Presentation 14/06/2017 www.datumrpo.com Spend 39% 61% 25,500 - - PowerPoint PPT Presentation

Presentation 14/06/2017

www.datumrpo.com

Spend

61% 39%

25,500 workers

Real-time management information Standardise process, governance & performance

Overview of Datum RPO

Supplier Management

Fully audited for legal compliance and best practice

Compliance Improved Performance

Direct & indirect savings, cost containment & management in real-time Real-time visibility of cost control & business process

Visibility & Control Brand & Culture Cost Savings

Protect & enhance candidate experience

Compliance

Status Quo Formal Preferred Supplier List Master Vendor Solution Managed Service

Managing Agency Spend

Updated 19 May 2017

https://www.gov.uk/government/publications/use-of-labour-providers/use-of-labour-providers-advice-on-due-diligence

Undertake checks on your labour supply chain We are committed to tackling non-compliance, fraud and illegal working practices so that we fund essential UK services, stop modern slavery, and create a level playing field for all those businesses complying. Protect your business by undertaking checks to understand:

• where your workers are coming from
• how they’re being paid
• the legitimacy of those arrangements

Updated 19 May 2017

https://www.gov.uk/government/publications/use-of-labour-providers/use-of-labour-providers-advice-on-due-diligence

What to check You need to undertake checks within 4 key areas to ensure:

• your supplier of labour is legitimate and has no history of

non-compliance

• you understand and approve the labour supply chain
• agency workers are paid their contractual rate and it

complies with the National Living Wage (NLW)/National Minimum Wage (NMW)

• you’re doing all you can to eradicate modern slavery and

illegal working in your supply chains

Updated 19 May 2017

https://www.gov.uk/government/publications/use-of-labour-providers/use-of-labour-providers-advice-on-due-diligence

If you don’t undertake checks If HMRC finds non-compliance or fraud in your supply chain

• You’ll lose the right to recover the tax paid on

transactions connected with fraudulent evasion of VAT

• You may be liable for unpaid taxes and National

Insurance contributions (NICs)

• Penalty of up to 200% for breach in NLW/NMW and

falsified payment records & paid back immediately

• In construction pay any CIS deductions that haven’t

been correctly accounted for plus interest

• Your risk of reputational damage

Compliance

Year Legislations Current 2015 The Finance Act 2015 On-Shore Legislation 2015 Off-Shore Legislation 2015 National Minimum Wage 2016 Debt Transfer 2016 Travel & Subsistence (Umbrella) 2016 Living Wage 2016 Slavery Act 2017 National Living Wage (over 25's) 2017 Apprenticeships Levy 2017 Gender pay gap reporting Year Legislations Due 2018 Termination payments: taxation 2018 General Data Protection Regulation 2018 Payment Practices & Performance

Suppliers fail their 1st Audit Suppliers that fail to formalise a contractual relationship with the worker Workers that fail their first audit Workers that represent a risk of false self employment to the client Suppliers that fail to meet basic legal requirements

Company Sales Spend with agencies

71% 100% 23%

Business Profile

100%

£390mil £7,086,024

29% 2% 100%

64 161 67 228 12 1,709 7,000 Agency Suppliers Temporary Workers Fixed Term Contractors Total Workers Analysed Weeks average service Workers analysed Agency invoices analysed

100% 100%

No Terms & Conditions in place 62% Clients Terms & Conditions 15% Agency Terms & Conditions 23%

Contractual Relationships

42%

Employees 1 - 10 Employees 11-25 Employees 26-100 High Risk Failure Score Moderate Risk Failure Score

24% 12% 43% 39% 17%

Low Risk Failure Score Employees 101+

4%

Supply Chain Profiling

Pay Rate Analysis

£5.00 £15.00 £25.00 £35.00 £45.00 £55.00 £65.00 £75.00

Annualised Hours

Labourer 168,145 Assistant Site Manager 60,839 Site Manager 51,969 Plant Operator 49,300 Telehandler 45,286 FLT Driver 27,572 Traffic Marshall / Gateman 28,505 Finishing Foreman 15,410 Sales Consultant 24,809 Slinger/Signaller/Banksman 12,162 Handyman / Skilled Labourer 13,758 Administrator 13,329 Project Manager 5,585 Quantity Surveyor 3,874 Contract Manager 1,106 Customer Care 1,865 Painter 2,399 Senior Site Manager 954 IT Consultant 718 Carpenter 490 Bricklayer 258

8 highest spending disciplines account for 80% of the overall spend

Discipline Percentage

• f Spend

Minimum Pay Rate Maximum Pay Rate Variance

Labourer 19% £5.85 £14.83 £8.98 Assistant Site Manager 16% £6.57 £23.89 £17.33 Site Manager 14% £7.32 £26.43 £19.11 Plant Operator 9% £8.95 £17.08 £8.13 Telehandler 8% £6.91 £18.30 £11.39 FLT Driver 5% £9.76 £16.27 £6.51 Sales Consultant 4% £7.20 £10.50 £3.30 Traffic Marshall / Gateman 4% £6.83 £11.67 £4.84 Total £5.85 £74.72 £68.87

Pay Rate Analysis

Workers audited No Contract with Agency Workers failed audit

23% 10% 2%

Worker Compliance

2%

1,709 577 734

1% 34% 100%

336 14 168 34 29 71 Missing RTW Expired Visa Sole Trader (false self-emp) None Compliant Umbrella Travel & Substance Breach Insufficient Insurance (PSC)

5% 43%

Outsource Compliance Management

Partner with expert in supply chain management

Supply Chain Management

Rationalise Supply Chain & Centralise Control

Compliance Audit

Audit Contingent Workforce, Suppliers and Umbrella Companies

Contractual Relationship

Legal compliant & empowered rights

Contractual Relationship

What to do Invest in robust contracts to protect your business and include the following clauses -

• Up to date legislation and legal guidelines
• The right to audit suppliers
• The right to audit contractor records
• The consequences for failing audits
• Guidance on worker employment status
• Guidance on umbrella companies
• Ensure all suppliers sign and return

Identification Worker Pay Rights to Work Tax & ENI Validation Engagement Worker Holiday IR35 Insurances Stability Outsourced Payroll Umbrella

£

£

!

Compliance Audits

Site/Project Division Business Unit SLA & KPI Management SLA & KPI Management SLA & KPI Management

Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier

Your Company

Supply Chain Management

Managing Suppliers via a Preferred Supplier List (PSL)

Presentation 14/06/2017

www.datumrpo.com