How Administaff helps business owners sleep sound at night!

1. Administaff Overview
 Founded in 1985 – today a $2
billion company
 Publicly traded on the New York
Stock Exchange (symbol: ASF)
 49 offices serving approximately 6,500 client companies with more
than 108,000 employees nationwide
 Listed as one of Fortune’s “America’s Most Admired Companies” for
the last four years
• Business Premise: To enable Entrepreneurs and small business
owners to gain key advantages in the vital area of Human Capital.

2. What Administaff Does:
Comprehensive HR Support for Small Business
SM
The Personnel Management System
Performance
Revenue Management
Generation
Employment
Expense Administration
Benefits
Management
Control
Net Profit Owner
Support
Protection

3. Traditional Employer/Employee
Relationship
Common
Law
Employer
Employment
Relationship
W-2 Employees

4. Co-Employment Relationship
with Administaff
• Human Resources Management • Manage Business
• Recruiting and Selection
• Payroll
CO-
EMPLOYERS • Grow Business
Administration CCP
Administaff • Manage Change
• Payroll Taxes
• Employee Benefits • Align People
Employment
• Workers’ Relationship
Employment
Compensation Relationship
• FOCUS
• Employer Liability
Management
Employees
• Government Compliance
• Training and Development

5. PEO Model:
Co-Employment Relationship
Administaff
Employer-of-Record
Client Service Agreement
Relationship
Employees CCP
Common Law Employer
Relationship

7. How The Model Works:
A Better HR Department
Fortune 500 Company Structure

8. .

9. Measuring the Impact to Your Business
 Improved Use of Time
They can apply their resources to what they do best, which drives profitability.
They can concentrate more fully on core tasks.
 Access to Expertise
They can leverage the combined knowledge of all of our professionals.
Even a full-time employee will never have the same savvy as an experienced, specialized human capital team.
 Technology Leverage
They benefit from our up-to-date information, equipment, & technology.
They can focus their money on remaining technologically competitive within their core business.
 Economies of Scale
They gain programs that may not be economically feasible for a smaller group of employees.
We are able to spread fixed administrative expenses across a very wide base of people.
 Operational Efficiency
Specialized experts already possesses the knowledge, skills, contacts, and resources.
All the pieces are already designed to work together properly from the very beginning.
 Financial Stability
Small companies need to be able to react instantly to enhance their business.
We enable such flexibility by decreasing fixed overhead expenses that would otherwise be necessary.

10. Recruiting and Selection:
Better People
Impact on Your Business
• Find and retain the best possible employees
• Reduce headaches & time-commitment
• Professional, proactive applicant screening process
gives company world-class reputation
Services
• Job Descriptions
• Job Design
• Salary Planning & Administration
• Interview Process Development & Training
• Talent Network “The Small Business
• Recruitment Advertising Administration estimates that
hiring the wrong person costs as
• Resume Review, Background Checks
much as 2x that person’s annual
• Interviewing, Pre-Employment Testing salary.”
• Behavioral Profiling
• Outplacement

11. Performance Management:
Better Motivation
Impact on Your Business
• Align employees with your company goals and
maximize their performance.
• Increased Employee Job Satisfaction
• Increased Productivity
Services
• Performance Measurement Standards Development
• Performance Review Policy Development
• Compensation and Incentive Plan Design “How do you raise the bar
• Employee Relations Coaching for Supervisors when research reveals that
• Conflict Resolution Training 50% of employees are willing
• Progressive Discipline & Termination Coaching to give only enough effort to
• Climate Surveys that Reveal Opportunities & Issues keep their jobs?”

12. Training & Development:
Better Skills
Impact on Your Business
• Increase Your Employees’ Productivity
• Increase Your Employees’ Job Satisfaction.
• Reduce Costly Turnover
Services
• Needs Analysis to Identify Areas for Organizational
Performance Improvement
• Curriculum Development for Professional and
Personal Growth “The Council on
• Instructor-Led Training On-site or Off-site Competitiveness found that a
• Unlimited Access to Online Courses for Around-the- 10 percent increase in training
Clock Learning Opportunities and education has a more
• Certified Provider of Continuing Education Credits positive impact on productivity
• Develop Current & Future Leaders than a 10 percent increase in
• Build a Culture of Innovation and Education That’s work hours.”
Tied to Performance Appraisals.

13. Instructor-Led Training Courses
Leadership/Management Development Personal Effectiveness
• Essentials of Leadership • Interaction Skills for Success
• Retaining Talent • Feedback Fundamentals
• Developing Others • Communicating and Listening
• Setting Performance Expectations • Influencing Others
• Coaching for Success • Building Trust
• Coaching for Improvement • Working through Conflict
• Managing Performance Problems • Adapting to Change
• Leading Change • Personal Empowerment: Taking
Initiative
• Influential Leadership
• Discovering Individual Styles of
• Building an Environment of Trust Communication
• Coaching: Developing High Performance • Priority Management
• Vision, Values and Mission Statement • Basic Telephone Skills
• Getting Started as a New Leader
• Leadership: Inspiring Commitment (2- Business & Group Effectiveness
day seminar)
• Making Effective Decisions
• Making Meetings Work
Customer Service
• Partnerships for Improvement
• Service Plus
• Taking Action to Solve Problems
• Service Plus Health Care
• Leading High-Performance Teams
• Creating a Customer Service Culture
• Fast Start for Teams

14. Employment Administration:
Better Focus
Impact on Your Business
• Improve Business Focus by Eliminating Regularly
Scheduled Business Interruptions.
• Ensure you are the leader of a company and not just
an employee of yourself.
Services
• Payroll Processing, Payroll Tax Filing
• Garnishments
• Quarterly Reports, W-2s, W-4s
• Fully Integrated Benefits Administration “The Small Business
• Fully Integrated Time & Attendance Tracking Administration revealed that
• Employment Verification business owners regularly
• Customizable Payroll Management Reports spend up to 40% of their time
performing non-strategic
• Job Costing Reports tasks related to employment
• Direct Deposit, Debit Cards, E-Pay Stubs of their people.”
• Web-based Self-service Available to All Employees

15. Benefits Management:
Better Choices
Impact on Your Business
• Fortune 500 Company Benefits Package
• Long-term Cost Containment
• Reduced Turnover & Increased Job Satisfaction
• Increased Ability to Compete for Top Talent.
• More Employee Choices & Less Guess-work
• No More Auditing – Fully Integrated with Payroll
Services
• Comprehensive Health, Vision, Dental & FSA Plans
• Life Insurance, Personal Accident Insurance “According to the Wyoming
• Short and Long-Term Disability Department of
• 401(k) Plan, Credit Union, 529 College Savings Plan Employment, Research &
• Educational Assistance, Adoption Assistance, EAP Planning, benefits can reduce
• Identity Theft Protection, Commuter Benefits turnover by up to 35%.”
• Optional Additional Life, Disability & Accident
Insurance

16. The Growing Burden
of Employment Regulation HIPAA WPCA
SWDA SDWA
New Regulations Since 1900 SDWA CERCLA
CAA TSCA
DTB CCPA
USERRA FMLA
ADA DFWA
WARN
EPPA
COBRA
TEFRA
IRCA
TRA JSIA
FDA FDA VEVRRA
JSIA
MSHA VEVRRA MSHA OSHA
ERISA OSHA ERISA CRA
ADEA CRA ADEA FUTA
NLRA
LMRDA FUTA LMRDA NLRA
FLSA
LMRA NLRA LMRA FICA
FICA
FLSA FICA FLSA IRC
RLA
RLA IRC RLA
IRC
State Laws State Laws
State Laws
Case Law Case Law
Case Law Case Law
Common Law Common Law
Common Law Common Law
By 1900 By 1940 By 1980 Today

17. Manage Employer Liabilities:
Better Operations
Impact on Your Business
• Eliminate or Reduce Fines and Penalties
• Remove Distractions and Interruptions
• Share or Transfer Liability with Co-employment
• More Effectively Manage Employer Liabilities
Services
• Government Reporting and Agency Interface
• Employment Records Management
• COBRA Management
• Workers' Compensation Coverage, Fraud “A study by the Rand
Investigations and Claim Resolution Corporation showed that
• Safety Reviews, Policy Development and Audits employers will lose 2 out of 3
trial cases and on average
• Unemployment Claims, Terminations, Conflict will be penalized $600,000 +
Resolution court costs and attorneys
• Employee Handbooks, Personnel Guide and Forms fees.
• Employment Practices Liability Insurance

18. Why is “HR” Getting so Much Attention?

19. Pricing Approach
Existing Payroll Burden: Administaff Pricing:
T + W + B + A = % WASF = %
Payroll Payroll
EPB WASF = Weighted Average Service Fee
• T = Payroll Taxes
• W = Workers Comp/EPLI
WASF - EPB = INVESTMENT
• B = Employer % Health Benefits
Enrollment fee (one-time) =
• A = Administrative Overhead 6% of first month’s payroll

20. BASIC INFORMATION
REQUIRED
• Brief Business Profile/Group Health History
• ROSTER OF EMPLOYEES: Name, home zip
code, work state, age, gender, job description
• PAYROLL INFORMATION: Status, salary
details, payment method/frequency, medical
insurance election
• MEDICAL COVERAGE: Current plan
summary, current invoice and same period
last year (e.g. 7/10 and 7/09)
• WORKERS’ COMP: Schedule of Operations
(a/k/a Declarations Page), Loss Claims History
and Existing Codes

21. Decision/Implementation Process
Timeline
Process
CURIOTSITY… INTRODUCTORY ASSEMBLE
“IS THERE A MEETING BUSINESS PROFILE
BETTER WAY?”
TODAY FIVE DAYS
VALUE PRICE / VALUE IMPLEMENTATION
EXPLORATION COMPARISON
1 WEEK 1 WEEK ORIENTATION COMPLETED
FOR CHOSEN START DATE