1. Hubbard County, Minn. Classification and Compensation Study Update GREG MANGOLD| AUGUST 5, 2014

2. ARTHUR J. GALLAGHER & CO. | BUSINESS WITHOUT BARRIERS™ Agenda Update on Study Progress Next Steps © 2014 GALLAGHER BENEFIT SERVICES, INC. 2

3. ARTHUR J. GALLAGHER & CO. | BUSINESS WITHOUT BARRIERS™ Why a Compensation and Classification Study? What are we trying to address? Review duties and responsibilities of all jobs Update and standardize job descriptions Evaluate all jobs for internal value relationships Collect market compensation and benefits data for benchmark jobs Develop a new or revised compensation system that is externally competitive and internally equitable Compensation policies and procedures Identify costs to implement © 2014 GALLAGHER BENEFIT SERVICES, INC. 3

4. ARTHUR J. GALLAGHER & CO. | BUSINESS WITHOUT BARRIERS™ Study Phases 1.Study Initiation and Planning 2.Classification Study 3.Job Evaluation Study 4.Compensation Study 5.Performance Management System Review 6.Organizational Structure Review 7.Submit Final Report © 2014 GALLAGHER BENEFIT SERVICES, INC. 4

5. ARTHUR J. GALLAGHER & CO. | BUSINESS WITHOUT BARRIERS™ 1. Study Initiation and Planning Meetings with employees and management: March 24-26 Review of current systems: March Understanding of issues and needs: On-going Understand/clarify Hubbard County’s compensation strategy: On-going © 2014 GALLAGHER BENEFIT SERVICES, INC. 5

6. ARTHUR J. GALLAGHER & CO. | BUSINESS WITHOUT BARRIERS™ 2. Classification Study Meetings with employees regarding Position Description Questionnaire (PDQ)completion: March 25-26 Employees complete PDQs: March-April Consultant reviews PDQs: April-May Consultant recommends classification structure along with consolidation of job titles: May 30 © 2014 GALLAGHER BENEFIT SERVICES, INC. 6

7. ARTHUR J. GALLAGHER & CO. | BUSINESS WITHOUT BARRIERS™ 3. Job Evaluation Study Consultant applies Decision Band Method to County’s jobs. Consultant forwards preliminary job evaluation results to County: May 30 © 2014 GALLAGHER BENEFIT SERVICES, INC. 7

8. ARTHUR J. GALLAGHER & CO. | BUSINESS WITHOUT BARRIERS™ 4. Classification Study Consultant provides preliminary labor market information to County: March 29 Consultant provides proposed benchmark jobs for salary and benefits survey to County: May 12 Consultant provides draft salary and benefits survey along with benchmark job summaries to County: July 4 © 2014 GALLAGHER BENEFIT SERVICES, INC. 8

9. ARTHUR J. GALLAGHER & CO. | BUSINESS WITHOUT BARRIERS™ Estimated Timeline (Months) PhaseDescription 123456789 I Study Initiation and Planning II Classification Study III Job Evaluation Study IV Compensation Study V Performance Management System VI (Addendum) Organizational Study VII Final Report © 2014 GALLAGHER BENEFIT SERVICES, INC. 9

10. ARTHUR J. GALLAGHER & CO. | BUSINESS WITHOUT BARRIERS™ Next Steps Move to finalization of classification structure Finalize definition of labor market County approves salary and benefits survey document Consultant distributes salary and benefits survey document to labor market organizations. © 2014 GALLAGHER BENEFIT SERVICES, INC. 10

11. Thank You Gallagher Benefit Services, Inc.