Staff Resourcing Service Proposal

Dynamic Workforce Solutions

1

Table of ContentsIntroduction 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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Conclusion

Paul RigbyDirectorDynamic Workforce Solutions

T : 1300 276 266E: paulr@dynamicworkforcesolution.com.au www.dynamicworkforcesolutions.com.au

20