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Seeing Past the Green:

Seeing Past the Green:. Evaluating Total Rewards. Agenda. Outcomes Who is Hewitt Associates? Components of Employment Offers Total Rewards Questions and Answers. Outcomes . to create a better understanding regarding the many components of Total Rewards

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Seeing Past the Green:

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  1. Seeing Past the Green: Evaluating Total Rewards

  2. Agenda • Outcomes • Who is Hewitt Associates? • Components of Employment Offers • Total Rewards • Questions and Answers

  3. Outcomes • to create a better understanding regarding the many components of Total Rewards • provide you with a checklist of “factors to consider” when evaluating employment opportunities • share a tool for evaluating employment offers

  4. Hewitt Associates LLCGlobal Human Resources Management Consulting and Benefits Administration Firm • Serve over 4.3 million employees • 2,400 clients (more than 2/3 of the Fortune 500) • Largest Benefits Outsourcing firm the U.S. • Over 13,000 associates in 80 offices worldwide • Annual revenue of 1.5 billion dollars

  5. Our Vision • “To be the most influential advisorand dominant service provider in the people business - and as a result, the best organizations and people want to work withus.”

  6. Why will most experienced candidates choose one employer over another? • Most common response: • The People

  7. What do you mean by “The People?”

  8. Aspects of Corporate Culture • Firm Values • Alignment with personal values • Values demonstrated in day to day operations

  9. Aspects of Corporate Culture • Management Philosophy • Communication • Leadership style • Envisioned future • Open door philosophy

  10. Aspects of Corporate Culture • Job Content/Career Growth • Daily activities • Training opportunities (internal/external) • Career opportunities

  11. Aspects of Corporate Culture • Total Rewards Philosophy • Total pay • Benefit package • Work Environment • Office environment • Open communication • Interactions with co-workers • Work-life balance

  12. There’s a lot more to • “The People” • than you see at first • glance!

  13. What do many college students think is the most important part of their offer package? • MONEY!!!

  14. Total Rewards Overview Total Pay is only a part of an organization’s Total Rewards Program Base Pay Total Pay Total Rewards Variable Pay Recognition Work Environment Benefits

  15. Components of Total Pay • Base Pay • Variable Pay • Commissions • Sign-on Bonuses • Performance Bonuses • Shift-Differentials • On-Call Pay • Profit Sharing • Equity Vehicles (options, grants, appreciation rights) • Recognition

  16. Other Factor to Consider • Benefits • Work Environment Base Pay Variable Pay Recognition Work Environment Benefits

  17. Question??? • On average, how much do organizations pay for their benefits packages? • Answer: • between 30% and 40% of total pay costs per employee!

  18. Health Care Retirement Plans Dental and Vision Care Vacation Days/Holidays Disability Insurance Employee Assistance Plans Tuition Reimbursement Flextime Benefits to Consider Dependent Life Insurance Flexible Spending Accts. Employee Life Insurance Wellness Programs Child Care Assistance Adoption Assistance Low-Interest/No-Interest Loans Free/Subsidized Meal Service

  19. Overview of Health Care Plans

  20. Overview of Retirement Plans • Eligibility • Company match • Vesting schedule • Pension plans

  21. Comparing Retirement Plans • COMPANY A • Base salary $30,000 • 401(k) (10% contribution) 3000 • Match (5% match) 1500 • Tax (27% of taxable income) (7290) • Take home pay $19,710 • 401(k) • Your contribution 3000 • Company match 1500 • Total 401(k) $4500 • COMPANY B • Base salary $30,000 • 401(k) (not eligible) 0 • Match (no match) 0 • Tax (27% of taxable income) (8100) • Take home pay $21,900 • 401(k) • Your contribution 0 • Company match 0 • Total 401(k) $0

  22. Question??? How important is it to get an early start on investing for retirement? • Answer: • VERY!

  23. Here’s WhyScenarios:Jack & Jill - both 21 year old college graduates, earning $30,000 • Jack • $50 (2%) per month invested in his 401(k) w/100% match • joins the Peace Corp 8 years later and stops investing • Jill • marries college sweetheart, starts a family right away • $0 per month invested in her 401(k) until age 29, when she invests $100 per month for the next 36 years w/ no match

  24. Question???Who has the most money saved when they retire at age 65 (assuming a 10% return on investment)? • Answer: • JACK! • Jack saved a total of $9,600 ($4,800 + $4,800 company match) from age 21 to 29 and his investment grew to $531,468 • Jill saved a total of $43,200 (no company match) from age 29 to 65 and her investment grew to $424,182

  25. What is Work Environment? • Corporate Philosophies and Culture • Management and Communication Style • Performance Management Philosophies and Processes • Physical Location/Facilities • Employee Input/Feedback • Work-Life Balance

  26. How Important is Work Environment? • When asked, most employees site the following engagement factors as being most important: 1. Work Activities - “I like what I do and I have the opportunity to do what I am best at.” 2. Opportunity - “I know what opportunities are available and I have the chance to develop through increased challenges and responsibilities.” 3. Total Rewards - “I am fairly paid for the contribution I make and compared with other companies, I am competitively paid.”

  27. Review Considerations when entertaining employment offers: Base Pay Total Pay Total Rewards Variable Pay Recognition Work Environment Benefits

  28. QUESTIONS???

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