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TRANSCRIPT
The State of U.S. Businesses Top Tips & Trends to Comply
with Labor Laws & Optimize Workforces
VP, Industry Insights Deputy, Americas
• First job was picking cucumbers and squash by day, worked in a restaurant in the evening where we sold the harvest
• First post-college job = Botany / Genetics Research Scientist
• Passion for helping businesses grow
• Connect with me: linkedin.com/in/jonesderek
Meet Derek Jones
• Follow me:
@wolfeatram
U.S. businesses are
facing tectonic shifts
in the workplace.
Trend #1:
The Rise of the Hourly
& Part Time Workforce
= +
employees
Trend #1:
The Rise of the Hourly Workforce
78 m
OR 60%
of the total workforce
80%
of hires made annually
=
Hourly workforce growing every year
hourly jobs
9.3 m
OR 94.7%
of all new jobs
=
Added to the U.S. workforce
=
Trend #1:
The Rise of the Hourly Workforce
Between 2014-2024…
=
Reasons for more part time employees:
Trend #1:
The Rise of the Part Time Workforce
Gig economy on the rise –
35% of the total workforce
Employees working multiple jobs more than ever –
7.3 to 7.8 million since 2009
Af ordable Care Act –
Hiring more part time employees (under 30 hours/week)
Trend #2:
The Rise of the
Younger Workforce
=
Trend #2:
The Rise of the Younger Workforce
By 2020…
of the nation’s population
25% = Gen Z
(born 1995- )
By 2025…
of the nation’s workforce
75% = Millennials
(born 1980-1994)
Trend #3:
The Rise of Mobility
in the Workplace
Trend #3:
The Rise of Mobility in the Workplace
This younger generation prefers a technology-infused workplace, as they believe technology enables them to be more productive.
60% = “Technology makes me more productive.”
See mobility and smartphones as
essential in the
workplace
= 40%
Trend #3:
The Rise of Mobility in the Workplace
Organizations are now implementing mobile technologies and policies to accommodate the non desk worker.
79% will increase their mobile spending
by 36%
expect to increase spending on mobile
apps by 31%
42%
of organizations of organizations
Trend #4:
Increasing Wage &
Hour Litigations
Trend #4:
Increasing Wage & Hour Litigations
2017 Annual Litigation Report by Seyford Shaw, LLP
In 2016, workplace class action settlements totalled
$1.75 billion ...the 2nd highest number of wage & hour cases ever filed
Settlement value = 3x in 2016 for wage & hour litigations over the past 2 years
And DOL is increasing their enforcement!
75% success rate
for employees filing wage & hour
class action lawsuits (70% over 2 years)
Top Challenges of
U.S. Businesses with
Hourly Workers
2017 Survey Report
This U.S. business survey was conducted to glean insight from U.S. businesses who employ hourly workers and
understand the current challenges, priorities and measures they are taking to accommodate these shifts in the workplace.
Commissioned via online survey to 4,852 U.S. businesses with hourly employees
(Deputy customers) ranging from 3-1,455 employees
All industries with hourly employees surveyed
Four themes of questions: Profit, Competition, Regulatory, Labor
About the Report
Top 3 Business Challenges
1 Revenue/growth profit margins
39%
2 Employee retention/ turnover
3 Customer experience
24%
23%
56%
Feel confident their business
attracts the best employee
talent anywhere
Anticipate a 26% or greater
business growth rate over
the previous year by the end
of 2017
44%
Profit and Compliance Confidence
Insight: Businesses report to not understand or
feel confident in the changing labor regulatory
and healthcare environment, yet also report
these are not as important.
56%
43% Profit: Don’t feel that they are in
control of their profit margins
Compliance: Do not agree with
the statement, “I feel confident
with understanding changing
labor & healthcare laws.”
The least important business challenge is...
Keeping up with Labor
Laws/Compliance (5% report as top priority)
4 Tips to Avoid Wage &
Hour Plaintif Lawsuits
1. Properly track time & optimize schedules.
Avoid overstaf ng and optimize schedule for labor costing, POS sales data, profit targets, overtime, weather trends
(i.e. forecast right amount of labor needed and see real-time wages vs. sales by the minute).
Prevent early clock-ins, time theft, and buddy punching
with geo-tracking and photo facial detection.
2. Track/record everything.
Protect yourself from back pay claims of unpaid hours worked.
Includes tracking for 3 years of payroll, name, address,
gender, work week, hourly wage, daily/weekly hours worked, total earnings, and overtime pay.
3. Pay employees timely & accurately.
Ensure accurate timesheets into payroll.
Don’t average hours worked/pay over two-week span.
No exchanging overtime for paid vacation time (unless bill passes).
How do you round hours?
4. Avoid tip-related lawsuits.
Pay employees correct tipped minimum wage.
No sharing of tip pool with non-tipped employees.
Track times and wages worked for tipped work or non-tipped work. (20% max non-tipped work rule)
All overtime for tipped minimum wage must be paid at full minimum wage (not subminimum wage).
Tips to Control
Labor Costs
1. Work Opportunity Tax Credit The Work Opportunity Tax Credit (WOTC) is a Federal tax credit available to employers who hire individuals from eligible target
groups with significant barriers to employment.
WOTC can reduce an employer’s ef ective tax rate via a tax credit.
There is no limit on the number of employees submitted.
Credit is based on how many hours worked and
how much they are paid.
Who’s Eligible?
Work Opportunity Tax Credit
Step 1: Complete form 8850 on date of hire and submit within 28 days
Step 2: Employee meet the qualified criteria?
Step 3: Work 120 -400 hours?
Step 4: Receive certificate, submit on taxes
2. Review and adjust current comp plans.
• Review market value of current roles (PayScale)
• Replace automatic pay raises with merit increases based on revenue contribution to the business.
• Change certain roles from full to part time to save on mandated
health care coverage (under 30 hours); health insurance broker
to price out lower bids.
3. Reduce overtime and other pay overages.
• Use more part time staf so overtime isn’t reached.
• Use tools with stress alerts to notify managers when employees are reaching overtime to find alternative employees.
• Properly track time to eliminate early clock-ins,
buddy punching, long breaks, and rounding of hours.
4. Reduce employee turnover
• Training and development is top reason for employee retention. - Proper onboarding, ongoing training,
advancement opportunities.
• Change the perception of your roles as a career path vs. short term stint
- Of er employees tuition assistance programs
- Sponsor professional certifications and training
• Cross train your employees
How Can
Deputy Help?
The Solution - Scheduling Automagically
• Automate scheduling with cloud-based software
• Automagically send reminders to employees each day they work
• Automagically send info directly to their mobile device
• Automagically send timesheet data to payroll
• Allow managers to coach, train, inspire employees, and focus on building the business
• Fill shift templates with the power of IBM Watson
Challenge - Communication
• Text – no guarantee they received it… hard to manage conversations
• Group chat (WhatsApp, etc) – not integrated with any other software
• Email – ignores email
• Phone call – people usually do not answer unknown calls via telephone in 2017
• Secure & Compliant – May not meet labor laws / overtime
The Solution - Communication
• Ensure employees are getting the information .
• Communicate multiple ways with the click of a button. (email, text, push notification)
• Automagically populate shift information on personal calendars.
• What happens when an employee calls in sick? Easily find replacements with the click of a button.
Challenge - Performance Management
• Annual reviews are dead
• Employees (especially millennials) want instant feedback on how they are doing
The Solution - Performance Management
• Realtime feedback on employee
performance (in the moment)
• Performance journaling is built in
to manager workflows, boosting
compliance and data quality
• Produce manager snapshots
or detailed reports
• Improved engagement and career
development for the best quality staf
• Faster, better identification of, and response to, underperformance
Questions?
Visit us at Booth #530
deputy.com
#1 Category Leader for
Employee Scheduling & Workforce Management
@deputyapp
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