Reducing the financial impact
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1 Reducing the financial impact of the New FLSA Overtime Rules Sponsored by Trupp HR, Inc. Presented by: Jean Roque Trupp HR President + Founder Breea Gale HR Business Partner
2 Today s Presenters Breea Gale As an HRBP, Breea assists clients of Trupp HR s HR Outsourcing program with strategic initiatives, aligning people strategies with business objectives. She excels in the areas of employee relations, compliance, and leadership coaching. Breea graduated from Portland State University with a BS in Human Resource Management, and Management and Leadership. Jean Roque Founder and President of Trupp HR, a human resources company that provides a full range of services for small to mid-sized organizations including HR Outsourcing, HR Consulting Services, Compensation Consulting, HR Audits, Employee Surveys, Recruiting, and Training. For the past two years, Trupp HR has been ranked among the100 Fastest Growing Private Companies and Top Women-Owned Businesses in Oregon and Southwest Washington.
3 Technical Instructions WEBINAR GENERAL INFORMATION Duration: Approx. 1 Hour Have your on hand which includes the log-in and call-in info should you be disconnected SUBMIT A QUESTION If you would like to ask a question at anytime please utilize the Question box on the right side of your control panel You can also minimize your toolbar by clicking on the arrow icon HAVING TROUBLE? Screen: Close all windows and restart Phone: Hang up and call back +1 (###) ###-#### ###-###-### ## Session Name ###-###-###
4 FLSA Overtime: Key Changes Today s Topics Wading Through the Ripple Effect Adding a Carrot to the Mix When Life Gives You Lemons
5 Fair Labor Standards Act UPCOMING CHANGES
6 Key Changes Currently Will Be (12/1/2016) Paid on a salary basis Paid on a salary basis Earning at least $23,600 per year ($455 per week* Nondiscretionary bonuses and incentive payments (including commissions) not included Highly Compensated Threshold = $100,000 Earning at least $47,476 per year ($913 per week); increases every three years* Nondiscretionary bonuses and incentive payments (including commissions) cannot count for more than 10% Highly Compensated Threshold = $134,004 * Salary level test does not apply to doctors, lawyers, teachers or outside sales people. No change to hourly computer professional exemption ($27.63 per hour)
7 Wading Through the Ripple Effect
8 Assessing Impact REGIONAL MANAGER $50,255/year Exempt (salaried) 15% RETAIL MANAGER $43,700/year Exempt (salaried) 15% SENIOR SALESPERSON $18.27/hour Non-exempt (hourly) REGIONAL MANAGER $50,255/year Exempt (salaried) 5% RETAIL MANAGER $48,000/year Exempt (salaried) 26% SENIOR SALESPERSON $18.27/hour Non-exempt (hourly)
9 Pay Compression WHAT IS PAY COMPRESSION? Differences in pay that are too small to be considered equitable. Frequent areas of concern occur between: Supervisors and subordinates Experienced and newly-hired employees in the same job AVOIDING PAY COMPRESSION Establish a salary structure Prioritize internal equity Maintain to current market conditions
10 Why is pay IMPORTANT? Teamwork Leadership Personal Growth MOTIVATIONAL FACTORS BASIC NEEDS (HYGIENE FACTORS) Pay/Salary (must be competitive in the marketplace) Job Security Safety/Physical Security Basic Working Conditions Source: Psychologist Fredrick Herzberg
11 COMPENSATION PHILOSOPHY EMPLOYEE VALUE PROPOSITION MARKET POSITION Setting the Foundation
12 Salary Structure MAX MID MIN 2 $18.40/hour 15% $16.00/hour 15% $13.60/hour % Pay Grades Salary Ranges Midpoint Differentials 5 35% 10% 35% 12% 6 40% 15% 2 30% 10%
13 Salary Structure SENIOR SALESPERSON 3 RETAIL MANAGER 4 30% REGIONAL MANAGER 35% 5 35% 6 40% 2 30%
14 Salary Structure SENIOR SALESPERSON % RETAIL MANAGER REGIONAL MANAGER 35% 5 35% 6 40% 2 30%
15 Adding a Carrot to the Mix
16 BONUSES + SALARY LEVEL TEST FLSA Bonus Rules Nondiscretionary bonuses and incentive payments can account for up to 10% Must be paid on quarterly or more frequent basis Nondiscretionary: Compensation promised to employees to induce heightened performance or retention with company IMPLEMENTATION Assess quarterly and apply catch-up payments when needed Consider purpose and value of using bonus pay
17 Types of Bonus Pay ND ND D ND ND D ND ND REFERRAL BONUS COMMISSION SPOT AWARDS RETENTION BONUS PERFORMANCE INCENTIVE DISCRETIONARY BONUS TEAM INCENTIVES PROJECT BONUS
18 Choosing Bonus Pay INDIVIDUAL EMPLOYEE AFFINITY COMPANY PERFORMANCE INCENTIVE REFERRAL BONUS DISCRETIONARY BONUS TEAM INCENTIVES SPOT AWARDS PROJECT BONUS RETENTION BONUS SIGN-ON BONUS COMMISSION LOW PERFORMANCE INFLUENCE HIGH
19 When life gives you lemons
20 Ducks in a Row MISCLASSIFICATIONS + INCONSISTENCIES Leads Supervisors Managers Sales staff Administrative staff ROLES + DUTIES Do your current roles and groups of duties make sense with new wage requirements? ORGANIZATIONAL STRUCTURE Does your structure create bottlenecks? Compare more staff vs. higher pay
21 Dialing Things Up OPTIMIZE SCHEDULING Opportunities for flexibility and redundant coverage Seasonal or cyclical business EMPLOYEE TRAINING Share best practices and increase efficiency Cross training and mentorship PROCESS IMPROVEMENT Streamline process or remove steps Physical organization EMPLOYEE RETENTION Re-engage long-term employees Reduce training time and costs Great managers
22 Questions TRUPP HR Jean Roque Breea Gale TRUPPHR ( )
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