SD Worx Annual report 2013 by SD Worx

2013-2014 putting the client first, now more than ever

R.P. Steven Van Hoorebeke. Printed on eco-friendly FSC paper.

Steven Van Hoorebeke Managing Director of SD Worx Filip Dierckx Chairman of the Board of Directors of SD Worx STRATEGY

Steven Van Hoorebeke and Filip Dierckx

STRATEGY

The client at the heart of what we do...now more than ever We can look back on the performance we turned in last year with a sense of contentment. Especially as we put in a huge amount of work. The internal transition our organisation is currently going through is also set to become evident to the outside world in 2014. Our clients will notice the changes put in place and reap the full benefit.

The figures – and what is behind the figures In 2013, we recorded 256 million euros in turnover, which represents a 4% growth compared against last year. A handsome result in trying times, all the more as the high number of bankruptcies and redundancies in times of economic crisis irrefutably has an impact on our activities. Given the fraught climate, every single one of our activities turned in a solid operational performance, both in terms of sales and turnover. A lot of our activities scored above budget. On the Belgian SME market for instance, we had a marvellous year, signing up over 5,000 new clients. At Large Enterprises too, we held firm. At bpost and AG Insurance to name but two, we were able to launch substantial payroll projects; both companies are now calling on SD Worx via our SAP payroll solution. In consultancy we managed to effect a 5% growth: a remarkable figure. Reward and Legal Consultancy in particular saw excellent growth rates. Staffing remained unchanged, but in doing so outperformed the rest of the market. Moreover, SD Worx Learning has laid claim to a larger slice of the training market, amongst other things further to a series of changes in social and labour law. At international level, we did better than forecast, both in the individual countries and in our multicountry services, turning in a 5.7% growth. And since 2013, we are also serving European country no. 28 in Slovenia. These varied but solid results do not fully translate into our financial result. The financial revenues which we traditionally derived in Belgium from interests – over the contributions our clients pay to the relevant authorities through SD Worx – to a large extent have evaporated. Both as a result of measures put in place by the government and shrinking interest rates, our business model came under pressure. As a result, we found ourselves compelled to discontinue the non-profitable

‘We focus on sustainable growth’

STRATEGY

business of HR secondments. In other areas too, a transition to a new approach was called for. Today, now more than ever we are focusing on sustainable growth. Our strength: our clients Which is exactly why we are first and foremost focusing on SD Worx’ greatest strength: our broad and loyal customer base. Our clients are central to the way we organise our day-to-day business operations and in plotting tomorrow’s course. Today, all sections of the organisation – from the bottom all the way up to the executive committee – are working with clients in a way that is closer, more open and more direct. Clients sit on our regional steering committees and are heard at in-house training courses and on strategy days. The fact that a strong customer focus pays is something we see in our ‘verticals’ – the sector-oriented solutions that specifically address the needs and wishes of clients from the retail industry, the public sector and the social profit sector. In doing so, we developed payroll software tailored to the healthcare sector and devised modules adapted to the transport and construction industries. The retail market in particular is where the strength of our international offering comes to the fore in numerous new commercial tracks. European outlook With 1.2 million payslips, SD Worx is not only the national market leader, at a European level we assume a key position. Last year, the Payroll Services Alliance - our network that covers 28 countries - processed 5.5 million payslips. The international pooling of

STRATEGY

forces proved its potency for a growing number of multinationals. The positive momentum we are seeing in our international business is something we are eager to maintain and bolster. Amongst other things by maintaining a physical presence close to our clients. As such, we are opening a new branch office in Brussels. This is not only intended to lower the threshold for our current clients and the players based in Brussels, but also to be near to the headquarters of a wide array of international institutions and businesses. The Brussels branch office is meant to act as a hub for scores of national and international connections. Innovation is our middle name By the same token we will be drawing on the potential of our employees to get our creative thinking cap on. This innovative potential has always been the one thing that

set us apart from other players on the market, as a strength that is highly rated by many of our clients, as it comes in response to the same social challenges they find themselves faced with. In 2013 for instance, along with a couple of major players, we came up with end-ofcareer schemes for older employees. Doing so not only saw us confirming the importance of end-of-career tracks, we also managed to devise a solution that covers all the relevant legal and HR bases in one fell swoop. Mobility is another element that ranks high on the agenda. SD Worx contributed to a parliamentary bill aimed at instituting a flexible mobility budget to replace the time-honoured company car. A mobility budget enables employees to spend a certain amount on a broad range of means of transport.

The Flex Income PlanTM, which allows employees to opt for the fringe benefits of their choice in consideration of their own needs and the stage they are at in their lives in a way that is budget neutral on the employer, is fast finding its way onto the market. We are providing increasing numbers of businesses with tailored schemes. Shape, Match, BlendTM is our innovative, sustainable bid to meet staffing needs. In doing so, we link up the future needs and requirements of a given company with the competencies, personalities and preferences of its employees. One final example of SD Worx’ innovation drive is the HR Performance Dashboard which we are offering HR managers. The Dashboard enables them to measure and analyse HR data in order to map out the connection between HR policy and its effects.

Our innovation strength not only arms us against our competitors of today, but equally against those of tomorrow: international players who take up payroll services as part of a much broader offering, strictly as a ‘commodity’. With our broad-based offering and by anticipating our clients’ needs, we are continuing to deliver on the added value we bring. In this respect, we signed a co-operation agreement with Cornerstone OnDemand, the global leader in talent management software. Their offering is complementary to our own solutions, which enables us to put a powerful offering on the market. Towards a sustainable business The transition which SD Worx is going through today requires major readiness on the part of staff to sign up to a new narrative.

That is not always easy for everybody involved. Which is why we are very grateful for the unrelenting efforts of our employees who are at the beck and call of our clients every single day. It is thanks to them that we are who and where we are today. We would also like to thank our clients for the trust they continue to place in us. Like us, many of them are going through numerous changes. We will do everything it takes to continue to act as a solid bedrock as their HR partner of choice. It is very much on the foundation of our key strong suits - the trust placed in us by our broad customer base, and the power of our members of staff to improve and innovate – that we are driving SD Worx forward to become a sustainable business.

CORPORATE

Corporate Governance Corporate governance is an inextricable part of the ‘core’ of our mission. As an organisation, we act in compliance with the principles set out in the Belgian code on corporate governance at all times. In doing so, we abide by the guidelines on the constitution and structure of the administrative bodies, the boardroom style and in mutual interaction. In addition, we fully endorse a number of principles that are typical of SD Worx and the way we operate, at every level. In practical terms, these include an open mindset, dialogue, and a critical but positive attitude. These go hand in hand with constant attention to ethically responsible entrepreneurship and constructive collaboration.

General Assembly Authorities The General Assembly’s main tasks are as follows: changing the articles of association; appointing and dismissing directors and members of the supervisory board and discharging them from services rendered; approval of the budget (NPO) and annual accounts and profit appropriation (limited company).

Board of Directors Task The Board of Directors has a strategic and control function and ensures that the company operates with maximum efficiency. The Board of Directors outlines the mission, strategy and general policies. Decisions concerning organisation structure, reorganisation, cooperation agreements, mergers and take-overs are also part of its assignment. Finances The Board of Directors oversees finances and investments, checks the integrity of financial reporting and monitors internal auditing. The budgets, spending patterns and execution of actual projects in line with strategic objectives are also monitored by the Board, as are the performance, remuneration and evaluation of members of the Executive Committee.

Directors on 1/1/2014, from left to right: Luc Luyten, Patrick De Vos, Filip Dierckx (President), Frederik Van Bladel, Steven Van Hoorebeke (Managing Director), Riet Docx, Dirk Collier, Marc Binnenmans

Communication Each year the Board of Directors compiles a detailed annual report, which outlines the company’s current status, possible risks and future perspectives. It highlights actual examples of corporate governance, provides an overview of the financial position and reflects the activities of the Board of Directors and the organisation. Structure of the Board of Directors The Board is small enough to promote an efficient decision making

process and large enough to embrace the necessary experience and knowledge from the various disciplines relevant to the company amongst its members and to safeguard continuity in the event of changes in its structure. SD Worx consequently aims to appoint minimum eight and maximum twelve directors. The structure of the Board is defined on the basis of the required diversity and complementarity. The Board consists of independent directors, with the exception of the Managing Director.

CORPORATE

Committees

Steven Van Hoorebeke Chief Executive Officer

Executive Committee

The Board of Directors is assisted by three committees: the audit committee, the remuneration and appointment committee and the strategic committee. They assist the board with specific advice to enable it to make well-informed decisions and fulfil its task as a monitoring and control body as successfully as possible.

Composition: Frederik Van Bladel Filip Dierckx Patrick De Vos Riet Docx

chairman

Eric Janssens Director Division SME

Strategic committee Composition: Filip Dierckx Jef Roos Luc Luyten Dirk Collier

chairman chairman until 31/12/2013

Thierry Vanbever Director International

Hector Vermeersch, Chief Financial Officer

Koen Goyvaerts Chief Sales & Marketing Officer

Harold Ryckaert Director Large Enterprises

Tom Wouters Chief Information Officer

Remuneration and appointment committee The SD Worx remuneration and appointment committee formulates proposals concerning the appointment, remuneration and evaluation of the directors, managing director and executive management, and monitors the market conformity of remuneration. It also deals with all direct questions concerning remuneration and appointments, and sets out the overall remuneration policy.

CORPORATE

Anne-Marie Cootjans Chief Corporate Services Officer

The audit committee draws up a long-term programme and is given access to information sources which fall under its specific authority.

The SD Worx strategic committee supports the Board of Directors in its strategic and control function and focuses on its mission, policies and long-term objectives. If necessary, internal or external advice is sought or experts are called in.

Hilde Haems Chief HR Officer

Luc Verstraete Director Consulting

Audit committee The SD Worx audit committee verifies that the organisation operates correctly and efficiently. It monitors internal and external inspections, the efficiency of the audit department, the appointment, dismissal and remuneration of the internal audit manager. It checks reports, responds to questions and acts as a communication platform or intermediary between the auditor and the Board of Directors.

Composition: Luc Luyten Filip Dierckx Jef Roos

chairman director until 21/12/2013

CORPORATE

Resultdriven HR

Payroll

Tax & Legal

Efficient payroll calculations and administration

Tax and social-legal support

Support for all of your HR processes

Learning Purposive training courses allow HR employees to shine

2,000 HR PROFESSIONALS

PAYROLL

HR TAX &LEGAL

Consulting Targeted and sustainable advice on: Payroll, Tax & Legal, Reward, Staffing, HR Projects and International Employment

Outsourcing Payroll solutions, offering various outsourcing levels. From SaaS (Software as a Service) to full Business Process Outsourcing

51,000 INTEGRATED SOLUTIONS

Technology Services Automation of all Payroll and HR processes

SD Worx stands for a full service package in the areas of Payroll, HR, Tax and Social Law consultancy. By way of a broad service offering, we deliver the best suited approach for every situation: tailored advice, training and support, involving a fair share of automation. In doing so, we rely on adapted tools, proven methods, a leading knowledge centre and – above all – specialist staff who are fully committed to delivering results.

CLIENT BASE

1,235,000

REGIONAL OFFICES IN BELGIUM

PAY SLIPS PER MONTH

69 YEARS OF EXPERTISE

CONSULTING LEARNING

TECHNOLOGY SERVICES OUTSOURCING

TOTAL TURNOVER 2013:

€ 256 million

28 COUNTRIES

Payroll Services Alliance Our mission? Result driven HR. We excel in HR services that drive your business performance.

SD Worx has its own branch offices in Belgium, The Netherlands, Luxembourg, France and Germany. The company is a co-founding member of the Payroll Services Alliance: the organisation that pools the strengths, experience and expertise of the biggest European players in the field of payroll calculation (SD Worx (Western Europe), Aditro (Northern Europe), Elanor (Central and Eastern Europe), Cintra (United Kingdom and Ireland) Trianon (Switzerland) and Seresco (Southern Europe).

PAYROLL

Jan Willems HR director at VDAB

Cindy Canoot HR Manager at AG Insurance

AG Insurance assured of flawless payroll process In order to put in place better quality and more efficient payroll calculations via SAP, Belgian insurance market leader AG Insurance launched a call for tenders. Candidates were also required to tender a full service package as payroll processing organisations for AG Insurance and a number of smaller companies belonging to the Ageas Group. SD Worx was awarded the contract. “The investment in our SAP infrastructure for the calculation of our payroll was not really working out as we had expected: for one thing, the system only allowed us to calculate gross salaries. Moreover, it was time for us to re-assess our collaboration with our payroll service provider: were we still getting the best value service? Of the six payroll service providers that put in a bid, only SD Worx proved capable of meeting our exacting demands. But above all else, it was their professional approach and open mindset that clinched it for us. They were not prepared to do things by halves within unrealistic time constraints.

Managed Payroll Services SAP eBlox CornerStone on Demand Business Process Outsourcing 4,412 employees turnover 447 million euros

Smooth-paced collaboration SD Worx has reprogrammed and reconfigured our SAP system. The co-operation with our IT department and the definition of the respective responsibilities also went without a hitch. In the summer of 2013, the old and the new system were made to run in parallel for three intense trial months. January 2014 was the first time we paid out our employees’ wages that had been calculated using the upgraded system. While we were at it, we seized on the opportunity to switch to electronic payslips and meal vouchers.

More efficient payroll Thanks to the adjustments made to SAP, we now have a better quality and more efficient payroll. Where we previously needed to make manual interventions, now it is all possible at the mere press of a button. The reporting features are also highly promising. For the payroll processing side of things, we are leaving the specialist HR duties and purely administrative matters such as unemployment documents to SD Worx. Business Process Outsourcing A number of small companies also operate under the umbrella of the Ageas Group, for whom SAP implementations are not cost-efficient. SD Worx suggested administering these salary calculations using their own eBlox. Since then, their role as a payroll service provider has only continued to expand, to the point that we now have a few Business Process Outsourcing (BPO) projects in the pipeline. So much so that we have since developed a BPO project for Compensation & Benefits for Ageas. The unambiguous match between our corporate cultures is certainly conducive to the success of the collaboration. The perfectly bilingual SD Worx consultants who worked at our offices for a year were very much considered as colleagues, which speaks volumes.”

VDAB gets keys to optimisation of staff administration

As part of an optimisation drive of its staff administration and the alignment of its payroll with social security and labour law, the Flemish Labour Intermediation and Occupational Training Service (Vlaamse Dienst voor Arbeidsbemiddeling en Beroepsopleiding - VDAB) decided on Möbius and SD Worx as the most suitable partners.

“Our organisation needed more efficient processes in its staff administration. At the same time, we were keen to document all relevant information to ensure proper payroll operations. The partnership with Möbius, which was able to steer matters from a process-based angle, and SD Worx, as the experts of choice for the administrative component and the salary calculations, was exactly what we had been looking for. Both from a process perspective and in terms of substance, the know-how in our organisation was too widely scattered. The cascade system we had been using was reactive, labour-intensive and insufficiently productive. We were looking to start afresh with a clean slate: what does someone who works at our HR department need to know in order to be able to answer substantive queries about payroll calculations? Interactive workshops In February, Möbius launched a process analysis. SD Worx handled the second phase:

documenting the calculation rules. This was performed by way of fortnightly interactive workshops, where small teams dealt with specific documentation sheets. In all, some 56 documentation sheets were written up. Every now and then there would be feedback at a meeting of the steering committee. Valued partner Thanks to this collaboration we were able to jointly apply structure to what is a complex set of regulations. In addition, SD Worx helped us to make sure we had a legally watertight staff administration, which we are now implementing in a new organisation chart and a system that is easier to control. Throughout the entire project, SD Worx proved itself as a highly professional and conscientious partner. In particular, we very much appreciated the way our queries were captured and the way we were able to arrive at solutions in mutual consultation.”

PAYROLL

Payroll Consultancy 4,800 employees

Stéphan Arnold CFO at Teconex

Catherine Verhaeghe Staff administration manager at AZ Groeninge

AZ Groeninge performs upgrade of its HR administration with new platform 16

PAYROLL

The multitude of worker statuses, pay arrangements and duty rotas is characteristic of the healthcare sector. As the previous payroll system had reached the end of its service life, AZ Groeninge switched to the payroll module and a number of modules for ‘soft HR’ made by X-Tend. In combination with the comprehensive customisation options, all of this acts to significantly enhance the HR department’s administrative efficiency

“Before the elaborate implementation got under way, SD Worx conducted a needs analysis, after which they worked up a design. The actual handover was a twophased event: first the payroll platform, followed by the ‘soft HR’ portion. Courtesy of the organisation and position management feature, every hospital employee has been linked to a post, which immediately gives HR an exact handle on his or her position within the organisation chart. In addition, SD Worx made specific

adaptations for the monitoring of the end-ofcareer schemes at the hospital, whereby certain profiles were given an extra day’s holiday entitlement. Reliable result For training courses, we set up a local administration system. Through this portal application, employees get to consult and apply for training courses, whilst our HR staff in turn have the means to swiftly approve and follow up on matters. The payroll module produces more reliable results than the previous payroll system. This is obviously crucial for an institution that is home to 2,800 employees, excluding doctors. The other options relieve the administrative HR duties for our department. Thanks to the good working relationship with SD Worx and an outside project manager, we have brought this large scale project to a favourable conclusion.”

Managed Payroll Services X-Tend Payroll on site Training 2,800 employees turnover 310 million euros

Teconex opts for full support from SD Worx To make sure the business can rely on the best possible support for its staff policy, Liège-based company Teconex called on SD Worx. With a software platform, up-todate employment regulations, and swifter HR processes as the result. “Teconex distributes and manufactures well over 7,000 products and solutions for low-voltage electrical connections. Since 2012, the business has also been focusing on LED lighting and charging posts for electric vehicles. In our collaboration with our previous payroll service provider, our HR department sometimes felt they lacked specialist know-how and efficiency. We did not have a clear picture of absences, wage trends, et cetera. In a socio-legal sense too, we needed extra support. New employment regulations The first challenge was to devise new employment regulations that were fully up-to-date. Along with SD Worx we arrived at a new set of regulations, tailored to the needs of our business. The entire track, including the agreement with the trade union delegation and approval by the Social Inspectorate, went without a hitch. Tailored plans In the run-up to the in-company social elections too, SD Worx provided Teconex with full support from start to finish. To offer our employees greater convenience, in 2012 we adapted the work schedules for the various Joint Industrial Committees. That same year, we masterminded Collective Labour Agreement 90 in collaboration with the trade union delegation and the payroll service provider. In November 2013, this was followed by a proposal for an employment scheme for employees aged 45+, CLA 104. Complete service package In addition, the mysdworx platform opens up a world of exciting opportunities. The platform is a great source for quickly retrieving standard documents, allowing us to perform payroll simulations and generate reports. These results are then easily compared with career developments or absences at other SMEs. Combined with fast-track assistance from our account manager at SD Worx and practical training courses, this makes for efficient and swift follow-up of HR-related matters.”

Managed Payroll Services 80 employees turnover 23 million euros

PAYROLL

Patrick Van Caudenberg HR Director EMEA at Donaldson

Belgium: Managed Payroll Services

Payroll Services Alliance offers Donaldson European quality assurance

Multi Country Managed Payroll Services 1,100 employees (Belgium, Netherlands, Spain, UK) turnover 2,4 billion dollar (worldwide, of which 30% in Europe)

210 employees PAYROLL

The Netherlands: Managed Payroll Services Legal Consultancy 100 employees 18

PAYROLL

Veerle Renier HR Manager Belgium & The Netherlands at New Look

Smooth-paced switchover of international payroll for New Look Fashion chain New Look was on the look-out for a payroll partner with broad retail experience for The Netherlands and Belgium. SD Worx earned the customer’s trust and successfully effected the conversion in a very short space of time. The start of a promising collaboration.

“New Look is a British company which has also been operating on the Belgian and French markets since 2006. In 2009 The Netherlands followed suit. Along with Belgium, the Dutch territory is one region for which I serve as the overall HR Manager. To enable us to grow and to operate more efficiently in The Netherlands, we needed to take a different approach to the way we organised our payroll processing. With our previous partner, we had hit on a number of shortcomings. They were struggling to keep up with the company’s growth and had little experience in retail and players of our size. SD Worx is in a position to cater for our every need in these areas. Their specific retail know-how and expertise in the field of payroll and HR were good reasons to make the switch in Belgium too. Less cumbersome Store managers were given training to learn

how to use the new Excel sheets that are imported directly into eBlox. Thanks to the switch to a less unwieldy time and attendance registration system, our HR department was relieved from a number of routine duties, enabling us to focus on follow-up and verification. After running a short test, we immediately made the switch. By the same token the payslip has been made a lot more methodically structured for our in-store sales assistants. Swift conversion We were looking to go live on 1 January, so speed was of the essence. SD Worx pulled out all the stops to anticipate our demands. Everything was primed and ready to go, which made for a virtually seamless switchover. Converting the payroll administration of two countries in just six months’ time is quite a feat. I am looking forward to a long-term working relationship.”

As a worldwide supplier of filtration technology for industrial and engine markets, Donaldson employs over 12,000 people. With a view to partially consolidating the European payroll, the company is calling on the expertise of SD Worx and the Payroll Services Alliance. “For our European sites we do not have a centralised HR software tool. To simplify matters and assemble our employee and payroll data as much as possible on a European level, we were looking for a seasoned partner, which we found in SD Worx and the Payroll Services Alliance. Drawing on this partner network sees us working according to one and the same philosophy and gathering the same data in different countries, whilst we can rest safe in the knowledge that we can rely on quality support services. Improving the quality In doing so, we are deliberately not opting for a big bang scenario: we review the situation country by country to see if we can improve the quality of our payroll. In 2013, we started with the implementation in four countries. In Belgium and The Netherlands, we are using SD Worx, in Spain we have called on their strategic partner Seresco. In the United Kingdom, the implementation is being made to occur with the assistance of strategic partner Cintra. For France and Italy we are currently looking into whether we will be sticking with our current providers or whether we will be switching to SD Worx and the Payroll Services Alliance in these two countries as well. We are expecting to have completed the exercise in 2015. Long term partner The collaboration fully meets with our expectations. Both for the recording of data, working up configurations or for project planning, SD Worx delivers the kind of support we are after. The actual switchovers are all running smoothly, which opens the door to optimisations such as electronic payslips and electronic time and attendance registration. We consider SD Worx as a long term partner. During our assessment meetings, we frequently enquire into their plans and their views to give the collaboration every scope for the future.”

Bernadette Degreef Salary Manager and Veerle Vanden Plas International Mobility Specialist at Vinçotte

Watertight payroll administration for secondments at Vinçotte Vinçotte is a service company in the area of certifications and inspections for the private and industrial markets. SD Worx handles the watertight payroll administration of a number of Belgian employees that have temporarily been seconded to Switzerland. 20

TAX & LEGAL

“Vinçotte provides over 130 specialist inspection, verification and certification services worldwide, including analyses and trials for a wide range of applications of various description. Working from the company head office in Vilvoorde and 15 branch offices across the globe, more than 2,500 employees serve well over 15,000 industrial clients. Last year, six of our specialists frequently commuted between Belgium and Switzerland, on certification assignments at a major hydro installation. Five of them would travel out to stay in Switzerland for five weeks at a time, with one member of staff working out there full-time, returning home to Belgium once a month. This year too, four employees have been committed to this project through our Swiss subsidiary.” Positive result “SD Worx, our payroll service provider in Belgium, handles the payroll administration for these profiles. They responded very swiftly to our demand to analyse the employment situation from a tax perspective and to fine-tune the Belgian payroll. The outcome is most satisfactory. As an organisation we work by the book when it comes to tax law and we are keen to avoid cumbersome procedures involving advance tax payments and tax recoveries. For the employees concerned, the result is equally positive: at the end of the month, they are left with more take-home pay. In this project, SD Worx is showing its worth as a professional partner. One that we are 100% pleased with.”

Managed Payroll Services International Employment 1,700 employees in Belgium turnover 20 million euros

Danny Verbraeken HR Compensation, Benefits & Transfers manager at BASF

Social-legal workshops at BASF Antwerp To keep up with all the latest updates and changes in social and labour law, BASF Antwerp is a regular subscriber to the SD Worx workshops. The proactive and enlightening approach enables them to swiftly act in response to the constant changes in the law. “To make sure our employees are paid correctly, as the company’s HR department we need to be aware of the latest parliamentary bills and statutory amendments. To be quick off the mark in the way we respond to events, together with my colleague Paul Jorens, I attend SD Worx’ social-legal workshops. The sessions tender all the relevant information in a way that is clear and methodically structured, which avoids having to go to the time-consuming effort of scouring through all manner of legal sources ourselves. This fast-paced approach enables our personnel department to assess the impact of upcoming changes in the law and to anticipate these changes in good time. Interpretation and clarification The presentations are made by SD Worx experts. In addition, the legal sources consulted have already been interpreted. One particularly important strong suit: avoiding wrongful interpretations can save a lot of headaches in the payroll. At the same

time, at the end of the session we have all the information we need to enable us to set to work on a practical level. Available online SD Worx makes all the information that has been presented available online to the participants, which enables us to disseminate the know-how gleaned within our organisation. We make the information available to our department by way of a central server. The technical implementation of social-legal adaptations in the payroll calculations is something we handle ourselves. Our colleagues over at the European Shared Service Organisation in Berlin follow up on changes in the law themselves, but the input from the workshops frequently offers added value. The fact that we do not risk overlooking actual and potential statutory amendments is quite a luxury. There is good reason why we have been attending the workshops without interruption since 2004.”

TAX & LEGAL

Social-legal workshops Managed Payroll Services (statutory declarations) 3,000 employees turnover 7 billion euros

Karine Herrygers Human Resources Manager at Santander

Alain Nyssen HR manager at Quadrant

Legal Scan puts Quadrant terms and conditions of employment under the microscope Quadrant’s Tielt site is enjoying unrelenting growth. To find out if the company is also on the right track with its terms of pay and terms of employment, the company’s HR management called on SD Worx to perform a Legal Scan. “Quadrant EPP (Engineering Plastic Products) and CMS (Custom Moulding Services) are part of Mitsubishi Plastics Inc. The companies are market leaders in the area of semi-finished materials and injection moulded products in engineering plastics.

Legal Scan Managed Payroll Services

Moving towards fully-fledged HR Over the past three years, we have recruited a lot of new staff for our Tielt site. Today, the site employs 375 employees and the time has come to develop the personnel department into a fully-fledged HR department. Which means we need to put in place an unequivocal policy in terms of recruitment procedures, remuneration, training tracks and career development.

375 employees turnover 120 million euros

Crossing the t’s and dotting the i’s To continue building on solid foundations, I first

TAX & LEGAL

wanted to establish if we are on the right course in a social-legal sense. A thorough screening of our terms of pay and terms of employment by a specialist outside party would enable us to cross the t’s and dot the i’s to enable Quadrant to be and remain a reliable party for employees and prospective employees. Methodically structured report SD Worx scrutinised the entire staff administration and social-legal records. By way of a methodically structured report, the so-called ‘Legal Scan’ yields a clear picture of all the boxes that need to be ticked. Doing so gives a business the certainty that you are not breaching any rules and regulations and you are certain you are not looking at any nasty bombshells in case the inspectorate calls round.”

Santander effects win-win with share option plan

With over 12.5 million clients, Santander Consumer Finance ranks as the European market leader in consumer finance. The Belgian subsidiary allows around one hundred of its employees to choose whether to have their performance bonus paid in the form of share options.

“In order to optimise the net pay within a certain budget, we are offering employees who do a good job the opportunity to sign up to a share option plan. These share options or ‘warrants’ are exempt from social security contributions, which means that, as an employee, you can end up with up to 20% more in hand net. Major success Employees are given the choice of either holding their share options in a trading account of their own or selling them within 24 hours, which is what most of them do. In combination with the spread across a broad investment portfolio, this makes for a limited risk. Every employee is free to decide for himself whether he signs up or not. The alternative is having the performance bonus paid out via the salary calculation, although this is

obviously subject to higher tax withholdings. The number of eligible staff who have signed up is a sure-fire indication that the share options are going down a treat: around 98% of our employees have jumped on the bandwagon. Preferred partner As our preferred partner for broad-based HR support, for the past two years SD Worx has been making sure our share option plan has gone without a hitch. At the outset of the project, they explain the product to our people, in collaboration with the financial institution. They subsequently handle the entire administrative course of proceedings: from the announcement mails all the way up to putting together and processing the electronic contracts. This greatly relieves our HR department. By the same token, we can rest safe in the knowledge that we have a legally watertight solution in place.” TAX & LEGAL

Legal Service Desk Managed Payroll Services HR Webworx Reward Consultancy (share options, salary benchmarking) Job classification 118 employees

Ilse Verschueren Human Resources Director at APB

A fresh approach to staffing that matches with APB APB is the national professional association of self-employed dispensing pharmacists. Over the past few years, the organisation has been calling on the Staffing solutions of SD Worx, specifically for assessment and development centers and for a 360° feedback exercise. “SD Worx’ new approach to assessments had our full interest from the off. All the more so as this approach also identifies the ‘match’ between the professional drivers of the applicant and the motivators which our organisation would like to see in place for a specific post. Alongside the more conventional assessment exercises, from now on applicants are also required to fill in a questionnaire that probes their personal preferences. Our hiring manager does likewise. This gives us a good idea of the consistencies and discrepancies at a glance. What is more, the comprehensive reporting that results from these assessment centers is a great support to follow up on the new employee’s development track.

Sabine Hahn Financial Manager at Eltec

Renewed drive for Eltec further to strategic exercise Genk-based family business Eltec System specialises in the repair, maintenance and sales of electrical engineering products and systems. In order to help steer the radical refocusing of the company’s internal structure and strategy, they decided to call on SD Worx.

360° feedback exercise In 2013, together with the Staffing consultants of SD Worx we also set up a project in the area of talent management. To draw on the existing competencies to maximum effect, what we needed first and foremost was a clear understanding of the strengths and focus areas of the members of our management team. Which is why we launched a 360° feedback exercise for the members of the management committee and the management level just below. Beforehand, we established the desired competencies which we mapped out by way of a survey that took in the organisation as a whole.

Managed Payroll Services Reward Consultancy Legal Consultancy Staffing Consultancy 120 employees

Subsequent thereto, SD Worx performed individual feedback sessions, and gave the initial impetus for a Personal Development Plan (PDP). This PDP is now in place to be used as a working document for the interim performance interviews. Comfortable collaboration This approach to staffing means we are now able to remain consistent in the way we deal with hires, in-house promotions and development issues, as we are drawing on the same competence model in all cases. This is important to promote team cohesion between our 120 employees, who often have very different backgrounds.”

HR Consultancy (competence assessment and pay policy) Guidance in setting out the mission, vision and strategy Managed Payroll Services

42 employees turnover 8.5 million euros

“Eltec System was running at full capacity until the downturn hit in 2008. As the company directors, Joe Huijgen and I realised we had to change tack and make some structural changes. Our strategic direction was not focused, we did not have a clear staffing structure in place and we did not have anything resembling a uniform pay policy. Which is why we decided to call in SD Worx, our partner for payroll services. Organisation chart The first thing SD Worx did was to map out an organisation chart for our business. Job descriptions were compiled for all profiles, in order to properly chart all of the competencies we had in place and those we still needed. By the same token, the job descriptions serve as the cornerstone for assessments and a structured pay policy. Even in a family business, you need rules and guidelines if you do not want to go about things on a whim or depending on whether you like someone’s face or not.

Strategic guidance In the second phase, a strategic exercise was conducted. After a SWOT analysis, management set out the markers for the next five years ahead with the help of an SD Worx consultant. The announcement that Ford Genk was to be closed down came as another blow. In response, we expanded our area of operation, casting our net across a wider region to include Wallonia and the port of Antwerp, to name but two. At the same time, as the management team we were also in need of coaching by SD Worx, for instance on how to deal with staff. Reinvigorated dynamic The results were not long in coming: a year after Ford Genk had closed down, Eltec System was back into profit. Our organisation and operations are much better structured and we have managed to relieve some of the operational pressure on us as company directors, enabling us to focus more on the broader strategy. We also have a much better sense of how our employees feel about things. In a nutshell, our dynamic is back with a vengeance.”

Paul Verbruggen Vice President Human Resources at Capgemini

Vanessa Bertrand HR Manager at Systemat

Systemat continues its automation drive with HR Webworx

The personnel department at IT service provider Systemat has been using the HR software suite HR Webworx since 2004. Alongside the administration of absences and salaries, Systemat was looking to use this system to also manage its entire employee development process. In response, SD Worx designed a custom add-on module for the central competence management in Belgium and Luxembourg.

HR Webworx Managed Payroll Services Learning Tax & Legal Consultancy International Employment HR Consultancy 310 employees turnover 110 million euros

“In Belgium and Luxembourg, Systemat provides IT solutions for SMEs, large companies and the public sector. Our 310 employees work scattered across centres as far afield as Wilrijk (Antwerp), Lasne (Brussels), Jumet (Charleroi), Awans (Liège) and Capellen (Luxembourg). They assist businesses in the administration of their IT infrastructure on a day-to-day basis. Two years ago, we took a close look at our entire competence policy. Up until then, it was all done with paper assessment forms that had to be manually processed. Along with SD Worx, we introduced extra Webworx modules to digitise the development process of our employees. This has given everybody access to their personal case records, including an overview of their individual competencies and targets. Significant time savings Thanks to the new module, our managers now have a better picture of where their people are at. At any time, HR Webworx provides them with valuable information about

the track covered by employees in terms of their personal development and the nature of their ambitions. The system also allows us to offer our employees more purposive training courses, with confirmation of their enrolment in training courses now just a few clicks away. In addition, the automated export of data allows us to very accurately chart competencies and targets and to stay on top of our training budgets. So it really is a major time saver for everybody involved. Cross-border module In Belgium, we use the eBlox payroll software, and in Luxembourg we use Alicia. As the HR Webworx module is compatible with both systems, we are able to administer personnel development from a central point, whilst still factoring in the differences that exist between Belgian and Luxembourg law. Everybody is simply using the same tool. If people want to move on to a different position within the company or work at a different location, this module makes sure this appears on our radar.”

Flexible remuneration policy raises Capgemini’s appeal SD Worx’ Flex Income Plan offers employees individual freedom of choice and raises our appeal to new applicants. At the same time, the entire operation remains budget neutral. Plenty of reasons for Capgemini to go down the flexible remuneration route. TM

“Our workforce now spans three generations. Our remuneration policy is our bid to act in response to their specific needs and requirements. Which is why we have converted a string of benefits that are awarded further to particular events in a budget. Examples include the bonus for the delivery of a successful project or a referral bonus for introducing a new colleague from the employee’s personal circle of acquaintances. Employees can also opt for a cheaper company car, thereby freeing up a supplementary budget. Budget neutral With this budget, the employee gets to make choices that are geared to his personal needs and requirements: holiday entitlements, a certain type of company car, refunds under an individual hospitalisation insurance plan or individual pension saving scheme, a cash bonus … The important

thing in this respect is that the entire operation remains budget neutral for the employer. By the same token, it is an advantageous way to go for the employee, who gets to cherry pick from a unique pack of benefits. Ambitious timing Being the most experienced party, SD Worx convinced us, both in terms of admin and in the area of IT. The ambitious four-month timing schedule to get everything fully operational was a challenge in its own right. But thanks to the excellent working relationship with SD Worx’ consultants we were able to get into gear in double quick time. We rolled out our flexible remuneration policy in 2013. Around one in six signed up, which was in line with expectations. For the year ahead we are expecting to see a marked rise, once the message has been spread by word of mouth.” HR

Reward Consultancy Flex Income PlanTM Managed Payroll Services 700 employees turnover 105 million euros

CSR

Sustainable ambition The three cornerstones of Corporate Social Responsibility - People, Planet, Profit - get a considerable share of attention at SD Worx but the main focus goes out to People, the cornerstone that is closest in keeping with our core business. Nonetheless, we are also alive to Profit and Planet in our activities.

On 1 January 2013, SD Worx joined the Global Compact Network. Global Compact (GC) was established in 2000 as a scheme set up by the United Nations. Its stated object is to bring together businesses, trade unions, academics, community organisations and UN organisations to promote ten UN principles in the field of human rights, labour conditions, environmental protection and the fight against corruption. The GC network currently numbers over 8,000 participants from more than 135 countries. Its ambition is to round the cape of 20,000 members by 2020. Global Compact membership requires SD Worx to compile a progress report each year. At the same time, SD Worx boasts a CSR policy that is supported and recognised across the globe and by the UN. Through the Global Compact network, SD Worx exchanges best practices, shares information, forges partnerships and establishes commercial contacts at local and international level. SD Worxâ&#x20AC;&#x2122; CSR report is available to be consulted online: www.sdworx.com > About SD Worx > Annual Reports

Annual figures 2013 The consolidated financial statements of the SD Worx group contain a concise summary of the annual financial statements of the different entities of the group. These financial statements give a true picture of the assets, financial position and results of the SD Worx group. The statutory auditors have given their unqualified approval to the different annual financial statements. Composition of the SD Worx group on 31.12 . 2013 SAK nv SD Worx vzw Protime nv SD Worx for Society vso cvba Hazel Heartwood cvba SD Diensten nv SD Worx sa (Luxembourg) ZENO nv SD Worx Nederland bv IVD nv SD Worx sas (France) LWB nv SD Worx GmbH (Germany) Sodeco nv

Consolidated profit-and-loss account of the SD Worx group (in 1,000 EUR) in accordance with Belgian Generally Accepted Accounting Principles. 2013

RESULT

255,920

Financial profit from operations Financial profits from assets Profits

14,111 22,119 3,725 14,257 273,756 282,539

Personnel & fees ICT costs Office & administration costs Promotion costs Depreciations Miscellaneous costs Taxes Minority interest Costs

213,462 202,676 13,982 16,804 17,170 17,421 5,208 6,340 13,310 17,474 3,436 4,972 3,944 4,623 1,190 1,527 271,702 271,837

Profit

ASSETS

246,163

2,054 10,702

2013

2012

Intangible fixed assets & consolidation differences Tangible fixed assets Financial fixed assets Fixed assets

11,151 16,375 81,044 87,128 1,021 1,022 93,216 104,525

Receivables on +1 year Receivables on -1 year Investments Liquid assets Accrued and deferred accounts Current assets

2,414 2,691 32,722 36,431 1,175,306 1,455,067 499,086 127,832 14,052 18,012 1,723,580 1,640,034

Total assets

2012

Total turnover

Consolidated balance sheet of the SD Worx group (in 1,000 EUR) in accordance with Belgian Generally Accepted Accounting Principles.

Provision for risks & liabilities

1,744,559

2013

LIABILITIES Equity capital (excl. result) Minority interest Results for the year

1,816,795

Total equity capital

Total of provision

2012

328,277 317,615 2,201 2,058 2,054 10,702 332,533 330,375 3,703 3,703

5,089 5,089

Debts over +1 year Customer funds Trade debts Debts concerning tax & remunerations Other debts Accrued and deferred accounts Total debts

234 385 1,425,730 1,346,835 10,208 13,968 35,693 36,464 4,951 6,730 3,744 4,713 1,480,560 1,409,095

1,816,795

Total liabilities

1,744,559