CPS Manager Training May 2013

1. H R CPS Manager Training May 2013

2. CPS User Guide • Overview Page 3 • The Manager View Page 4 - 13 • The Planning Manager View Page 14– 20 • Other Functions of the CPS Page 21- 25 • Sorting & Analysis • Enabling a Proxy • The Employee Statement • HR &Technical Support Page 26 Page 2

3. Compensation Planning System (CPS) Overview • Tyco-wide compensation planning system utilized to plan, analyze and budget for various compensation programs • Managers plan and enter base salary performance-based increase recommendations (PBIs) into the CPS for their direct reports • Each employee must have a performance rating in order to enter an increase • Each employee must have a recommendation including no increase, to submit their recommendations to the next level for review • Managers may ‘Save as Pending’ and return to work on their recommendations at another time • Once a Manager selects ‘Submit’ they can not make changes to their recommendations 18

4. Manager Views – Key Features • Direct Reports: • View compensation data for each direct report • View the PBI budget % for each employee • View FY12 E-Tools rating if completed. • Update performance ratings in the Performance Rating –Trending • Enter salary increase percentages • Comments Section • Recommendations out of guidelines – required field • View total PBI dollars budgeted, allocated and available to spend • Save as “Pending” • Submit recommendations to Planning Manager (next level manager) • Note: Any employee with an NA in the merit budget code - do not enter in any recommendation. • Sorting & Analysis: • Use drop down menu to select filters to produce reports • Export the reports to an Excel spreadsheet 22

5. Direct Reports Tab Status will be listed as “Pending” while manager is entering data. Status will change to “Submitted” when the Manager hits the “Submit for Approval” button Data Filters Quick Reference Links To View salary increase Increase Guidelines, click on 9 Block Guidelines, and then find the Country salary increase Budget Grid that applies to the employee “Save as Pending” button saves entries during planning process “Submit for Approval” button sends the final recommendations to Next Level Manager

6. Direct Reports Tab “$” Button converts pay to and from Local Currency and US Dollars Click on Name Link to view employee detail New Annual Salary Salary Increase Budget % per employee. Salary Pool Matrix. Click the “Re-total” button to recalculate the pool totals after you enter increases.

7. Direct Reports Tab eTools or manual Performance Rating for FY12 (hardcoded) Data Entry Fields for salary increase Recommendations. Enter either salary increase $ or %. Updated Performance Rating (changeable field)

8. Performance Ratings • Performance Ratings must be entered for each employee listed. • Performance ratings downloaded from e-Tools are hard-coded. You will need to select the Performance Rating from the drop-down for employees who did not have rating in e-Tools. • The Salary Increase Budget Guidelines are tied to the Performance Rating. • Employees with these ratings should not receive a salary increase increase. • Below ratings include: • A3 – Above/Below • B3 – At/Below • C1 – Below/Above • C2 – Below/Meets • C3 – Below/Below • The same is true for employees who are “Too New To Rate”. Employees with this rating should not receive a salary increase. 27

9. 9 Block PBI Guidelines Select ‘Ctrl F’ on your keyboard, type the country name and press ‘Enter’. • To view the Salary Increase Guidelines for your employee, select the 9 Block Guidelines Link at the top of the page. • The 9-Block will open in a new window. There is a 9-Block for each country. • There are two options to locating a country’s 9-block: (1) scroll down to find the guidelines for the employee’s country or (2) using the ‘control F’ function: • The 9-block will provide the guidelines to which you should adhere for each rating. • Once you locate the guidelines for your country, you can go ahead and enter the salary increase %. 28

10. Recommendations Outside PBI Guidelines Explanationneeded Explanation provided • When salary increase recommendations are outside of the 9 Block guidelines, a message pops up letting the manager know they have entered an increase outside the guidelines. The manager can either: • Change the salary increase increase amount so that it is within the guidelines • Click on the Red “X” and enter a justification for giving an increase outside the salary increase guidelines. The “X” will change to an “!” when a comment is entered. 29

11. Calculating Available PBI Pool Definitions = Total of Eligible EEs Current Annual Salaries = Total of Prorated Salary Increase Pool = Total of Prorated Salary Increase Spend = Available Salary Increase Pool • Click on the “Re-total” button in the Salary Increase Pool Matrix to track the salary increase spend • “Available” amount will be green if dollars spent is within the budgeted salary increase pool. If the manager has exceeded their budget, the amount will be a negative number and the font will turn Red • The Division level cannot exceed their allocated budgets 30

12. Saving Your Pending Work When you see this message, you know you have successfully saved your work and can then log out of the system • Managers may click on “Save as Pending” to save entries without submitting to the Next Level Manager at any time during salary increase planning • This is helpful to ensure work is not lost if the system times out due to inactivity 31

13. Submit Your Work for Approval • Once the salary increase planning is complete, the Manager must click on “Submit for Approval” to submit recommendations to the next level manager. • A confirmation message will appear. If the salary increase planning is complete, click OK, otherwise, click Cancel. • Once submitted, the Manager will no longer be able to edit the salary increase recommendations. An email will be sent to the next level Manager, advising that the manager has completed the salary increase planning. • The manager may not submit salary increase recommendations until planning is completed for all employees, and justification is written for all recommendations that are outside the guidelines. • When the Salary Increase planning has been successfully submitted, you will get a message letting you know the salary increase has been successfully submitted. An error message will appear if you need to address an issue before you can submit. 32

14. Planning for Direct Reports Overview of Group Summary Tab Review/Change Manager’s Submission Final Submission Planning Manager’s Responsibilities(Next Level Managers) 33

15. Planning Manager • The Planning Manager is the Next Level Manager. • Managers will submit their salary increase recommendations to the Planning Manager for approval • Planning Managers have access to all the tabs to which Managers have access: • Planning Managers have access to the Group Summary, which allows them to: • View overall budget details • Monitor high-level progress of salary increase planning • Click on links to access further detail on Manager planning 23

16. Key Points for Planning Managers • View/edit submitted recommendations by Managers • Enter salary increase recommendations for their direct reports • Do not enter a recommendation for any employee with a merit budget code = NA. • Ensure that recommendations are entered for ALL direct and indirect reports, even for employees receiving zero % increases. • Approve and submit for approval to next level during the allotted salary planning timeframe • Approvals at each level drive the system to go to the next level until final approval is given from the Division President 34

17. The Group Summary Tab Group Summary Tab Click on the manager’s name to view detail of the Manager’s Salary Planning. The Planning Manager may only reject after the Manager has submitted the planning for approval. Salary Adjustment Pool Matrix shows the salary increase spend detail for direct and indirect reports. As with the Direct Reports Tab, “Available” amount will be green if dollars spent is within the budgeted salary increase pool. If the dollars spent have exceeded the salary increase pool, the amount will be a negative number and the font will turn Red. Direct Reports link will take the Planning Manager to their own direct reports tab, where they can enter ratings and salary increase planning for their own direct reports.

18. Review/Change Manager’s Submission Changeable Fields After reviewing a Manager’s submission, the Planning Manager can make a change directly to the Manager’s entries by accessing the direct reports page and entering the changes. Once the changes are saved, an email notification is sent to the Manager notifying them that there has been a change. The action is also noted in the transaction log. 23

19. Reject a Manager’s Submission 1 3 3 2 2 4 • The Planning Manager also has the option to reject the Manager's submission. The form would then be sent back to the Manager for re-planning. To do this: • Select the check box next to “Reject (Submitted)” • Enter a reason for the rejection in the Script Prompt pop-up box • Click “OK” • Click Submit Rejections • The Manager’s status will return to “Pending” and the planning must be resubmitted. 24

20. Submission for Next Level Approval • A Planning Manager is ready for submission after: • All Direct Reports’ salary increase planning is completed • Managers’ submissions are reviewed • No other changes are required • To submit for next-level Planning Manager approval, the final step is to: • Click on the “Submit for Approval” button in the lower left corner of the screen • On successful submission, an email will be sent to the Next Level Planning Manager that the salary increase is ready for review • The submission status will change from “Pending” to “Complete” once the planning has been approved by all levels of management. 25

21. Other Functions of the System Sorting and Analysis Enabling a Proxy The Employee Statement Page 21 39

22. Sorting and Analysis Tab Use the filters to view the desired population, or type a specific employee’s name, and then hit the “Search” button to generate the report Your report may have multiple pages, in which case it may be easier to export the data to excel to view and do further analysis To export the filtered data into an Excel spreadsheet, click the Export to Excel button.

23. Enabling a Proxy If a Manager is unable to enter the performance ratings and salary increase recommendations, s/he can assign another individual as “proxy” to assist with this task. The proxy will have access to all Manager planning information. Managers should discuss this option with their HR Director or HR Manager before applying the function. Use caution when selecting a Proxy to ensure you assign Proxy rights to the correct employee

24. The Employee Statement

25. The Employee Statement

26. HR and Technical Support • Resolution Process • Managers contact local HR Representative for this process • HR Representative contact Division HR Lead or designee or issues they are unable to resolve • HR Lead/Designee contact Total Rewards Operations • IT Help Desk • For connectivity issues contact your local IT Help Desk Page 26 42