reducing risk: how to stay ahead of fast changing workforce legislation
TRANSCRIPT
![Page 1: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/1.jpg)
#WFwebinar
The presentation will begin at the top of the hour.
A dial in number will not be provided.
Listen to today’s webinar using your computer’s speakers or headphones.
Welcome to the webinar!
![Page 2: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/2.jpg)
#WFwebinar
Tools You Can Use Audio Control
– A dial in number will not be provided.
– Adjust the volume by sliding the indicator in the Media Player box to the right.
– Also check your computer’s volume for external speakers or headsets.
![Page 3: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/3.jpg)
#WFwebinar
Tools You Can Use
Speaker Bios
Resources
Media Player
Q&A
Slides
Help
Post Event Evaluation Share This
Group Chat
HRCI & SHRM
WF Webinars
![Page 4: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/4.jpg)
#WFwebinar
1. May I receive a copy of the slides? YES! Click on the resource list located on the top right
portion of your screen.
2. May I review the webinar recording at a later date? YES! You may log in again using today’s link to review the
presentation on-demand.
3. Is this webinar HRCI or SHRM certified? YES! The HRCI and SHRM certification codes will appear
in the box to the right of the slides after the required watch-time has elapsed.
Frequently Asked Ques6ons
![Page 5: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/5.jpg)
#WFwebinar
Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legisla6on
Dave Weisbeck Chief Strategy Officer Visier
![Page 6: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/6.jpg)
Reducing risk: How to stay ahead of fast-‐changing workforce legisla8on
Dave Weisbeck, CSO, Visier
September 6, 2016
![Page 7: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/7.jpg)
Maximize your business outcomes, through your people
Analyze: Go from data to insights Align: Go from insights to plans Act: Go from plans to outcomes
![Page 8: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/8.jpg)
Where are our recrui8ng boBlenecks?
How can we retain cri8cal employees?
What if?
How well did we plan?
How do our total workforce costs breakdown in our plan?
Should I give my team member a raise?
What are our total workforce costs and how are they changing?
How can we connect Total Rewards to our boBom line?
How will turnover impact our future
workforce?
Which workforce scenario will best meet our business goals and budget?
Where should we allocate people to support the
business?
Which Cri8cal Talent is at risk of resigning?
Who should I promote? Workforce Analy8cs
Workforce Planning
Visier Workforce Intelligence
Visier is about making both HR and the business beBer
![Page 9: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/9.jpg)
Visier is how the best brands achieve the best business
outcomes
![Page 10: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/10.jpg)
Agenda
• The new overIme rule • Proposed changes to pay equity reporIng • The risks of misclassifying employees as contractors • Technology opIons for reducing risk from workforce legislaIon changes
![Page 11: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/11.jpg)
Department of Labor Over8me Rule Changes
![Page 12: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/12.jpg)
The new over8me rules
$23,660
[VALUE]
Threshold now ASer Dec. 1
• Exempt salary threshold doubles on Dec. 1, 2016
• Threshold will be updated every three years
• Full-‐Ime salaried workers who earn LESS are eligible for overIme pay
![Page 13: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/13.jpg)
What the DoL recommends
In response to the new over6me rule, employers can: ü Pay Ime-‐and-‐a-‐half for overIme work ü Raise workers’ salaries above the new threshold ü Limit workers’ hours to 40 per week ü Some combinaIon of the above
![Page 14: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/14.jpg)
How many workers are affected?
“The updates will impact 4.2 million workers who will either gain new overIme protecIons or get a raise to the new salary threshold.”1
U.S. Department of Labor
1. Who Benefits from the OverIme Rule, U.S. Department of Labor Blog
![Page 15: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/15.jpg)
"This phased-‐in approach will s2ll disrupt long-‐term wage planning for many organiza2ons, and
future annual updates based on unknown increases will wreak even more havoc on
compensa2on planning for large businesses."
Patrick Brady, Manager of Public Policy, WorldatWork
![Page 16: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/16.jpg)
The new rule could significantly increase costs 1,000 newly eligible employees could cost an addi6onal $3.5M per year
*Based on BLS data
1. Average over6me 3.2 hours per week
2. # weeks worked 48 weeks per year
3. Average increase in over6me hours 153.6 hours per person per year
4. Max. hourly rate for eligible employees $913 ÷ 40 = $22.80
5. Annual cost per employee 153.6 × $22.80 = $3,505.92
6. Cost for addi6onal 1,000 newly eligible employees
1000 × $3,505.92 = $3.5M per year
![Page 17: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/17.jpg)
How will you assess how the new rules impact your organiza8on?
Short-‐term
How and where are our over8me costs/risks changing?
Mid-‐term
How can we modify our comp strategy and workforce plan to op8mize costs?
Long-‐term
How can we prepare for future changes?
![Page 18: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/18.jpg)
What you will need to answer • How many employees are impacted? • Should we raise salaries to retain exempt status for those on the cusp of the new salary level?
• Should we reclassify those who fall under the new threshold and change their pay structure?
• Since bonuses and commissions are included in the calculaIon of salary threshold, should we change pay structure to move workers over the threshold?
• Can we avoid reducIons in force by allowing natural ahriIon of newly eligible workers to occur?
• How can we beher track, report, and manage overIme?
![Page 19: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/19.jpg)
Proposed Changes to Pay Equity Repor8ng
![Page 20: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/20.jpg)
The U.S. Equal Pay Act
Prohibits sex-‐based wage discriminaIon between men and women in same establishment who perform jobs that require substanIally equal skill, effort and responsibility under similar working condiIons
Pay differenIals are permihed if
based on seniority, merit, quanIty/quality of producIon,
or factor other than sex
It is employer's burden to prove pay differenIal is valid
![Page 21: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/21.jpg)
Pay discrimina8on: the risk to employers
19,724 charges under the Equal Pay Act since
1997
About 1,000 charges per year
Companies face reputa6onal
and financial risk if charged
![Page 22: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/22.jpg)
Pay equity repor8ng changes proposed for 2017 repor8ng year • Every year, employers with 100 or more employees need to fill in EEO-‐1 form
What EEO-‐1 form asks now:
What the proposed change adds:
• Employee numbers by job category, sex, race, ethnicity
• 12 pay bands that workers fall into
• New pay data would help enforce federal pay discriminaIon laws
![Page 23: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/23.jpg)
How will you assess the poten8al impact?
To reduce the risk to your organiza6on’s reputa6on, how can you: • Ensure you aren’t blind-‐sided by the results the first Ime you fill in the new report?
• ConInuously monitor pay equity to see where the greatest risks are?
• Discover whether pay dispariIes exist for valid reasons?
• Get insights for how to address the risks?
![Page 24: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/24.jpg)
Employee Misclassifica8on Risks
![Page 25: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/25.jpg)
The Department of Labor takes misclassifica8on seriously “The misclassifica8on of employees as independent contractors presents one of the most serious problems facing affected workers, employers
and the en8re economy.”
Wage and Hour Division, U.S. Department of Labor
![Page 26: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/26.jpg)
For employers, the risk is high
Back wages collected
“Studies suggest that 10 to 30 percent of employers may misclassify their employees as independent contractors.” U.S. Department of Labor
[VALUE]M [VALUE]M
[VALUE]M
[VALUE]M [VALUE]M [VALUE]M [VALUE]M
2009 2010 2011 2012 2013 2014 2015
Nearly $1.6 billion in back wages have been recovered by the Department of Labor’s Wage and Hour Division since 2009.
![Page 27: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/27.jpg)
Employment rela8onship defini8ons may grow even more strict
“Applying the economic realiIes test in view of
the expansive definiIon of ‘employ’ under the Act, most workers are employees under the FLSA.”
Administrator’s Interpreta8on No. 2015-‐1, U.S. Department of Labor
![Page 28: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/28.jpg)
How will you assess the poten8al impact?
To reduce the risk of fines, lawsuits, or damage to your organiza6on’s reputa6on, how can you: • Get a grasp of what the cost of reclassifying contractors as employees would be?
• See the reporIng structure of your conIngent staff in context with your full-‐Ime employees?
• Get insights for how to address the risks?
![Page 29: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/29.jpg)
Technology choices for staying ahead of workforce legisla8on risks
![Page 30: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/30.jpg)
![Page 31: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/31.jpg)
![Page 32: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/32.jpg)
TRACK ANALYZE & PLAN
Employees Hours Wages Commissions Gender OverIme Absenteeism
Who is exempt? How much risk do we face? What will it cost us? What alternaIves do we have? If it changes, what then? How are ahriIon, hiring, engagement, etc. impacted?
![Page 33: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/33.jpg)
The Technology Choices
Business Intelligence
Embedded “AnalyIcs”
Workforce Intelligence
• Tools that allow you to create reports and dashboards on any data
• Repor8ng that comes with your HRIS, ATS, etc.
• Dedicated workforce analyIcs and planning
![Page 34: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/34.jpg)
Business Intelligence
![Page 35: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/35.jpg)
Business Intelligence
• Tools that allow you to create reports and dashboards on any data
• Extremely flexible – you can build whatever you want
• Extremely difficult and expensive – requires very technical and expensive skills
• Slow – you (or IT) have to build it all yourself
![Page 36: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/36.jpg)
BI challenges and risks
Complex data integraIon
Costly data warehouse
Time-‐consuming report development
No integrated security
![Page 37: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/37.jpg)
BI project costs: A TCO that keeps growing
![Page 38: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/38.jpg)
Embedded HR analy8cs
![Page 39: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/39.jpg)
Embedded HR analy8cs
• Repor8ng that comes with your HRIS, ATS, etc.
• Bundled into an HR system promises fast and cheap
• Only reporIng – not analyIcs • Not integrated & connected
![Page 40: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/40.jpg)
The problem: Answers to ques8ons about workforce risk live in disparate systems
![Page 41: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/41.jpg)
Extrac8ng answers from embedded analy8cs requires extra cost and 8me
Data integra6on Extra cost and 6me
Historical data Extra cost and 6me
Future changes Extra cost and 6me
![Page 42: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/42.jpg)
Workforce intelligence
![Page 43: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/43.jpg)
Workforce intelligence quickly connects disparate workforce data sources to answer ques8ons about risk
Workforce Intelligence
![Page 44: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/44.jpg)
Use workforce intelligence to help you avoid unnecessary over8me costs • Eliminate guesswork and error-‐prone spreadsheets
• IdenIfy the best, most cost-‐opImized workforce plan
• Track against that plan; manage overIme with confidence
![Page 45: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/45.jpg)
Use workforce intelligence to discover pay equity issues and address them • ConInuously measure pay equity • Discover where the greatest risks are
![Page 46: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/46.jpg)
Use workforce intelligence to discover pay equity issues and address them • Adapt programs and policies to achieve pay equity • Use data to support validity of apparent pay dispariIes • Confirm valid reasons for pay differenIals—such as longer tenure, more educaIon, or higher performance
![Page 47: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/47.jpg)
Use workforce intelligence to get a comprehensive view of your workforce • Understand costs and effects of moving to more or less conIngent labor
• Reduce risk of non-‐compliance by understanding roles and reporIng structure for all full-‐Ime and conIngent workers
![Page 48: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/48.jpg)
Take the next step
![Page 49: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/49.jpg)
![Page 50: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/50.jpg)
Resources available at www.visier.com
Download your copy Download your copy
Subscribe to the Workforce Intelligence Blog
![Page 52: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/52.jpg)
#WFwebinar
Please complete the webinar evaluation.
![Page 53: Reducing Risk: How to Stay Ahead of Fast Changing Workforce Legislation](https://reader031.vdocuments.us/reader031/viewer/2022030311/58eef6111a28ab6a248b4697/html5/thumbnails/53.jpg)
#WFwebinar
Register for the next Webinar!
Workplace Culture: Fad or Strategic Advantage?
Wednesday, September 14, 2016
Webinars start at 2 p.m. Eastern / 11 a.m. Pacific
Register for all upcoming Workforce Webinars at events.workforce.com/webinars
OR click the icon on the widget bar!