Resourcing Services Proposal - Dynamic


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Staff & Contractors Outsourcing Services

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Resourcing Services Proposal - Dynamic

  1. 1. Staff Resourcing Service Proposal Dynamic Workforce Solutions 1
  2. 2. Table of Contents Introduction 3 About Us 4 How it Works 5 Features & Benefits 7 Outsourcing of your Back Office Administration 14 Example 15 Fee Schedule 16 Q & A’s 17 Payment Terms 18 Note 19 Dynamic Contact Details 20 2
  3. 3. Introduction Your greatest asset is staff. But your staff, are your most time consuming, risky & expensive overhead, that consume unrelenting amounts of management time. Management and administration of your staff requires specific knowledge in the fields of recruitment, industrial relations, immigration, taxation, incurring risks and costs. Valuable time is consumed by trying to find and maintain permanent, reliable and stable staff. Did you know? Human Resource Management costs up to an additional 50% on top of the staff wages and superannuation. Therefore if your payroll is $1,000,000 your HR outgoings could be costing your business an additional $500,000. In good times or slow periods administrative overheads increase (or decrease) as demands for your business change. DYNAMIC will grow with your business and remove the burden of HR responsibilities by allowing you time to concentrate on the development and growth of your business, while we manage your administrative overheads. 3
  4. 4. About Us The DYNAMIC team has in excess of 16 years experience as a leader in the provision of skilled personnel from Australia, New Zealand & overseas. We began operations in 1997 to help Australians and overseas skilled workers secure work, offering a salary packaging and a comprehensive payroll service. We partner with a number of recruitment agencies in certain market segments to fill short-term temporary and permanent placements. DYNAMIC provide a range of services that improve efficiency, reduce employment & taxation risk and improve your capacity to handle more clients or customers, to increase profitability. We have provided services to tens of thousands of Staff & Contractors nationally. Our philosophy is to provide: ‘Innovative & Value Solutions to our Clients, Candidates & Business Partners…. Daily!’ This is why we are one of the fastest growing Staff & Contractor Management company in Australia. 4
  5. 5. How it Works? Once you appoint DYNAMIC, you provide a list of your existing staff and their details. The staff are then employed by DYNAMIC under our ABN with new employment contracts that DYNAMIC will provide. The transfer of the staff's employment is a electronic simplistic one signature approach. Complete training on our facilities we offer, including staff MBPCloud, which we provide as a link on your website. The MBPCloud can be branded with your own logo and company identity. We then hire them back to you in one simple payment transaction per pay period. Once DYNAMIC receives this payment DYNAMIC is responsible for all the staff payments. Continue to hire your own personnel or have us source additional staff for you. If you have a candidate that requires a visa, we will arrange that too. We also look to see if we can provide salary packaging, promoting staff retention. 5
  6. 6. How it Works? DYNAMIC 1. Sources Staff & Contractors for your business. 2. Accepts your transfer of existing Staff & Contractors and requests for new Candidates. 3. Hires them back to you. 4. Pays the Staff & provides Salary Packaging to improve Staff benefits & satisfaction levels. 6
  7. 7. Features & Benefits Features Benefits Available To  Employees & Contractors supplying labour  Permanents, Casuals & Temps  Compliant, Consistent & Integrated  Our engagement options make you more attractive to work for Setup  We transfer your existing staff to us, quickly  Administration & Management Savings of up to 50% Recruitment  Advertising  Resume checking  Arranging 1st & 2nd interviews  Online acceptance by you  Professional Recruitment Management  Simplified, Streamlined Time Savings  Fill vacancies quickly , reduced hiring delays  Convenient, accessible & easy way to find the right candidate  Freedom from mundane tasks  Centralises Recruitment Management 7
  8. 8. Features & Benefits Job Offer & New Starter Process  Position Offers correspondence, passwords issued to their staff MBPCloud,  Staff Details form that allows police checks & prepares TFN declaration, choice of super form, MBPCloud induction, WH&S induction,  TFN application for those new to Australia  Candidates Pre screened, No advertising costs  No expensive recruitment margins or costs  No expensive background checks, Steady stream of new candidates  We or you, source your future candidates, as you decide Staffing Flexibility  Provide additional resources during seasonal and/or cyclical demands  Scalability in line with business needs Visa & Migration  Applications completed, checked & lodged  Experienced professional qualified Migration Agent  Full range of business, work, sponsorship, permanent residency & migration visas  Immigration department dealt with by us  Visas for candidates, existing staff & dependents  Professional & Qualified support  Ensures the best possible outcomes  Seamless service  Staff retention increased  Simplifies the process 8
  9. 9. Features & Benefits Payroll  All calculations, compliance & upload of payments performed  Management Reports available online  One payment to cover all the payroll per pay period  Comprehensive  No administration time or cost  Consolidated invoice Salary Packaging & Expense Claim Management  Available to all staff individually  Available for permanent, casuals, temps & contractors  40+ benefit items available  Expense Claim Administration  All expense items covered  Expense items can be claimed from clients  Retain staff more readily  Attract staff more easily  Reduced need for recruitment  Reduced demand for pay rises  Reduced overall payroll cost Leave Management  Can apply for leave online with online approval by you  Simplify leave management process & updates leave accumulation 9
  10. 10. Features & Benefits Tax Administration  FBT, PAYG, Payroll & Other Taxes calculated & remitted  PAYG reconciliations performed & PAYG Payment summaries produced, FBT returns prepared  Compliance with ATO requirements Superannuation Administration  Calculations made for each pay & included on Pay Slips  Superannuation remitted as required  Effective Superannuation administration Human Resource Management  Staff managed & counselled to cover any issues  No costly administrators WH&S  Kept up-to-date Back to Work Programs  Reduced WH&S risk &Training Time Workers Compensation  Claim management completed  Payment administration  No risk of increased premium due to claims 10
  11. 11. Features & Benefits Risk  Insurance for workers compensation, public liability & professional indemnity as required  Effective Risk Management Fair Work Act  Complaints & audits taken care of  Contracts, forms & policies kept updated  No government or union payroll audits to handle  No staff training required to handle law changes Staff Care  Dedicated Staff care team to handle their payroll, other queries & concerns  Reduced business interruption Exiting  Handle all Staff Termination issues  Effective handling of staff exits 11
  12. 12. Features & Benefits Invoicing & Contracting for On-Hire Staff  Invoicing of Staff time to your clients & customers where required  Contracting is online  Dedicated client services team to Handle queries  On hire fee matched to the contractor cost  On hire receipt matched to contractor Payment out  One payment for you & your customers for on-hired staff  Online contracts  Facilitates staff time tracking to invoice client & customers accurately  Ensures contracts are unaltered  Timely customer service  So margins are accurate  So cash flow is maximised  Reduced administration  Professional impression, also fast & immediate Management & Administration  More of this time handled by us  Administrative & Overhead Costs reduced  Management costs reduced  Potential outsourcing of other agreed functions  Management Stress reduced significantly  Reduced significantly  Reduce your other costs by up to 50% Audit Risk & Costs Removed  No ATO, Fair Work, payroll tax or workers comp audit cost  Remove burden of auditing 12
  13. 13. Features & Benefits Legal  We attend court or compulsory arbitration  We are the employer or principal  Industrial relations risk removed No lost time  No employment contracts or legal cost Additional Staff Services  Financial Planning  Personal Tax Return preparation  Superannuation Recovery  Encourages Staff Retention  More money in Staff Pockets  Helps foreign Nationals Technology  Payroll, salary packaging, staff cloud software provided  Server hardware & software provided  No hardware or software cost  Reduced staff training required for software changes 13
  14. 14. Outsourcing of your Back Office Administration We can also outsource all your non face to face administrative functions including: accounting, bookkeeping, financial management, payroll, sales administration, secretary, PA, software development, website development and more. This increases profits without the need to increase sales by reducing back office costs by up to 50%. Yes 50% Reduce back office cost by up to 50% 14
  15. 15. Example Without Dynamic Sales $3.5M Cost of Sales $2M Overheads $1M Net Profit $500k With Dynamic Sales $3.5M Cost of Sales $2M Overheads $500k Net Profit $1M Result Outsourcing with Dynamic decreases overheads Increases profit Up to 50% Up to 100% 15
  16. 16. Fee Schedule Fees are based on the employment or engagement cost including on-costs of the staff member such as insurances and payroll tax & administration. Item Fee Management Fee 5% of Remuneration Package Total + On-costs Sourcing Candidates 8.33% (one-time) of Remuneration Package pa Salary Packaging Varies depending on the benefit, usually paid by the individual in their package On-Costs Include payroll tax, public liability, professional indemnity & workers compensation as per your WIC code all rounded up to the nearest percentage. Visa & Migration Fees Available on application + Government charges 16
  17. 17. Q&A’s  You say that it costs up to 50% in overhead to maintain staff. Would you please explain? Please just add up the costs of people & their time involved in administering people in your business. Include hour, accountants, bookkeepers - who do the: payroll; salary packaging; FBT administration; expense claim administration; candidate, advertising sourcing, vetting of resumes and interviewing; and then lawyers involving disputes. Then you add the management time in dealing with staff issues and administrative matters. Then on top you add the overhead & time of that support staff and you should arrive at a similar substantial number.  How can you do it so cost effectively? This is our business, this is what DYNAMIC specialises in. Plus we have a proven streamlined paperless systems and a professional team 100% dedicated in getting the job done.  Won't I Lose Control of My Business? We say quite the reverse. By freeing up management’s time from the day to day administrative tasks it gives them more time to work on the business, rather than just in the business. It allows more resources to be devoted to the core of the business that produces the value and the income, by being able to hit the accelerator to the business it provides more power to the management engine.  Won't I Lose Control of My Staff? No. DYNAMIC acts on your instructions. DYNAMIC employee the staff under our ABN but you are responsible for the ultimate decision on all hiring and firings! DYNAMIC just do the paperwork. This gives you more time to interact personally and to performance manage the staff. This added management contact is perceived as showing interest and again helps reduce staff turnover. 17
  18. 18. Payment Terms  What are your Payment Terms? Payment Terms are immediate as it is payroll. However if you do need some accommodation up to a maximum of 28 days, you need to tell us at the beginning so it can be planned and you can complete a credit application. Though we always require sufficient payment to cover net pay, superannuation and our fee. For every 14 days or part thereof, any of your invoices remain outstanding, you are charged 1% plus GST of your invoices outstanding amount including GST. At the end of your Pay Cycle this is calculated on the outstanding amounts on your Debtors Statement, invoiced and direct debited to your bank account. This amount must be paid. 18
  19. 19. Note A PwC Study has shown that the total cost of ownership of payroll services is reduced significantly, if the payroll service is outsourced. Resulting in a saving of up to 50% of their TCO Integrating time & attendance with payroll leads to a cost efficiency of 14%. Organizations using In-house solutions or hosted software solutions spend on average 18% more administrating these functions than organizations who outsource. Organizations administering these functions in-house with solutions from multiple vendors, spend an average 18% more, then those using only one in-house solution. Organizations outsourcing these functions to multiple vendors spend an average of 32% more than those outsourcing to only one vendor. Providing payroll & HR self-service functionality to employees can result in a 50% lower TCO of workforce administration. Total Cost of Ownership for Payroll Services includes the cost of payroll process, workforce administration, time & attendance, health & welfare administration and other hidden costs. The other hidden costs includes direct & indirect labour costs system maintenance costs. Source: PwC & ADP TCO study, January 2011 19
  20. 20. Conclusion Paul Rigby Director Dynamic Workforce Solutions T : 1300 276 266 E: 20