This article will explain how the system looks-up rates to determine which Pay/Charge rates will be applied when making a Temp booking.

Contents (Click item to jump to section)

TABLE OF CONTENTS

• OVERVIEW OF RATES (Lookup Process)
  • Worked Example of Lookup Process
• 1. RATE CARDS (Adding Rates)
  • i) Adding Rate Card to Booking Match
  • ii) Adding Rate Card to Candidate
  • iii) Adding Rate Card to Site
  • iv) Adding Rate Card to Client
  • v) Adding Rate Card as Rate Band (Global Rate)
• 2. RATE CARDS AUTO-FILL
  • i) Setup Auto-Filling of Rate Cards
  • ii) How to use the Auto-Fill of Rate Cards
    • Optional - Set Charge Rates based upon PAY rates.
  • iii) How to Copy Rates within a Rate Card
• 3. GLOBAL RATES (RATE BANDS)
  • Adding new Global Rates (Rate Bands)
  • Pointing a Client at a Rate Band
  • Example:
  • How the Age Bands Work
• 5. CLIENT CHARGE UPLIFT % OF PAY
  • Setup
  • Usage (Adding Rates)
  • Explanation of Markup% / Margin% / Amount
    • Margin%
    • Markup%
    • Amount
• 6. RATES CALCULATOR
  • Rates Calculator - Simple Mode vs Advanced Mode
  • Worked Examples of Using the Calculator
  • Rate Calculator - Margin% vs Markup%
• 7. EXPORTING PAY & CHARGE RATES
• 8. NON-HOURS RATES
• 9. ROLLED-UP PAY TYPE (Available From v1.00.24.175 or later)
  • Rolled-up Pay Rates - Setup
  • Rolled-up Pay Rates - Where are they seen?

OVERVIEW OF RATES (Lookup Process)

When using the Influence system to book Temporary workers it is possible to store pay and charge rates in the system. When a booking is made, the system will attempt to look-up the correct pay/charge rate applicable to the booking.

This lookup process runs though a hierarchy which is described below.

(Example screenshot showing some of the rates which are considered)

When looking for a rate the system checks in the order shown below, i.e.

*Booking Match =>> Candidate ==> Requirement ==> Site ==> Client ==> Rate Band (Global) ==> Global

* These additional items may not be on all systems; if they do not exist on your system you will require an update to get these new features.

PLEASE NOTE: When looking up rates, if using parents/subsidiaries for clients, then parent company is not considered during the rate lookup process. In those instances you may wish to use 'Global Rates' instead, and point the subsidiary firms at a centrally created set of 'Global' rates instead.

As well as the above, the system will also look for AGE  and AWR (Equivalent) rates.
AWR is taken in precedence to AGE.

As soon as a number is found for a rate, that number is used. If there is no number (i.e. the rate is £0.00) the system keeps looking to find a rate.
When looking for rates the system looks for the most applicable rate, i.e. If the candidates was Over-25, then the system might go past rates held at the requirement and site level to find a specific "Over 25" rate card at a lower level.

In the example above, you can see that the rate for O/T 2 is the same for the requirement and Client. In this case the rate used is that from the Requirement because it is found first.

e.g.

Clicking [Rate Source] gives

In this example you can see that the PAY rates for Basic/Overtime come from the Candidate, but the Charge Rates come from the Client.

Worked Example of Lookup Process

Below is a worked example using the data listed below, showing how the parameter setting affect the lookup process.

A) In the 'normal' Setting the system will get:
Basic Pay Rate: £14.50 (taken from Candidate)
O/Time Pay Rate: £12.99 (Taken from client, ovr25 rate)

Basic Charge Rate: £15.99 (Taken from client, ovr25 rate)
O/Time Charge rate: £16.99 (taken from client, ovr25 rate)

In this case most rates come from the Client, since the system keeps looking for the 'Most' applicable rate, which the over25 rate found at client level.

B) With parameter BOOKREQ, flag(27) set. (i.e. STOP at Requirement)
Basic Pay Rate: £14.50 (taken from Candidate)
O/Time Pay Rate: £14.00 (Taken from Requirement)

Basic Charge Rate: £17.00(Taken from Requirement)
O/Time Charge rate: £16.99 (taken from client, ovr25 rate)

In this case rates generally come from the Requirement, except for the O/T charge rate which was zero, so the system keep looking for a number.

C) With parameter PayrollB, flag(37) set. (i.e. STOP at as soon as any rate card is found)

Basic Pay Rate: £14.50   (taken from Candidate)
O/Time Pay Rate: £14.00 (Taken from Requirement)

Basic Charge Rate: £17.00(Taken from Requirement)
O/Time Charge rate: £0.00 (taken from Requirement)

In this case, ALL rates, except the Basic Pay Rate come from the requirement, because it has found a Rate Card, and stopped.

1. RATE CARDS (Adding Rates)

Rates can be added in several places. When trying to find a rate to apply to a booking the systtem will look throught these in Order (as discussed above).  I.E.

*Booking Match =>> Candidate ==> Requirement ==> Site ==> Client ==> Rate Band (Global) ==> Global

i) Adding Rate Card to Booking Match

Go to the worker, and choose the [Work History] tab

Click the Navigator (>) to open the relevant Booking Match, then select the [Rates] tab and add new rates.

THESE RATES WILL BE APPLIED FIRST, AND ARE SPECIFIC RATES FOR THAT WORKER AT THAT SITE.

ii) Adding Rate Card to Candidate

Go to the worker, and choose [Controls] tab (sometimes labelled as Banking Details )

Click at the bttom left where is says <<Add>> to add new rates for the candidate.

THESE RATES WILL BE APPLY FOR THAT WORKER AT ANY SITE THEY GO TO, UNLESS THERE ARE 'BOOKING MATCH' RATES FOR THAT ASITE (AS ABOVE).

iii) Adding Rate Card to Site

Go to the Company, and use the 'Branch' drop-down to select the relevant Site (branch).

Then choose the [RATES] tab.

Click <<Add>> to add new rates specific to that Site within the client.

THESE RATES WILL BE APPLIED TO ANY WORKER BOOKED AT THAT SITE (UNLESS THEY HAVE THEIR OWN CANDIDATES RATES, OR 'BOOKING MATCH' RATES)

iv) Adding Rate Card to Client

Go to the Company and ensure that you have selected the branch as All - xxxxxxxxx 

Select the [Rates] tab and use <<Add>> to add rates which will be applied for that Company.

THESE RATES WILL BE APPLIED TO ANY WORKER BOOKING AT THAT COMPANY, UNLESS THERE ARE SPECIFIC SITE RATES, OR THE WORKER HAS RATES OR THERE ARE BOOKING MATCH RATES.

v) Adding Rate Card as Rate Band (Global Rate)

Go to Maintenance >Tools > Pay and Charge Rates

Use the drop-down at the bottom of the page to select the relevant Rate Band (Global Rate)

Click <<Add>> to add new rate cards relevant for any client who has been pointed at that Rate Band.

THESE RATES WILL BE APPLIED TO ANY CLIENT WHO IS POINTED AT THE SELECTED RATE BAND, UNLESS THE CLIENT/SITE HAVE THEIR OWN RATES, OR THE WORKER HAS THEIR OWN RATES, OR THERE ARE RATES AGAINST THE BOOKING MATCH.

2. RATE CARDS AUTO-FILL

When setting up RATE CARDS for clients, it is possible to get the system to "Auto-Fill" the Card, based upon some 'RULES'

e.g. If Overtime rate is always 1.5x the 'Basic' rate, and Sat/Sun is always Double the 'Basic' rate, then this can bet setup, and entering 'Basic' will automatically fill-in the other rates.

The feature is controlled with some system settings and parameters which are described below:

i) Setup Auto-Filling of Rate Cards

Login as a high level user (such as ADM) and go to

Turn on the Auto-Fill Feature

Maintenance > Setup > Parameters

Open the parameter set PAYROLL, and set PAYROLL, Flag(8) to Y  

This tells the system to use the Auto-Fill feature.

Setup the Auto-Fill Feature Rules (Multipliers)

Now go to

Maintenance > Setup > Code Tables

Open the code table Pay Code [154] and tick the 'Extra Info[  ]' box
Use the column labelled 'Multiplier' and set this appropriately for any Rates which you wish to be calculated from 'Basic' rate, and leave as ZERO for others.

ii) How to use the Auto-Fill of Rate Cards

To use the Auto Fill feature for Rate cards, all you need to do is start creating a rate card.
i.e.
Got to the [Rates] tab of a client record and click <Add New Rate>
When you being to create the Rate Card, as soon as you enter a value for the BASIC rate, it will auto-fill down the column and set the rates for others, based on the multipliers you setup.

e.g.  Type a Pay Rate of £10.00 to fill-down the PAY column,
Type a Charge Rate of £14.35 to fill-down the CHARGE Column.

EXAMPLE:

Optional - Set Charge Rates based upon PAY rates.

It is possible to set values on the [Accounts] tab of a client record  which will auto-calculate the Charge Rate using the 'Pay' Rate.  You can set the Uplift Type to Margin% or Markup %, and then set a value.

iii) How to Copy Rates within a Rate Card

As well as the  Auto Fill feature for Rate cards, there is a useful COPY RATES feature at the top-right of the Rate card.

This lets you copy a full set of Rates from one column to another,

e.g. PAYE to Limited (or Umbrella)

This means that once a particular set of Rates has been completed they can be copied to one of the other TYPES

e.g. You could complete the LTD Co. Rates and then copy all those figures into the Umbrella Co. Rates without the need to re-key them.

3. GLOBAL RATES (RATE BANDS)

When creating rates it is typical to setup rates againsta  specific Client with the Pay/Charge rates specific to that company.

However, if several companies are part of a larger group, it if often useful to setup Global Rates. Having setup a Global Rate/Rate Band it is possible to point several companies at this central set of rates instead of needing to setup those same rates multiple times.

Adding new Global Rates (Rate Bands)

The names for the various Rate Bands are held in the code table called Global Rates Table [236]

New Rate Band names  can be added in the following way (or from within the Pay & Charge Rate setup as above).

STEP 1: Create a new RATE BAND

Go to Maintenance > Setup > Code tables  and open the Global Rates Table [236]

Scroll to the bottom of the list, add a new code, then press and add description.

STEP 2: Enter the Gobal Rates

Once you have created the Rate bands you can add rates to these bands as below. 

To do this go to Maintenance > Tools > Pay and Charge Rates.
Once the screen opens use the Rate Table drop-down at the bottom of the screen to select the relevant Rate band.

You may then add new rates using  the <>  Add New Rate option in the table above.

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Pointing a Client at a Rate Band

To point a client to a particular Rate Band open the client record and choose the [Rates] tab. Use the drop-down to select the relevant Rate Band.

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How It works

When you make a booking at the client, and choose a ROLE, the system will try to look-up the RATES applicable to that booking. The system will check for RATES in a specific order.

The system will look in the order

Booking Match > Candiddate > BOOKING REQUIREMENT* > SITE > CLIENT > RATE BAND > GLOBAL RATE

(* Not all systems use Booking Requirements, and most would not have or skip this step)

Example:

Client ABC Ltd uses Rate Band 3

Client Rate: Typist => Pay: £9.12 / Charge £13.63

Rate Band 2: Gardener => Pay: £9.50 / Charge £13.75    

Rate Band 3: Gardener => Pay: £9.99 / Charge £14.49

Global: Gardener => Pay: £9.95 / Charge £14.50 Typist => Pay: £9.95 / Charge £14.50
Brick Layer => Pay: £8.88 / Charge £13.22

1) If a booking were made at ABC Ltd for a Typist, they would be paid £9.12/Hr (taken from Client Rate)

2) If a booking was made for for a Gardener, they would be paid £9.99/Hr (As there is no client rate the system looks at the Rate band 3)

3) If a booking was made for a Brick Layer, they would be paid £8.88 (this comes from the 'Global' rate as there are no rates at either the Client level, or at the Rate band level)

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4. AGE RATES / AGE BANDS

When setting up Rates is is possible to specify an Age Range which will apply to the specific Rate Card (See below)

How the Age Bands Work

The Not Specified age description covers all ages IF age has not been specified within the rate table. Not Specified currently covers ALL ages below:

If you specify 25 or Over in the rate table then Not Specified will apply to ages under 25, but those over 25 will get the  25 or Over rate. 

If you then specify Under 21 age in the rate table then the Not Specified age will cover ages 21, 22, 23 and 24.

As per the examples above, Not Specified age description covers two functions:
1) Covers ALL ages - where the age has not been specified within the rate table.

2)  Covers ages 21, 22, 23 and 24 (where Under 21 + 25 or Over ages have been specified within the rate table).

5. CLIENT CHARGE UPLIFT % OF PAY

It is possible to setup an uplift% on a client to calculate the Charge Rate as a %age increase over the pay rate. This uplift% can be specified on a client-by-client basis, so that different clients may have different uplifts applied.

Once an uplift% has been specified the uplift will be automatically applied when adding rate cards to the client.

Setup

On the [Accounts] tab of a client record you can use the drop-down to set the 

Uplift Type: (Margin% / Markup % / Amount )
Uplift Value: ??     (i.e. The value of the margin, markup or amount you wish to add)

Usage (Adding Rates)

Having specified the agreed Markup, Margin or amount for this client, you can then proceed to add rates for specific roles.

Go to the [Rates] tab of the client record and click the <> item to add a New rate.

As you complete the grid and use  to move through, the system will calculate the relevant charge rate based upon the pay rate you have entered.

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Explanation of Markup% / Margin% / Amount

There are three different choices which can be recorded on the [Accounts] tab, and they are best illustrated by examples:

Margin%

This is defined as (Charge Rate - Pay Rate) / Charge Rate
e.g. If you pay £10.00/Hr a 20% Margin  will give  Charge = £12.50
i.e. (£12.50 - £10.00) / £12.50 = 0.2 (i.e. 20%)

Markup%

This is defined as (Charge Rate - Pay Rate) / Pay Rate
e.g. If you pay £10.00/Hr a 20% Markup will give  Charge = £12.00
i.e. (£12.00 - £10.00) / £10.00 = 0.2 (i.e. 20%)

Amount

This is simply a fixed amount added to the Pay Rate + Additions
e.g. If you Pay £10.00/Hr and apply a £3.00 ammount, then the total 'cost' is  £12.87  so the charge is £15.87

(£10.00 +  WTD/Holiday (£1.21) + NI (£1.55) + Pension (£0.11) = £12.87 )

6. RATES CALCULATOR

The Rate Calculator can be accessed from the toolbar at the top of most areas of the system, from the Booking Entry screen whilst making a Temp booking and also from within the Placement screen when placing a contractor.

The rates calculator is a flexible tool that can be used to calculate multiple values.

Many of the figures at the top of the screen are used in making the calculations and the initial values are defaulted from parameters held within your Influence system.

NOTE: The default values for the above fields can be stored in the system parameters and can easily be changed if values such as the NI contribution changes in future. They are stored in the CALCULATOR parameter set. To amend the default values go to Maintenance > Setup > Parameters Choose File > Open and then open the parameter set called CALCULATOR

Rates Calculator - Simple Mode vs Advanced Mode

When using the Calculator, there are two modes - SIMPLE and ADVANCED.

SIMPLE MODE

In simple mode just put the dot next to the item you want to calculate, and enter figures for the other two.

e.g. To calculate Margin% put the dot there, then enter the Charge rate and Pay Rate,

ADVANCED MODE

You can select advanced mode by clicking the [Advanced] button. In advacned mode you can amend other figures affecting the calculations such as number of days' holiday, Pension contriution %, NI Estimate, WTD Estimate, etc.

Worked Examples of Using the Calculator

The system can be used to estimate the Pay rate, charge rate or Margin, given the other two items.
(Versions after 1.00.17.019 allow you to specify a different pay rate for the calculation of holiday pay)

Whenever you are using the tool, simply put the Dot next to the item you want the system to calculate, and then enter the other two figures.

EXAMPLE 1  - Calculate the PAY rate if you know the Charge & Margin you want.

If you know that the CHARGE rate is £18.95/Hr and you wish to make a MARGIN of 15%, place the dot (l) next to the Pay 

The system will display the maximum pay you could give to achieve the desired margin. 

EXAMPLE 2  - Calculate the MARGIN you will make if you know the charge and PAY rate.

If you know that the CHARGE rate, you can keep adjusting the PAY as you negotiate with the candidate, and see what effect it would have on your Margin.

Place the Dot (l) next to Margin %. If you know the charge rate is fixed at £16.82/Hr then enter a PAY rate of £11.44, the system shows the MARGIN would be 13.25%   - If you then change the PAY to £11.75/Hr the margin reduces to 10.87%

Rate Calculator - Margin% vs Markup%

The system can be used to calculate values in two ways;

Margin%   : This calculates as (1 – (Cost of Sale/Charge)) x 100 %
                    Where Cost of Sale is the Total cost, including Pay Rate, NI, Holiday pay, etc.

Markup%            : When used with this selected the system will calculate  ( (Charge – Cost of Sale) / Charge ) x 100 %

Holiday Pay Rate: 

Sometimes in the case of workers being employed via an umbrella company it is possible that their hourly pay is different than the pay rate which they accumulate for holiday pay. If this is the case then enter the hourly rate for their holiday pay, otherwise it is assumed to be the same as the pay rate.

7. EXPORTING PAY & CHARGE RATES

From version 1.00.20.120 (or later) it is possible to export details of Client or Candidate Rate Cards into MS Excel. The details will be exported to a *.csv file, which is in the same format as used for importing rates, and can be opened/edited using MS Excel.

An example of the layout in the export file is shown below:

8. NON-HOURS RATES

When setting up Rate codes to add to a rate card, certain rates might be setup as Non-Hours rates. This is sometimes useful to add items such as 'mileage' or 'piecework'.

In this case there is a choice as to whether you want these non-hours rates to default into the Booking Entry screen as either "1" or "0"  - See below

This is controlled with parameter TEMPS, Flag(45)

9. ROLLED-UP PAY TYPE 
(Available From v1.00.24.175 or later)

Following a recent ruling, it is now becoming more common for workers to be setup as PAYE workers, but for their pay rate to be Rolled-Up i.e. The Pay Rate includes the WTD (Holiday Pay) within the rate, rather than being paid/accumulated separately.

To accomodate this, from version 1.00.24.175 or later, it is now possible to setup a Pay type for PAYE and indicate that it is rolled-up. On Rate Cards, there is an additional column added to accomodate these Rolled-Up pay rates.

Rolled-up Pay Rates - Setup

STEP 1: Create a Rolled-up Pay Type

Go to Maintenance > Setup > Codes Tables

Select system area C - Contact Managerment, then choose the Pay Type [166] code table.

Add a new Pay type (e.g. PU - PAYE (Rolled-Up), then tick Extra Info [  ] and set the PAYE Rolled-Up column to 1.0

STEP 2: Setup rate cards with Rolled-up Pay rates

When setting up RATE CARDS, you will see a new column to the right, titled PAYE Rolled Up

Use this column to record PAY figures that include the holiday pay within the value.

Rolled-up Pay Rates - Where are they seen?

When viewing these figures at varioius points through the system, the WTD will be set to zero to refleect the fatc that the 

holiday pay is already included in the Pay rate that has been set.  These are seen in several places.

TIMESHEET ENTRY 

SUMMARY FIGURES BELOW WORKEBENCH SCREENS

BOOKING ENTRY SCREEN

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