What changed in RCM TECHNOLOGIES, INC.'s 10-K — 2022 vs 2023

Increasing and maintaining access to proper care remains a top priority and the market opportunity for these services is expected to continue to grow. While the Company believes that the demand for Healthcare related services remains historically high, the Company also believes this demand has subsided some as COVID-19 shifts from a pandemic to an endemic.

Human Capital Our employees and contractors (together, our "workforce") are the Company's most valuable resource for current and future success. We promote an environment that ensures safety, encourages diversity and inclusion, fosters growth and self-development, and provides meaningful work. All employees participate in our success through attractive and aligned rewards.

Notable programs we offer to our full-time employees include: ● Compensation packages that are market competitive, taking into account the location and responsibilities of the role; ● The majority of full-time, salaried employees are eligible for incentive-based compensation such as performance bonuses and commissions; ● High-quality employer-sponsored health insurance; ● Access to numerous other employer-sponsored and employee-sponsored benefit plans; ● Employer 401(k) matching contributions; ● Employee stock purchase plan (at least a 15% discount to market value at the time of purchase) Our recruiting teams use internal and external resources to recruit highly skilled and talented workers, and we encourage and reward workforce referrals for open positions.

In addition to our comprehensive investment in our workforce success, we strive to maintain an inclusive environment that values and leverages the uniqueness of each person to the benefit of all our stakeholders. We view the combination of diverse perspectives and backgrounds as a powerful force for innovation.

To promote diversity and our core principles, we emphasize dignity, value, and equality of all members, regardless of race, color, religion, age, gender, or sexual orientation, through our actions and the workplace training programs we provide.

We continually strive to harness the diversity of our global workforce by cultivating a climate that permits all of our workforce to bring their authentic selves to work every day. The health and safety of our workforce are also a top priority. We have implemented appropriate procedures and precautions to ensure our workforce's continued safety and well-being.

We strive to comply with all federal and local workplace laws and regulations where we do business. We are always looking for ways to exceed compliance standards by utilizing continuous improvement discipline to eliminate risks in the workplace proactively. The Company believes promoting engagement and empowering its workforce drives better business results.

As a result, the Company believes it has an "open door" culture whereby every member of its workforce is comfortable expressing their ideas on improving the Company and its performance. Our culture has resulted in action plans at all levels of the organization and drives continuous conversations on the things that matter most to our workforce and their teams.

The Company's employees and contractors have generally divided into four groups: 1) Nonbillable employees; 2) Billable salaried employees; 3) Billable hourly long-term employees; 4) Billable hourly short-term employees and contractors. Nonbillable employees are primarily full-time and salaried. These positions include but are not limited to executives, managers, general administration, finance, accounting, account managers, recruiters, credentialers, etcetera.

These employees are not billed to clients. As of December 31, 2022, the Company employed approximately 280 nonbillable employees. The expense for these employees is included in the Company's selling, general, and administrative expense in its income statements. 13 ITEM 1. BUSINESS (CONTINUED) Billable salaried employees primarily include senior-level employees whose time is often billed to clients.

These employees tend to be long-term in nature. Many are intended to produce high utilization rates (representing the percentage of their time billed to clients), often in the 90% to 100% range.

However, some have nonbillable responsibilities such as account management, client proposal preparation, general strategy formulation, expert content generation, project controls, overseeing projects where their time is not billable, supervising billable personnel, etcetera. These employees' utilization rates generally range from 20% to 90%.

Most of the expense for billable salaried employees are included in the Company's direct costs in its income statements. Billable hourly long-term employees have very high utilization, typically in the 90% to 100%. For most of these employees, our goal is near 100% utilization.

They are hired with the idea that we want them to work on multiple assignments, either in succession or simultaneously. Billable hourly short-term employees have near 100% utilization. They are typically hired for one assignment, and upon completion, they terminate.

The Company conducts business globally but is principally concentrated in the United States, Canada, Serbia/Europe, and Puerto Rico.

As of December 31, 2022, the Company's workforce breaks out as follows: ● United States and Puerto Rico: approximately 257 nonbillable and 3,450 billable ● Canada: approximately five nonbillable and 30 billable ● Serbia/Europe: approximately 38 nonbillable and 80 billable Access to Company Information The Company is a Nevada corporation organized in 1971.