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

Presentation 14/06/2017 www.datumrpo.com

Spend 39% 61% 25,500 workers

Overview of Datum RPO Standardise process, governance Supplier Management & performance Fully audited for legal compliance Compliance and best practice Improved Performance Real-time management information Real-time visibility of cost control & Visibility & Control business process Brand & Culture Protect & enhance candidate experience Direct & indirect savings, cost containment Cost Savings & management in real-time

Compliance

Managing Agency Spend Formal Master Managed Preferred Status Quo Vendor Service Supplier Solution List

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 Updated 19 May 2017 https://www.gov.uk/government/publications/use-of-labour-providers/use-of-labour-providers-advice-on-due-diligence

Compliance Year Legislations Current Year Legislations Due 2015 The Finance Act 2018 Termination payments: taxation 2015 On-Shore Legislation 2018 General Data Protection Regulation 2015 Off-Shore Legislation 2018 Payment Practices & Performance 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

Suppliers fail their 1 st Audit Suppliers that fail to meet basic legal requirements 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

Business Profile £390mil Company Sales 100% £7,086,024 Spend with agencies 2% Agency Suppliers 64 100% Temporary Workers 161 71% Fixed Term Contractors 67 29% Total Workers Analysed 228 100% Weeks average service 12 23% Workers analysed 1,709 100% Agency invoices analysed 7,000 100%

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

Supply Chain Profiling 43% 42% 39% 24% 17% 12% 4% Employees Employees Employees High Risk Moderate Risk Low Risk Employees 1 - 10 11-25 26-100 Failure Score Failure Score Failure Score 101+

Pay Rate Analysis Annualised £5.00 £15.00 £25.00 £35.00 £45.00 £55.00 £65.00 £75.00 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

Pay Rate Analysis 8 highest spending disciplines account for 80% of the overall spend Percentage Minimum Maximum Discipline Variance of Spend Pay Rate Pay Rate 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

Worker Compliance 1,709 Workers audited 100% 577 No Contract with Agency 34% Workers failed audit 734 43% Missing RTW 336 23% Expired Visa 14 1% Sole Trader (false self-emp) 168 10% None Compliant Umbrella 34 2% Travel & Substance Breach 29 2% 71 Insufficient Insurance (PSC) 5%

Contractual Relationship Legal compliant & empowered rights Compliance Audit Audit Contingent Workforce, Suppliers and Umbrella Companies Supply Chain Management Rationalise Supply Chain & Centralise Control Outsource Compliance Management Partner with expert in supply chain management

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

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

Supply Chain Management Your Company 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

Managing Suppliers via a Preferred Supplier List (PSL)

Presentation 14/06/2017 www.datumrpo.com