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 About this Presentation

3 Total Rewards, Trends and Plan Design Outline 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

4 Total Rewards, Trends and Plan Design Plan Design & Compensation: Top Trends Overall Trends  Rebuilding / Overhauling existing plans  Relying on soft employment levels & low turnover  Evaluating other employee costs, pension, leaves, etc.  Spending more on performance management tools  Integrating Employee Programs  Recalibrating payouts; Executive Compensation

5 Total Rewards, Trends and Plan Design Plan Design & Compensation: Top Trends Overall Trends - continued  Revaluating mission plan  Providing internal Equity and Alignment  Utilizing Job Descriptions  Understanding that Federal Contractors, Employment Practices may lead to Compensating Disparities  Including 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

6 Total Rewards, Trends and Plan Design Market Movement, Increases & Employment

7 Total Rewards, Trends and Plan Design Plan Design & Compensation: Top Trends Industry Trends: Manufacturing: soft increases, 3%, O.T. 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

8 Total Rewards, Trends and Plan Design Plan Design & Compensation: Top Trends OVERALL: Retain and train existing talent, spend on existing skill, address current needs, wait-and-see regarding adding to payroll ranks

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

10 Employers Group: Employers of Choice Model Employee Satisfaction

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

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? Has it being maintained?  Internal alignment: Is it defendable?  Does your plan runs on pure market pricing? (60% of companies have no salary ranges)  Updated JDs: Are they a clear snapshot of a job?  Performance Management: Do they include clear performance measurements  Sample: Total Plan Design:

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

14 Total Rewards, Trends and Plan Design EG Compensation Tools: Enrollment into EG’s New Compensation Online Portal: egsurveys.net New  your  password: **** Enrolled  your  your password If you did not select this as your PM Breakout, please see me after the presentation.

15 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

16 Total Rewards, Trends and Plan Design Thank you!!! Juan P. Garcia Site tour, egsurveys.net