Commission Module for TempWorks

Editor's Notes

• #3: [1 min] We’re excited to talk to you today about the new Commission Module Plan is to talk about some of the core concepts involved in the Commission Module and then do a couple of Demos to show you how everything works
• #4: [3 min] Commission Module is—new module in Enterprise designed to help you calculate commission Allows you to set up commission plans for your service rep And configure Enterprise to calculate commission in a way that fits your business Some of our goals in developing the Commission module were.. Enterprise will calculate commission payments accurately and efficiently, based on parameters that you set up Very flexible since everyone calculates commission a bit differently, We’ve made Commission Module flexible enough to fit how your company handles commission Includes the ability to define custom formulas to calculate commission however you like We’ve defined a couple of Commission Reports that display calculated commission data Reports are tied to a new Security Role so that you can configure who sees them Commission Module is different from traditional commission reports, in that when you calculate commission data, we store the calculated data in the database So that you can track that data, not only feed into reports, and so that but we can eventually drive commission data into the payroll system [Goals] Accurate and Efficient Commission reporting and payments Flexible to fit to your company’s Commission plans Reporting available by Security Role to allow as much or as little information to your staff as desired Tracking of Commission payments to employees and eventual automated payroll transaction entry
• #5: [5 min] Start with high level view to show basics of how Commission module works Can be one or more commission allocations on an assignment which reps will be paid commission for that assignment How much commission they should get We have a mechanism to let you set up defaults for these allocations And defaults can be set for your entire organization, for individual branches, or by Customer (2nd piece) Then define commission plan for each service rep Plan contains one or more formulas How commission is calculated and under what circumstances With assignment allocations and commission plans set up, you can then calculate commission data for posted transactions To do that, you pick a pay period, covering one or more weeks, and calculate commissions for all transactions within that time period After we calculate commission data We store that data in a table in the database That data then fed into Commission Reports But it’s also kept in the database so that you can track exactly what you’re paying out in commissions and how you got the numbers
• #6: [3 min] [before we look at an actual demo, lets talk a little bit about some of the main concepts, at a very high level] Have added ability to set up Burden for the purposes of calculating Commission Burden is just any additional costs you want to deduct from revenue before calculating commission That’s in addition to payroll and other typical costs like worker comp and employer taxes You can define burden in a variety of ways, including As a % of either what you bill or what you pay out As a dollar amount per hour Or just a flat amount per transaction You define this burden type either for your entire organization, per branch Or at the Customer, Order, or even Assignment level E.g. you might have a standard burden rate, but use a higher rate for a particular Order Whatever you define will get used in the commission calculations (Next piece to define) are the Commission Allocations to use on each assignment Commission Allocation just indicates—which service reps get paid commission for that assignment And what base % commission calculation they get i.e. full commission or just part We have a way of setting up defaults for this that’s very flexible Set these defaults for each Branch Then override at the Customer level or for different Departments under that Customer And you can also override for individual assignments
• #7: [7 min] [Demo: Tworks, Memphis SW / Entity] So lets take a look at a couple of the things that I just talked about [Burden Type demo] (Remember that) Burden is just a cost of doing business that you want to deduct before calculating commission Burden Type Administration | Commission | Burden Type Define different types of burden rates that we can use when calculating commission Core thing is Amount Type Flat Amount (per transaction) Amount per Hour Percent (% of what you Pay or of what you Bill) Can pick one of these to use as the default throughout the system Once you set up these Burden Types, your default Burden Type will get associated with each Customer But you can override this at the Customer, the Order, or the Assignment level E.g. you might say you do 5% of the Bill rate by default, but for a particular Order you want to use a flat $10/hr as burden So lets look at this Customer | Details | Sales and Service (will default to whichever Burden Type you set as default, but you can override) (when you create a new Order) Order | Details Inherits burden from Customer, but you can override for this Order (similarly, when you create an Assignment) Assignment | Details Again, can override [Questions on Burden Types?]
• #8: [8 min] [Commission Allocation] Idea is that each assignment can have information about who gets paid commission for that assignment Lets take a look at these assignment allocations for commission Assignment | Details | Commission Allocations (lets look at an assignment) Kautzman, Jameson What you see here is that when we calculate Commission for this assignment, we have 2 service reps to pay commission to (talk about what this means first and then show you how we set this up) We have Claudette getting paid as the Order Owner (Sales), and she’s getting 60% of the Commission Base This means—when we calculate commission, using whatever formula we set up, we take 60% of the number that feeds into commission calculation(e.g. our Gross Profit) and then calculate commission for Claudette based on that 60% We have Mari getting paid as the Employee Owner (Recruiter); meaning that she’s the Service Rep associated with the employee for this assignment (Want to mention one more thing before we look at where these values came from) Branch – this is the Branch that is responsible for paying the commission don’t really do anything with this value right now, but this allows you to track which branch the Commission should come from And in future, we’ll use this if we tie commission automatically into payroll Before we go further, lets look at how we defined these allocations You could enter service reps here directly, but you don’t really want to do that for each Assignment Administration | Branch (Memphis SW) Now have Commission Defaults tab for your Branch What we’ve said is that when you create new Assignments, we want two reps to get paid Commission Order owner (Sales) to get 60%, Employee Owner (Recruiter) to get 40% (that’s what we saw when we looked at the Assignment) So lets drill a little deeper here (dbl-click) (when we set these allocations up) Credit Type: Order (Sales) or Employee (Recruiter)—we’ll later use this to match up to a particular commission formula E.g. Can have different formulas for Sales vs. Recruiter Branch Source—dictates what Branch we pick for the allocation; pull from variety of places Remember, Branch indicates which branch is responsible for paying commission Source for service rep—used to decide who gets paid commission (then) What is that Commission Base number that we saw [make sense?] Can set these defaults for each Branch Can also override the defaults at the Customer level, or for a specific Department (finally) Can go to the Assignment and override any defaults (back to Commission Allocations for Assignment) [Any questions on Assignment Allocations?] [back briefly to picture]
• #9: [2 min] [Commission Plans] So let’s now talk about Commission Plans Basic idea For each service rep, define a commission plan Where each plan contains one or more commission formulas that describe how to calculate commission under certain circumstances
• #10: [2 min] (again) Each Formula in a plan describes how to calculate commission under certain circumstances Each formula is of a given Formula Type Where formula type dictates the exact calculation to be done Each Formula Type maps to a stored procedure in the database that does the work of calculating commission We plan on shipping several different formula types out of the box Formula Type—different formulas that we have out of the box; these are the formula types that we’ll pick when doing commission calculations Direct Hire Calculate commission for direct hire assignments. Billing represents placement fees and both payroll and payroll costs are zero. Gross Margin Percent Not yet implemented. Could calculate commission against % of gross margin. Need more direction from customers to know the exactly method of doing this. Net Revenue Not yet implemented. Calculate commission directly against Billing, without taking payroll or other costs into consideration. Does not include Direct Hire. Weekly Gross Profit Calculate commission against gross profit, which is obtained by subtracting payroll and payroll costs from billing.
• #11: [2 min] After we pick a Formula Type for a formula we describe when the formula should be used (we do this by) saying whether the formula should be used for all Customers or only certain customers Same for Branch Sales vs. Recruiter (based on commission allocation) Tiers—what commission % we pay at different levels [Easiest way to understand this is to look at some examples]
• #12: [15 min] [Commission Plans] So let’s now talk about Commission Plans If we look at the assignment allocation, we saw that Mari was supposed to get paid commission in her role as Employee Owner (Recruiter) Administration | Commission | Commission Plans Have commission plan for Mari It’s Active (looks like) she approved her own Plan Went into effect at the start of the year(can deactivate plans or have them effective over some date range) In this case, there’s no End Date, so Mari’s plan will continue to get used until we turn it off Then we have a summary of the different formulas that make up Mari’s plan Can drill into each of these formulas, but at the plan level, we can just see a read-only summary of each formula The formulas define, for different circumstances, what commission Mari should get We can define just one formula that fits all situations or we can define any number of formulas for different things (let’s look at these) Assume that we’re calculating Weekly Gross Profit for a bunch of transactions Weekly Gross Profit is what we call a Formula Type and it maps to a stored procedure in the database that does the actual calculations(and is one of the formula types that we give you out of the box—we can talk other formula types later) As Recruiter, for all but 2 customers, for Lifetime of those customers (applies forever for these customers) Mari earns commission for herself—meaning when she is the rep on the assignment allocation All branches—transactions in all branches Invoice Required—apply this formula only when the invoice for the assoc assignment has been paid in full(so we don’t want to pay Mari until the Customer pays us) (finally) we have different Tiers and the % commission that we pay at each tier These would be the $ amounts for the transaction And we’ll see when we look at calculation that we use Bill – Pay – Costs as the base # that we calc commission on Similarly, we have a different formula for when Mari is on the Sales side So remember that on the Assignment Allocation we were able to specify who to pay on both Recruiter and Sales side Sales formula is similar, except Applies to all Customers Only for the first 180 days that we bill the customer (age is based on first W/E Bill period during which we have a transaction for that customer) (and) different tiers and different commission rates Finally, we have a special formula for 1 specific customers that applies for the first 365 days [any questions so far?] So now lets edit one of these formulas, so we can see how to set them up (for now, just looking at a formula that’s part of Mari’s commission plan; but will later see how we can set a template up that we can use for all of our service reps) (3rd formula) Formula Type—these are the formula types that we’ll pick when doing commission calculations Sales, Recruiter or Both—maps to the Credit Type we saw on allocation, as either Employee Owner or Order Owner A service rep might only ever be on one side or the other; or might get paid as either Sales or Recruiter Customer Age—allows you to pay commission on Customer for a period of time before the Customer converts to a house account But you can specify either Start or End, so we could say we only start paying after a certain # of days In this case, pay for first year No End Requires Invoice Payment—only pay commission after the invoice is paid Customers Formula can apply to all Customers (including any customers created in the future) Or to specific customers you call out Or to everybody BUT specific customers (here—Including 2 customers; but could Exclude them; or remove them from list on right and just say All customers) Earns For Self Only—most common, means Mari gets paid commission when she’s the rep on the commission allocation But she might also earn commission for other people E.g. You have a Manager that earns commission for everyone on a Sales team Branches This formula applies no matter which Branch the assignment was in Here, we’re looking at the Branch of the transaction that we’re paying Commission for Could set formula up just for specific Branches Tiers—what rate do we calculate at each tier E.g. we pay 5.5% on first $10, then 7.5% on next $10, etc. [Questions on the formulas?] Final topic—setting up templates for commission plans Commission Templates—can define templates to use when creating plans Each can have one or more formulas Create plan from template [Back to picture]
• #13: [3 min] Before we talk about calculating commission, we need to talk about the idea of pay cycles When you calculate commission, you’ll always do the calculation for 1 or more weeks i.e. over a range of W/E periods But you might not always want to calculate commission every week E.g. you might want to calculate commission Monthly or Quarterly Way we did this is by tying each formula type to a particular pay cycle E.g. We have a Weekly Gross Profit calculation that allows you to pick a single week Or we have a Direct Hire calculation that allows you to pick a single Quarter [again, this will become more clear when we look at an example]
• #14: [3 min] To calculate commission, we’re going to pick two things Pick the formula type that we want to run (e.g. Weekly Gross Profit) This dictates a pay cycle (e.g. Weekly Gross Profit dictates that we pick a single week) And then we pick a pay period (particular week) Can then calculate commission for all posted transactions within that pay period [let’s look at an example]
• #15: [10 min] Pay/Bill | Other | Commission Calculation We pick Formula Type: Weekly Gross Profit Because its pay cycle is Weekly, we pick a single week Pay Period Each pay period has start/end W/E Bill; (same because it’s a single week) Pay W/E column says this is when we want to allow you to actually pay commission So you don’t see weeks past 5/29 because we can’t see pay periods w/Pay W/E past the last week that was closed Press Calculate We’ll see all the service reps who should be paid commission for this pay period Uses commission allocations and then looks at commission plans for reps who are associated with the assignment Looking only at posted transactions that fall within this pay period Columns (general idea here, for Weekly Gross Profit, is) Total Billed (that’s on assignments where Mari gets commission) Total Payroll Payroll costs (e.g. things like employer taxes, worker comp and our Commission Burden) Subtract both Payroll and Payroll Costs from Billing and we get Gross Profit We then find the Commission Base Amount, which uses the Commission Base % from the commission allocation (100% in this example) Use that number to calculate commission But before we do that Show that this commission data is now persisted in the database Leave Commission Calc and come back—data still there Can delete and re-calculate, if we wanted to change something in the commission plan To make sense of these numbers, we can look at a Commission Report Commission Details [Questions on commission calculation?]
• #16: [3 min]
• #17: [10 min] Commission Details, map against Commission Calc
• #18: [remainder of time]
• #19: [remainder of time]