1. Creating a “Healthy Culture” to Increase Employee Productivity, Reduce Related Program Costs and Improve Overall Business Performance HR Specialty Products & Services Catalogue Executive Summary A No Frills Distillation of Vendor’s Marketing Collateral Thomas A Ference President & CEO Human Resources Mining & Distribution Co Locating, Validating and Accelerating HR Innovation Office: 219-662-0201 Cell: 630-240-2583 Fax: 219-661-0236 e-mail: tference@hrmdco.comtference@hrmdco.com Website: www.hrmdco.comwww.hrmdco.com

2. Creating a Healthy Culture In spite of well-intentioned efforts by HR, the health and well-being of the workforce may continue to steadily decline due the employer’s culture and employees’ lifestyle choices and behaviors. This can result in escalating health costs, absenteeism, disability rates and safety incidents plus lost productivity. This consultancy deploys a proven methodology that draws the various stakeholders into a “Healthy Culture” initiative. Goal is to redefine then guide desired employee behaviors in order to achieve the employer’s desired results - all within current or reduced budget constraints.

3. Creating a Healthy Culture Generally, the process involves facilitation with key stakeholders to articulate a vision for a future state including the strategic priorities and guiding principles. An action plan is developed that defines program and process redesign, implementation of revised plans / programs and communication. Behavioral design and rigorous actuarial modeling of program options ensure budgeted dollars are optimized. Customized success metrics are designed and applied to monitor progress and success in achieving the vision. Results typically include improved employee experience and workforce health, a reduction in unscheduled absences and other program costs plus increases in employee productivity and overall business performance.

4. Healthy Culture Development Process Current Wellness Action Plan Budget & Metrics Vision & Strategy Culture Assessment Key Stakeholders Program Revisions Process Redesign Communication Change Management Behavioral Design Actuarial Modeling Budget Optimization Custom Metrics Reduced Program Costs Improved Employee Experience Productivity Increases Improved Business Results -Finance -HR -Risk -Operations -Organization Foundation - Engagement - Vitality

5. Case Study 1 – Healthy Culture at Health System A midsize health system (1,400 employees) faced financial distress and the need for business transformation Annual increases in the healthcare benefits plan were in the 12% to 15% range and employees were not engaging in wellness initiatives in spite of having hundreds of dollars of wellness incentives available to them with very good wellness program offerings HR and benefits wanted to move from traditional wellness approaches to a Healthy Culture initiative so as to inspire employee performance and engagement and garner alignment with the new business strategy The consultant facilitated the development of an inspiring vision with key stakeholders leading to a strategy to achieve the vision that included identified success metrics for measuring achievement of the vision Compensation, benefit and talent management programs were re-designed from a behavioral perspective and aligned to support the new vision Engagement in Healthy Culture initiatives increased to 91% for employees (up from 17% ) and 85% for spouses (up from 0%) resulting in $1 million reduction in health care expenses (including the costs of wellness and incentives)

6. Case Study 2 – Healthy Culture for Higher Education An internationally renowned private university and hospital system (26,000 employees) with two decades of experience in wellness wanted to better align its people investments so as to transform its campus and the surrounding community The consultant facilitated a process with the institution’s executives, academic and clinical experts resulting in a vision and strategy along with associated metrics for success Current and future investments in each the community, with providers and in their people were realigned to establish a more visible presence and transformation in the community and to influence behaviors of their current and future employees, students and patients Engagement in initiatives increased by 30%, Prevalence of risk dropped to half the national norms. 80% to 90% of employees at risk for conditions like blood pressure and cholesterol reduced their risk and 60% to 70% became risk free Health care benefit program cost increases averaged only 1% over a four year period compared to double digit norms and their was a 17% drop in unscheduled absences

7. Next Steps This product/service is contained in the HR Specialty Products & Services Catalogue™ Operational level details about this particular service provider can be obtained in conference with the vendor The HR Mining & Distribution Co. is an independent and contracted representative of the vendor Upon your request, we will arrange for an introduction that can range from a simple, quick conference call to a services overview / system demo Tom Ference 219-662-0201 (Chicagoland area) or tference@hrmdco.com Thank you for your potential interest in this fresh thinking