Affiliate Services Rebeccas@people20.com Judi Bell Chief Operating Officer judib@people20.com

34 November 13-15, 2017 The Fairmont Dallas, TX Register Today! The Healthcare Staffing Summit takes a deep dive into the healthcare segment of staffing and features sessions specific to the strategic and tactical needs of firms focused on nursing, locum tenens and allied health among other segments.

35 Thought Leadership Series Upcoming Staffing Industry Analysts SIR Webinars: October 10, 2017, 10 AM Pacific / 1PM Eastern November 7, 2017, 10 AM Pacific / 1PM Eastern November 14, 2017, (EMEA FOCUS) 15:00 GMT Proprietary by Crain Communications Inc. All rights reserved.

36 Thought Leadership Series THANK YOU! Copies of the slides and a link to the audio recording will be distributed to all attendees within 24 hours following the webinar. A replay of the webinar will be available at Proprietary by Crain Communications Inc. All rights reserved.

Concurrent Session Tuesday, 3:00-4:00 pm

Concurrent Session Tuesday, 3:00-4:00 pm PAID SICK LEAVE: IT S GETTING CONTAGIOUS SHERI GIGER, ESQ. JACKSON LEWIS P.C. Test Your Knowledge: 1. Which U.S. President created the U.S. Department of Labor? 2. In what year? 3. Which U.S. President