Getting the Most Out of Your Contract Workforce

Randy Hatcher - President,

Getting the Most out of Your Contract Workforce

Information in this presentation is property of MAU Workforce Solutions

SafetySafety Issue FreeIssue Free

Associa

ualifi

Seamless Team IntegrationSeamless Team Integration

The Workforce Utopia

ProductivityProductivityInformation in this presentation is property of MAU Workforce Solutions

ProductivityProductivity

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Increased FocusIncreased Focus

Increased CapabilityIncreased Capability

Increased CapacityIncreased Capacity

Productivity

ProductivityProductivity SafetySafety

Lagging IndicatorsLagging Indicators• No lost time or

recordables• Hours/Days since last injury

Safety

Health Insurance / Health Health Insurance / Health FairsFairs

Leading IndicatorsLeading Indicators• Identify Hazards• Correct Hazards• Improve the Process

Issue FreeIssue FreeInformation in this presentation is property of MAU Workforce Solutions

EmployerFTR

Employees

Two Way Communication

Issue FreeIssue Free

Six WaySix WayCommunicationCommunication

Staffing Employer

Client

Temporary Employee

Issue FreeIssue Free

Issue FreeIssue FreeInformation in this presentation is property of MAU Workforce Solutions

The Birth of a New Workforce © MAU Workforce Solutions

•Inefficiency and WasteInefficiency and Waste•Two Class SystemTwo Class System•Establish the PhilosophyEstablish the Philosophy•Set the Pay RateSet the Pay Rate

Compensation and Benefits

Temporary Employee•Turnover - 200-400%•Absenteeism - 35%•Quality/Waste - ?

Full Time Regular Employee •Turnover - 4%•Absenteeism - 2% •Quality/Waste - SAP

Inefficiency & WasteInefficiency & Waste

Compensation and Benefits

Two Class System

Compensation and Compensation and BenefitsBenefits

Temporary EmployeesTemporary Employees Comp tied to Bill Rate Merit Reviews Benefits

Vacation Holiday PTO Health Retirement

Full Time Regular Full Time Regular EmployeesEmployees

Market Based Compensation

Merit Reviews Benefits

Vacation Holiday PTO Health Retirement

Non-Core Jobs and Processes

Establish the Philosophy

Core and Non-Core Jobs

Establish the Philosophy

Set the Pay RateSet the Pay Rate

Temp Start Rate

FTR Start Rate

Migration Rate

$10 $12 20%

$10 $15 50%

$10 $18 80%

Continuous ImprovementContinuous

Improvement

Associate Satisfaction

Improvement

ImprovementUnplanned Turnover

Unplanned Turnover

ImprovementSafetySafety

ImprovementOverall CSIOverall CSI

Improvement

Pricing

%/$ All Inclusive ModelPass

Partial

Pay Rate TBD TBD

FICA Fixed Fixed

SUTA Fixed Fixed

FUTA Fixed Fixed

Workers’ Comp Fixed Fixed

Overhead Fixed Fixed

Profit Fixed Fixed

Vacation Fixed As incurred

Holiday Fixed As incurred

Health Insurance Fixed As incurred

PTO Fixed As incurred

PPE Fixed As incurred

On-Site Mgmt Fixed As incurredInformation in this presentation is property of MAU Workforce Solutions

Transparent Pricing

LegalLegal

Joint Employe

r“[Company] does not seek to escape liability … on the basis that it is not [contingent worker’s] employer. Nor would it appear that, under the circumstances presented here, such an argument would be persuasive.”

Porter v. Erie Foods, Intl., Inc., 576 F.3d 629 (7th Cir. 2009).

LegalLegal

Joint Employe

FMLAADA

Title VII

LegalLegal

Joint Employe

r“Any contractual arrangement between a staffing firm and a client, however, does not alter their obligations under the ADA.”

EEOC Enforcement Guidance: Application of EEO Law to Contingent Workers Placed by Temporary Employment Agencies and Other Staffing Firms (1997)

www.mau.com/webinars

• Comp & Benefits

• Taxes • Worker’s Comp• Hire• Counsel• Terminate

LegalLegalHow does the Joint Employer Relationship

Arise?

The Staffing

Company

Employer

Roles & Responsibilities

• Supervise• Train• Direct activities • Control working conditions• Determine length of

assignment• Determine work hours

Make them feel like part of the teamInclude them in production, safety, and

quality meetings Give them job details, goals, and

directionsGive them basic work instructions and

trainingTreat them with equal respectVerify their daily time for accuracyDiscuss safety concerns and strategies

with themGive them timely performance feedbackEnsure that the staffing supplier offers

Employee Development/Quality Programs

Legal: Do ThisLegal: Do This

x Include them in “employee” meetings

x Counsel in a manner that is considered disciplinary

x Tell a temporary employee they are terminated

x Get involved in payroll issues other than verifying time

x Give permission to take time off, be late, or leave early

x Discuss pay, benefits, possibility of full-time employment

Legal: Don’t Do This

Workers’ Compensation

Workers’ Compensation• Accidents

• Investigations• Reporting

• OSHA Compliance• OSHA Log

• Employee Care• Treatment• Return-to-Work

Staffing Provider Responsibility

Shared Responsibility

Client’sResponsibility

Associa

Associate Relations

Here’s Your #%$*! Christmas Card!

• On-Site Management • Onboarding & Training• Communication

Associate RelationsAssociate Relations

Associate RelationsAssociate RelationsCommunicationsCommunications

Reinforce Employer Status • Compensation and benefits • Policies• Programs and training

Emergency PreparednessWork SchedulesDistribution Channels

Associa

ualifi

ProductivityProductivity

Scope Match Years in

Business References

Vendor Qualification & Selection

Company A

Company B

Financial Status Culture

Associa

ualifi

Seamless Seamless Team Team

IntegrationIntegration

Getting the Most Out of Your Contract Workforce

Health & Medicine

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