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

2 Total Rewards, Trends and Plan Design ABOUT THIS PRESENTATION Plan Design & Compensation: Top-line trends Overall 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  Relying on soft employment levels & low turnover  Rebuilding / Overhauling existing plans  Evaluating other employee costs, pension, leaves, etc.  Spending more on performance management tools  Recalibrating payouts; Executive Compensation

4 Total Rewards, Trends and Plan Design Plan Design & Compensation: Top Trends Top Trends - continued  Internal Equity and Alignment  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: S oft increases, 3%, OT on the rise, “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 Hospitality: New minimum wage, wage compression concerns, part-time employees, training costs 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  Retain and train  Invest to develop existing skills  Address current needs On New Talent:  Wait-and-see regarding adding to payroll ranks  Higher salaries are causing wage compression

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: 1. Where is your plan vs. key measures, market?  60% of companies have no salary ranges, they run on pure market pricing 2. Has the plan been maintained? 3. Internal alignment: Is it defendable? 4. Acknowledge jobs with multiple areas of responsibility 5. Performance Management program: Include clear performance measurements

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- ) Complete Access to all Survey Data, Comp & Benefits Online comp market analysis Quarterly Updates based on market movement How to enroll? Upload 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 Enrollment into EG’s New Compensation Online Portal: egsurveys.net Enrolled  your  your current password New  your  passwords: blueie (My EG Compensation Page): blueie If you did not select this as your PM Breakout, please see me after the presentation.

15 Total Rewards, Trends and Plan Design egsurveys.net Enrolled, Cos. New Cos. BH Inc Pinnacle Designs Decra Roofing Systems Inc Evangelical Christian Credit Union FFF Enterprises Inc Film LA Inc Inter Valley Health Plan Kinemetrics Inc KTM NORTH AMERICA LifeStream Pentel of America Ltd Second Image Inc The Webb Schools Vicenti Lloyd & Stutzman LLP Armstrong Garden Centers / Pike Nursery Living Free Animal Sanctuary Los Angeles Homeless Services Authority MCA Inc/Maruhachi Mirion Technologies (GDS) Inc New Age Investments Reasons To Believe Redspin Sorenson Engineering U.S. Battery Manufacturing Wescom Credit Union Wilden Pump & Engineering

16 Total Rewards, Trends and Plan Design EG Compensation Tools: 2014 Budgets and Economic Trends, (Reg. $295) Employer Healthcare Benefits Survey, (Reg. $395) This PowerPoint Presentation Site Tour

17 Total Rewards, Trends and Plan Design Thank you!!! Juan P. Garcia