1. Money is important, but it ain’t everything … Patrick Murray Watson Wyatt & Company 503.598.4445

2. 2 Key Points How employees see the “value proposition” of a job What research shows about how IT workers feel about the workplace What high performers say about attraction and retention

3. 3 The real world … IT workers have options when it comes to choosing where to work Companies “sell” their jobs to workers who “buy” them Current employees must be continually “re-sold” their jobs Employers who ignore the need to re-recruit are vulnerable The balance of power between buyer and seller shifts, so flexibility is critical

4. 4 Value Proposition Value proposition “bundle of products and services that a vendor offers to sell and the potential benefits a buyer derives from them” =

5. 5 Employment Value Proposition MONETARY NON-MONETARY Advancement Opportunity Training & Development Work Environment Project Type Professional Recognition Mentoring Performance Management Flexible Work Schedule Base Pay Benefits Incentives Cash Recognition

6. 6 Preferred Employer Matrix Preferred Employer Summer Camp True Believers Just Another Job Medium Low High Personal Engagement 0102030405060708090100 LowHighMedium Work Environment 0 10 20 30 40 50 60 70 80 90 100

7. 7 Research on Worker Attitudes WorkUSA2002® National research campaign – 15 years Employee input, not employer input Sampling methodology ensures results are representative Demographics include “Information Services/Technology” job type Data gathered in early 2002

8. 8 Highlights – IT Workers 82% said they intend to stay with their company for another year 75% said they have confidence in the long-term business success of their company 56% said they were satisfied with their company at the present time 71% said they have a good understanding of how their jobs contribute to achieving company goals

9. 9 Highlights – IT Workers 63% said they are satisfied with their benefits 52% said they are satisfied with their pay 71% said they know the skills needed to be successful in their company

10. 10 Highlights – IT Workers 73% say their departments provide good quality customer service to internal customers/80% say service quality to external customers is good (This is one of the few areas where IT workers differ significantly from other survey participants) 61% rate their immediate supervisors as effective

11. 11 Highlights – IT Workers 30% said their company has changed for the worse in the last 12 months 55% said their level of on-the-job stress has increased in the last year 28% said they did not believe information they received from management 40% said there is no clear link between their job performance and their pay 28% said there are not enough workers to handle the workload in their departments

12. 12 Highlights – IT Workers 34% said their companies do not do a good job of providing opportunities for advancement (promotion) – 36% said their company did a good job 46% said their companies do a poor job of dealing with people who have performance problems/promoting people who are the most qualified

13. 13 Top 5 reasons high performers would leave a job… 1. Dissatisfaction with pay 2. Dissatisfaction with management 3. Inadequate promotion opportunities 4. Inadequate opportunities to develop skills 5. Conflict with manager/uncomfortable with work environment Source: Top Performing Employee Survey, WW

14. 14 Top 3 factors causing IT workers turn-over… 1. Lack of market rate salary adjustments 2. Disruptive organizational changes – e.g.; M&A activity, outsourcing, internally driven changes 3. Perception that their skills are becoming outdated Source: META Group IT Staffing & Compensation Guide

15. 15 Conclusion Money can be a major source of dissatisfaction – so you have to get it “right”, which means being competitive Manage the work environment so that employees perceive they work for a Preferred Employer