Chuck Allen, Director HR-XML Consortium, Inc. 2003 May 16 Le Tour De SIDES Chuck Allen, Director HR-XML Consortium, Inc. 2003 May 16 [ THIS IS INTENDED AS A STARTING POINT FOR PRESENTATIONS HR-XML MEMBERS MAY NEED TO MAKE REGARDING THE CONSORTIUM. PLEASE EDIT AS NECESSARY FOR THE SPECIFIC AUDIENCE OR VENUE. Send questions, comments, etc. to chucka@hr-xml.org Please feel free to submit revised versions.] Opening slide – Welcome, Introductions, etc. ]

Agenda What is SIDES? What are the origins of the SIDES initiative? What organizations are supporting SIDES? What are the business interests driving SIDES development/adoption? How does SIDES work? Le Tour de SIDES How to make SIDES relevant and useful around the World? How can you benefit from SIDES? [TO PRESENTER: 1. BRIEFLY REVIEW THE SUGGESTED AGENDA ABOVE 2. THIS IS A GOOD TIME TO LEARN ABOUT THE AUDIENCE TO WHOM YOU ARE PRESENTING. YOU MIGHT ASK FOR A SHOW OF HANDS TO FIND OUT: A. WHO AMONG YOU HAS SEEN A PRESENTATION ABOUT HR-XML BEFORE? B. HOW MANY OF YOU ARE VERY TECHNICAL (WEB APPLICATION DEVELOPERS, DATABASE ADMINISTRATORS)? AND HOW MANY OF YOU ARE ARE TECHNOLOGY DECISION MAKERS? AND HOW MANY ARE PRIMARILY INTERESTED AS IN THIS TOPIC USERS OF HR TECHNOLOGY? C. HOW MANY OF YOU ARE MEMBERS OF HR-XML? YOU ALSO MIGHT ASK IF THERE IS ANYTHING THAT IS NOT ON THE AGENDA THAT ATTENDEES HAD EXPECTED TO LEARN.]

What is SIDES? Staffing Industry Data Exchange Standards

What is SIDES? Staffing Industry Exchange Standards A broad set of specifications to enable the eProcurement and management of staffing processes SIDES has been built in a modular fashion Quote/Order process Human Resource information Basic request/response communication (Staffing Action) Assignment and rate information Timecard and expense information Invoice Looking into their respective crystal balls, I think it’s fair to say, the major staffing companies took a glimpse into the future and didn’t like what they saw Faced with escalating integration costs the world’s 6 largest staffing companies got together in April 2001 to discuss common date standards Why 6 companies? Enough to provide credibility, but not too many to slow the pace. Each company contributed money, people and, in some cases office space and equipment You’ll be reassured to know that an anti-trust lawyer was present throughout the process, a good Idea when competitors are discussing initiatives so they don’t stray into areas they shouldn’t We appointed the consulting Booz Allen Hamilton and its subsidiary Aestix to help form the technical strategy and documentation.

Establishing a Global Standard Original sponsors are international staffing providers with global operations – Strong desire to add localization/extensions to enable broad international adoption Contributors, so far, have come from the US, UK, France, Spain, the Netherlands and Australia Localization initiatives have begun in France, Netherlands Much interest in supporting a Japanese initiative The HR-XML leadership wants the Consortium to continue to operate as single, international organization that produces and approves HR-related specifications of broad international relevance. However, we recognize the necessity of developing extensions and localizations of our standards to make them relevant and useful locally. Each country has different jurisdictional requirements, relating to labour law, tax and social insurance. As much as possible, SIDES has been constructed in a generalised fashion which should work across different cultural contexts. However, country-specific requirements will require the creation of extension mechanisms. When are country-specific extensions/specifications necessary? When legal requirements dictate. Examples: French employment contract requirements, U.S. requirements with respect to health care continuation coverage (“COBRA”). In some cases, components in the base schema may need to be removed for legal reasons. When support for country-specific business practices are missing from base specifications produced by the Consortium.

What is SIDES? Began with the world’s six largest staffing companies collaborating to create a “strawman” specification Increasing client demands for staffing eProcurement Growth of independent Vendor Management market in North America. Desire to reduce integration costs Looking into their respective crystal balls, I think it’s fair to say, the major staffing companies took a glimpse into the future and didn’t like what they saw Faced with escalating integration costs the world’s 6 largest staffing companies got together in April 2001 to discuss common date standards Why 6 companies? Enough to provide credibility, but not too many to slow the pace. Each company contributed money, people and, in some cases office space and equipment You’ll be reassured to know that an anti-trust lawyer was present throughout the process, a good Idea when competitors are discussing initiatives so they don’t stray into areas they shouldn’t We appointed the consulting Booz Allen Hamilton and its subsidiary Aestix to help form the technical strategy and documentation.

What is SIDES? Donated a straw model to HR-XML in September 2001 for further refinement and ongoing development Original sponsors have since been joined by HR vendors, other staffing companies and government agencies Approved on May 1 2002

Staffing e-Transactions Today Automating the procurement of temporary staffing has many potential advantages The staffing systems environment is characterized by a great diversity of systems and a lack of agreed-upon mechanisms for integrating data across systems Connecting a staffing customer with a single supplier could cost $250,000 USD (or more) Connecting a customer with multiple providers could involve millions in integration costs, whether such integration is accomplished directly or through a vendor management solution

Customers’ Viewpoint CANDIDATE = JOE BROWN AVAILABLE_DATE = 12 JUL 01 PERSON_SURNAME = BROWN PERSON_FIRST NAME =JOE STARTDATETIME= 12:07:2001:0900:00:00 CONTRACTOR=JOE BROWN AVAILABLESTART=12/07/01 SUBJECT_LASTNAME=BROWN SUBJECT_FIRSTNAME=JOE DATESTARTMONTH=JULY DATESTARTDAY=12 DATESTARTYEAR=2001 CUSTOMER NOTE: The information sent back is not standard. Fields are defined differently

What Are the Business Drivers? Building and maintaining ‘unbounded’ unique interfaces is expensive for all parties in the supply chain Connecting a staffing customer with a single supplier could cost $250,000 USD Connecting with multiple vendors is extremely expensive whether such integration is accomplished directly or through a vendor management solution People are not pencils Many existing supply-chain management frameworks are designed for static inventory items and are not sophisticated enough for complex staffing transactions Customer expectations for seamless, web-enabled services continue to grow As we have discussed, the building of numerous interfaces is complex and costly. If we look into the future…online transations will require not only bolting up to individual clients, but also to collaborations of clients, to vendor management systems, to procurement systems such as Ariba or Commerce One Staffing interactions, in themselves, are very complex - “People not Pencils” - we do not offer clients a static catalogue -by the time the client has responded, the candidate has already accepted a booking somewhere else Our databases are very fluid Creation of common data standards is no mean achievement. Important though -because of course, demand is growing

Online Recruitment Trends The use of online recruiting tools is exploding Estimated annual growth rate of 45% 1999-2005 By 2005, 30% of small, 70% of medium, and 100% of large companies will be recruiting online Vendor Management market forecast to grow from its current nominal size to $10 billion by 2005 Customer Planned e-Staffing Use 2001 vs. 2003 Gather Staffing Company Info 37% 77% Submit Orders To Staffing Company 26% 78% Review Candidates From Staffing Companies 24% 74% Conduct Transactions 29% 71% Approve Time Records 34% 80% Receive Invoices From Staffing Companies Own research indicates that 3/4 clients believe that they will be making use of online tools to interact with us by 2003. - See chart on right Compound Annual Growth Rate of 45 percent At the moment, just large multinational clients are driving this trend however... By 2005, 30% small and 70% large medium clients will be recruiting online Trend will migrate down the food chain 35% 78% Provide Feedback To Staffing Companies 51% 79% 0% 20% 40% 60% 80% 100% 2001 2003 Sources: BA&H Market Study, Forrester Research, ABN AMRO Research, Robert W. Baird & Co., IDC

What Does SIDES Offer For Staffing Customers? Shortened order fulfillment Elimination of double-keying data and “phone-tag” scheduling and communications Accurate and timely invoicing Audit trail for efficient time card and invoice approval Opportunities for ‘self-validating’ documents and custom views of invoices and other documents Rich and structured data to use in assessing how well candidates match company requirements ·         Shortened order fulfillment cycle due (among other things) to front office integration with multiple vendors eliminating time-consuming and error prone rekeying and relaying of order data ·         More suitable choices of candidates due to the comprehensiveness and consistency of the criteria used to match requirements with qualifications ·         Streamlined communication facilitated by the use of the StaffingAction module. Phone tag scheduling and process oriented communiqués can be done online at the customer’s convenience Accurate and timely invoicing is greatly enhanced because the information contained in the invoice comes directly from customer confirmed assignment rates combined with customer approved timecard data

What Does SIDES Offer Staffing Companies and Intermediaries? Supply chain automation without the high-cost of building custom interfaces “Opportunistic” partnering Elimination of integration barriers and lengthy discovery periods for sub-contracting arrangements Doesn’t dictate business model or internal processes Allows suppliers to differentiate by building value on top of interchange standards Better alignment with emerging technologies Web Services, UDDI, etc Supported by IBM, Microsoft, Sun, and other technology leaders

How Does SIDES Work? SIDES was built in a modular fashion All modules can be used for full end-to-end processing or modules can be used for component-by-component implementations Major components include: Quote/Order process Human Resource information Basic request/response communication Assignment and rate information Timecard and expense information Invoice Quote/Order process (Information about a staffing requirement including position requirements, work environment, shift detail, rate ranges, etc.) Human Resource information (Detail about an individual’s experience, competencies, availability and preferences, if applicable) Basic request/response communication (Allows any partner to request or respond to a request for a specific action to be taken, information to be provided or contact to be made) Assignment and Rate information (Contains confirmed information about who is assigned, what rate has been agreed to, what date interval that the assignment is expected to last, etc.) Timecard and expense information (Uses an extended version of HR-XML’s timecard that contains SIDES specific reference and tracking identifiers and customer required reporting fields) An invoice (Uses the Open Applications Group’s 8.0 invoice with extensions containing SIDES specific reference and tracking identifiers and customer required reporting fields)

Staffing Industry Data Exchange Standards Overall Process Customer Intermediary Staffing Company Create Order Quote & Order StaffingOrder Document StaffingOrder Document Submit Order Distribute Order Receive Order Matching Submission HumanResource & Selection Document Select Staffing Present Staffing Propose Staffing Resource Resource Resource Accept Staffing Resource StaffingAction Assignment Document Submit Create Acceptance Distribute Acceptance Web Access Assignment Assignment to Internet Document Receive Assignment Application Show Assignment Submit Assignment Temp Populates Timesheet Generate Timesheet Time Sides-Extended Timecard Capture Document Customer Approves Receive Timesheet Distribute Timesheet Timesheet Process Timesheet Invoicing Billing Payroll StaffingInvoice StaffingInvoice Receive Document Document Distribute Invoice Submit Invoice Submit Payment Invoice Reporting Receive Report Distribute Report Generate Report

le Tour de SIDES This presentation is meant to be different from others you may have seen on the topic of standards. It is a tour of the processes that are the basis for Staffing Industry Data Exchange Standards (also known as SIDES). I am going to illustrate these processes by telling a story that will guide you through the SIDES transactions.

Our story involves le Tour de France Our story involves le Tour de France. As you know, this is a 3 week-long cycling race held in France each July. All the teams have websites that they update constantly throughout the race. For the purpose our story, one of these teams, US Postal Service, is going to hire someone to travel along during the race, update their website, and troubleshoot it as needed.

Review/Approve Invoices Place an Order Approve an Order Review Candidates Schedule Meetings Review Assignments Review/Approve Time Review/Approve Invoices Contingent Staffing Management System PLACE AN ORDER Order Approval Status: Requisition Number: Order Detail Order Status: Purchase Order: Order Type: P.O. Amount: Number of openings: Business Unit: Position Title: Order Summary Position Description: To begin the process of obtaining someone to do this job, the manager at the US Postal Service team, we’ll call her Manager Jane, logs into her company’s imaginary Staffing Management system (SMS), known as MARK V and creates a requisition for a temporary worker. The name MARK V comes from the original six companies that sponsored SIDES: Manpower, Adecco, Randstat, Kelly, Vedior and Spherion. From that, we got MARK V, with Spherion getting to be the supplier in my little story. Start Date: End Date: Estimated: Actual: Maximum Allowable Rate: per Allowable Expenses: CANCEL CONTINUE

PLACE AN ORDER >> Website Administrator >> Unapproved Approve an Order Review Candidates Schedule Meetings Review Assignments Review/Approve Time Review/Approve Invoices Contingent Staffing Management System PLACE AN ORDER >> Website Administrator >> Unapproved Technical Requirements: Level of Proficiency: Position Requirements Level of Proficiency: Interpersonal Requirements: Educational Requirements: Type: Subject: Language Requirements: Level: Read Write Speak Process Requirements: Resume Review? Interview? Drug Test? Background Screen? Web-based Staffing Management Systems are user-friendly applications providing “walkup” usage and minimal training time. On this screen, theVendor Management System allows the entry of all necessary information: dates, position description, maximum expected bill rate, desired skills and qualities, and contact information are entered into the system in order to fully describe the 3-week long assignment and the person best suited to fill it. Contact Information First day report to: Assignment Supervisor: Report to Location: Worksite Location: Order Placed By: Date of Order: Primary Supplier: Secondary Supplier: Contact number: BACK CANCEL SUBMIT

Review/Approve Invoices Place an Order Approve an Order Review Candidates Schedule Meetings Review Assignments Review/Approve Time Review/Approve Invoices Contingent Staffing Management System Efficiency #1: Reduction of time and effort spent on unapproved or unauthorized orders. PLACE AN ORDER Order Approval Status: Requisition Number: Order Detail Order Status: Purchase Order: Order Type: P.O. Amount: Number of openings: Business Unit: Position Title: Order Summary Position Description: A key efficiency offered by these Staffing Management Systems is that they streamline and control the internal workflow approvals required by the customer organization. A key feature of SIDES is that it can clearly communicate the status of an order, whether it is fully approved, or if it is being sent unapproved to provide a “heads-up” to the staffing supplier regarding a staffing need in the near future. This often happens in the case of large orders forecasted for the future – for example, we’ll need 40 customer service people in January [pop up] Suppliers and customers can now better manage their time spent on recruiting and interviewing for both authorized and unauthorized requirements. Start Date: End Date: Estimated: Actual: Rate Range: to per Allowable Expenses: CANCEL CONTINUE

SIDES StaffingOrder Document Send an Order Once all approval and quality checks are complete, the order can be transmitted to the chosen vendor, “Squarion” via a SIDES StaffingOrder transaction. A key to the HR-XML standards is the concept that a sender and a receiver agree to a trading partner relationship. It is vital that a sender can send a transaction and have the reasonable expectation that the receiver will begin to act on that data in a predictable and agreed-to way. Similarly, the receiver knows that when it receives a transaction from the sender, that transmission will contain all of the data necessary for the receiver to begin the next stage of its process, in this case, candidate recruiting, qualification and matching. An thus, a SIDES staffing order message is sent from USPS to Squarian.

Squarion Front Office System Add Employee Edit Employee Add Customer Edit Customer Add/Import Order Edit Order Search Employee Search Customer Search Order Match to Employee Search by Skills Create Assignment Edit Assignment End Assignment Create Reports Evaluate Performance Search Assignments Access Time Records Req for Inv? ORDER - Imported Order Number: Job Title: Order Source: Order Status: Source Order ID: Start Date: Client Name: Est. End Date: Client ID: Position: of Bill to Contact Name: Position ID: Bill to Contact Address: Client PO Number: Min Rate: Client PO Amount: Max Rate: Job Description: Work Environment: Skill requirements: Squarion receives the transmission and loads it into their Front Office system where the technology they’ve developed and optimized can be used to find and match registered temporaries to the assignment. The use of SIDES does not determine what the internal application looks like or how it works. Every vendor is different and has a tremendous amount of intellectual property invested in making these Front Office applications the best-suited for their particular business processes. SIDES simply provides a way to communicate all of the data necessary for any vendor to begin the next step in their process. It does not dictate how that step is done or what functionality the applications have. Other requirements: Skill: Level: Code: Requirement Type: Requirement Detail: Contact1 name: Additional Detail: Contact1 Type: Contact1 Info:

Matched Employees Results Squarion Front Office System Add Employee Edit Employee Add Customer Edit Customer Add/Import Order Edit Order Search Employee Search Customer Search Order Match to Employee Search by Skills Create Assignment Edit Assignment End Assignment Create Reports Evaluate Performance Onboard / Offboard Access Time Records Matched Employees Results SKILLS ASSIGNMENT HISTORY Employee Name: HTML Programming 03/01/02 – 06/30/02 Customer A / Excellent Employee Number: Visual Basic Address: French - Fluent 12/15/01 – 02/25/02 Customer B / Excellent Address2: AVAILABILITY MATCHING CRITERIA City: 7/3/02 – 7/30/02 - Open 08/05/01 – 12/12/01 Customer C / Excellent CANDIDATE #1 State, Zip: OTHER CRITERIA Negative Drug Screen within 30 days 07/02/01 – 07/31/01 USPS / Excellent Country: Phone1, Type: Phone2, Type: View Employee Detail Submit as Candidate Proposed Rate: Email: SKILLS ASSIGNMENT HISTORY Employee Name: Slight differences yield different rates. HTML Programming 01/02/02 – 06/29/02 Customer W / Excellent Employee Number: Visual Basic Address: French - Fluent 10/15/01 – 12/20/02 Customer X / Excellent Address2: AVAILABILITY MATCHING CRITERIA For the purpose of our story, Squarion finds two different candidates, which will result in two SIDES HumanResource documents being sent back to USPS through the MARK V system. Each worker has similar skills and would be rated, on any scale, as equivalent workers. However, there is one major difference between the two candidates. [pop up] Doug Ellenberg did the assignment for last year’s race, and therefore is requesting 5 EUR more per hour than the second candidate. The difference between the skills of candidates can be very slight, yet can justify a definite price differential. On any other assignment, these two would be paid the same. This concept that seemingly identical skill sets can command different prices from one situation to the next presents a huge challenge in the electronic procurement of staffing. The SIDES HumanResource transaction is flexible and detailed enough to allow this level of information to be transmitted and taken into consideration by the customer. City: 7-3-02 – 7-30-02 - Open 03/05/01 – 10/12/01 Customer Y / Excellent CANDIDATE #2 State, Zip: OTHER CRITERIA Negative Drug Screen within 30 days 09/04/00 – 02/27/01 Customer Z / Excellent Country: Phone1, Type: Phone2, Type: View Employee Detail Submit as Candidate Proposed Rate: Email: View Level 2 Matches Schedule Interviews Submit Employee

SIDES HumanResource Documents Submit Candidates Thus, the two candidates – Doug and Ellen – are submitted to USPS.

Review/Approve Invoices Place an Order Approve an Order Review Candidates Schedule Meetings Review Assignments Review/Approve Time Review/Approve Invoices Contingent Staffing Management System Requisition Number: 123456-TDF2002 REVIEW CANDIDATES Position Title: Website Administrator POSITION REQUIREMENTS: CANDIDATE 1: CANDIDATE 2: Candidate Name: (Click to review profile & resume) DOUG ELLENBERG ELLEN DOUGLAS Technical Requirements: MEETS REQUIREMENT MEETS REQUIREMENT Interpersonal Requirements: MEETS REQUIREMENT Educational Requirements: MEETS REQUIREMENT The Staffing Management system, depending on its design and functionality, will present the candidates to Manager Jane, and allow her to compare them. A common scenario would be to schedule interviews. SIDES provides a flexible request/response document called a StaffingAction that can be used for this purpose. Type: MEETS REQUIREMENT MEETS REQUIREMENT Subject: Language Requirements: MEETS REQUIREMENT MEETS REQUIREMENT Level: Cost: € 32.00 - 35.00 per hour € 38.00 € 35.00 Did this assignment for the 2001 TDF with an excellent performance rating Other:

SIDES StaffingAction Document Request - Schedule Interviews Interviews Wednesday. Ellen at 3:00pm and Doug at 4:00pm The Staffing Management system can send the request to interview a particular candidate along with suggested times and locations using the StaffingAction Document.

SIDES StaffingAction Document Response - Confirm Interview Schedule Interviews Confirmed After consultation with the candidate, the Staffing Agency can respond via the same StaffingAction document type confirming the scheduled activity. There are many communications that occur in the evaluation and selection process that are not easily quantified: requests for more information about a particular skill or position; negotiation of interview times and locations; or negotiation of the rate. No system or standard can take the place of an educated conversation that occurs between a staffing agency and its customer. Understanding the customer’s need and providing the right person to fill it is the very essence of the staffing business. What SIDES adds is a method to document these communications in a structured way that can be audited and eventually measured.

SIDES StaffingAction Document Request - Rate Negotiation Want Doug, but can only pay € 38.00. Continuing our story, Jane interviews both candidates and decides she wants Doug Ellenberg, but will only pay 4 EUR more per hour. Again, the SIDES StaffingAction can be used to communicate this type of information. Here Jane sends a StaffingAction message indicating that she will accept Doug at a rate of 38 Euro. Electronic transactions of this type provide a measurable and auditable alternative to the “phone tag” so common in the staffing procurement process, enabling substantial savings of time resulting in faster fill times.

SIDES StaffingAction Document Response - Rate Agreement Agreed Here Squarian confirms that the rate of 38 Euro is accepted.

SIDES HumanResource Documents Candidate Selection Doug – Status: ACCEPTED. Ellen – Status: REJECTED. Finally, Manager Jacne makes her decision. Once the selection is made, a SIDES HumanResource document is sent to Squarion indicating Jane’s choice – in this case, our friend Doug.

Squarion Front Office System Add Employee Edit Employee Add Customer Edit Customer Add/Import Order Edit Order Search Employee Search Customer Search Order Match to Employee Search by Skills Create Assignment Edit Assignment End Assignment Create Reports Evaluate Performance Onboard / Offboard Access Time Records Create Assignment Assignment Information Include in export? Customer Billing Information Include in export? Employee Name: Customer Name: Employee Number: Customer Number: Address: Billing Contact: Address2: Billing Address: City: Billing Address2: State, Zip: City: Country: State, Zip: Phone1, Type: Country: Phone2, Type: Phone1, Type: Email: Email: Customer PO #: Start Day: Customer Req #: End Date: Bill Rate – Regular: Department:: Bill Rate – OT: Squarion will then talk to Doug Ellenberg, and offer him the assignment at a rate of 24 EUR per hour actually worked, plus travel expenses, meals and lodging. The final rate is the result of negotiation: a little less than Doug wanted, a little more than the team originally wanted to pay. A very typical scenario. The Squarion system will then send the US Postal Service system a SIDES Assignment record. This is a confirmation of all the data regarding the assignment – who the worker is, when they will start, what the customer will pay for them, etc. Work Hours: Pay Rate-Regular: Work Site: Pay Rate - OT: Supervisor: + Expenses: Meals: Misc. Travel: Air & Lodging: Preassignment Screening Expense: Time Approver: + Drug Screen: Background Check: Passport: First Day Report to: Send/Save Assignment +

SIDES Assignment Document Assignment Confirmation Doug is ready to go And so the Assignment is sent back to USPS. The purpose of this transmission is a final, auditable check that the customer system and the staffing agency system are in sync. Errors at the front end of a transaction are annoying. Errors at the back end of a transaction are expensive. The SIDES processes and standard documents provide a mechanism to reduce errors from the start. There is no need to re-type information, and quality checks can be put in place to prevent transactions from going forward without the necessary accounting and cost-center type information.

Week 1 is completed And so the racers race, and Doug does a very good job of keeping the website available and up-to-date for fans around the world. At the end of the first week, somewhere near Rouen,

Web Based Time Capture System WebTime Web Based Time Capture System Contingent Staffing Management System You are logged on as: Doug Ellenberg Enter time for the week of: Employee Name: Customer: Enter Time Record Employee ID: Assignment ID: Day Time In Time Out Total Hours Reg. Hours OT Hours Notes Edit Unpaid Time Record Monday Tuesday Wednesday Thursday Friday Saturday Sunday TOTAL Review Historical Records Doug uses a web-based application to log his time worked and reimbursable expense data for the past week. Of course, the power of the Internet means that the approver of that data can be anywhere in the world – including on the racecourse, yet despite the non-traditional locales, the processing of the time data can happen as usual. Time gathering, approval, and transmittal to the supplier are vital pieces of the staffing process. For agencies, this is how we pay for and retain our “inventory”. It enables us to bill our customers for the services they have already consumed. It is where we can reduce our costs by preventing high-impact adjustments due to errors. Because time-worked data is captured directly from the employee and supervisor -- the two people who know the most about what has occurred -- accuracy is a by-product of this step. Review/Approve Time Review/Approve Invoices 35.00 33.5 1.5 Expenses

The Pay/Bill Cycle SIDES Extended Timecard - Week 1 USPS is invoiced for Doug’s Time & Expenses for Week 1 Rob Approves Time & Expenses for Week 1 Doug’s Time & Expenses for Week 1 The temporary employee actually does the “data entry” of their time, and submits it electronically for approval. The approver has the responsibility of verifying that time entry and causing it to be electronically sent off to a Payroll Center. However, by bringing the actual players in to electronically originate the time, to match it to the correct assignment record, and to agree on the contents of the record, the accuracy level is raised exponentially.

Submission & Selection SIDES Business Process Submission & Selection Order & Quote Assignment Time Capture Invoicing Reporting Submit Acceptance Create Order Temp Populates Timesheet Submit Payment Select Staffing Resource Receive Report Receive Acceptance Customer Approves Timesheet Receive Invoice Submit Order Evaluate Staffing Resource StaffingOrder HumanResource Assignment Timecard Invoice Receive Timesheet Propose Staffing Resource Now for a discussion of invoicing. Staffing agencies are extremely flexible when it comes to customer invoicing arrangements – some are invoiced weekly, some are invoiced monthly, some want individual invoices, some prefer summary. Nevertheless, the common factor is that each timecard document in some way leads to an invoice document. The most common situation is weekly invoicing, so that’s what I’ll describe here. The approved timecard document travels from the time application to the Staffing Supplier’s back office system. There appropriate payroll and billing rules are applied. Doug gets paid, and an invoice is generated. What is the purpose of an invoice? To send the customer’s Accounts Payable system something that it can recognize and pay - ideally without question or delay. The consistency of nomenclature and usage of what I’ll call “indexing data” – things like purchase order numbers, project codes, cost centers, or order numbers throughout the SIDES process – increases the likelihood that invoices will be matched and paid automatically, without manual intervention, further reducing processing costs on the customer side, and helping to reduce the amount of outstanding receivables. These indexes enter the system at the very start - with the StaffingOrder and can be carried, used, and added to throughout the process, all without error-prone manual manipulation. And now I want to present a key, though often overlooked concept: The time capture and invoicing phases of the SIDES business process repeat again and again for the length of the assignment. Create Assignment Submit Invoice Receive Order Process Timesheet Generate Report Submit Assignment Matching Billing Payroll

Can Your Company Benefit from SIDES? Will the unbounded growth of unique interfaces affect your bottom line? Could integration ‘friction’ prevent your Company from moving forward with new business and new partnerships? Will your Company be increasingly burdened with keeping diverse systems glued together? Would you like your IT infrastructure to support true eBusiness and opportunistic partnering? Can your company benefit? The best way to answer the question is to think about your own technology vision? Some things you may want to consider How is your company addressing customer desires for supply-chain automation? Will the unbounded growth of unique interfaces affect your bottom line? Could integration ‘friction’ prevent your Company from moving forward with new business and new partnerships? Is your Company prepared for true e-business - or is it consumed with merely keeping systems “glued together”? Does your IT infrastructure support or hinder opportunistic partnering? Does your current IT direction contribute to your Company’s resilience and flexibility? If you have no intention of transferring data with your clients, SIDES is not for you. Something else you may be asking yourself- Does it give an advantage to the large staffing companies I would argue that it is good for BIG and SMALL companies In the short term, it obviously benefits companies that already have these types of relationships with clients. In the long term it will benefit the small / medium companies who are less able to afford these integration costs. I would remind you of the client adoption rate of online recruiting tools, 30% of small and 70% of medium clients will recruit online by 2005

How Can You Take Advantage of SIDES? Taking advantage of HR-XML SIDES does not have to cost your Company anything Encourage your software vendors and IT solution providers to support HR-XML SIDES Encourage them to become members of the HR-XML Consortium Join in an initiative to develop localizations/extensions for Japan How can you take advantage of SIDES? The good news is, you don’t have to do much, and it doesn’t have to cost you anything! What we would advise is to take an Evolutionary Approach If you re undertaking any Software upgrades or new IT implementation projects - tell your suppliers that you will only support HR-XML compatible products Even better, if they’re not members already, encourage them to join HR-XML The more organisations that embrace and implement SIDES-the sooner we’ll all begin to enjoy the cost savings and efficiencies.

Summary HR-XML SIDES provides a staffing-industry created and maintained solution for clients, staffing firms, intermediaries, software vendors, and systems integrators that: Will dramatically reduce the costs of integration Will promote the more rapid development of application program interfaces Is centrally maintained by the HR-XML consortium Is already the core of major integration projects Is freely available without license fees or royalties I hope you’ve found this a valuable tour through the SIDES transactions. I want to emphasize that this business model I’ve shown is only one of many, many possible options. There are often additional players – Additional suppliers; TimeClock Providers; Electronic Bill Presentment Vendors – that can participate. Your organization and it’s customers may find that using only one of the transactions makes sense; you might find that they all do. The real point of the presentation is that when you determine that “middle ground” for your organization – those transactions that make sense to send via this new communications method, the SIDES standards are waiting for you to help realize efficiency, quality, and cost savings in the process of hiring and using contingent staff.

Questions? For further information: AskSides@HR-XML.org http://www.hr-xml.org/sides/ Chuck Allen, chucka@hr-xml.org For further information: AskSides@HR-XML.org