HR Specialty Products & Services Catalogue Executive Summary

1. Total Rewards/Actuarial Approach to Redesign Tme Off/Absence Programs to Improve Operations, Employee Attraction, Retention, Satisfaction & Well-Being with Reduced Costs HR Specialty Products & Services Catalogue Executive Summary A No Frills Distillation of Vendor’s Marketing Collateral Thomas A Ference President & CEO Human Resources Mining & Distribution Co Locating, Validating and Accelerating HR  Innovation Office: 219-662-0201 Cell: 630-240-2583 Fax: 219-661-0236 e-mail: tference@hrmdco.com Website: www.hrmdco.com

2. Employment candidates and current employees attach a disproportionate value to time off programs relative to their actual value. • At the same time, many benefits, finance and HR people cannot even determine the actual value, which is often costlier than the employer’s own medical benefits program. • This firm deploys a consulting process designed to weave time-off benefits into the fabric of the employers’ total rewards strategy and better support the desired culture. • The process defines current state (including current employee behaviors, gaps and overlaps, etc.) and develops a philosophy that leads to defining a future state for the programs. Actuarially Driven Time Off Program Redesign

3. This results in the design of revised programs that will achieve desired outcomes. • The above process includes actuarial modeling to develop financials and identify gainers and losers, the solicitation of employee / leadership feedback and a regulatory compliance assessment. • A detailed implementation plan is also developed that considers administrative infrastructure, tracking and reporting systems, communication, training and success metrics. • Typical results include significant reductions in unscheduled absence, while at the same time improvements in employee well-being and employee relations leading to better attraction and retention rates Actuarially Driven Absence Program Redesign

4. Programs & Policies Potential Issues Marketplace Competitiveness Perceived Value/Actual Value/Liability Litigation Costs Operational Impact Tracking, Metrics, Reporting Gaps and Overlaps Compliance/ADA/FMLA/State/Local Private Letter Rulings/USERRA/PDA Abusers and Losers Burnout/Breakdown/Safety Return-to-Work / Durations Income Protection Collective Bargaining • PTO/Vacations • Holidays/Personal Days • Military/Jury Leave • Bereavement Leave • Sabbaticals • Maternity/Paternity • Incidental/Sick Days • STD/Salary Continuance • LTD • Worker’s Compensation • Family Medical Leave • Wellness/Disease Management • Behavioral Health/EAP/Work/Life Actual Value Determination Issues

5. -Gaps & Overlaps -Employee Behaviors -Cost Analysis Current Absence Programs Assessment Philosophy & Future State Key Stakeholder Input -HR -Finance -Risk -Operations • Actuarial Modeling • Gainers/Losers • Compliance • Stakeholder Feedback Revised Programs Redesigned Absence Program Development Process • Reduced Program Costs • Improved Employee Relations • Productivity Increases • Improved Attraction/Retention Budget & Metrics • Administrative Infrastructure • Tracking/Reporting • Communication/Training • Custom Metrics

6. A midsize employer (2,000 employees) faced complaints from employees about the reliability of staff, high levels of unscheduled absence, inordinate amount of time spent dealing with unscheduled absences and significant associated costs and liabilities • The employer wanted to streamline its time off programs, make the programs easier to manage, reduce the amount of gaming between the programs, promote equity, and improve tracking and accountability • Through a collaborative process, guiding principles were developed and the desired impact on culture and behaviors identified to serve as the foundation for the new program design process • A new program was financially modeled, identifying the various provisions to be changed, the potential winners and losers and financial impact • The results included 1) an improved workplace culture, 2) more accountable and reliable workforce as measured by a 52% reduction in unscheduled absence and 72% reduction in extended absence and 3) improved employee relations as measured by 95% reduction in related employee relations issues, 29% reduction in high performer turnover and 36% increased low performer turnover Case Study 1 – PTO and Disability

7. This product/service is contained in the HR Specialty Products & Services Catalogue™ • Operational level details about this particular service provider can be obtained in conference with the vendor • The HR Mining & Distribution Co. is an independent and contracted representative of the vendor • Upon your request, we will arrange for an introduction that can range from a simple, quick conference call to a services overview / system demo • Tom Ference 219-662-0201 (Chicagoland area) or tference@hrmdco.com • Thank you for your potential interest in this fresh thinking Next Steps