QQuest Corporation

1. QQuest Corporation ATS Features and Benefits Information Systems Technologies, Inc.

2. Effective Resource Management • Largest Cost of an Organization is Human Resources. • Daily Absence Rates Can Average Between 5 and 15%. • Tardiness of Employees Usually Goes Untracked in Most Organizations. • Effects on Absences and Tardiness Can Be Costly. • UAW Has Strict Rules Governing Absences • New Rules in FMLA Allow Greater use of Time Off.

3. If a Company requires staffing levels of 1700 Employees (two shifts) everyday to meet customer demand, the following scenario can occur: Effects of Absences and Tardiness Use DOL wage for the customers industry exmpl. $25.73 / hr with benefits * Total daily absence cost is calculated by multiplying $25.73 x 34 employees x 8 hours ** Total daily tardy cost is calculated by dividing total tardy time by 60 minutes (hr) multiplying by $25.73/hr.

4. Effects continued….. Total Yearly “Hard” Costs for the Corporation would be: $35,720 per day x 235 working days $8,394,200

5. Soft Costs of Absences and Tardiness • Tardy Employee’s • Supervisors must cover for them • Other Employee’s must cover for them • Overtime might be needed from previous shift • According to the American Payroll Association (APA) • The rate of manual time card computation error is1% to 8 % of an annual payroll. • 1700 employees x 40 hours/week x 52 weeks x $34.72*/hr. x 1% = $1,227,699(* associated cost for accountant/book keeper)

6. Soft Costs continued…….. • APA also estimates it takes 5 minutes to add and audit one employee’s time card. • 1700 employees x 5 minutes x 26 pay periods a year / 60 minutes x average managers hourly cost of $56.00 = $ 206,266 • Changes in the FMLA law • Make time off harder to track • Increase errors in payroll • Can result in expensive litigation

7. Total Costs • Adding up all “Hard” and “Soft” costs for Absenteeism and Tardiness, a Company may spend: Hard costs $8,394,200 Soft costs $1,433,965 Total costs $9,828,165

8. To help Corporations reduce these costs and increase their effectiveness,QQuest created the leading Attendance Tracking System on the Market Today

9. Attendance Tracking System

10. Over 300,000 Existing ATS Users • Endorsed by the UAW • Ford Motor Company • 25 North American Vehicle Operations plants • Visteon • Most Mfg and Assembly Plants in North America • American Axle • Forge and Gear Plants • Lear Corporation • Kansas City, Bridgeton, Wentzville, Romulus Plants, Hazlewood

11. Attendance Tracking System • Employees Call In • Absent without Leave (AWOL) • (Sick, No Transportation, FMLA) • Coming in Late • Supervisors Plan • Shift Work • Call substitutes • Human Resources • Tracks Occurrences • Consistent Discipline

12. How ATS Works Information Systems Technologies, Inc.

13. Employee Call-In

14. Actual Customer Results Major Manufacturer with 6,500 employees experienced a 51% reduction in absences in the first year of implementation

15. Actual Customer Results continued… Medium size company with 2,000 employees experienced a 46% reduction in absences in the first year and a 51% reduction in Tardiness.

16. Corporate Benefits of ATS • Accurately tracks employee absenteeism and Tardiness • Lowers Absences • Reduces tardy times • Improves manpower planning • Provides historical statistical data for budgeting • Maintains fair and consistent procedures • Automatically interfaces with Payroll

17. Supervisor / Manager Benefits • Instant notification via pager, e-mail, cell phone • Check Call-In Log for the days absences. • Make schedule changes to have shift covered. • Review Supervisor Report - determine if employee will require discipline upon returning from absence – if so, make schedule meetings with HR. • Accurate and cumulative FMLA recording and reporting. • Automatic interface with Payroll system eliminates manual calculations and mistakes.

18. Employee Benefits • Consistant process eliminates confusion. • Simple 1-800 is the only tool employee uses. • Confirmation # assures the employee they have successfully reported their status and can protect them from unnecessary discipline.

19. Call-In Log

20. Employee History

21. Statistic Reports • 4600 - Discipline • 586 - Jury Duty • 618 - Bereavement

22. Time Usage Report Call Deep Dive Report Ability to Change Reason Types Voice Prompts Location Level Reports Shift Level Reports Global Notification Update Changeable Broadcast Messages Traceable Confirmation Number Excel Import Additional ATS Features

23. ATS Solution Choices: • Hosted ATS • Enterprise ATS

24. Hosted Version Hosted ATS offers: • Quick startup and • Low entry cost with monthly payments. QQuest hosts the application and data at our data center. The only customer requirement is an internet connection.

25. Enterprise Version Enterprise ATS: • Provides the greatest flexibility • Allows for customization • Incorporates Payroll feeds Includes • Hardware servers • Software licenses • Customization programming • Implementation assistance

26. Installation and Set-Up • Telephone Number • “Vanity” number if so desired. For example 1-888- Customer name • Rollout Kits • A letter describing the benefits and new procedures. • A refrigerator magnet to with the call-in phone number. • Wallet-sized card with the call-in phone number and any other Customer-requested information • Employee Training Program • Employees • Supervisors • Human Resources

27. ROI (Absence Reduction) Assumption is absence can be reduced by using ATS for attendance and tardiness tracking and reporting for absence and tardiness discipline and management. Assume 5% reduction of reported annual absences. Absence Reduction Hourly rate of $21.85 was used for this calculation

28. ROI (Administration Reduction) Assumption is that 5 minutes per employee per month can be saved in administrative work by using ATS for attendance and tardiness tracking and reporting. ** 5 minutes per employee x 1700 employees / 60 minutes *** $34.00 average hourly Manager pay rate x 1,692 hours

29. ROI (Incorrect Recording) Assumption is that miss-recording or not recording absence information will be eliminated or greatly reduced and that accrued and used sick time will more accurately calculated by using ATS for attendance and tardiness tracking and reporting. Assume that 5% of total employees using ATS will have improved reporting. **American Payroll Association report on costs of time card fraud and inaccuracy. Cost was calculated at $150 for time card inaccuracy and $232 for time card fraud.

30. ROI Summary Absence Reduction Efficiencies = $148,580 Administration Efficiencies = $57,528 Recording Efficiencies = $32,470 Total Savings = $238,578 Additional savings are experienced through the reduction in workforce needed. When a Company has a better understanding of their average absences and Tardy’s for a given day, a more precise staffing plan can be created eliminating excess staff.

31. Exception Reporting All Companies offer time off as part of the benefit packages given to employees. Vacations, sick, and personal days are a normal part of a Company’s policies. The ATS system deals only with those employee’s that take more than the allotted time off or are habitually tardy. The system can and will improve a Company’s overall efficiencies!