By: Juan P. Garcia Organizational Research Services Director

1. Take a Chomp Out of Your Comp! EMPLOYER OF CHOICE Total Rewards, Trends and Plan Design By: Juan P. Garcia Organizational Research Services Director

2. Total Rewards, Trends and Plan Design • ABOUT THIS PRESENTATION • Plan Design & Compensation: Top-line trends • Top Trends • Market Movement • Industries • Building Blocks, Compensation & Benefits: Key Foundation of a Total Rewards Strategy • General Framework • EG’s Employers of Choice Model • Check-off Inventory • Sample Case • EG’s New Online Compensation program

3. Total Rewards, Trends and Plan Design • Plan Design & Compensation: Top Trends • Tops Trends • Soft salary increases seem to be the trend for the next two years • Soft employment levels & low turnover • Rebuilding / Overhauling existing plans • Cos. more likely to evaluate other costs, pension, leaves, etc. • Evaluating / building their performance management program • Recalibrating payouts; Executive Compensation

4. Total Rewards, Trends and Plan Design • Plan Design & Compensation: Top Trends • Top Trends - continued • Internal Equity and aligment • Upgrading Job Descriptions • Concerns for Federal Contractors re employment Practices that lead to Compensating Disparities • Concern on new minimum wage: • 1% of employees earn less than new min; 5% earn between $9 and $10 • non-profits, 3% are below new minimum, 7% earn between $9 and $10

5. Total Rewards, Trends and Plan Design • Market Movement, Increases & Employment

6. Total Rewards, Trends and Plan Design Plan Design & Compensation: Top Trends Industry Trends • Manufacturing: Soft increases, 3%; Increase in OT, “OT is better than adding staff” • Finance, non-banking sector: Above average increases, 3.7%+, aggressive bonus plans, 70% percentile • Non-profits: Transparency, especially with executive pay, very receptive to internal pay equity, managing hours of part-time employees • Services: Recalibrating performance management and compensation plans to meet market levels and business goals • Hospitality: Concerns with new minimum wage, wage compression concerns; dealing with part-time employees, adding more $$ to train entry level EEs • Sales: Recalibrating commission plans; as economy improves, payout and thresholds are being examined

7. Total Rewards, Trends and Plan Design Plan Design & Compensation: Top Trends OVERALL: • On existing Talent: • Moderate Increases likely to continue into 2016 • Cos. very receptive to retain and train • Investing to develop existing skills, job families • Address current needs, spot market adjustments • On New Talent: • Wait-and-see before adding to payroll ranks • Wage compression caused by new EEs demanding higher salaries

8. Total Rewards, Trends and Plan Design Building Blocks, Compensation & Benefits: Key Foundation of a Total Rewards Strategy • Best Places to Work & Employers of Choice:

9. Employers Group: Employers of Choice Model

10. Total Rewards, Trends and Plan Design • Building Blocks, Compensation & Benefits: Key Foundation of a Total Rewards Strategy From WorldatWork, Total Rewards Model

11. Total Rewards, Trends and Plan Design • Building Blocks, Compensation & Benefits: Key Foundation of a Total Rewards Strategy

12. Total Rewards, Trends and Plan Design Building Blocks, Compensation & Benefits: Key Foundation of a Total Rewards Strategy How to rebuild or build a basic program - Checklist: • Where is your plan vs. key measures? Costs and market • 60% of companies have no salary ranges, they run on pure market pricing • Has the plan been maintained? • Internal alignment: Is it defendable? • Acknowledge jobs with multiple areas of responsibility • Define your market: Consider recruiting practices • Performance Management program: Include clear performance measures

13. Total Rewards, Trends and Plan Design EG’s Survey Program • Effective 2013, program has been converted to an online model • Features: • Personalized Survey Libraries (2009- ) • Access to all Survey Data, Comp & Benefits • Online comp market analysis • Quarterly Updates based on market movement • How to enroll? Build your Library by uploading your data: • (a) Match jobs to EG (b) EG will do match for you • System Enhancements • Allow users to enter non-EG market data – Q2, 2014 • Benefit Cost Assessment Analysis – Q3, 2014 • Job Evaluation System of all EG Jobs – Q4, 2014 • Consulting Program: Comp Administrative Modules

14. Total Rewards, Trends and Plan Design Attendees have been enrolled: egsurveys.net • 2014 Budgets and Economic Trends, (Reg. $295) • Employer Healthcare Benefits Survey, (Reg. $395) • This PowerPoint Presentation Access your account: Existing Users: • your email address • your current password New Users: • your email address • passwords: blueoc (My EG Compensation Page): blueoc If you did not select this as your PM Breakout, please see me after the presentation.

15. Total Rewards, Trends and Plan Design

16. Total Rewards, Trends and Plan Design • EG Compensation Tools: • Site Tour • Personalize Library • Online Market Analysis

17. Total Rewards, Trends and Plan Design Thank you!!! Juan P. Garcia 213.765.3969 jgarcia@employersgroup.com