Administaff

Administaff Overview

49 offices serving approximately 6,500 client companies with more than 108,000 employees nationwide

Listed as one of Fortune’s “America’s Most Admired Companies” for the last four years

• Business Premise: To enable Entrepreneurs and small business owners to gain key advantages in the vital area of Human Capital.

Founded in 1985 – today a $2 billion company

Publicly traded on the New York Stock Exchange (symbol:

ASF)

Revenue

Generation

Expense

Control

Net Profit

Protection

Performance Management

Recruiting

& Selection

Training & Development

Benefits

Management

Employment

Administration

Owner

Support

Employer

Liability ManagementGovernment Compliance

The Personnel Management System

SM

What Administaff Does:

Comprehensive HR Support for Small Business

Common Law

Employer

Employment

RelationshipHuman Resources Management

Payroll Taxes

Workers' Compensation

Government Compliance

Employee Benefits

W-2 Employees

Grow BusinessManage Change

Align PeopleManage Business

Traditional Employer/Employee Relationship

Employer Liability Management

Training and Development

Employment Administration

Recruiting & Selection

CO-EMPLOYERS

Employment

Relationship

Administaff

•Human Resources Management

•Recruiting and Selection

•Payroll

Administration

•Payroll Taxes

•Employee Benefits

•Workers’

Compensation

•Employer Liability

Management

•Government Compliance

•Training and Development

• Manage Business

• Grow Business

• Manage Change

• Align People

• FOCUS

CCP

Employees

Employment

Relationship

Co-Employment Relationship

with Administaff

Employees

Administaff

CCP

Employer-of-Record

Relationship

Common Law Employer

Relationship

Client Service Agreement

PEO Model: Co-Employment Relationship

How The Model Works:

A Better HR Department

Fortune 500 Company Structure

.

Measuring the Impact to Your Business

Improved Use of TimeThey can apply their resources to what they do best, which drives profitability.They can concentrate more fully on core tasks.

Access to ExpertiseThey can leverage the combined knowledge of all of our professionals. Even a full-time employee will never have the same savvy as an experienced, specialized human capital team.

Technology LeverageThey benefit from our up-to-date information, equipment, & technology.They can focus their money on remaining technologically competitive within their core business.

Economies of ScaleThey gain programs that may not be economically feasible for a smaller group of employees.We are able to spread fixed administrative expenses across a very wide base of people.

Operational EfficiencySpecialized experts already possesses the knowledge, skills, contacts, and resources.All the pieces are already designed to work together properly from the very beginning.

Financial Stability Small companies need to be able to react instantly to enhance their business.We enable such flexibility by decreasing fixed overhead expenses that would otherwise be necessary.

Impact on Your Business

•Find and retain the best possible employees

•Reduce headaches & time-commitment

•Professional, proactive applicant screening process gives company world-class reputation

Services

•Job Descriptions

•Job Design

•Salary Planning & Administration

•Interview Process Development & Training

•Talent Network

•Recruitment Advertising

•Resume Review, Background Checks

•Interviewing, Pre-Employment Testing

•Behavioral Profiling

•Outplacement

Recruiting and Selection:

Better People

“The Small Business Administration estimates

that hiring the wrong person costs as much as

2x that person’s annual salary.”

Impact on Your Business

•Align employees with your company goals and maximize their performance.

•Increased Employee Job Satisfaction

•Increased Productivity

Services

•Performance Measurement Standards Development

•Performance Review Policy Development

•Compensation and Incentive Plan Design

•Employee Relations Coaching for Supervisors

•Conflict Resolution Training

•Progressive Discipline & Termination Coaching

•Climate Surveys that Reveal Opportunities & Issues

Performance Management:

Better Motivation

“How do you raise the bar when research

reveals that 50% of employees are willing to

give only enough effort to keep their jobs?”

Impact on Your Business

•Increase Your Employees’ Productivity

•Increase Your Employees’ Job Satisfaction.

•Reduce Costly Turnover

Services

•Needs Analysis to Identify Areas for Organizational

Performance Improvement

•Curriculum Development for Professional and

Personal Growth

•Instructor-Led Training On-site or Off-site

•Unlimited Access to Online Courses for Around-the-Clock Learning Opportunities

•Certified Provider of Continuing Education Credits

•Develop Current & Future Leaders

•Build a Culture of Innovation and Education That’s Tied to Performance Appraisals.

Training & Development:

Better Skills

“The Council on Competitiveness found that a 10

percent increase in training and education has a more

positive impact on productivity than a 10 percent

increase in work hours.”

Instructor-Led Training Courses Leadership/Management

Development • Essentials of Leadership• Retaining Talent• Developing Others• Setting Performance Expectations• Coaching for Success • Coaching for Improvement • Managing Performance Problems• Leading Change• Influential Leadership• Building an Environment of Trust• Coaching: Developing High

Performance• Vision, Values and Mission

Statement• Getting Started as a New Leader• Leadership: Inspiring Commitment

(2-day seminar)

Customer Service• Service Plus• Service Plus Health Care• Creating a Customer Service Culture

Personal Effectiveness• Interaction Skills for Success• Feedback Fundamentals• Communicating and Listening• Influencing Others• Building Trust• Working through Conflict• Adapting to Change• Personal Empowerment: Taking

Initiative• Discovering Individual Styles of

Communication• Priority Management• Basic Telephone Skills

Business & Group Effectiveness• Making Effective Decisions• Making Meetings Work• Partnerships for Improvement • Taking Action to Solve Problems• Leading High-Performance Teams • Fast Start for Teams

Impact on Your Business

•Improve Business Focus by Eliminating Regularly Scheduled Business Interruptions.

•Ensure you are the leader of a company and not just an employee of yourself.

Services

•Payroll Processing, Payroll Tax Filing

•Garnishments

•Quarterly Reports, W-2s, W-4s

•Fully Integrated Benefits Administration

•Fully Integrated Time & Attendance Tracking

•Employment Verification

•Customizable Payroll Management Reports

•Job Costing Reports

•Direct Deposit, Debit Cards, E-Pay Stubs

•Web-based Self-service Available to All Employees

Employment Administration:

Better Focus

“The Small Business Administration revealed

that business owners regularly spend up to

40% of their time performing non-strategic

tasks related to employment of their

people.”

Impact on Your Business

•Fortune 500 Company Benefits Package

•Long-term Cost Containment

•Reduced Turnover & Increased Job Satisfaction

•Increased Ability to Compete for Top Talent.

•More Employee Choices & Less Guess-work

•No More Auditing – Fully Integrated with Payroll

Services

•Comprehensive Health, Vision, Dental & FSA Plans

•Life Insurance, Personal Accident Insurance

•Short and Long-Term Disability

•401(k) Plan, Credit Union, 529 College Savings Plan

•Educational Assistance, Adoption Assistance, EAP

•Identity Theft Protection, Commuter Benefits

•Optional Additional Life, Disability & Accident Insurance

Benefits Management:

Better Choices

“According to the Wyoming Department of

Employment, Research & Planning, benefits

can reduce turnover by up to 35%.”

The Growing Burden

of Employment Regulation

New Regulations Since 1900

By 1940

NLRA

FLSA

FICA

RLA

IRC

State Laws

Case Law

Common Law

By 1980

FDA

MSHA

ERISA

ADEA

LMRDA

LMRA

FLSA

RLA

State Laws

Case Law

Common Law

JSIA

VEVRRA

OSHA

CRA

FUTA

NLRA

FICA

IRC

Today

HIPAA

SWDA

SDWA

CAA

DTB

USERRA

ADA

EPPA

TEFRA

TRA

FDA

MSHA

ERISA

ADEA

LMRDA

LMRA

FLSA

RLA

State Laws

Case Law

Common Law

WPCA

SDWA

CERCLA

TSCA

CCPA

FMLA

DFWA

WARN

COBRA

IRCA

JSIA

VEVRRA

OSHA

CRA

FUTA

NLRA

FICA

IRC

By 1900

Case Law

Common Law

Impact on Your Business

•Eliminate or Reduce Fines and Penalties

•Remove Distractions and Interruptions

•Share or Transfer Liability with Co-employment

•More Effectively Manage Employer Liabilities

Services

•Government Reporting and Agency Interface

•Employment Records Management

•COBRA Management

•Workers' Compensation Coverage, Fraud Investigations and Claim Resolution

•Safety Reviews, Policy Development and Audits

•Unemployment Claims, Terminations, Conflict Resolution

•Employee Handbooks, Personnel Guide and Forms

•Employment Practices Liability Insurance

Manage Employer Liabilities:

Better Operations

“A study by the Rand Corporation showed

that employers will lose 2 out of 3 trial cases

and on average will be penalized $600,000

+ court costs and attorneys fees.

Why is “HR” Getting so Much Attention?

Pricing Approach

Existing Payroll Burden:

T + W + B + A = % Payroll

EPB

• T = Payroll Taxes

• W = Workers Comp/EPLI

• B = Employer % Health Benefits

• A = Administrative Overhead

Administaff Pricing:

WASF = %Payroll

WASF = Weighted Average Service Fee

WASF - EPB = INVESTMENT

Enrollment fee (one-time) = 6% of first month’s payroll

BASIC INFORMATION REQUIRED

• ROSTER OF EMPLOYEES: Name, home zip code, work state, age, gender, job description

• PAYROLL INFORMATION: Status, salary details, payment method/frequency, medical insurance election

• MEDICAL COVERAGE: Current plan summary, current invoice and same period last year (e.g. 7/10 and 7/09)

• WORKERS’ COMP: Schedule of Operations (a/k/a Declarations Page), Loss Claims History and Existing Codes

• Brief Business Profile/Group Health History

CURIOTSITY… “IS THERE A

BETTER WAY?”

INTRODUCTORY MEETING ASSEMBLE BUSINESS PROFILE

VALUE EXPLORATION PRICE / VALUE

COMPARISON

IMPLEMENTATION

FIVE DAYS

1 WEEK 1 WEEK ORIENTATION COMPLETED FOR CHOSEN START

DATE

TODAY

Decision/Implementation Process

Timeline

Process