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Agenda Business Climate Total Rewards Business Challenges Oracle Solutions

Business Climate

Have You Heard? Total Reward Solutions Provide…  Strategic Planning  Salary Equity  Flexible Offerings – Work/Life Balance  Pay For Performance  Alignment With Objectives  Employee Engagement  Employee Value

Total Rewards

Total Rewards… “Anything of value used to attract, retain, or motivate workers”

Employee Satisfaction & Engagement Global Total Rewards Strategy….. Business Strategy Resources Human Strategy Organization Culture STRATEGY TOTAL REWARDS Work / Life Compensation Benefits Performance & Recognition Development & Opportunities Business Performance & Results Source: WorldatWork Attract Motivate Retain

Business Challenges

Business Pressures Workforce Demand How can I attract the right talent at the least cost? How can I determine the right compensation package? How can I retain my best? Manage Processes How can I effectively manage high volume as well as individual processes? How can I make real-time as well as future changes? Balance Goals How can I align compensation with organization and employee objectives? How can I comply with legislation and contractual commitments? How can I optimize performance? Environmental/Geographical Challenges How can I structure condition- based rewards? How can I manage globally? StrategyStrategyAllocateAllocateProcessProcess

Top 10 Global Drivers of….. Attraction – Recruiting the Right People Retention – Keeping the Best People Engagement – Securing Discretionary Effort Competitive Base Pay Organization Retains People W/ Needed Skills Opportunities To Learn and Develop New Skills Work/Life BalanceSatisfaciton w/ Organization’s People Decisions Improved My Skills & Capabilities Over The Last Year Challenging Work My Manager Understands What Motivates Me… Reputation Of Organization Career Advancement Opportunities Balance Work and Personal LifeInput into Decision Making in my Department Salary Increases Linked To Performance Reputation Of Organization Organization Focuses on Customer Satisfaction Learning & Development Opportunities Low – or No-Stress Work Environment Salary Criteria Are Fair and Consistent Reputation Of OrganizationOpportunities to Learn & Develop New Skills Good Collaboration Across Units Competitive Retirement BenefitsRetirement Benefits That Meet My Needs Appropriate Amount of Decision-Making Authority To Do My Job Well Caliber Of Coworkers Fairly Compensated Compared To Others Doing Similar Work In Senior Management Acts to Ensure Organization’s Long-Term Success Organization FinancialOrganization Effectively Communicate Career Opportunities Senior Management Interest in Employee Well-Being What It Takes to Attract, Retain and Engage Employees… At a Glance… Source: Towers Perrin

Organization Objectives Employee Strategic Total Rewards Finding the ‘Right’ Balance “A modern Compensation plan needs to have several components that balance the needs of attracting and maintaining a competitive workforce and the financial resources and priorities of the business.” Matt Filos Director, LTM Operations and Control, Merrill Lynch

Oracle Solutions

Talent Planning Career Planning Compensation Measure & Report Incentive Compensation Integrated Total Rewards LifeCycle Performance Management Learning & Development Recruiting Talent Profile Benefits PlanAnalyze Advance Develop RewardEvaluate Rewards Total

Talent Planning Career Planning Compensation Assess & Communicate Incentive Compensation Integrated Total Rewards LifeCycle Performance Management Learning & Development Recruiting Benefits PlanAnalyze Advance Develop RewardEvaluate Rewards Total

PlanAnalyze Advance Develop RewardEvaluate Rewards Total Talent Planning Compensation Assess & Communicate Integrated Total Rewards LifeCycle Performance Management Relocation Sign On Bonus Salary Market Survey Recruiting Career Planning Learning & Development Benefits Incentive Compensation

PlanAnalyze Advance Develop RewardEvaluate Rewards Total Talent Planning Compensation Assess & Communicate Integrated Total Rewards LifeCycle Management By Objectives Performance Management Recruiting Career Planning Learning & Development Benefits Incentive Compensation

PlanAnalyze Advance Develop RewardEvaluate Rewards Total Professional Credentials Tuition Reimbursement Job Promotions Talent Planning Compensation Assess & Communicate Integrated Total Rewards LifeCycle Performance Management Recruiting Career Planning Learning & Development Benefits Incentive Compensation

PlanAnalyze Advance Develop RewardEvaluate Rewards Total Talent Planning Compensation Assess & Communicate Integrated Total Rewards LifeCycle Performance Management Recruiting Career Planning Learning & Development Merit Increase Step Increase Benefits Incentive Compensation

PlanAnalyze Advance Develop RewardEvaluate Rewards Total Talent Planning Assess & Communicate Incentive Compensation Integrated Total Rewards LifeCycle Performance Management Recruiting Total Rewards Statement Reports Metrics & Compensation Career Planning Learning & Development Benefits

PlanAnalyze Advance Develop RewardEvaluate Rewards Total Talent Planning Assess & Communicate Integrated Total Rewards LifeCycle Performance Management Relocation Sign On Bonus Salary Market Survey Recruiting Total Rewards Statement Reports Metrics & Compensation Career Planning Learning & Development Benefits Management By Objectives Professional Credentials Tuition Reimbursement Job Promotions Benefits Merit Increase Step Increase Incentive Compensation

Flexible, complete, integrated Process Management Common Security Approvals Workflow Best Practice Process Templates ‘Feels like home’ Portal Decision Support Embedded Analytics CorporatePolicy Knowledge Collaboration Business Practices Partner Integration Process Automation Manual Activities Integrated Data Model Total Rewards Solution Components

Better Business Decisions In Action….. Analyze the Data Drilldown to Transaction Data & Other Metrics Enter Data Communicate Total Compensation

Integrated Total Rewards Strategic Advantages  Single Sign-on  Same User Experience  Integrated Data Model  Consistent Communications  Unified Security and Approvals  Best Business Practices  Business Intelligence  Integrated Business Processes  Embedded Decision Aids  #1 HCM application

Improve Company Performance Effective Total Rewards programs produce a… Satisfied and Engaged Workforce And Increase the Bottom Line

Customer Success Profile COMPANY OVERVIEW Retail Industry Location: Texas The largest retailer of arts and craft materials 40,000 employees CHALLENGES/OPPORTUNITIES Single source of workforce information Strong “ Talent Management ” functionality Configuration flexibility to automate compensation eligibility and calculations ORACLE E-BUSINESS SUITE Human Resources Advanced Benefits Self-Service Talent Management Performance Management Compensation Workbench Learning Management RESULTS Automate via self-service key HR processes to server over 900 stores in US and Canada Eliminate over 180,000 faxes per year for HR processing Equip store managers with self-service and information to better manage workforce Tightly link performance evaluation to reward by leveraging Oracle’s integrated “Talent Management” processes Automate processes and controls for positions, pay rates, appraisal/ merit process Positively impact bottom-line by reducing #1 expense - Payroll

Customer Success Profile COMPANY OVERVIEW High Technology Industry Location: Boston, MA 850 employees WHY ORACLE? Oracle is a partner in understanding business and functional needs Greatest amount of functionality for long-term growth Exceptional reporting capabilities ORACLE E-BUSINESS SUITE Human Resources Advanced Benefits Self-Service Compensation Workbench Time and Labor RESULTS  Increased employee base by 50% while maintaining same administrative staff size  Consolidated four systems into one integrated solution  Compensation Workbench allows them to assess information, report progress and identify issues in real time  Reduced compliance costs, increased service quality and lowered IT maintenance costs across the many divisions “Mercury Computer has been able to lower compliance costs, increase service quality and lower IT maintenance costs across the many divisions.” CUSTOMER QUOTE: Steve Nigzus CIO Mercury Computer Systems

Customer Success Profile Cree Goes High Tech with Oracle HRMS COMPANY OVERVIEW Semiconductor Industry $423 Million in Revenue 1,700 employees Based in Durham, North Carolina CHALLENGES/OPPORTUNITIES Transition users from call center dependency to self-service technology as the primary delivery method for HR support Reduce the use of spreadsheets to update and maintain sensitive salary and performance data Implement a corporate wide merit and stock options planning system with consistent processes Reduce the duplication of effort associated with updating static information sources Decrease dependency on instructor-led training as the primary training vehicle Implement a learning solution to meet employee development requirements and extend benefit offerings via internet-based learning ORACLE E-BUSINESS SUITE Human Resources Advanced Benefits Self Service (including Compensation Workbench) Learning Management RESULTS Reduced HR administrative tasks and improved the quality of employee data Leveraged Oracle to consistently manage complex benefit plans and provided a professional open enrollment experience for users Enabled remote learning, competency management and reporting in a single instance Simplified salary, merit and stock awards through the flexibility and robustness of Compensation Workbench February 2007 Source: Xcelicor

Talent Planning Assess & Communicate Succession Planning Performance Management Relocation Sign On Bonus Salary Market Survey Recruiting Total Rewards Statement Reports Metrics & Compensation Career Planning Learning & Development Benefits Management By Objectives Professional Credentials Tuition Reimbursement Job Promotions Benefits Merit Increase Step Increase PlanAnalyze Advance Develop RewardEvaluate Rewards Total Demo

Total Compensation Statement

Functional Overviews Compensation Workbench

Functional Overviews Oracle Incentive Compensation

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