Maritz Drives Success with an Effective IC Risk Program

Transcription

1 Wednesday, Sept :45 am Room 304 Thought Leadership: Maritz Drives Success with an Effective IC Risk Program Speakers: Carrie Blackwell, Compensation & Independent Contractor Compliance Manager, Maritz Holdings Inc. John Piazza, SVP, Contingent Workforce Services, Randstad Sourceright Sponsored by: 2012 Crain Communications Inc

2 Maritz Drives Success with an Effective IC Compliance Program Carrie Blackwell Compensation and Independent Contractor Compliance Manager Maritz John Piazza Senior Vice President, Contingent Workforce Services Randstad Sourceright

3 Agenda Background: Maritz Key Challenges Strategy Operational Risk Assessment Implementing an IC Compliance Program Lessons for Success 4

4 1894: Edward Maritz founded E. Maritz Jewelry Manufacturing Company in St. Louis, MO 1918: The company drops its jewelry business to focus on fine, imported watches sold in St Louis, Chicago, Cleveland, Detroit and Los Angeles 1930: Maritz forms Maritz Sales Builders, selling watches, jewelry and other merchandise to companies as incentive awards 1958: Maritz enters the incentive travel business through the acquisition of Holiday House Travel Center in Detroit. 1973: Maritz enters the marketing research business with the acquisition of Lee Creative Research 1995: Maritz Exclusively Yours Card is launched, giving participants instant access to merchandise and travel awards using debit card technology 2012: Help clients achieve their full potential through understanding, enabling, and motivating employees, channel partners, and customers Maritz Research Maritz Travel Company Maritz Motivation Solutions Maritz Institute Maritz Channel Services Maritz Canada 5

5 Key Challenges Multiple lines of businesses all needing high skill level resources Deep subject matter expertise Reliance on independent contractors and other variable labor resource types Worker classification confusion When you don t know what you don t know Decentralized processes leading to inconsistent management Changing regulatory environment Questions about various benefits programs 6

6 Strategy Operational Risk Assessment Subject-matter expertise/partnership, covering: Contingent labor landscape Spend & process analysis Risk and vendor process analysis Improvement opportunities Future state development Implement an IC Compliance Program Executive sponsorship Policy development Ongoing plans for communication, change management and training Program governance 7

7 Operational Risk Assessment - The Process: Why a third party assessment? Expertise Objective change management credibility How Research/due-diligence Analysis Reporting Questions to Ask What is in scope, what is not? Who is working, but not on the books? How do you validate compliance? How do you keep up with all of the regulatory changes? 8

8 Operational Risk Assessment Results: Quantifiable assessment of risk Clearer direction for action Third party validation for change management Process for implementation 9

9 Keys to Successful IC Compliance Program Implementation Scope Definition Executive Sponsorship High Volume Users of IC Talent Buy-In Flexibility Comprehensive Ongoing Education and Communication Process Integration & Adoption Internal Audit Controls 10

10 Additional Insights: Implementation Growing a successful program How does it begin Progression/maturity Understanding potential challenges Cutting across businesses (and potentially geographies) Culture Restructuring Escalation processes Scope creep The importance of counsel Education and change management Velvet hammer presence 11

11 Lessons for Success: A Quick Look at the Risk Assessment Process & Next Steps 12

12 Understanding Risk Assessment Financial Management Rate Negotiation & Structure Time and Materials vs. SOW Invoice and Payment Processes Talent Management Business Legitimacy Risk Management Vetting Process Defensible Compliance File State and Federal Classification Compliance FLSA Compliance Ongoing Audit and Compliance Contract and SOW Execution Quality Metrics 13

13 Risk Assessment Analysis: Spend and Process Analysis Volumes Users/Departments Vetting On-boarding, Off-boarding Badging Estimated Headcount Network and Systems Access Expenditures by Worker Type Risk Process Analysis Policies surrounding Contingent Labor workers & compliance mgmt. process Legal actions: unemployment benefit claims; federal or state compliance audit, class action litigation Contracts & SOW HR policies and compliance Business Insurance Vendor setup and vetting process Contract approval process to review, negotiate and renew contracts 14

14 Apply findings to develop a comprehensive CW policy that avoids CW perils and pitfalls: Worker misclassification FLSA compliance Co-employment Wage and hour Class action Discrimination defines the types of workers Internal FTE Staff augmentation SOW projects, including Independent Contractors Outsourcing contracts typically large capital expenditures and projects with large firms (Accenture, E&Y etc.) defines engagement rules Geographic scope Specific rules required for different worker classifications Level of system access Required credentials/documentation by worker type Recipe for success, increase efficiency and adoption A good CW policy will spell out the nuts and bolts of CW life at your company and outline rules around issues like drug testing, generating business cards, signature lines, and system access to the more complex aspects, such as assignment tenure and onboarding/ offboarding procedures. From Why a CW Policy is Crucial CWS 3.0: Aug. 24,

15 Questions? Thank You! 16