Flexible Work Options and Telecommuting Dan Crouch, CPP US Payroll Operations Manager Pearson September 15, in white type) Kevin Valuet, CPP Sr. Payroll Tax Reporting Spclst Target Corporation

2 Dan Crouch, CPP U. S. Payroll Operations Manager at Pearson Education B.A. degree in Sociology/Psychology – Augsburg College Masters degree in Management – Cardinal Stritch University 25+ years of management experience working at companies such as Pearson Education, Wilson Learning, Carlson Companies and Northwest Airlines

3 Kevin Valuet, CPP Seven years of payroll experience with a specialization in payroll taxes A.A. in Accounting from Everest University. Obtaining B.B.A in Accounting from Baker College. Government Liaison for the Northstar Chapter. On the Government Relations Task Force (Local Taxes subcommittee) and volunteer for the Hotline Referral Service for the National APA. Former full-time telecommuter

Agenda Polling Questions Flexible Work Options Telecommuting General Telecommuting Statistics Employee Benefits Employee Drawbacks Employer Benefits Employer Drawbacks Equipment Needs Personal Telecommuting Story Working from Home – The Pearson Story Prerequisites for a Successful Work from Home Program Questions 4

Polling Questions

Flexible Work Options From the Georgetown University Law Center, a flexible work arrangement can be any work structure that alters the time and/or place that work gets done on a regular basis, including: 1. Flexibility in the scheduling of hours 2. Flexibility in the amount of hours worked 3. Flexibility in the place of work 6

Flexible Work Options Formal Flexibility Reduced Time Schedule Compressed Schedule Job Sharing Telecommuting Can you think of other flexible work options? 7

Telecommuting 8

What is telecommuting? Substitution of telecommunications for transportation in a decentralized and flexible work arrangement which allows part or full time employees to work at home via a computer attached to the employer’s data network. In other words, a work arrangement that allows employees to work away from a centralized office environment. 9

Employee Benefits Reduction in Commuting (distance and time) Cost Savings Create Your Own Work Environment Ability to Save PTO/Vacation Time Promotes a Positive Work/Life Balance Potential for Higher Earnings Can anyone think of any other employee benefits? 10

Employee Drawbacks Lack of Support Staying Connected with the Team/Department Technology Issues Missing the “Water Cooler” Meetings Lack of “Body Language” Management Trust Issues Inhibiting Career Growth, Development and Advancement Can you think of any other employee drawbacks? 11

Employer Benefits Reduced Costs Greater Employee Productivity Increased Talent Pool Ability to Cut Salary Costs Reduced Absenteeism Employee Retention Employee Availability “Green” Employer Can anyone think of any other employer benefits? 12

Employer Drawbacks Inability to Monitor Employees Employee Abuse of the Privilege Potential Network Security Issues Employer Equipment Security Questions Lack of Team Unity Taxation Issues Can you think of any other employer drawbacks? 13

Equipment Needs Computer Phone Printer Internet Connection 14 Security Software Office/Desk Space VPN Intranet or Cloud Can you think of any other equipment that may be needed?

What is a VPN? VPN stands for Virtual Private Network VPNs are commonly used by corporations to protect sensitive data. A VPN creates an encrypted connection over a less secure network. The creation of a private network to create a secure connection for employees working away from the office can be very costly and not feasible for most companies. The VPN allows for this connection with a much lower cost. A VPN client on the employee’s computer or mobile device connects to an available gateway on the organization’s network. In essence, the VPN client allows for the employee to plug into the organization’s network. The information being transmitted between the employee’s computer and the network is encrypted to ensure the safety in data transmission. 15

RSA SecurID Works similar to the VPN in that it allows for a secure connection to a company’s network. Using a specific algorithm, the device displays a code used for authentication purposes. The employee logs in to create a secured connection between the computer and the network The authentication process is based upon two different codes – the code displayed on the RSA Token and a personal PIN or Password for the network. This allows for the system to authenticate the user attempting to gain access to the network. 16

Intranet or Cloud Computing Intranet An intranet is a private network that is contained within an enterprise. The purpose of an intranet is to share company information and computing resources among employees. Access to a company’s intranet information is often restricted to only employees that have access to the network. This allows for the company to share information to telecommuting employees in a secure method. 17 Cloud Computing Cloud computing uses the Internet to store, manage and process data. Documents and data necessary to complete everyday tasks is stored on files on the Internet instead of a computer’s hard drive. Any information contained within the cloud can be easily shared with anyone that is granted access to the information stored in the cloud. Anyone with an Internet connection would be able to obtain this data.

Personal Telecommuting Story 18

Working from Home – The Pearson Story

EPIC – Everywhere Pearson is Connected A formalized arrangement created by Pearson to handle the increased business need and desire by employees to work outside of a Pearson office Program was offered to full-time employees to work at home or some other off-site location Guidelines and a formal agreement are required to be accepted into the EPIC program 20

EPIC Guidelines and Agreement Effective Date of the Change Hours of Work Defined Communication Methods Computer, Telephone and Other Equipment Office Requirements EPIC Self-Assessment Worksheet 21 EPIC Self-Assessment Worksheet Minimum Eligibility Requirements Assessing Your Job Assessing Yourself Assessing Work Related Issues Assessing Your Home Management Support

Changes in the EPIC Program As Pearson moved to more open workspaces and collaborative workplace environments, the work from home concept became less formalized. Employees that were in positions that allowed for independent work assignments began to work from home occasionally especially around project work. This concept then evolved into areas that were non-project related and more production related. 22

Pearson’s Payroll “Work from Home” Story

Prerequisites for a Successful “Work from Home” Payroll Program

Prerequisite Needs Payroll System – Remote Capabilities and Instant Messaging Fax by ACH process for all off-cycle payments Electronic acceptance of payroll payment requests Shared file access 25 Remote Interface Access Paperless Pay (95-100% Shared Documents (Cloud or Intranet) Video Conferencing (Google Hangouts, GoToMeeting, etc.) Mobile devices for calls, , etc.

Questions? 26