ANNUAL REPORT 2016
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A Y E A R M A R K E D BY W I N N I N G S I T UAT I O N S We certainly had the wind at our back. The economy showed a substantial recovery in 2016 and the Belgian tax shift had a positive impact on initial acquisitions. Above all, our growth did not materialise out of thin air: and are benefiting from three major waves of transformation:
1 was a year in which we once again expanded our horizons. In fact, our growth was accelerated by multiple gears: in staff numbers, customers, payroll processing, offices and active countries. Besides this, our range of services was expanded considerably, accompanied by an increase in turnover as well as profits. At the same time, customer satisfaction improved. We can look back at an outstanding result; atypical for our market, which is experiencing turbulent times. However, first and foremost, I would like to extend my gratitude to each and every SD Worx employee, for whom 2016 was an eventful year.
At the turn of the century, we started focusing on internationalisation with the addition of offices in the Netherlands, Luxembourg, France and Germany. In 2010, we founded the Payroll Services Alliance (PSA), in which we strengthened our international playing field through smart partnerships. In this, we initially focused on Europe, but with the acquisition of the topclass HR player Ceridian we were soon able to gain a strong foothold in North America as well. The addition of Ascender one year later opened the gateway to Asia and the Pacific. In 2016, our international expansion gained even more momentum. With the acquisition of fidelis HR and Ceridian UK & Ireland we were able to welcome some 1,400 staff to the company during the first half of the year. We consolidated our position in Germany and are currently also operating out of our own offices
in Austria, Switzerland, the United Kingdom, Ireland and Mauritius. This brings the counter up to ten. SD Worx is currently present in some 120 countries, and our range of services is expanding with every new partnership.
S T RO N G E R TO G E T H E R T H RO U G H T R A D I T I O N A N D I N N OVAT I O N Belgium, the United Kingdom and Germany form the geographical backbone of SD Worx. Our head office remains in Belgium, which is where our roots are. These roots go very strong and deep, and have been so for more than 70 years. If you were to compare our Belgian LE (Large Enterprises) division to a country, this would be the biggest in the SD Worx group in terms of turnover. We were able to achieve these results by building up a vast amount of experience and expertise. This enabled us to grow from a provider of only payroll services into a comprehensive HR services provider. However, our branches in other countries can also count on a wealth of knowledge and experience. Our priority now is to ensure that we share this as much as we possibly can – to the benefit of the entire group. We are, for example, exploring the possibility of introducing our Flex Income PlanTM on the Dutch market. Our foreign colleagues will be able to learn
from the success of our innovative customer experience project. Conversely, our LE Division can derive inspiration from the best practices of our offices in the UK, where we have customers with more than 100,000 staff – a scope previously unseen in the Belgian corporate landscape.
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A wave of transformation was initiated in 2013 to increase our operational result – a non-stop project.
Aside from this, we started focusing on a third transformation wave several years ago: digitalisation. For this, we not only had to digitise our analogue processes and data, but extend this to our entire operating model in order to achieve full-scale digitalisation. Former top-ranking executive at Sony Pictures, Judy Goldberg, couldn’t have said this better: “You don’t need a digital strategy; what you need is a business strategy for the digital era.” Both of these initiatives are currently in full swing at SD Worx. Our Consulting Division, for example, launched digital product innovations such as the Pulse employee questionnaire tool and the Ella digital HR assistant.
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“Our customers’ business enterprises are becoming increasingly international, and we want to be able to support them anywhere in the world, from close by.” Steven Van Hoorebeke, CEO of SD Worx
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HUMAN VERSUS DIGITALISATION Companies that grow quickly are sometimes at risk of becoming impersonal organisations. Additionally, some companies attach too much value to their digitalisation process, resulting in an extreme focus on data. We are doing everything to ensure that this will not happen at SD Worx. After all, the finishing touch of everything we undertake must always be provided by our staff, supported – admittedly – by smart insights derived from data and very intelligent software. The attention we pay to the human aspect of our business remains of crucial importance. Of course, it is our staff who make the difference to our customers. It goes without saying that even the most perfect payroll processing method, or the best HR tool, is of little value if not accompanied by outstanding customer service. This is why customer experience is given a high-priority position on our agenda. Customer experience became a focus point in our strategy in 2015. The pilot project provided spectacular results.
ON THE SAME WAVELENGTH These three major waves of transformation interact, collide and melt together. Ensuring that all of this runs smoothly is a tremendous challenge, but we are fully confident in our ability to bring these to a fruitful conclusion. We can confirm this without hesitation, because we can count on the best teams. Nevertheless, taking into consideration that integration on this scale and across borders is a first for us, we are also strengthening our expertise with several outstanding partners. Our international ambition is also reflected in our management, where we expanded our Executive Committee and Board of Directors with several heavyweights with international experience.
FROM GREEN TO MATURE Why do we need this international expansion or ambition to grow? Not to plant our flag on the world map, or to show off our muscles! But to remain relevant in the future. Considering that our customers’ business enterprises are becoming increasingly international, we want to be able to support them anywhere in the world, from close by. After all, our ability to invest sufficiently in research and development, new tools and staff depends on our ability to grow. In short: resting on our laurels is simply not an option. The seeds have been planted, and the foundation is more than solid enough for us to grow into a world leader. Currently, our highest priority is to enable both Payroll Services Alliance and the SD Worx Group to come into full bloom.
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PEOPLE MAKE THE BEST MEMORIES The year 2016 will not only go down in our corporate history as a new record year; it will also be remembered as a year of unique encounters. Before 2016, SD Worx was unknown in the UK, Ireland and Mauritius. What was the best way to introduce our organisation’s core values to our brand-new colleagues? In a video, staff described what it was like to work at SD Worx. We showed this video simultaneously at the five British offices, and at our office in Mauritius, during our introductory speech. Many LinkedIn
profiles were updated instantly – during the showing – and after this speech, several new colleagues told us that they felt as if they had come home. This went straight to our hearts. It was then that we instantly knew this union would become a success, charged with the same degree of commitment we had seen at our branches in other countries. Each and every day: to provide our customers the very best level of service, to raise one another to a higher level, and to contribute to improving society. Let it be clear that in all these waves of internationalisation, digitalisation and increased profitability, people are and remain our greatest asset. It is only thanks to the dedicated efforts of our staff and partners that we are able to set such high standards. Additionally, it is only thanks to the confidence our customers have in us that we can grow: in size and in expertise, and – concurrently – in quality. Our appreciation and gratitude are therefore immeasurable. A heart-felt thanks!
“Our branches in other countries can also count on a wealth of knowledge and experience. Our priority now is to ensure we share this as much as we possibly can - to the benefit of the entire group.” Filip Dierckx, Chairman of SD Worx
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Result driven HR SD Worx offers 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, in-house or external support, backed by the necessary 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.
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Payroll
Tax & Legal
HR
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
Technology Services Automation of all Payroll and HR processes
Consulting Targeted and sustainable advice on Payroll, Tax & Legal, Reward, HR Projects and International Employment
Outsourcing Payroll solutions, offering various outsourcing levels
Global Coverage with own offices in Belgium (HQ), Austria, France, Germany, Ireland, Luxembourg, Mauritius, The Netherlands, Switzerland & UK
Payroll - Tax & Legal - HR +70 years
of expertise
From SaaS (Software as a Service) to full Business Process Outsourcing
Our mission? Result driven HR. We excel in HR services that drive your business performance.
Payroll Services Alliance
3,900
HR professionals
4,250,000
payslips per month
63,000
client base
â‚Ź 397 milllion total turnover 2016
SD Worx is a co-founding member of the Payroll Services Alliance, the
SD Worx (Western Europe), Aditro (Northern Europe), Ascender (Asia and
organisation that pools the strengths, experience and expertise of the biggest
the Pacific), Ceridian (United States, Canada and United Kingdom), Elanor
players in the field of payroll calculation:
(Central and Eastern Europe), F2A (Italy), Seresco (Southern Europe) and Trianon (Switzerland).
AT THE CUS TOMER’S OWN PACE In order for us to be and remain relevant in a competitive market, our customers must feel that what we offer is tailored to their needs. This starts when they are introduced to SD Worx and applies to every step our customers take with us, regardless of whether these are starting SMEs or mature multinationals. Additionally, we understand that our customers want advice that will resolve their problems, rather than being given
three options to choose from. The context of our customers is changing, their organisations are undergoing transformation and therefore their requirements are changing alongside. And, of course, it is precisely at this point that we aim to propose the ideal solution. This requires a thorough knowledge of the customer, built up through frequent communication and continually broadening and refining our range of services; a strategy we have been employing for more than 70 years.
Had I known that ##SIJASU CUSTO MER NEEDS
01.Our customers come first
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OF F ERING
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The first step in attracting new customers is, of course, to enter their line of vision. Our ‘Si j’avais su – or #SIJASU in French’ campaign earned us a prominent place in the Belgian media spotlights from the end of February until July 2016. We had copied a number of recognisable HR scenarios from our customers and staff, such as optimising wage costs, attracting and retaining staff, putting employment contract agreements on paper correctly and working out a well-considered salary strategy. For each HR theme, we poured concrete advice into blogposts, infographs, e-books, testimonials, tests and videos on our campaign platform. In other words: rather than taking the range of products and services we offer as a starting point, we linked our expertise to issues facing today’s HR departments.
This approach was an instant hit and the #HIDG platform was visited en masse. As many as one out of every ten visitors left his or her contact details with a view to obtaining relevant information. Based on the profile and clicking behaviour of each individual visitor, we were able to pinpoint the visitors among whom interest continued to grow. At a given point in time, our sales department received a signal. The type of information, and the questions that they could ask, provided the ideal input for an initial sales interview. This happened with approximately one out of every 200 website visitors. As a result, we were not only able to welcome new customers; we also expanded our services among existing customers.
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Global business, local support
SD Worx UK & Ireland @SDWorxUKI SD Worx welcomes Ascender into the Payroll Services Alliance. Full #Press Release available here bit.ly/2gNTYUq
June Lee General Manager Asia at Ascender
Until recently, Asia and the Pacific were still blind spots, but with the addition of Ascender to the PSA we have been able to cover practically the entire globe since the end of 2016. As a result, our customers can count on our services in all corners of the world, in their own language and provided by someone who is familiar with the customs and regulations that apply to their situation.
INTE R NAT IONAL
and through our partner network, Payroll Services Alliance (PSA), we have been concluding collaboration agreements within this framework with local, renowned players since 2010.
LO CAL
Our customers are operating increasingly internationally. Nevertheless, the rules and regulations with regard to taxes, social security, labour law and administration differ from country to country. Previously, our customers would have needed to engage a different payroll provider for every country in which they operate. Our wish to offer our customers our payroll processing and services in other countries – through one and the same contract – provided SD Worx with the perfect incentive to expand its territory. With our own offices in Belgium, the Netherlands, France, Luxembourg, Germany, the United Kingdom, Ireland, Mauritius, Austria and Switzerland,
E XC I T I N G T I M E S A H E A D
“As we have worked together with a member of the Payroll Services Alliance (PSA) for many years with excellent results, we were already familiar with the strength of the alliance. Since signing our agreement with the PSA ourselves in November 2016, our relationship has greatly intensified. These are very exciting times for us, since this collaboration opens up opportunities for us to compete on a global level. At the same time, we can continue to scale up our business to eventually become the leading payroll provider in the Asia Pacific region. When it comes to Ascender joining forces with the PSA, news travels fast. Global companies are now approaching us with requests, as payroll management across national borders is an immensely complex matter. For instance, Ascender is active in 35 countries, and we have to follow 35 different tax law systems. The same applies for all other PSA members. Combining our expertise means we can significantly simplify the international payroll management of our customers. That’s the primary goal of the PSA partnership: to offer the best client service possible.”
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A solution in no time at all
Smooth digitisation of payroll and HR at Marks & Spencer
Starting in spring 2012, our Swiss office has been calculating the wages of these 750 employees at Coca-Cola HBC Switzerland. When their payroll specialist took up maternity leave in 2016, SD Worx immediately provided a substitute. According to Sabrina Hass, Compensation & Benefi ts Manager at Coca-Cola HBC Switzerland, this was a huge relief. “Our company has only one payroll specialist, so when she was ill or took up holiday leave, SD Worx took over her tasks. When the time came for her to take maternity leave, SD Worx stepped in immediately to provide us the support we needed. The speed at which they responded was worth its weight in gold. In fact, we outsourced the entire payroll to SD Worx. This was a tremendous advantage, because there are only very few payroll specialists in Switzerland. Knowing that we could outsource our payroll activities in full confidence was a genuine relief. The relationship with SD Worx (previously fidelis HR) has always been very close. It feels as if our SD Worx contact is part of our company. This is the advantage of collaborating with such a small office. Of course, it also means that they are limited in their capacity and it is difficult for them to be everywhere at the same time. Now that they are part of a large international player, this could easily open up more possibilities for us in this field.”
“Knowing that we could outsource our payroll activities in full confidence was a genuine relief.”
SABRINA HASS Compensation & Benefits Manager at Coca-Cola HBC Switzerland
“Before, I would submit a holiday request by paper. It took so long to get approved. Now, I can quickly submit a form electronically, which is approved in minutes.” - Store Employee, Marks & Spencer
By modernising their payroll and HR processes, we helped British retailer Marks & Spencer achieve their “Plan A” environmental initiative, moving from paper to online pay slips and reducing paperwork in-store. Marks & Spencer were previously working with an old, inflexible payroll solution. Therefore, a large number of administrators needed to manage paper-based processes, resulting in an increasing risk of inaccuracies. It was also impossible to offer benefi ts such as childcare vouchers and pension salary sacrifice. Finally, the paper-based communication was substantial and costly. SOLUTIONS, IMPACT AND BENEFITS SD Worx used its tax optimisation expertise to integrate salary sacrifice options such as pension contributions and childcare vouchers into its payroll solution. We improved processes and efficiency by enabling electronic self-service for holiday requests and more. As a result, Marks & Spencer were able to significantly reduce costs due to an improved efficiency in HR administration and due to improved tax efficiency in benefits provision. Payroll accuracy reached 99.8%, reducing overpayments and wasted management time.
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IN THE SPOTLIGHT AT THE 2016 HR EXCELLENCE AWARDS!
Even if SD Worx has grown into a leading player on the world market, we are still able to look at every customer individually. In fact, maintaining close customer relationships has become even more important. We are always looking for solutions to the problems our customers are facing. Sometimes, we focus all our attention on a specific branch of industry or a current topic in HR.
B IG PLAYER
The jury of the HR Excellence Awards was also convinced of the merit of our SportsPay file. Thanks to this, we won the highly coveted Best Social, Administration & HR Services Company Award.
C LOSE RELATIONSHIP W I TH THE C U STO M E R
SportsPay, our tool for sports clubs Sometimes the idea for a new product originates from our staffs’ familiarity with a given sector, spurring them to pinpoint missing links. Five SD Worx employees noted that the payment of players’ premiums at amateur sports clubs was a problematic issue. Frequently, these payments were made off the record, or the sports club in question lacked the tax expertise to correctly and optimally submit the relevant tax return. Currently, more and more inspections are being held, and fines are so high that this has caused several sports clubs to fold. Additionally, directors of non-profit
organisations are severally liable, meaning that tax authorities can deduct charges from their personal assets. SD Worx had confidence in the innovative idea and gave the multidisciplinary team the resources to develop it. To ensure that the product would be perfectly tailored to the user’s requirements, they involved potential customers early in the development process. SportsPay was born. SK Grembergen, the East Flemish football club from the Second Provincial C Division was one of the first customers. Treasurer Garry De Wilde is happy to share his experiences:
“Thanks to this user-friendly, real-time online tool we are able not only to calculate our premiums correctly, but also optimally. It is very easy to use: all I had to do was enter the players’ and the trainer’s details, as well as the match and training calendars. Every week, I fill in who played and who is entitled to a premium. SportsPay subsequently automatically calculates all the amounts: the premiums, the deductions and the income withholding tax owed. After that, I generate the files online for FinProf and Belcotax, similarly to the tax files and statements. At the end of the quarter, it only takes me about five minutes to submit a completely correct tax return.
Garry De Wilde treasurer at SK Grembergen
Solutions tailored to the sector
After having worked with SportsPay for an entire season, the three most important advantages are: being able to fulfil our statutory requirements by 100%, the optimisation of our premiums and convenience. Additionally, thanks to SportsPay we were able to save approximately 60% on the withholding tax owed. All of this because the system lets us take full advantage of the available tax breaks and thanks to the competitively priced license, which is a lot cheaper than what a traditional payroll BPO provider charges.”
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An innovative HR policy: that’s what Sofie Van Eemeren aimed to achieve when she joined Unleashed in 2014 as HR & People Lead. This brandnew flag flies the colours of brands such as Mobile Vikings, Stievie and JIM Mobile. Only one year later, the staff were invited to put together their own salary packages through the SD Worx’s Flex Income Plan™: an innovative payroll method that is enjoying tremendous popularity.
“We were looking for a payroll system that reflected our value model. Empowerment – allowing staff freedom of choice – is one of our priorities. The Flex Income Plan™ reflects this perfectly,” explains Sofie. “Aside from this, it is crucial to a technology company like ours that the tool we choose is well-made and user-friendly.”
high mileage allowance
C LE A R PR E FE R E N C E S
IT benefits
retirement saving
At Unleashed, the available Flex Income Plan budget covers such elements as mobility, technology and social security.
BO OS T FO R E M PLOY E R BR ANDING Although applying for the Flex Income Plan™ is not mandatory at Unleashed, everyone registered. This is a clear signal that flexible remuneration responds to a pertinent demand. An added bonus: the ‘Great Place to Work®’ questionnaire held one year after the introduction of the Flex Income Plan™, revealed that staff satisfaction, concerning the payroll method and the composition of salary packages, had increased by at least 15%.
bicycle
internet @ home Sofie Van Eemeren HR & People Lead at Unleashed
Advice tailored to the future
“The staff at our company are allowed to choose their own salary packages”
remuneration satisfaction
WHAT WERE THE PRIMARY CHOICES MADE BY UNLEASHED EMPLOYEES IN 2016?
W H AT I S O U R F L E X I N CO M E PL A N™ ?
Certain non-statutory benefits (perquisites) are expressed in monetary values. Staff are able to spend these as they wish on an annual basis, tailored to their current needs. This budget-neutral solution with higher added value for staff is 100% watertight at both statutory and social level.
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Solutions tailored to our customers Cubes, our international reporting tool This exasperation is something we frequently noted among our internationally operating customers and it prompted SD Worx to develop a solution: Cubes, our global payroll & HR reporting tool. This tool allows our customers to draw up real-time strategic reports at the touch of a button. No more collecting, entering and restructuring payroll and HR data! Neither do they need to consider exchange rates or salary codes.
Aside from this, HR divisions can gain insight into the personnel information of all branches in all countries, which means that they will no longer need to bother their colleagues abroad. With Cubes, customers have an efficient tool that will help them make the right decisions and make adjustments in due time.
“No matter how complex the payroll is – which it is in the case of an international player like us – Cubes takes care of all these issues. Once you have started using it, the biggest advantage is the amount of time you save. Add that is a serious advantage, considering how much time it takes to manually gather and merge data.” Julien Monseur plant manager at Air Liquide Benelux Industries
Operating in multiple countries results in a vast amount of data derived from payroll and HR processes. To facilitate the compilation of analyses and forecasts, headquarters often require reports to be drawn up on a regular basis. This is, of course, easier said than done, because streamlining data per country is a complex and time-consuming process.
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digital tools
ELLA, OUR DIGITAL HR ASSISTANT THE FUTURE IS DIGITAL, WITH A STRONG HUMAN TOUCH Digital transformation and innovation are priority points on the SD Worx agenda. Additionally, this is something we all want to achieve through a shared effort. Although we are able to present several concrete results, such as Ella and Pulse, the possibilities are infinite. This prompted us to establish the Digital Transformation Taskforce in 2016: a working group composed of some 25 staff from various divisions and countries. At three two-day boot camps, they joined forces to identify the most important potential innovations and drew up a draft digital roadmap. To be continued, absolutely!
Half-way through September, our employment labour law search platform Ella went live: an acronym for Employment Labour Law Answers. When developing the platform, we did not base the design on our expertise, but on customer experience. Therefore, the platform is tailored to their current-day search requirements. Not only that, Ella is self-learning. The more queries a customer performs, the more relevant the results list will be. Customers using Ella will neither need to plough through various databases, nor run the risk that the information they have gathered has become outdated. Ella works as a genuine digital HR assistant for our customers: she is available around the clock and users can be assured that she will answer immediately, practically and correctly.
EMPLOYERS CONTINUALLY TAKE THEIR ORGANISATION’S PULSE OUTSIDE THE NORMAL OPERATING PROCESSES Ella is the result of a corporate start-up within SD Worx. The team was given carte blanche for its approach and the resources to develop Ella. Colleagues from different departments and divisions regularly acted as a sounding board and our customers and colleagues were soon invited to test the system out. Adjustments are currently still being made based on their feedback.
Are the staff still motivated? Is the pressure at work too high? Do staff believe they are earning enough? Do they understand the new strategic course of the company? Are they considering transferring somewhere else? The answer to these and other questions is crucial with a view to taking suitable measures, making the right decisions or facilitating social dialogue. Pulse is a digital tool that helps employers pinpoint the answers to these questions. Staff are regularly asked a few simple questions via an app or smartphone.
Completing this questionnaire takes only a few seconds. This real-time information is particularly interesting for employers: it provides accurate insight into the actual situation on the work oor. This enables them to quickly respond or make adjustments if a certain measure has not produced the envisioned effect. The staff participated anonymously: the data is never analysed at individual level. However, Pulse does have a function that gives every participant feedback
automatically based on his or her answers. If pressure is mounting at work, he or she will, for example, be advised to make an appointment with the prevention advisor. We are still continuing our search for ways to provide more advanced insights or to capture feedback through multiple channels for pulse as well, such as Skype or email.
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Smart partnerships in the interest of our customers SD Worx keeps its communication channels with its customers wide open, and therefore has both feet planted firmly in the corporate world. Not only that, we are prominently in view as the Belgian market leader. This has brought about several remarkable instances of cross-pollination, not only with our customers, but also with our competitors.
Partners Customer becomes partner
From recruitment and selection to feasibility studies and M&A support: Horeca Partners offers a wide range of consultancy services for enterprises in the catering, tourism and leisure sector. In 2016, this consultancy provider and SD Worx joined forces officially.
Joining forces with BNP Paribas Fortis towards customers for co-sourcing
“The implementation of the white cash register and flexi-jobs caused developments in the catering industry to gain considerable momentum,” explains Filip Nicasi, managing director of Horeca Partners. “All these changes are obliging entrepreneurs in the catering industry to review their business model. During the course of the advisory services, we frequently encounter employment legislation issues, or questions with regard to the efficient and economic deployment of the various employment statuses.” Conversely, our catering industry specialist also noticed that many managing directors lack a sounding board for business-oriented issues, ranging from pricing and management to succession. In previous years, we applied to Horeca Partners when faced with similar issues, and always with a successful outcome. Currently, we are strengthening our relationship through this partnership. “In addition to shared advisory projects, we are organising informative sessions and developing a management application tailored to the sector,” continues Filip Nicasi. “This will allow entrepreneurs in this sector to conduct a thorough scan of their business, after which they will be given concrete tips and suggestions for improvement. In brief, thanks to our complementary know-how we can provide entrepreneurs in the catering industry with comprehensive guidance towards future-proofing their establishment.”
Joost Cottyn Head of Connecting Talent & Employee Advocacy at BNP Paribas Fortis
Partners Competitor becomes partner
Full-scale guidance for the catering sector
Sharing expertise, bundling this and ultimately achieving better results: these are the cornerstones of SD Worx. Our recent partnership with BNP Paribas Fortis clearly illustrates that co-creation is a strengthening factor. Initially, we had set up a co-sourcing project with the bank. This would enable its staff to temporarily be engaged by other employers, what is referred to as ‘employers’ grouping’, to give their career a new boost, for example, during or at the end of their professional lives. Another possibility created by co-sourcing is to respond better to peak moments by temporarily engaging staff from other companies in your own line of business. This creates an opportunity to expand or sharpen the knowledge of high potentials. There are numerous reasons, but they are always in search of answers to keep staff sustainably employed for as long as possible. Due to the higher pensionable age, this issue is quickly gaining in importance. Following the project conducted within the bank itself, BNP Paribas Fortis decided to enter the market supplying co-sourcing to companies under the brand name Connecting Talent. And they wished to do this in collaboration with SD Worx. In concrete terms, BNP Paribas Fortis is searching for employers who are interested in sharing their employees. We will be joining forces with BNP Paribas Fortis on a project, in which we will take care of the HR expertise, while the bank will ensure its smooth execution. Although co-sourcing is still in its pioneer phase, we have already been signed on to several concrete projects. Employers grouping with a view to sharing employees is a growing trend. After all, an understanding is growing that the traditional employment model is not a ‘be all and end all’, and that innovative alternatives are needed.
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Highly satisfied customers and enthusiastic ambassadors only
In a nutshell
9/10
Let it be clear: at SD Worx, our highest priority is our customers. It is no coincidence that customer experience is one of the pillars of our strategy. To ensure this will never be reduced to hollow words on paper, we endeavour to improve customer relationships each and every day.
customer satisfaction*
In 2016, three SME offices and twenty-five support staff in Belgium tested our new method for pinpointing dissatisfaction among customers and proactively responding to this. With a customer evaluation of at least 9 out of 10, the goal was very ambitious, but the pilot project showed we were able to achieve this high score in the majority of cases.
25
3
SME offices*
support staff*
24
Net Promotor Score
* customer experience
*
In a nutshell, we succeeded in transforming a negative customer experience into a positive one. Not only do our customers value this new approach, the staff involved in this project are also extremely satisfied with this way of working. Currently, it will be deployed more broadly in other divisions and countries.
N E WCO M E R S Another two customer experience projects were launched at the end of 2016 in France and in the Large Enterprises Division in Belgium. The goal of the first one is to achieve a better, more transparent and streamlined commercial process (prospection), from the initial startup and the customer relationship to everyday collaboration. Through the second project, we touch upon the core of our range of services: payroll calculation. In this, we also aim to make the difference by focusing on proactive communication in combination with automation.
WA R M LY R E CO M M E N D E D Because we want to understand what does and does not satisfy customers, we regularly conduct surveys into this issue. We ask our customers to evaluate our service through a customer satisfaction questionnaire at least once a year, for example. We also ask them if they would
recommend SD Worx to other companies. Based on this answer, we subsequently calculate our Net Promotor Score (NPS). For 2016, the SD Worx countries collectively achieved an NPS of 24. This is quite a good score, and a slight improvement in comparison to 2015. Still, there is always room for improvement. And this is, of course, our ambition: extremely satisfied customers. In order to fulfil this ambition, we immediately set to work with this crucially important customer feedback.
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02.Colleagues from other countries, but with a common corporate culture Thanks to the acquisition of fidelis HR in March 2016 and Ceridian UK & Ireland in June, we were able to do welcome over 1,400 new colleagues to our company in the first half of 2016. They work in Germany, Austria and Switzerland – formerly fidelis HR – and in the United Kingdom, Ireland and the service centre on Mauritius – formerly Ceridian UK & Ireland.
One of the major challenges facing us today is to ensure that all of us are working as a single organisation: on the same strategic course, with the same systems, using the same visual identity, etc. This is how we should collectively represent the company, to ensure our customers perceive us as one and the same strong provider of payroll and HR services.
In the field of technology, we are still engaged in coordinating the various different systems, while in the field of corporate culture we share the same drive to pull out all the stops for the best results and customer service.
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“We believe that, as a customer of SD Worx, we are currently in good hands and hope to remain one of its customers for many years to come.” - Michael Straube, Head of IT & Accountancy at Pfälzische Pensionsanstalt
From fidelis HR to SD Worx In August 2016, we launched a rebranding campaign in the countries where fidelis HR was active. Using the slogan ‘Alles bleibt besser!’ or ‘Everything will still be better!’ advertisements appeared in various HR journals. Through this campaign, we emphasised the fact that all the positive characteristics shared by fidelis HR and SD Worx – our products, expertise, reliability and high-quality services – will be retained. At the same time, we showed that our merger offers opportunities, not only for both companies, but also for our customers. Keywords in this are: a larger range of HR services and wider international coverage.
On 12 October fidelis HR announced its name change to SD Worx at the HR Inside Summit in Austria. However, the official launch of the rebranding campaign of fidelis HR into SD Worx did not occur until 18 October at Zukunft Personal in Cologne. Drawing approximately 15,000 visitors, this is one of the largest professional trade fairs in HR in Germany: an ideal opportunity to publicly announce a name change.
SD Worx DACH @SDWorxGermany SD Worx auf der Zukunft Personal 2016 in Köln youtu.be/PcKywvZxTQA via @YouTube
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“Don’t talk too much, just take action!” The international food and detergent giant Unilever had entrusted the payroll calculation services for its 5,500 staff in the DACH region – Germany, Austria and Switzerland – to fidelis HR Germany for eight years. When Wim Coenen, Global Payroll Services Director, heard that SD Worx had taken over fidelis HR, his first reaction was one of concern. “Based on our many years of cooperation and our satisfaction with fidelis HR’s services, my first response was to be concerned. I expressed this, but was soon assured we would not be able to notice any differences to fidelis HR, neither in the way of services nor with regard to the team. And, as it stands now, this is true.
IN THE SAME LANGUAGE Just before the takeover, we had asked for and obtained new contract negotiations. During our negotiations, everything ran smoothly. We were able to reach an agreement very quickly. Not by talking too much, but by taking action. It should always be like this. OPTIONS STILL WIDE OPEN The fact that SD Worx operates worldwide is an asset. Nevertheless, we cannot decide at present if we will be making use of this worldwide provision of services, or if we will continue to opt for a single approach per country, or per region. We are currently in the midst of a strategic thinking exercise; things can go in all directions. However, our experiences with SD Worx up until now have been positive!”
Wim Coenen Global Payroll Services Director at Unilever
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T H RO U G H T H E E Y E S O F T H E S TA F F: F I D E L I S H R B ECO M E S S D WO R X
“We were first told internally that we were being taken over by SD Worx. Later on that day, we received a friendly email in which we were welcomed to the new company by CEO Steven Van Hoorebeke. Our initial doubts were soon transformed into a feeling of confidence: operating as SD Worx we would be able to offer our customers better service. In the past, we were frequently asked by our customers if we could also handle payroll calculation for their branches abroad. We were able to do this for branches in Germany and Switzerland, but not in other European countries. A transition like this is, of course, very complex. We did not change our name and branding from one moment to the next. Our customers responded positively to the news about the takeover and our new style. From the very beginning, we were given information about the changes the takeover would bring with it and were given the opportunity to ask questions and express our doubts. We immediately felt part of the SD Worx family, rather than just being extra personnel abroad.” – Claudia Stadtfeld, Teamleader for Payroll at SD Worx Austria
“When we heard that fidelis HR would be part of SD Worx from now on, my colleagues and I were, first and foremost, surprised. At the same time, we were also very curious, because: what would it be like to work for such a big international player? Before receiving this news, I had never heard of SD Worx. Up until today, we have only discovered advantages. Since we started being part of SD Worx we have been receiving more applications from prospects than ever before. This can, of course, be attributed to our new ability to provide support to countries operating in multiple countries.
The attitude of our colleagues in Belgium was also very reassuring. I was able to experience their friendly and helpful approach in person. And they really consider us part of the SD Worx family, which is wonderful!”
As from January 2017, we started to adopt the SD Worx visual identity We are now entering a period of excited anticipation until we can use the entire IT infrastructure.”
– Alexander Sperber, teamleader Key Account Management Support at SD Worx Germany
– Snjezana Krizanac, Payroll Specialist at SD Worx Switzerland
UNITED KINGDOM & IREL AN D
“Before we, as fidelis HR, were included in the SD Worx group, we were part of a group in which our position could not be guaranteed in the long term. As a result, there was a lot of uncertainty among the staff. When we heard that SD Worx would be taking over fidelis HR, this uncertainty melted into relief and curiosity. We knew SD Worx as a competitor to watch out for; one with a strong international reputation. Of course, there will be some big challenges ahead, but we are looking forward to tackling these together. Our customers also responded positively. To them, this merger will mean greater stability.
MAURITIUS
AUSTRIA & SW ITZ ERL AN D
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GE RMANY
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From Ceridian UK & Ireland to SD Worx On 15 June 2016, almost 850 staff from the United Kingdom, Ireland and Mauritius joined the SD Worx family. Ceridian UK & Ireland is a payroll and HR services provider, with a service centre in Mauritius, that offers innovative cloud technology solutions worldwide, tailored to customer requirements. With its extensive clientele and provision of services, this acquisition represents tremendous added value for SD Worx. In addition to this, SD Worx and Ceridian announced a strategic partnership for the development and provision of Human Capital Management cloud software in Europe. Ceridian will further expand its award-winning Dayforce HCM platform with its own British payroll administration and global applications for managed payroll, staff administration, as well as personnel and talent management.
SD Worx will resell Dayforce HCM into international organisations with various branches in Europe. This bundling of expertise will further accelerate expansion in Europe and reflects the strategy of SD Worx to continue its international growth and consolidate its position on the market.
SD Worx UK & Ireland @SDWorxUKI
SD Worx UK & Ireland @SDWorxUKI
A welcome from our CEO Steven to
We work with #customers of all sizes
our @SDWorxUKI and @SDWorxMau
and industry sectors, in the UK and
colleagues! #inspire
globally. Meet some of our customers ceridian.co.uk/our-customers
SD Worx UK & Ireland @SDWorxUKI
SD Worx Mauritius @SDWorxMau
SD Worx complete purchase of
We had a great welcome event with our
Ceridian UK & Ireland in full share
@SDWorxBelgie colleagues! View more
price. What does this mean for our
photos here t.co/ocDtuSX2Es
customers? t.co/xH2yOSo8Lg
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OUS
#TSEMBLE
SD Worx made quite the entrance onto the British market. Last autumn, SD Worx won no fewer
than three prestigious awards: Payroll Provider of the Year and Best Employer in Payroll at the Payroll World’s Awards, and Caring Employer of the Year at the CIPP Awards. Four trophies, to be exact: at the CIPP Awards, I was elected Payroll and Reward Professional of the Year.
the company proud. When my name was announced as the winner, I couldn’t stop shaking and I’d never felt more delighted, it was the best feeling ever!”
I was especially honoured because both my manager and a customer had nominated me. Since it was the first time that SD Worx competed, I was really keen on winning and making
SD Worx UK & Ireland @SDWorxUKI
SD Worx UK & Ireland @SDWorxUKI
SD Worx UK & Ireland @SDWorxUKI
Our recent @Payrollworld awards
Caring Employer Award 2016 proudly
We're incredibly proud of Lorraine
proudly displayed at the @SDWorxUKI
displayed at the @SDWorxUKI HQ!
Scrimshire, winner of Payroll & Reward
HQ! #proud #inspire #PayrollLeader
#Proud #Inspire #CaringEmployer
Professional of the year! @CIPP_UK Awards #ACEspotlight #INSPIRE
– Loraine Scrimshire, Operations Team Manager (UK)
S
BL E
M
EN
W HA ORK RD !
“The year 2016 was an amazing one, a milestone and probably the highlight of my career. That really means something, as I’ve been in the business for over 40 years. Of course, it was the year of the merger with SD Worx – an exciting change for us all that holds great promise when it comes to broadening our services and knowhow.
USLE #TSO M E B EN
All
RK WO D! R together HA
#T SE OU
Among the winners
y Pla ! d har
Pl ha ay rd!
EN
Promoting team spirit in an international group is a priority at SD Worx. K We RWe O are extremely committed to this, even within our various divisions. W D!bring R a Proxy all 500 employees of the SME division together every 18 monthsA for H Night staff party to encourage them to get to know one another better, or to strengthen existing ties. Things like this make working together so much more pleasant. Under the name ‘Tous ensemble’ (‘All Together’ in English) we gave working together an extra boost during the last edition by making a book with stickers. By giving one another compliments, staff were able to collect and trade stickers. All of this took place through a specially developed website. Over 5,000 compliments were exchanged! At the Proxy Night surprise stickers could be exchanged for gifts, and we helped four happy staff members make a wish from their bucket list come true. Response was overwhelmingly enthusiastic and everyone genuinely felt ‘tous ensemble’.
y Pla ! d har
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E NTR E PRE NE UR
E MPLOYE E
Thanks to our staffs’ creativity and innovative drive, SD Worx has always been able to play a pioneering role. This is a position we cherish and aim to retain.
Hatching out new ideas at the SD Worx Innovation Lab Numerous innovative ideas originate on our work floor, but it frequently stops at just that. We therefore decided in autumn of 2016, to turn these ‘Eureka!’ moments into tangible products and set up the SD Worx Innovation Lab. In this creative incubator, staff are able to work out their innovative idea under the wings of SD Worx: during working hours, under allocation of a specific budget and with the help and expertise of their colleagues.
Although no idea sounds too outlandish to us, not every suggestion is given the goahead. Still, failure is allowed. What is most important is that creativity is sparked. This is why we also plan to regularly organise workshops and inspiration sessions at the SD Worx Innovation Lab. Our aim is for innovative thinking to become a second nature, and for us to join forces in brainstorming about a vision for the future of our organisation.
Every idea is put through a series of steps: from the initial elevator and start-up pitches to its concrete finalisation within the context of a corporate start-up. A coach provides the necessary guidance.
We initially launched the innovation platform in Belgium, the UK and Mauritius, but we plan to ultimately roll this out throughout the entire group.
03.Motivated to contribute to the betterment of society
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As an organisation, SD Worx wants everyone to benefit from our activities: not only our customers and our staff, of course, but also the social framework in which we operate. This is why, ever since our establishment, we have been organising initiatives that enable us to give something back to society. Our staff have been contributing to these projects whole-heartedly. They are passionate supporters and do more than simply applaud from the sidelines. They regularly make concrete efforts to achieve these societal goals. Reciprocally, SD Worx also supports the numerous social projects proposed by its staff. Our annual CSR report can be downloaded from www.sdworx.com/csr with extensive information about our efforts in corporate social responsibility in Belgium. Still, there are two captivating examples we wish to highlight in this annual report: a Belgian and a British initiative.
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Giving back with the PayBack Foundation In 1997, Ceridian UK – now SD Worx – started the PayBack Foundation, and our colleagues are still running it to this day. The goal has also remained the same: to give back to the local community. Specifically, PayBack supports children up to the age of 17 in the immediate vicinity who have to contend with a physical or learning disability, or who are dealing with emotional difficulties. To this end, our British co-workers organise activities, promote fundraising and participate personally in various challenges. In the spring of 2016, the 5 Peaks 4 PayBack event took place. The goal: to conquer 5 peaks in only 48 hours. Some of our Belgian colleagues – with two members of our Executive Committee amongst them – tackled the challenge. The Tour D’Worx, which took place at the end of summer
Giving youths opportunities at City Pirates Antwerp football club 2016, is another example, involving a cycling tour from Reading to Royal Tunbridge Wells in the United Kingdom, and then from Dunkirk in France to Antwerp in Belgium. Among other cyclists, our very own CEO, Steven Van Hoorebeke, had his feet on the pedals in this event.
PAYBACK MAKES A DIFFERENCE In total, we have collected over 660,000 euros through the PayBack Foundation. For more than 600 youngsters, PayBack has been a ray of hope in their lives. These are amazing results that come mainly from the network of our colleagues and their families!
SD Worx België @SDWorxBelgie
SD Worx UK & Ireland @SDWorxUKI
SD Worx UK & Ireland @SDWorxUKI
SD Worx UK & Ireland @SDWorxUKI
Job well done! Proud of the team!
We wanted to ‘pay back’ our local
Good luck to our Tour D’ Worx team
Good luck to our colleagues taking
We fundraised over 32,000 euro!
communities, and in 1997, we created
with their epic cycle from Reading to
part in the #5Peaks4PayBack #charity
@Ceridian_UK @CeridianPayBack
our #charity @PayBack_Family
Antwerp to raise money for @PayBack_
challenge over the next few days
#5peaks4payback
#charitytuesday sdworx.co.uk/payback
Family https://t.co/UIRZSBoFEt
https://t.co/woyw2cNAI1
Ever since 1999, the SD Worx Fund supports initiatives to guide underprivileged young people in the process of finding gainful employment. In 2016, we sponsored City Pirates Antwerp, a socially engaged football club with activities in various districts in Antwerp. City Pirates Antwerp has over 1,000 youth players representing over 80 nationalities. Many of them come from underprivileged families and have learning disabilities. Every player is given the chance to develop into a football player, in which attention is paid to the game, nutrition, power training and medical follow-up.
Aside from this, the football club invests in social impact by presenting itself in public places, with home and school visits and targeted tutoring: all with a view to prepare these youngsters for the labour market. City Pirates Antwerp acts as a social platform where children and their parents, employees, volunteers and sponsors all work in unison towards creating a better city.
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Corporate governance Corporate governance is an inextricable part of the ‘core’ of our mission. As an organisation, we adhere to the principles prescribed by good corporate governance. 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 a constant focus on ethically responsible entrepreneurship and constructive collaboration.
04.Corporate governance
General assembly
Board of directors
POWERS
TASK
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 from services rendered; approval of the budget (NPO) and annual accounts; and profit appropriation (limited company).
The Board of Directors has a strategic and control function and ensures that the company operates with maximum efficiency. In practice, the Board of Directors outlines the mission, strategy and general policies. Decisions concerning organisational structure, reorganisation, cooperation agreements, mergers and take-overs are also part of its remit. 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. COMMUNICATION Each year the Board of Directors compiles a detailed annual report, which outlines the company’s current status, possible risks and future prospects. 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.
Back row, from left to right: Dirk Collier Patrick De Vos Jan Van Acoleyen Steven Van Hoorebeke Frederik Van Bladel Koen Van Gerven Front row, from left to right: Riet Docx Filip Dierckx Tea Colaianni
STRUCTURE OF THE BOARD OF DIRECTORS
Not on photograph: Marc Binnemans Michel Delbaere
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 a minimum of eight and a maximum of 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 CEO.
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Committees Executive Committee
The Board of Directors is assisted by three committees: the audit & risk committee, the remuneration and appointment committee and the strategic committee. They provide 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.
AUDIT & RISK COMMITTEE The Audit & Risk Committee assists the Board of Directors in exercising its auditing role, notably in terms of providing financial information, risk management and compliance, internal audits, internal review systems and external auditing. Members Frederik Van Bladel - Chairman, Filip Dierckx, Patrick De Vos and Riet Docx STRATEGIC COMMITTEE
Back row, from left to right: Tom Wouters – Director Large Enterprises Belgium Sige Mariën – Director Consulting Hilde Haems – Group HR Director Thierry Vanbever – Director Global Services & Solutions Steven Van Hoorebeke – Chief Executive Officer Anne-Marie Cootjans – Chief Corporate Services Eric Janssens – Director Division SME Belgium Front row, from left to right: Hector Vermeersch – Chief Financial Officer Jean-Luc Barbier – CEO Germany Henri Vanroelen – Chief Information Officer Not on photograph:
Doug Sawers – Managing Director UK & Ireland
The Strategic Committee helps the Board of Directors and formulates recommendations regarding the execution of its strategic and controlling responsibility, i.e. the definition of the mission, the values, the strategy, the general policy lines and the long-term objectives of the company, as well as the taking of important strategic decisions such as reorganisations, cooperation agreements, mergers and take-overs. By majority decision, the Strategic Committee has the ability to call on the advice of outside experts and invite them to its meetings, as and when necessary. Members Filip Dierckx - Chairman, Marc Binnemans, Dirk Collier, Patrick De Vos and Riet Docx 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. Members Dirk Collier - Chairman, Filip Dierckx, Frederik Van Bladel and Jan Van Acoleyen
05.Annual figures
Annual figures 2016
TOTAL TURNOVER
432,389
284,449 310,406
2015 399,143
ASSETS
2015
11,171
1,951,667 2016
213,813
306,736
ICT costs
12,777
20,994
Office & administration costs
18,908
19,727
Personnel & fees
38,275
Promotion costs
2015
47,691
FIXED ASSETS
2016 219,433
6,064
8,257
Depreciations
14,387
16,017
Miscellaneous costs
-2,411
5,359
Taxes
7,510
7,608
Minority interest
1,083
0
CURRENT ASSETS
2016 1,858,194
272,131 384,698
FIXED ASSETS
2015
2016
Intangible fixed assets & consolidation differences
13,612
154,038
Tangible fixed assets
71,055
63,657
Financial fixed assets
1,163
1,738
CURRENT ASSETS
2015
2016
Receivables on +1 year
15,201
9,221
Receivables on -1 year
40,106
81,916
Investments
702,098
533,153
Liquid assets
1,175,629
1,218,062
18,633
15,842
Accrued and deferred accounts 2015
2015
2016
COSTS
Equity capital (excl, result)
2015
2016
357,566
393,372
3,301
0
38,275
47,691
2015 3,259
TOTAL OF PROVISION
2016 8,920
PROVISION
2015
2016
Provision for risks & liabilities
3,259
8,920
2015
2016
2015
2015
PROFIT
441,063
EQUITY CAPITAL
Minority interest
4,840
30,383
2016
2016
profits from assets
profits from operations
85,830
2015
TOTAL EQUITY CAPITAL
Results for the year
14,786
397,166
2016
SD Worx vzw HR Worx nv SD Worx for Society cvba-vso SD Diensten nv Aspex nv IVD nv LWB nv Sodeco nv SAK nv Protime group Hazel Heartwood cvba SD Worx sa (Luxembourg) SD Worx Nederland bv SD Worx France sas SD Worx GmbH (Germany) fidelis HR GmbH (Germany) SD Worx Switzerland AG SD Worx Austria GmbH AG SD Worx UK Limited SD Worx Ireland Limited SD Worx Mauritius Limited
LIABILITIES
PRO FORMA CONSOLIDATED BALANCE SHEET OF THE SD WORX GROUP (in € 1,000)
FINANCIAL PROFITS INCLUDED
2015
COMPOSITION OF SD WORX GROUP
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PRO FORMA CONSOLIDATED PROFIT-AND-LOSS ACCOUNT OF THE SD WORX GROUP (in € 1,000)
2016
The pro forma consolidated financial statements of the SD Worx group contain a concise summary of the annual financial statements of the entities of the group. The statutory auditors have given their unqualified approval to the annual financial statements of the individual entities.
2016
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2015 1,635,099
TOTAL DEBTS
2016 1,627,645
DEBTS
2015
2016
SDebts over +1 year
1,992
28,726
226
7,182
1,568,039
1,491,041
Trade debts
15,982
28,704
Debts concerning tax & remunerations
37,164
56,483
Debts over -1 year Customer funds
Other debts
2015 2,037,499
TOTAL ASSETS
2016 2,077,627
2015 2,037,499
TOTAL LIABILITIES
2016 2,077,627
Accrued and deferred accounts
963
2,613
10,733
12,896
R.P. Steven Van Hoorebeke. Printed on eco-friendly FSC paper with vegetable based inks. 2017 Š SD Worx - All rights reserved.