You Gotta Pay to Play

•Moderator:Matt Ziegler, President, ZMacTransportation Solutions, LLC.

•Panelists: Tom Heine, CEO, Aljex Software Beth Carroll, Principal, ProsperioGroup

You gotta Pay to play

Beth CarrollPrincipal

Prosperio Group

You gotta PAY to play…and in my world, that’s meant literally• Employees, generally speaking, will not work for free

• Employers must comply with FLSA (Fair Labor Standards Act) and other laws around pay• While state and federal laws may differ around pay, if the federal law is

stricter, then it prevails (e.g., minimum wage – a state can set a minimum rate wherever it wants, but the higher of the state or federal minimum must be used)

• FLSA applies to companies that generate $500,000 in revenue annually

• Employers must also consider the “Total Rewards” package when developing pay programs for their employees

• When thinking of the cash compensation portion of the package, some basic structures are necessary to ensure fairness and legal security

First, quickly on the laws around pay (hire a local labor attorney)• Minimum wage – higher of state or federal (or sometimes local as some

cities set own rates) prevails

• Overtime rule – in most states, the majority of jobs we deal with would be considered non-exempt from overtime (meaning you have to pay it if the employee works excess hours). In most states this rule is 40 hours per week, but some states (CA, CO, NV) also require overtime paid once 8 or 12 hours in a single day is exceeded

• In all cases, there is a “salary minimum” test that is used to determine exemption status…currently that minimum is $455 per week but it is set to be raised shortly

• If the salary hurdle is cleared, then the duties are considered. Most brokers lean on the “Administration exemption” and in some cases this works, in others…it doesn’t. Depends how good your attorney is and how strict your state is in interpreting the law favorably toward employees.

The Total Rewards concept helps define the employment “deal”• There are typically 5 areas in the traditional Total

Rewards model• Compensation****

• Training & Development***

• Work-life Balance**

• Performance & Recognition*

• Benefits

• The overall package has a “value” that must be market competitive to attract and retain top talent

*’s indicate the degree Prosperio regularly touches these issues

Even new companies should have structure around compensation• Salary bands for each role in your organization

ensure fairness and consistency when hiring• Be sure to define the skills, education, training, or

experience that would justify a higher pay level for one employee versus another

• Job levels help with both structure, training and development, and performance and recognition

• Job title consistency is also important

• Understanding pay mix (salary vs incentive) and developing balanced, forward thinking and well-communicated incentive plans are also critical

Hire, train and train some more

Matt ZieglerPresident

ZMac Transportation Solutions, LLC.

First things first know who you are

Hiring process

• Mistakes we made

• Cost of the mistakes

What we have done to try to hire better• Interview, assess, Interview

• Role playing and skills test in assessment

• Personality testing

• Three person interview

“True leaders bring out your personal

best. They ignite your human potential”.”

• Mistakes we made training

• Why is training so important?

• What we are doing now

• Set expectations

• Measure results

Takeaways for any size company

• Document who you are so you look for the right people

• Develop a repeatable hiring process. Interview, assess, interview.

• Create a training manual

• Follow a training process

• Measure performance and act quickly

You Gotta Pay to Play

Tom HeineCEO

Aljex Software

What is the most important thing in running a small business?

Luck & Seizing Opportunities

I was practicing in a bunker down in Texas and this good old boy with a big hat stopped to watch. The first shot he saw me hit went in the hole. He said, “You got 50 bucks if you knock the next one in.” I holed the next one. Then he says, “You got $100 if you hole the next one.” In it went for three in a row. As he peeled off the bills he said, “Boy, I’ve never seen anyone so lucky in my life.” And I shot back, “Well, the harder I practice, the luckier I get.” That’s where the quote originated.

-- Gary Player

“Never ask a barber if you need a haircut.”

― Warren Buffett

Be Strategic

“In the business world, the rearview mirror is always clearer than the windshield.”

― Warren Buffett

“I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.”― Warren Buffett

Have a good business plan and be prepared to change it

• Rule No.1: Never lose money.

• Rule No.2: Never forget rule No.1. -- Warren Buffett

“For 240 years, it's been a terrible mistake to bet against America.”

― Warren Buffett

You Gotta Pay to Play

•Moderator:Matt Ziegler, President, ZMacTransportation Solutions, LLC.

•Panelists: Tom Heine, CEO, Aljex Software Beth Carroll, Principal, ProsperioGroup