See how Quadrant can deliver a contingent labour solution that reduces risk, administration, and cost whilst maximising performance and retention of talent.

1. Workforce Solutions & Optimisation
Addressing contractor risk and compliance
October 2011

2. About Quadrant Executive
At Quadrant Executive (Quadrant), our core purpose is to partner with you to help build your organisation’s capability to succeed.
We offer breakthrough solutions in talent, business advisory and workforce management services across Australasia that add value
through a deep understanding of your needs and a passion for delivering tangible outcomes.
Strategic
Our suite of best-in-class of services includes;
► Talent Search, Talent Pooling and Talent Acquisition
Leadership and Management Development
Talent Customer ►
► Sales Review and Capability Enhancement
Search & Talent Strategy & People
Management Capability ► RPO & Contractor Engagement Models
► Leadership, Talent & Performance Reviews
People Business
► Succession Planning and Bench Depth
Leadership Outplacement & Coaching
Performance ►
► People & Culture Solutions
Leadership Workforce Solutions ► HRIS/Payroll and Workforce Management Evaluation
Development & Optimisation
& Procurement
► Efficient Frontier
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3. Quadrant People Solution
We provide your organisation with a compliant and cost effective
engagement framework for the entire workforce (including fixed
term, contractor, agency and casuals) which delivers:
1. Complete risk mitigation for both your organisation and individuals
2. Reduced ongoing administration costs and spend on external suppliers (including
existing agency relationships)
3. Maximum cash flow, net income and wealth creation benefits for individuals
4. Skills retention and an enhanced performance focus
5. An enterprise vendor management system (VMS) for managing contingent labour
and statement of work spend
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4. A Compliant Engagement Model
Do your business objectives seek to deliver the following?
1. Flexible & compliant engagement solutions for contractors, or the provision of an alternative
to employees
 Reduced risk profile
 Ease of on-boarding
2. Deliver value creation opportunities
 Cost savings through lower cost of engagement
 Unbundle recruitment
 Increased gross margin
 Improved productivity
 Value-add to contractors
 Attraction and retention levers
3. Enable a differentiated service offering and/or value proposition
 Increased flexibility
 Competitive advantage
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5. Our Delivery Model
Quadrant can deliver against these objectives and meet your business drivers:
Flexible & Compliant Differentiated Service
Value Creation
Engagement Solution Offering
 Individuals engaged as IC’s  Potential Savings of 5% plus  Branding of contractors
 Your company no longer at per engagement, annually  Up front training and down
risk of Relevant Contracts  Improved stream up-skilling
provisions utilisation/productivity with  Contractors have the ability to
 Compliance and engagement stronger performance-based maximise their income
risks eliminated assignments  Attractive and easier access to
 Fair Work Act and  Increase in gross margin insurances
employment provisions not  Attract, engage and retain  Admin burdens for contractors
applicable talent managing their own Pty Ltd
 Can be either individual, ABN removed with purity of focus
or Pty Ltd to meet end customer needs
 Complete flexibility  More flexible and direct
relationship with contractors
to meet changing client needs
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6. How Do We Achieve This?
3R’s
Recruitment / RPO
Restructuring Re-Engineering
On-Boarding
 Audit, Assess, Engage  Scope, Advise and  Function is unbundled
existing, non-compliant Implement Bespoke where Search & Selection is
contractors Solutions performed by the Recruiter
and Contractor Engagement
by Quadrant.
 Quadrant ensures and
delivers bona fide compliant
and risk mitigation for
contractor on-boarding
Risk Management & Compliance
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7. Risk of Engagement for Your Organisation
The legal landscape for contracting is constantly changing.
 Are contractors carrying insurance, as bona fide contractors should?
 Is your organisation fulfilling its:
 Payroll Tax obligations under the relevant contracts provision?
 WorkCover obligations?
 Employer obligations when engaging ABN only individuals?
 Are you engaging ‘Pty Ltds’?
 Are these contracts compliant in terms of the substance (its intention) over form (what
is actually happening)?
 What instrument (the contract) is in place that removes the “grey” area of current
contractual arrangements?
 are all parties compliant?
 are contractors really employees?
 For individuals under Labour Hire income is PSI, unless otherwise assessed.
 How are you treating your PSI?
 ATO crackdown as per Tax Alert of March 2nd 2011
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8. Contractor Engagement Model
Your Organisation
MASTER AGREEMENT
Payment for Services
Sets out overall
contractual terms
SCHEDULE TO MASTER
AGREEMENT
Identifies the specific
terms and payment
arrangements relating to
each individual
Payment for Services
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9. Benefits For Your Organisation
 Compliance
 All contractors now engaged by Quadrant
 All contractors assessed and structured compliantly
 No more engagement risk for your organisation
 Relevant contracts provisions removed for your organisation
 All statutory payments covered, if applicable
 Ease of On-Boarding
 Barrier to entry for contractors removed. No need to have a Pty Ltd.
 Able to engage to train or up-skill
 Value Add for contractors
 Competitive Insurances
 Engagement solution that provides the maximisation of income in a compliant and
administrative free model
 Refer Pricing table for value add services
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10. Significant Cost Saving Benefits
Cost of Engagement Saving
Based on the assumption of 100 contractors @ $80k p.a. income = Total Payroll $8.96mil
Assumptions Current
No. of Contractors, Sessional,  On the basis that the contractors
100
Fixed Term or Casual Staff engaged direct are non
Average Income p.a. $ 80,000 compliant, applicable statutory and
Plus Cost of Delivery 12% regulatory on-costs have been
Total Annual Cost $ 8,960,000 applied on minimum basis
*Cost of delivery inlcudes Payroll Tax, Workers Compensation,
Insurances, Adminstration, Payroll, FBT  Also, it is assumed the contractors
are all directly engaged as Pty. Ltd.’s
and not ABNs
Assumptions Potential Savings
No. of Contractors, Sessional,
100
Fixed Term or Casual Staff
 If ABNs are engaged, then an
Average Income p.a. $ 80,000
additional 9% for Superannuation
Plus Cost of Delivery 7% under the SGC provisions would
Total Annual Cost $ 8,560,000 apply to the T&C cost of
engagement.
Possible Savings $ 400,000
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11. Next Steps
 Develop business case and implementation plan for specific regions or groups if:
 It addresses your compliance concerns
 Provides a lower cost of engagement
 Assists in achieving its business objectives
 Present to respective management:
 The Quadrant MSA (Master Services Agreement) for review
 Implementation & Marketing Plan to contractors
Thank You
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